CHICAGO, Oct. 8, 2020 /PRNewswire/ -- "Our third quarter
performance demonstrates the underlying resilience of the
McDonald's brand. Our unique strengths, including our unrivaled
drive-thru presence around the world, advanced delivery and digital
capabilities, and marketing scale have become even more important
during the pandemic. Our prior investments in these areas position
us to further our competitive advantage and enable restaurant crew
to continue to safely provide customers our great tasting food,"
said McDonald's President and Chief Executive Officer Chris Kempczinski. "Today's dividend increase
reflects our strong financial position and represents continued
confidence in our ability to drive profitable growth and long-term
shareholder value while still investing in our people and the
business."
Third Quarter Comparable Sales
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Increase/(Decrease)
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Quarters Ended
September 30,
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2020
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2019
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U.S.
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4.6
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%
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4.8
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%
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International
Operated Markets
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(4.4)
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5.6
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International
Developmental Licensed Markets & Corporate
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(10.1)
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8.1
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Total
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(2.2)
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%
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5.9
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%
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- Comparable Sales: Monthly comparable sales results
improved sequentially for all segments throughout the third quarter
of 2020.
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- U.S.: Comparable sales were positive throughout the
quarter, benefiting from strong average check growth from larger
group orders as well as strong performance at the dinner daypart.
The Company's strategic marketing investments and resulting
promotional activity drove low double-digit comparable sales for
the month of September, including positive comparable sales across
all dayparts. Comparable guest counts remained negative for the
quarter.
- International Operated Markets: Comparable sales results
improved throughout the quarter, with consumer sentiment and
government regulations impacting the pace of recovery from
COVID-19. Limited operations also remained in place for some
markets. Comparable sales varied across markets with negative
comparable sales in France,
Spain, Germany and the U.K., partly offset by
positive comparable sales in Australia.
- International Developmental Licensed Markets: Comparable
sales results were impacted by negative comparable sales in
Latin America and China, partly offset by strong positive
comparable sales in Japan.
Quarterly Cash Dividend
On October 7, 2020, McDonald's
Board of Directors declared a quarterly cash dividend of
$1.29 per share of common stock
payable on December 15, 2020 to
shareholders of record at the close of business on December 1, 2020. This represents a 3% increase
over the Company's previous quarterly dividend. While current year
business results have been impacted by the COVID-19 pandemic, the
pace of recovery paired with the Company's strong financial
position support this increase to the dividend while still giving
the Company the ability to invest in the business.
McDonald's has a strong history of returning capital to its
shareholders and has raised its dividend for over 40 years
consecutively since paying its first dividend in 1976. The new
quarterly dividend of $1.29 per share
is equivalent to $5.16 annually.
November Investor Update
McDonald's will host a virtual Investor Update on Monday, November 9, 2020 following the third
quarter earnings release call.
At this event, Chris Kempczinski,
Kevin Ozan and other members of
McDonald's senior management team will provide an update on
strategic priorities for the business with analysts, investors and
media.
For additional information and registration details, please
visit: http://investorupdate.mcd.com or the Investor Events section
of the Company's Internet home page at
www.investor.mcdonalds.com.
THE FOLLOWING DEFINITIONS APPLY TO THESE TERMS AS USED
THROUGHOUT THIS RELEASE
Constant currency results exclude the effects of foreign
currency translation and are calculated by translating current year
results at prior year average exchange rates. Management reviews
and analyzes business results excluding the effect of foreign
currency translation, impairment and other strategic charges and
gains, as well as income tax provision adjustments related to the
Tax Cuts and Jobs Act of 2017, and bases incentive compensation
plans on these results, because the Company believes this better
represents underlying business trends.
Comparable sales are compared to the same period in the prior
year and represent sales at all restaurants, whether operated by
the Company or by franchisees, in operation at least thirteen
months including those temporarily closed. Some of the reasons
restaurants may be temporarily closed include reimaging or
remodeling, rebuilding, road construction and natural disasters
(which includes restaurants temporarily closed due to COVID-19 in
2020). Comparable sales exclude the impact of currency translation,
and, since 2017, also exclude sales from Venezuela due to its hyper-inflation.
Management generally identifies hyper-inflationary markets as those
markets whose cumulative inflation rate over a three-year period
exceeds 100%. Management believes that these exclusions more
accurately reflect the underlying business trends. Comparable sales
are driven by changes in guest counts and average check, which is
affected by changes in pricing and product mix. The goal is to
achieve a relatively balanced contribution from both guest counts
and average check.
Comparable guest counts represent the number of transactions at
all restaurants, whether operated by the Company or by franchisees,
in operation at least thirteen months including those temporarily
closed.
UPCOMING COMMUNICATIONS
McDonald's plans to release third quarter earnings for the
quarter ended September 30, 2020
before the market opens on November 9,
2020 and will broadcast its investor earnings conference
call live over the Internet at 7:30 a.m.
(Central Time) on November 9,
2020. A link to the live webcast will be available at
www.investor.mcdonalds.com. There will also be an archived webcast
available for a limited time thereafter.
McDonald's will broadcast an upcoming virtual Investor Update
live over the Internet on November 9,
2020. For additional information and registration details,
please visit: http://investorupdate.mcd.com or the Investor Events
section of the Company's Internet home page at
www.investor.mcdonalds.com. There will also be an archived webcast
available for a limited time thereafter.
For important news and information regarding McDonald's,
including the timing of future investor conferences and earnings
calls, visit the Investor Relations section of the Company's
Internet home page at www.investor.mcdonalds.com. McDonald's uses
this website as a primary channel for disclosing key information to
its investors, some of which may contain material and previously
non-public information.
ABOUT McDONALD'S
McDonald's is the world's leading global foodservice retailer
with over 39,000 locations in over 100 countries. Approximately 93%
of McDonald's restaurants worldwide are owned and operated by
independent local business owners.
FORWARD-LOOKING STATEMENTS
This release contains certain forward-looking statements,
including statements regarding the impacts that the COVID-19
pandemic and our responses thereto may have on our ability to drive
profitable growth, which reflect management's expectations
regarding future events and operating performance and speak only as
of the date hereof. These forward-looking statements involve a
number of risks and uncertainties. Factors that could cause actual
results to differ materially from our expectations are detailed in
the Company's filings with the Securities and Exchange Commission,
including the risk factors discussed in the Company's annual and
quarterly filings. The Company undertakes no obligation to update
such forward-looking statements, except as may otherwise be
required by law.
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SOURCE McDonald's Corporation