Lopez, Louie Emmanuelle N.

LEARNER’S TASK #3
Specify one company included in an industry affected by COVID 19 pandemic today and
study the condition of the company at present. Provide a forecast based on your gathered
financial and nonfinancial information about their going concern status for 2020 and
2021. Use the concepts discussed in the forecasting module.

An example is the food company called Mcdonald’s. On the first four months
Mcdo has not experienced any fragment in its supply chain. Luckily, around 75% of its
restaurants around the world are open and operational. Almost all branches have adapted
to solely focus on drive-thrus, deliveries, and/or take-outs but some areas are still
restricted for dine-ins. Some branches have limited menus and hours that is why loss of
sales is also seen even though the high percentage of operating locations. There are still
closed are primarily due to their locations. Markets in France, Italy, Spain and the United
Kingdom, have fully closed all restaurants. In China and Philippines, almost all of the
locations have resumed operations.

Specifically in US, sales at restaurants open at least a year were up 8% during the
first quarter while international sales rose more than 7%. But because of the decrease in
demand and reducing menus, McDonald's said that US sales rose only 0.1% for the entire
first quarter -- and total sales were down 3.4%. I think they are on the verge of recession it
is not severe as it is expected. Level exponential smoothing can be used because it is
slowly changing. For this situation, managing control should be done to prevent rapid
decaying of sales. While working on a contingency plan, consistent offering of food,
packaging, Happy Meals and other offers should be observed and start to prioritize health
during the outbreak