The McDonald’s restaurant in Chicago, the US. Picture: REUTERS/JIM YOUNG
In its Tuesday earnings conference call, McDonald’s said that 90% of its US sales in the quarter ended June 30 were drive-through. That format has long been a cornerstone of the business and was able to remain open even when many of its dining rooms were shuttered, so this is not necessarily surprising.
That delivery didn’t soar to a higher proportion of sales even in this unusual environment makes me sceptical it will ever be a significant part of McDonald’s business. The situation in the quarter was much different at Chipotle, where digital pickup and delivery orders accounted for 61% of its sales. At the same time, though, the company’s restaurant-level operating margin sank to 12%, sharply lower than the 21% it recorded in 2019's second quarter.
The company said that compared with pre-pandemic levels, its digital pickup business is up 140%, greater than the 125% increase it has seen in the delivery segment. It is a good sign that it is seeing greater growth in the more profitable type of transaction.
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