[Click eStock] "McDonald's, Gradual Earnings Recovery Expected in Q2... Bottom-Fishing Effective"

[Asia Economy Reporter Park Jihwan] Hana Financial Investment evaluated on the 26th that McDonald's is expected to gradually recover its performance from the second quarter as the bottom, and that a buying strategy targeting the second half of the year during corrections seems effective.

According to major foreign media, McDonald's sales and operating profit for this year are expected to be $18.34 billion and $6.7 billion, respectively. These figures represent a decrease of 13.0% and 26.1% compared to the previous year.

Shim Eunju, a researcher at Hana Financial Investment, explained, "The first half was inevitably negatively affected by the novel coronavirus infection (COVID-19)," adding, "The impact of COVID-19 starting from March led to market expectations being missed. This was due to poor morning menu sales caused by the expansion of remote work and the suspension of operations at European stores."

However, gradual performance recovery is expected from the second quarter.

Researcher Shim Eunju evaluated, "Stores that had suspended operations due to COVID-19 are reopening, so the second quarter is expected to be the bottom with gradual recovery in the second half." In particular, the operating rates of IOM (Australia and European markets) and IDLM (China and Asian markets) surged from 45% and 75% in April to 90% and 95% as of the 15th of this month. Currently, the overall store operating rate is understood to have recovered to 95%.

Researcher Shim said, "It is also positive that the decrease in SSS (Same Store Sales) is calming down as COVID-19 passes its worst phase in the United States and Asian countries," and added, "All regions including the US, IOM, and IDLM showed the worst in April and are showing gradual recovery."

This content was produced with the assistance of AI translation services.