In the wake of a challenging quarter, McDonald's is preparing to announce its fourth-quarter earnings, with analysts forecasting a 0.6% decline in U.S. same-store sales. The fast-food giant has faced a tumultuous period, partly due to a significant E. coli outbreak linked to its Quarter Pounder burgers. The Centers for Disease Control and Prevention (CDC) officially declared the outbreak over in early December, but not before it affected customer traffic to McDonald's U.S. locations.
The E. coli outbreak, which had a notable impact on McDonald's U.S. restaurants in affected states, prompted the company to switch suppliers for its slivered onions—the suspected source of the contamination. Despite this setback, McDonald's has seen some recovery in sales following a summer slowdown, thanks in part to its value meal offerings and the permanent addition of the Chicken Big Mac to its menu in early October.
As McDonald's prepares to report its earnings before the bell on Monday, analysts surveyed by LSEG anticipate earnings per share of $2.83 and revenue of $6.44 billion. This comes amid projections that overall same-store sales have decreased by 1%, marking the third consecutive quarter of declines for the company.
Despite these challenges, McDonald's shares have climbed 2% over the past year, elevating its market capitalization to approximately $211 billion. This growth reflects the company's resilience and strategic efforts to regain momentum in a competitive market.
The E. coli outbreak presented a significant hurdle for McDonald's, particularly affecting customer traffic and same-store sales in the U.S. However, the company's swift response by changing suppliers and enhancing menu options appears to have mitigated further damage.