McDonald's Surpasses Expectations With Global Sales Boost

McDonald's reported an unexpected increase in global comparable sales in the last quarter, driven by demand in the Middle East, Japan, and China. This offset declines in the U.S. market due to an E. coli outbreak. The fast-food giant focused on value meals to attract budget-conscious diners.

On Monday, McDonald's revealed a surprise jump in global comparable sales during the fourth quarter, fueled by demand for affordable menu items in markets like the Middle East, Japan, and China. Its stock surged almost 5% in early trading, even as U.S. sales stumbled amid an E. coli outbreak and cautious consumer spending.

Fast-food chains may be seeing demand recovery in the Middle East after informal boycotts over perceived pro-Israeli positions in the Gaza conflict. This growth in Middle Eastern markets helped counterbalance weakness in the U.S., where McDonald's saw its sharpest sales decline of 1.4% since the pandemic began.

Despite challenges, McDonald's continued to attract budget-conscious customers through value deals such as the $5 meal deal. While these strategies lift store visits, they could strain long-term earnings, warned analysts. The fast-food giant remains focused on expanding its global presence, eyeing 50,000 units by 2027.

(With inputs from agencies.)