McDonald's revenues have almost returned to pre-pandemic levels – and Q4 sales in the US were actually higher than a year earlier

McDonald's earnings in the final three months of 2020 were its strongest for any quarter, which has helped prop up its annual sales during a year of government-mandated restaurant closures.

Its global comparable sales in the quarter to December 31 were down just 1.3% year-on-year, it said on Thursday. 

But McDonald's still failed to meet Wall Street targets, as sales growth in the US — 5.5% in the quarter — couldn't make up for falls in the fast food giant's international markets.

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The company credited its strong US comparable sales results to marketing and promotions. In September the fast-food giant launched a Travis Scott Meal, featuring the rapper's go-to McDonald's order, and the deal was so popular the chain started running out of burgers.

But comparable sales were negative in most of its international operated markets because of government-mandated restaurant closures and limits to their opening hours, McDonald's said. The comparable sales decline in the fourth quarter was primarily driven by France, Germany, Italy, and Spain, it said, though comparable sales were positive for Australia and the UK.

McDonald's full-year global comparable sales dropped 7.7% from 2019. Sales grew 0.4% in the US.

The company recorded $5.31 billion in total revenues in the fourth quarter, compared to the $5.37 billion expected by Wall Street analysts, per Refinitiv. It also posted a 12% fall in quarterly net income to $1.38 billion.

Its total revenues for 2020, meanwhile, fell 10% to $19.21 billion, and its net income plummeted 21% to $4.73 billion.

"2020 will be remembered as one of McDonald's most challenging, yet inspiring, moments in our long history," its CEO Chris Kempczinski said.

McDonald's recorded negative comparable sales in some of its international developmental licensed markets in the fourth quarter, in particular in Asia and Latin America, though these were partly offset by strong comparable sales in Japan.

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SEE ALSO: How McDonald's changed drastically between 2020 and 2021

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