McDonald’s sales hit by Covid-19 restrictions

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The company said Thursday that sales at U.S. restaurants open at least a year ago rose 5.5% in the three months ending Dec.31. She said her marketing investments, especially those offering staples like Chicken McNuggets, have paid off.

But as sales in the United States have increased, Mcdonalds (MCD) international sales have been dragged down by Covid-19 restrictions in Europe. European countries have announced lockdown measures in the fall and during the holidays. Some have extended them into the new year as a worrying new variant of the coronavirus spreads. The restrictions include curfews that impact opening hours and restaurant capacity limits or dining room closures.

To fight the restrictions, “we’re trying to do whatever we can to boost our drive-thru, our digital business,” CEO Chris Kempczinski said on a call to an analyst discussing the results.

Customer has her temperature checked as she lines up to enter a McDonald's restaurant s Corp. in Milan, Italy on Monday, May 18, 2020.

Overall, McDonald’s revenue fell about 2% in the quarter to $ 5.3 billion, missing Wall Street expectations.

Going forward, McDonald’s is focusing on its loyalty program, which will launch chicken offerings in the United States this year, which include new crispy chicken sandwiches arriving in restaurants next month, and value options.

“What we’re seeing right now is that concern for economic uncertainty is, by far, the only… biggest concern that exists with our consumers,” Kempczinski said. “We believe affordability will be one of the things we all need to stay focused on cautiously in 2021.”

The company has offers in its app to encourage people to try classics like Big Macs or Egg McMuffins and newer products like cinnamon buns, he added.

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