McDonald's Faces Sales Slump Amid E. coli Outbreak

McDonald's reported a significant drop in global sales due to a severe E. coli outbreak affecting key markets like the US and Europe. Despite beating profit estimates, shares dropped 2.4%. The source of the outbreak was traced to onions, and McDonald's has since resumed serving affected menu items.

McDonald's has experienced a larger-than-anticipated decline in global sales this quarter, primarily impacted by subdued demand in major markets such as Europe and the United States. This downturn follows a deadly E. coli outbreak, with the fast-food giant's shares decreasing by 2.4% pre-market despite surpassing profit expectations.

Sales globally for McDonald's fell 1.5% in the third quarter, marking the most significant decline in four years, as opposed to analysts' forecasted 0.72% drop. Recently, a temporary pause in serving Quarter Pounders across 20% of its U.S. restaurants has been lifted; the outbreak has already claimed at least one life, affecting 75 individuals.

The infection's source has been identified as slivered onions, with beef patties ruled out as a possible cause. The E. coli outbreak has complicated U.S. sales recovery, aligning with a slowdown in customer visits domestically and abroad, influenced by reduced consumer spending and geopolitical tensions.

(With inputs from agencies.)