McDonald’s Apologises for E. Coli Outbreak as Global Sales Take a Hit
McDonald’s CEO Chris Kempczinski has issued a formal apology following an E. coli outbreak in the United States linked to the chain’s Quarter Pounders. The incident, which has added pressure to the fast-food giant amid a decline in global sales, has seen the company halt Quarter Pounder sales in affected U.S. locations while suspending ties with its onion supplier, Taylor Farms.
“We are sorry for what our customers experienced,” Kempczinski expressed in a statement, adding that the company is fully committed to addressing the health concerns. Though executives assured investors that the public health situation appears to be contained, the outbreak’s timing has underscored broader challenges McDonald’s faces, particularly as inflation-conscious customers spend less on dining out.
According to McDonald’s latest financial update, global sales dropped by 1.5% in the third quarter compared to the same period last year, marking the second consecutive quarter of sales decline and the steepest drop in four years. International sales suffered the most, with markets like the UK, France, China, and the Middle East facing significant downturns.
While McDonald’s has managed a modest 0.3% sales increase in U.S. locations open at least a year, helped by a $5 Happy Meal promotion and the debut of a new chicken sandwich, the company hopes to replicate this success abroad. To boost UK sales, McDonald’s has launched promotions, including a “Three for £3” deal and a £2.75 breakfast bundle, with executives reporting positive responses to the rollout of the Grimace shake in the region.
Despite the challenges, CFO Ian Borden expressed confidence in the company’s ability to restore customer trust and emphasized that “the most significant events are behind us.” He also noted that sales in the Middle East are expected to remain volatile due to ongoing regional conflicts.
Financial results for the quarter show McDonald’s total revenue rose by 3% to $6.8 billion, though net profits slipped by 3% to $2.25 billion. The impact of the recent E. coli outbreak, which has affected at least 75 individuals, was not reflected in this report.
