McDonald's Faces U.S. Sales Decline Amid E. Coli Fallout and Inflation Pressures
The fast-food chain reported its largest U.S. sales drop in five years, while international markets showed signs of recovery.
- McDonald's U.S. comparable sales fell 1.4% in Q4 2024, marking the steepest decline since the pandemic, driven by an E. coli outbreak linked to Quarter Pounder burgers.
- The outbreak, traced to contaminated onions, sickened over 100 people, hospitalized 34, and caused one death, leading to a temporary menu adjustment in affected regions.
- Despite challenges in its home market, McDonald's global comparable sales rose 0.4%, with strong performance in international licensed markets like the Middle East and Japan.
- The company launched new value-focused initiatives, including the $5 Meal Deal and the McValue menu, to attract budget-conscious customers, though average spending per visit remains low.
- McDonald's plans to open 2,200 new restaurants in 2025, with a significant focus on international expansion, including 1,000 locations in China.