McDonald’s Corporation (MCD) saw like-for-like sales thrive in the first quarter of 2021, particularly in the United States. Several factors indicate that the company has made significant progress after the difficult quarters associated with COVID-19.
McDonald’s, which manages nearly 40,000 restaurants worldwide, saw revenue grow nine percent year over year in the first quarter. Compared with pre-crisis 2019, the growth rate was 3.5%, which was consistent with the company’s annual growth rate. Global LFL sales for the restaurant chain grew 7.5% year-over-year, outpacing the 2019 figure when companies worldwide operated according to schedule. The second quarter of 2020 saw McDonald’s LFL sales decline 24 % year-over-year (the first lockdown period). Sales growth in the US market is the strongest this year, up 14 % year-over-year.
Fast-food chain McDonald’s helped the recovery with its varied geography and digital technology. During the pandemic, the company had sufficient funds to invest in digital capabilities and accelerate sales and supply growth. McDonald’s continues to pay dividends, which are of great importance to shareholder value.
Since McDonald’s Corporation (MCD) overhauled their menu in the previous few months, the average order value has increased. There are now three main areas of focus for the company: digital sales, drive-thru sales, and delivery. In the future, growth will be driven primarily by this factor. In the past four years, there has been an increase of 3,000 delivery points to 30,000, or about 75% of total stores worldwide. In addition, there are now 25,000 drive-thru stores operating.
The company’s growth rate in the first quarter was roughly in line with its previous results before the pandemic. In addition, growth factors currently meet the needs and demands of consumers, ensuring the normal functioning of the restaurant chain in the event of a recurrence of unfavorable conditions. A company-wide expansion program is also underway. This year, fast-food giant McDonald’s plans to open about 500 new restaurants to stay at the top of the market.
McDonald’s Corporation (MCD) saw its share price increase by 29.66% over the past year. Stock prices have dropped -0.53% over the last five trades and risen 1.99% over the past 30. Yet, the share price has increased 9.29% in the last six months and 10.47% during the previous three months.