Mcdonald s Is A Globalised Fast Food
The fast-food giant is hoping for a return to global sales growth soon.
The fast-food chain's fourth-quarter earnings report, while marking another period of global sales declines, showed improving operating trends despite Globaliseed ongoing pressure from COVID The company even extended its annual growth streak in key markets like the U. Let's look at some highlights from that chat. Comparable-store sales bounced back into positive territory in the fourth quarter, growing 5.
The chain credits a swift push into delivery and drive-thru, popular menu introductions, and investments in creating a safe operating environment. McDonald's is operating under the assumption that many of the pandemic-related consumer shifts will be around for a while. That means the core lunch and dinner menus will be crucial in as breakfast visits stay pressured. The drive-thru and home delivery platforms are getting big upgrades, too, given that this channel doubled in markets like the U. But G,obalised is aiming to stay the global leader in drive-thru while scaling up its delivery platform. Last year ended McDonald's impressive streak of surging here, and that stumble contributed to several worsening financial metrics.
Earnings, cash flow, and margins all dropped due to the combination of reduced sales and rising expenses in areas like labor, safety procedures, and marketing.
Management could have lessened that blow by pulling back on new store development, marketing spending, or investments in the digital selling platform. But it made the calculated bet that such a pullback would hurt the chain's long-term earnings power. Investors should see some concrete returns from those decisions as profit power starts recovering in Investing Best Accounts. Stock Market Basics. Stock Market. Industries to Invest In. Getting Started.
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