McDonald's Faces Sales Slump Amid E. Coli Outbreak and Global Challenges

McDonald's witnessed a notable decline in quarterly global sales, heavily affected by an E. coli outbreak and subdued demand across vital markets such as Europe and the U.S. Despite surpassing profit expectations, shares fell. The outbreak, linked to onions, temporarily impacted menu offerings, hindering U.S. sales recovery.

McDonald's reported a sharper-than-anticipated decline in its global sales for the quarter, impacted by weak demand in key markets including Europe and the United States. The fast-food giant is grappling with the effects of a deadly E. coli outbreak, which has further strained its operations.

In the third quarter, global sales dropped by 1.5%, marking the most significant decrease in four years, surpassing the predicted 0.72% fall. The outbreak, originating from slivered onions used in hamburgers, led to a temporary pause of Quarter Pounders in a fifth of its U.S. outlets.

Internationally, McDonald's experienced a 2.1% sales drop, notably influenced by weaknesses in France and Britain, alongside weaker consumer spending in China. Challenges such as a stronger dollar and Middle Eastern conflicts also heightened business pressures.

(With inputs from agencies.)