Crisis and Recovery: McDonald's Navigates Sales and Safety Challenges

McDonald's US sales improved in the third quarter, thanks to value meals, but an E coli outbreak linked to Quarter Pounder hamburgers poses a threat. The contamination, originating from onions, led to a recall, impacting sales. International struggles and economic factors also weigh on the company's performance.

Amid fluctuating fortunes, McDonald's US sales saw a boost in the third quarter due to the popularity of value meals. Sales increased by 0.3% as customers responded positively to the USD 5 meal deal launched in late June, a move welcomed following a disappointing second quarter.

Yet, challenges loom as an E coli outbreak, traced back to slivered raw onions in Quarter Pounder burgers, prompted the removal of the menu item at 900 stores. So far, the outbreak has claimed one life and affected 75 others, raising concerns about its impact on sales in the coming months.

Additionally, the fast-food giant faced hurdles abroad, particularly in China and the Middle East. The overall company sales dropped 1.5% in the third quarter, underperforming Wall Street predictions, although revenue rose slightly by 3% to USD 6.87 billion.

(With inputs from agencies.)