McDonald’s sales have fallen for the second consecutive quarter, as the fast food giant struggled with weak demand in the UK, France and other international markets.
The company said global comparable sales slid 1.5% for the third quarter of 2024, despite sales in the key American market nudging up.
The uptick in US sales was a positive for the chain, which has been trying to lure customers back to burgers and fries after steep price rises in recent years spurred by inflation.
McDonald’s said “effective value and marketing campaigns featuring the core menu” had helped boost revenues in the US.
We will stay laser-focused on providing an unparalleled experience with simple, everyday value and affordability that our consumers can count on as they continue to be mindful about their spending
But, in its international operated markets sales fell 2.1%, “impacted by negative comparable sales across a number of markets, driven by France and the UK”.
Revenue across the company rose 3% to 6.9 billion dollars, while net profit fell 3% to 2.3 billion dollars.
“We will stay laser-focused on providing an unparalleled experience with simple, everyday value and affordability that our consumers can count on as they continue to be mindful about their spending,” said chairman Chris Kempczinski.
Sales also dipped in China and in the Middle East, where business was dampened by the impact of wars in the region.
Derren Nathan, head of equity research, Hargreaves Lansdown, said: “McDonald’s comparable restaurant takings have fallen for a second consecutive quarter in a row suggesting that the golden arches’ recent focus on value offerings hasn’t yet delivered the intended uplift in volumes.”
It comes after a major E. coli outbreak left one person dead and dozens of other people ill, reportedly after eating McDonald’s quarter pounder burgers.
On October 28, the company said samples of its beef patties tested by the Colorado Department of Agriculture (CDA) had tested negative for the bacteria, and resumed sales of the product.
McDonald’s paused selling the burger last week in about one fifth of its US restaurants in response to the outbreak. UK restaurants were not affected.
Cesar Pina, McDonald’s North America chief supply chain officer, said on Monday: “The issue appears to be contained to a particular ingredient and geography, and we remain very confident that any contaminated product related to this outbreak has been removed from our supply chain.”
