McDonald’s See Global Sales Plunge As Fast Food Chain Battles E. Coli Outbreak

The company stated on Tuesday that its global sales plunged 1.5 per cent in the third quarter, against the analysts’ expectations of a fall of 0.72 per cent

The company has also been suffering from reduced customer visits across its chains in the US, France, the Middle East, the UK, and China.

Source : Tripadvisor

McDonald’s reported a sharper-than-expected decline in its quarterly global sales as muted demand across major markets including the US and Europe impacted the fast food chain. Further, in the US, the company is already dealing with a deadly E. coli outbreak and is expected to take more hits to its bottomline.

The company stated on Tuesday that its global sales plunged 1.5 per cent in the third quarter, against the analysts’ expectations of a fall of 0.72 per cent, reported Reuters. This also marked the biggest decline seen in its sales in four years.

Last week, McDonald’s said that it is placing a temporary hold on serving Quarter Pounders in a fifth of its overall 14,000 restaurants in the US as an E. coli outbreak has resulted in the death of atleast one person. However, the report noted that Quarter Pounders are being added back to the fast food chain’s menu this week.

The Colorado Department of Agriculture over the weekend stated that beef patties as the possible cause of the infection have been ruled. Slivered onions used in the hamburgers are being considered as the possible source of the infection.

The report cited a Gordon Haskett note and revealed that the customer visits in the US also plunged 6.4 per cent, 9.1 per cent, and 9.5 per cent on October 23, 24, and 25 respectively, all on a year-on-year (YoY) basis.

The company has also been suffering from reduced customer visits across its chains in the US, France, the Middle East, the UK, and China. This has been attributed to a change in outlook from consumers who are opting for cheaper meals and trying to be price-conscious by cooking more at home.

Dampened consumer spending in China and the Middle East conflicts have left an impact on the company’s business segment as sales plunged 3.5 per cent in comparison to a 10.5 per cent jump seen a year earlier.