McDonald’s was having a rough 2024. An E. coli outbreak made it worse

Visits to McDonald’s plunged because of an E. coli outbreak last fall — and so did its profits.

Visits to McDonald’s plunged because of an E. coli outbreak last fall — and so did its profits. Fourth-quarter sales at McDonald’s locations open for at least one year fell 1.4% in the United States, a reversal compared to the same time period a year prior when sales rose 4.3%. The rough quarter only compounded with the rest of a tough 2024, with McDonald’s value perception slipping among its cash-conscious customers, many of whom ended up eating elsewhere. The earnings report Monday gives investors a peek at how detrimental the E. coli outbreak was, which sickened more than 100 people across a dozen states and resulted in several lawsuits against the chain. Fresh slivered onions served on the Quarter Pounders were the likely source of the bacteria, and the Centers for Disease Control declared the outbreak over in November. In an attempt to bring customers back, McDonald’s spent $100 million on marketing efforts during the quarter. It also announced a new value menu, which launched in January, to turn sales around. McDonald’s hopes the new “McValue” menu category reignites growth after several dismal quarters dragged down by perceptions about its pricing. The average price of its menu items has soared about 40% since 2019, but the company says that is in line with its rising costs While McDonald’s is still struggling in the United States, quarterly sales rose 4.1% at its international development licensed markets — particularly in the Middle East, where the American brand had been the target of boycotts and backlash.