McDonald’s reported lower-than-expected earnings for the fourth quarter, with U.S. sales declining amid an E. coli outbreak that forced the world famous fast-food chain to pull its Quarter Pounder burgers from several states.
The fast-food giant posted adjusted earnings per share of USD2.83 and revenue of USD6.39 billion, both missing analyst estimates. U.S. same-store sales dropped 1.4 percent year-over-year, worse than the anticipated decline of 0.6 percent, largely due to the outbreak and a dip in consumer spending.
Despite the disappointing quarter, McDonald’s shares rose nearly 5 percent as investors were buoyed by the company’s upbeat outlook for 2025. Executives forecast stronger sales growth, citing global comparable sales growth of 0.4 percent in the fourth quarter and their confidence in the continued recovery of the U.S. business.
While the E. coli incident disrupted sales, McDonald’s noted that traffic was slightly positive, and its strategy of value meals, like the USD5 combo deal, has successfully attracted price-sensitive customers. The company also switched suppliers for its slivered onions, which were linked to the outbreak, and the CDC declared the incident officially over in December.
Looking ahead, McDonald’s anticipates a return to growth in 2025, encouraging investors despite the recent setback.
