Earnings Labs

McDonald's Corporation (MCD)

Q3 2020 Earnings Call· Mon, Nov 9, 2020

$292.39

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Transcript

Operator

Operator

Hello, and welcome to McDonald’s Third Quarter 2020 Investor Conference Call. At the request of McDonald’s Corporation, this conference is being recorded. I would now like to turn the conference over to Mr. Mike Cieplak, Investor Relations Officer for McDonald’s Corporation. Mr. Cieplak, you may begin.

Mike Cieplak

Operator

Good morning, everyone, and thank you for joining us. Before we get started, I want to remind everyone that the forward-looking statements in our earnings release and 8-K filing also apply to our comments on the call today. Both of those documents are available on our website as are any reconciliations of non-GAAP measures mentioned on today’s call with their corresponding GAAP measures. Today’s conference call is being webcast, and a replay of this call will be available on our website. We have a couple of updates that we’re providing today. We’ll cover our third quarter 2020 earnings release on this call. And with me this morning is our Chief Financial Officer, Kevin Ozan. Please note that Kevin’s commentary will be limited to prepared remarks as we’ll follow this call with a virtual investor update we're beginning at 8:30 a.m. Central Standard Time. Our President and Chief Executive Officer, Chris Kempczinski, will be joined by Kevin and members of our leadership team to provide an update on our strategic priorities followed by a Q&A session. Registration details can be found on the Investor Events section of our website. And now, I’ll turn it over to Kevin.

Kevin Ozan

Analyst

Thanks, Mike, and good morning, everyone. Since March, we’ve reminded everyone that we entered the pandemic from a position of strength with unique advantages that helped ensure our success is built to last. This has only become more evident as we look at the significant progress our markets around the world made in the third quarter. Global comparable sales improved sequentially from Q2 and throughout Q3, with sales down 2.2%, including month-over-month improvement across all segments. Our success comes from leveraging our competitive advantages, the trust our customers have in our brand; our operational strength, including our significant drive-thru presence and delivery capabilities; and the unwavering commitment across our system, all grounded in an intense focus on the safety of our customers and crew. We’re pleased with our recovery to date, but we also understand there inevitably will be more starts and stops with virus resurgences. We’re already seeing this in many markets in all parts of the world. As a reminder, we started the third quarter with nearly all of our global restaurants open for business, and they remain open today. However, with the resurgences I mentioned, there are numerous instances of government restrictions on operating hours, limited dining capacity in most countries, and in some cases mandated dining room closures. Around the world, comp sales continued to be driven by check growth from larger orders. This is particularly true with our drive-thru business, which continues to be one of our biggest areas of strength. In most markets, our drive-thru sales percentage peaked during the second quarter and remains elevated when compared to historical norms. This safe and convenient service channel has been especially appealing to customers during the pandemic. Similarly, delivery sales have also increased meaningfully across substantially all of our major markets. We provided an update on…

Mike Cieplak

Operator

Thanks, Kevin, and thank you all for joining us. This concludes our third quarter 2020 earnings call. As Kevin just mentioned, our investor update presentation begins soon at 8:30 am Central Standard Time, and we look forward to connecting with you then. End of Q&A: This does indeed conclude McDonald’s Corporation investor conference call. You may now disconnect.