McDonald’s sales were hit by Covid-19 restrictions

McDonald’s sales were hit by Covid-19 restrictions

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The company said on Thursday that sales at American restaurants open at least a year have increased by 5.5% in the three months ended December 31. She said her marketing investments, especially those with basic menu items, like chicken McNuggets, were worth it.

But while sales in the U.S. have grown, McDonalds (MCD) international sales were hampered by Covid-19’s restrictions in Europe. European countries announced blocking measures in the fall and during the holidays. Some extended them in the new year, as a new variant of the coronavirus spreads. Restrictions include curfews that affect hours of operation and limits on dining capacity or closings of dining rooms.

To combat the restrictions, “we are trying to do as much as we can to boost our drive-thru, delivery, our digital businesses,” said CEO Chris Kempczinski during an analyst call to discuss profits.

A customer has his temperature checked while in line to enter a McDonald's Corp. restaurant. in Milan, Italy, on Monday, May 18, 2020.

Overall, McDonald’s revenue fell about 2% in the quarter, to $ 5.3 billion, missing Wall Street expectations.

Looking ahead, McDonald’s is focusing on its loyalty program, which will launch in the United States this year, chicken offerings, which include crispy new chicken sandwiches that hit restaurants next month, and value options.

“What we are seeing now is that the concern about economic uncertainty is by far the only … biggest concern that exists with our consumers,” said Kempczinski. “We believe that accessibility will be one of the things we all need to focus on prudently in 2021.”

The company has been offering offers on its app to encourage people to try classics like Big Macs or Egg McMuffins and new products like cinnamon rolls, he added.

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