McDonald’s Corp on Tuesday reported a broad drop in global same-store sales and missed profit expectations, as its restaurants were shut due to the COVID-19 pandemic, limiting operations to only drive-thru and delivery.

The firm said it planned to gradually reduce its stake in McDonald’s Holding Company Japan from around 49% now, retaining at least 35%.

The decision comes “as a result of the strong performance of the McDonald’s Japan business over the past few years” and the U.S. firm’s “confidence in the local management team,” McDonald’s Chief Financial Officer Kevin Ozan said during a telephone briefing on the company’s April-June earnings results.

“We believe it’s the right time to gradually reduce our ownership stake,” Ozan added.

The CFO said that the plan to maintain a 35% stake demonstrates the company’s commitment to its Japanese business, while noting that the sale “will take some time because of the low trading volume of McDonald’s Japan shares.”

Revenue fell 30.5% to $3.76 billion, but beat the estimate of $3.68 billion,

The US fast food giant’s net income slumped 68% to $483.8 million, as the restaurant struggled to cope with the changing dynamics and consumer behaviors around the health crisis and were forced to simplify menus, with shifts largely to online and mobile orders for pickup, delivery and drive thru.

Excluding one-time items, McDonald’s earned 66 cents per share, 8 cents below expectations.

Reuters/JIJI Press