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McDonald’s Corp expects overall sales growth in the “low double digits” in 2021, relying on an increase in its U.S. market after total revenue fell 2.1 percent to $5.31 billion, missing the $5.37 billion estimate.
To drive its US business, McDonald’s has leaned on its US drive-thrus, celebrity collaborations such as the Travis Scott Meal, and limited offers like the McRib sandwich.
The company also posted earnings per share of $1.70, excluding one-time items, to miss the average analyst estimate by 8 cents.
Comparable sales in the US rose 5.5 percent, beating a 5.15 percent estimated increase while comparable sales in its international operated markets plunged 7.4 percent.
The Chicago-based fastfood's sales were weak in France, Germany, Italy and Spain, where the coronavirus crisis has been intense.
Tough restrictions by European countries to control the pandemic compounded the difficulties faced by the restaurant industry, already reeling from the impact of COVID-19.
According to Kevin Ozan, Chief Financial Officer, Those markets are not expected to see margins return to pre-COVID levels in 2021.
McDonald’s still expects to open 1,300 restaurants globally this year.
Shares in McDonald’s jumped by about 1 percent after its global comparable sales fell just 1.3 percent for the fourth quarter, better than the expected 1.46 percent dip. It was also an improvement over the previous quarter when they fell 2.2 percent on-year.
