Global Sales Slump Hits McDonald's: Navigating Economic Challenges and an E. Coli Outbreak

McDonald's reports a sharp decline in global sales amid weaker consumer traffic, despite increased promotions. The company faces challenges from economic pressures and an E. coli outbreak linked to slivered onions, impacting Quarter Pounder sales. Comparable sales see fluctuations across different regions, affecting the fast-food chain's earnings.

McDonald's experienced a significant drop in global comparable sales for the latest quarter, with sales falling 1.5%. This decline was larger than analysts had predicted, highlighting challenges across key markets despite efforts to attract customers through promotions.

The fast-food giant is contending with reduced consumer traffic in the U.S., Europe, and China, driven by price-sensitive shoppers opting for more affordable dining options. Competitors are also adapting by offering meal combinations and limited-time deals to entice lower-income patrons.

Adding to its hurdles, McDonald's has temporarily halted serving Quarter Pounders in many U.S. locations due to an E. coli outbreak linked to slivered onions. Upcoming conference calls are set to address potential repercussions from this crisis.

(With inputs from agencies.)