McDonald’s is going through the biggest crisis in the last 4 years
30 October 2024 13:35
McDonald’s has faced its most serious crisis in four years: global comparable sales fell by 1.5% in the third quarter, the largest drop in the period. This was announced by the company’s representatives after the end of the quarter amid an E. coli outbreak in their restaurants, which led to significant losses in attendance and increased pressure on international markets, reports "Komersant Ukrainian" reports with reference to Reuters.
Last week, McDonald’s temporarily removed Quarter Pounders burgers from its menu in about 3,000 restaurants in the United States after 75 cases of E. coli infection, including one death, were reported. As reported by , E. coli was found at McDonald’s, by a strange coincidence, a day after Trump “worked” at the checkout.
This week, the company is returning burgers to sale, but attendance levels remain significantly lower. Thus, the volume of visits to US restaurants decreased by 6.4%, 9.1% and 9.5% on October 23, 24 and 25, respectively, indicating significant consequences of the incident.
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International markets also came under pressure. Sales in France and the UK fell by 2.1%, which exceeded the forecasted decline of 1.21%. In the Chinese market, McDonald’s suffered even more serious losses: sales there fell by 3.5% due to weak demand and additional risks associated with the conflict in the Middle East. In general, analysts emphasize that even markets that had provided stable growth in previous periods remain under pressure.
Despite these challenges, the company has expressed its desire to stabilize the situation by bringing back customers through promotions and an updated menu. The company’s CEO Chris Kempczynski apologized to customers for the inconvenience caused by the outbreak and assured them that the company had taken all necessary measures to ensure product safety. It has been officially confirmed that the outbreak was caused by chopped onions, while beef patties have been excluded from the list of potential sources of infection.
Experts believe that McDonald’s has not yet regained full confidence in the US market, although it has partially improved its financial performance through local promotions. Pressure on international markets, especially in Europe, also remains high due to economic and geopolitical factors.
Meanwhile, in Ukraine, McDonald’s is showing impressive growth.
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