McDonald's(MCD) New York Post·2024-10-29 15:37Core Viewpoint - McDonald's experienced a significant decline in sales and customer visits due to an E. coli outbreak linked to its Quarter Pounder burgers, with a notable impact on consumer confidence and restaurant traffic [1][2][4]. Sales Impact - Following the outbreak, customer visits to McDonald's dropped by 6.4% nationwide and 24% in Colorado on the day after the outbreak was reported [2] - By the end of the week, visits had decreased by 10% across the US and 33% in Colorado [3] Response to Outbreak - McDonald's plans to resume sales of Quarter Pounder burgers without slivered onions after confirming that its beef patties tested negative for E. coli [4] - The company has removed all onions supplied by the affected facility and ceased sourcing from that location indefinitely [6] Financial Performance - Despite the outbreak, McDonald's reported adjusted earnings per share of 3.20, and revenue of 6.82 billion [11][12] - Global same-store sales fell by 1.5%, worse than the anticipated 0.6% decline, while US same-store sales grew by 0.3%, which was below the expected 0.5% growth [12] Consumer Behavior - The company noted a trend of consumers, particularly low-income individuals, opting to eat at home more frequently due to inflationary pressures [11][14] - Special deals and value offerings have helped McDonald's gain market share among low-income consumers for the first time in over a year [13]