McDonald's profits fall on virus as consumer traffic shifts

McDonald's reported a drop in first-quarter profits Thursday in the wake of coronavirus restrictions as it moved to fortify vulnerable franchisees amid shifting consumer behavior.

The company has seen the biggest drops in breakfast consumption, due to the increase in at-home dining, and said weekend traffic has lagged workday visits when more consumers and essential workers are out and about. At the same time, McDonald's moved to relieve franchisee companies from rent and royalty payments in March and April, providing the enterprises with $1 billion in liquidity assistance, executives said.The company said 99 percent of its US restaurants are open, with most operating as drive-through, delivery and take-away. Drive-through now accounts for 90 percent of US sales.

"We're not seeing a V-shaped recovery in China," Kempczinksi said. "The business trends are improving. But they're still running negative to where we were a year ago."

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