McDonald's suffered the worst sales loss in the US as demand has hit since the recent quarterly pandemic A widespread occurrence of E.coli Inflation butter diners remained careful about their spending.
The fast food giant's biggest market, US sales fell 1.4% in the fourth quarter. This was the sharpest drop in nearly five years when restaurants restricted operations to drive-thru and delivery due to the pandemic.
Data compiled by LSEG shows that the more sharp losses than expected exceeded an estimated 0.4% decline.
However, the Chicago-based company has reported a surprising jump in global sales as the unofficial boycott over McDonald's perceived pro-Israel attitude began to fade.
MacDonald's shares rose 5% on Monday morning, with strong results in the Middle East, Japan and China.
The Burger and Freeze chain reported adjusted earnings per share of $2.83.
However, McDonald's revenue is still insufficient and is hampered by the effects of E. coli in the largest market. According to analysts at LSEG, the company reported revenue of $63.9 billion, with a lack of forecasts of $6.444 billion.
The fast food giant reported that its net profit for the fourth quarter fell from $2.02 billion from $2.04 billion last year.
StreetAccount estimates show sales of the same stores around the world increased by 0.4%, while Wall Street forecasts fell by 1%.
“Quarterly equivalent sales results reflect a decline in average checks, partially offset by relatively positive guests,” McDonald said in a press release.
Over the summer, McDonald's released a $5 meal deal to bring back cash-bound customers.
Value meals, including McChicken or McDouble, four-piece chicken mcnuggets, small fries and small soft drinks, were huge successes, boosting sales in the third quarter.
However, cheap meals will only be useful for restaurants if the customer is tucking extra items on the ticket.
A fatal E. coli outbreak cast a shadow over McDonald's, sucking up customers and placing dampers on the turnaround for sales.
In October, the Centers for Disease Control and Prevention linked the E. coli outbreak to McDonald's Quarter Pounder Burger, particularly its sliver onion.
The fast food chain has switched suppliers and temporarily suspended serving sliver onion in affected locations in 14 states.
The CDC has declared an outbreak that officially ended in early December, in which more than 100 people became ill and killed at least one.
After the E. coli outbreak, McDonald's announced that it would invest $100 million to bring customers back to the restaurant.
Meanwhile, McDonald's profited in the fourth quarter in both international markets.
The international developmental licensing market segment, including the Middle East and Japan, reported sales growth for the same store of 4.1%.
McDonald's International Business Markets, including some of the largest markets in Canada, the UK, France and Germany, reported the same store sales growth of 0.1%.
