McDonald's Evaluating Franchisees' Operations, Considering Rent Deferral
March 25 2020 - 9:59AM
Dow Jones News
By Dave Sebastian
McDonald's Corp. said it is working with its global franchisees
to evaluate their operations amid the coronavirus pandemic and
explore liquidity measures such as rent deferrals.
The fast-food chain Wednesday also said it is working with
suppliers on contingency planning to ensure supply.
The company said it has closed all restaurants in countries such
as France, Italy, Spain and the U.K. as measures to contain the
pandemic have crippled businesses. It has limited operations, which
include drive-thru, delivery and take-out, in markets such as
Australia, Canada and Germany, the company said.
In the U.S., restaurants are operating for drive-thru, delivery
and take-out only with limited menu and hours, McDonald's said.
Restaurants are operating in Japan, its China business is
operating about 95% of restaurants, McDonald's said.
The company said the pandemic's effect on its business could be
material, adding that it can't yet predict the scope of the health
crisis. It said it would provide an update on its first-quarter
earnings release.
McDonald's also added a set of risk factors to its regulatory
filing to reflect the pandemic's effect.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
March 25, 2020 09:44 ET (13:44 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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