McDonald’s (MCD) has issued disappointing fourth-quarter 2024 financial results due to weak sales following an E. Coli outbreak at its U.S. restaurants last autumn.
The Chicago-based company reported earnings per share (EPS) of $2.83 U.S., which met analysts’ consensus expectations.
Revenue in the period totaled $6.39 billion U.S., which was below the $6.44 billion U.S. that was forecast on Wall Street. Sales were flat from a year earlier.
However, McDonald’s same-store sales growth of 0.4% was better than Wall Street’s expectations of a same-store sales decline of 1%.
McDonald’s said overall traffic at its restaurant locations was slightly positive in the quarter, although customers spent less than usual at its locations.
Last summer, the chain rolled out a $5 U.S. combo meal to bring back price-conscious consumers and reverse slow sales.
The strategy worked, but in late October, the Centers for Disease Control and Prevention (CDC) linked a fatal E. coli outbreak to its Quarter Pounder hamburgers.
McDonald’s switched suppliers for its slivered onions, the ingredient identified as the likely culprit for the outbreak. In December, the CDC declared the outbreak to be over.
However, in the days following news of the E. coli outbreak, traffic to McDonald’s U.S. restaurants fell steeply, impacting the company’s Q4 2024 financial results.
Outside of the U.S., McDonald’s sales were stronger. The company’s international division reported same-store sales growth, bolstering the company’s overall performance.
The company’s international developmental licensed markets segment, which includes the Middle East and Japan, reported same-store sales growth of 4.1% in Q4.
The stock of McDonald’s has risen 2% in the last 12 months to trade at $294.30 U.S. a share.
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