McDonald's faced many challenges during the COVID-19 pandemic. However, with robust delivery and drive-thru systems, McDonald's was able to quickly adapt to changing consumer behaviors and preferences during the pandemic. Overall, McDonald's has managed the challenges of the pandemic relatively well and continues to be a leading player in the fast food industry.
According to StreetAccount's estimates, the fast food giant is expected to report revenue growth of approximately 8%.[1] However, investors are likely to be more interested in management's update on progress in the current quarter. McDonald's is often considered a leading indicator of the broader restaurant industry and consumer spending.
Investors will also be looking for information on the company's recent layoffs and strategy update. In January, McDonald's announced it was accelerating the development of new restaurants and restructuring its corporate framework, which earlier this month included cutting hundreds of jobs.
In late January, CEO Chris Kempczinski predicted a mild to moderate recession in the U.S. and a deeper and longer downturn in Europe. Fast-food chains such as McDonald's generally perform better than other restaurants during economic downturns due to lower prices. McDonald's shares have risen 11% this year, bringing its market value to USD 214 billion.*
McDonald's Corporation's stock performance over the past 5 years. (Source: Investing)
* Past performance is no guarantee of future results.
[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.
