McDonald's Global Sales Strategy: Overseas Gains Offset U.S. Setback

McDonald's international sales helped offset weak domestic performance in Q4, despite a US sales decline due to an E. coli scare. Overseas sales rose notably in the Middle East and Japan, contributing to a minor global sales increase. Revenue and earnings slightly missed Wall Street forecasts.

McDonald's managed to counterbalance a slide in U.S. performance with impressive international sales in the fourth quarter. A notable decline of 1.4% in U.S. same-store sales was linked to an E. coli outbreak affecting its Quarter Pounder hamburgers, the company disclosed on Monday.

Despite this domestic downturn, McDonald's enjoyed robust growth overseas, with same-store sales in licensed markets outside the U.S. climbing 4.1%. Significant sales upticks in the Middle East and Japan marked key growth areas, following years of challenge in those markets.

Globally, McDonald's same-store sales grew less than 1%, outpacing Wall Street's anticipated 1.1% decline, as per FactSet analysts. Nevertheless, Q4 revenue saw a slight drop to USD 6.38 billion, falling short of expected USD 6.45 billion. Furthermore, net income decreased by 1% to USD 2.01 billion, with adjusted earnings of USD 2.83 per share, below Wall Street predictions of USD 2.85 per share.

(With inputs from agencies.)