Following the release of the report of McDonald’s Q1 2022 results;

Ramsey Baghdadi, Foodservice Analyst at GlobalData, a leading data and analytics company, offers his view:

“Although seeing an operating income increase of 1.4% this quarter gives McDonald’s a reason to celebrate, the company must prepare for new challenges arising in China due to COVID-19 resurgences. This is already manifesting as its sales in the country dropped, which is one of its main markets.

“As more cities in China go back into strict lockdowns, GlobalData’s research shows that close to three in five (58%)* people in the country are worried about dining out due to a risk of contracting COVID-19. Many brands like McDonald’s were saved when government pandemic restrictions eased, however, foodservice providers need to have a strategy at hand if stricter COVID-19 restrictions are put back in place.

“Looking forward, it would be wise for foodservice providers such as McDonald’s to re-invest in strategies popularized during strict COVID-19 conditions. For instance, being more digital-centric and offering more zero-contact solutions through drive-thrus, kiosks and dark kitchens will pay off in the long-run. It was a sales victory for McDonald’s this time, however, there will be financial challenges if the fast-food giant relies entirely on its markets with reduced COVID-19 regulations – and overlooks the potential hurdles overshadowing key markets like China.”

*GlobalData’s 2022 Q1 Consumer Survey, “Extremely” and “Quite Concerned”, March 2022, 21,000 respondents