McDonald's Navigates Post-E. coli Challenges, Eyes Revival in Global Markets

McDonald's is addressing a recent E. coli outbreak in the U.S. that temporarily impacted sales. With key safety measures in place, the company is focusing on reviving consumer confidence and restoring momentum. Internationally, challenges persist due to geopolitical tensions and consumer spending patterns.

McDonald's executives on Tuesday dismissed concerns about a potential dip in sales from the recent E. coli outbreak. The fast-food chain is moving past the incident and aiming to boost demand with promotions and value meals.

Despite a premarket dip, McDonald's shares rose by 2% in early trading. The company reported a greater drop in global sales than anticipated but exceeded quarterly profit expectations. Last week's E. coli outbreak led to a temporary pause in serving Quarter Pounders at some U.S. locations, but CEO Chris Kempczinski assured customers that the situation is under control.

International sales fell 2.1%, affected by slower consumer spending in China and geopolitical instability in the Middle East. Meanwhile, Western fast-food chains like McDonald's have faced boycotts over alleged pro-Israeli stances. The company's adjusted earnings reached $3.23 per share, surpassing predictions.

(With inputs from agencies.)