McDonald's Struggles with E.coli Impact and Sales Decline

McDonald's experienced a 1.4% drop in fourth-quarter U.S. comparable sales due to an E.coli outbreak and cautious consumer spending. Despite promotional efforts, customer visits were down. The CDC concluded its investigation into the outbreak, which negatively affected sales but was offset by global growth, especially in the Middle East and Japan.

McDonald's faced a significant setback as fourth-quarter U.S. sales fell by 1.4%, affected by an E.coli outbreak and consumers' cautious spending behavior. This marked the biggest decline since the COVID-19 pandemic when operations were restricted.

To combat the dip in sales, McDonald's introduced limited-time offers and meal deals in 2024, mirroring strategies by competitors like Yum Brands and Wendy's. Analysts expressed concerns that the company's heavy reliance on discounts, which account for more than a third of sales, could impact future profit margins.

The CDC wrapped up its investigation into the E.coli outbreak, which caused significant customer fallout, yet traffic improved slightly. International operations, particularly in the Middle East and Japan, drove a 0.4% increase in global same-store sales, leading to a positive response in premarket trading.

(With inputs from agencies.)