McDonald’s said Tuesday that its sales and footfall at its restaurants declined last week after a deadly E.coli outbreak was linked to its Quarter Pounder burger.
whose wrath is bound chopped onion On top of the popular burgers, is made 75 people sick And one died in Colorado, according to the Centers for Disease Control.
Last Wednesday, the day after federal health agencies reported the E. coli outbreak, the number of customers at McDonald’s dropped 6.4% nationwide and 24% in Colorado, according to data from Placer.ai, where at least At least 26 cases were registered.
As of Friday, visits were down 10% in the U.S. and 33% in Colorado, the data shows.
“That food safety incident has resulted in impacts across the U.S. [with a] “There has been a reversal of daily negative sales and guest count results since the onset of the food safety incident,” Chief Financial Officer Ian Borden said during an earnings call Tuesday.
The world’s largest fast food chain said it would do so Restart Sales of Your Quarter Pounder Burgers Uncut onions at all of its locations this week after the Colorado Department of Agriculture said a sample of the company’s beef patties tested negative for E. coli.
“We certainly believe the most significant events are behind us and the work that remains to be done right now is focused on restoring consumer confidence,” Borden said.
CEO Chris Kempczinski said during the earnings call that the company’s beef suppliers are producing new supplies of fresh beef patties for all affected areas.
McDonald’s supplier Taylor Farms on Thursday Recalled yellow onions produced at its Colorado plantMcDonald’s said it “expeditedly” removed all onions supplied by the Taylor Farms facility in Colorado and has indefinitely stopped sourcing onions from this particular facility, Kempczinski said.
McDonald’s executives emphasized that the E. coli outbreak appears to be under control during the company’s third-quarter earnings call.
“We are of course very sorry if someone in our restaurant became ill due to eating onions that were used in our QPC [Quarter Pounder cheeseburger] And I’m relieved that I think we’ve moved past this and are on our way to serving our customers,” Kempczinski said.
He said the company has successfully dealt with unannounced crises in the past as well, comparing the outbreak to the challenge posed by the pandemic.
The CEO said, “Out of COVID, we took some steps and we did some things to make sure we could re-engage the customer, and if we have to take the same steps in the US, we’re prepared to do that.” Are.” ,
McDonald’s shares rose 1% after the earnings call, with company leaders saying the outbreak will have little impact on the business.
The company reported revenue and earnings that beat expectations, although same-store sales in the US fell short of estimates. McDonald’s customers are holding back on spending amid inflationary prices, according to company leaders.
“Consumers, especially those in lower income groups, were often preferring to eat at home. This trend continued in the third quarter,” Kempczinski said. “Our performance so far this year has fallen short of our expectations.”
Although McDonald’s U.S. same-store sales fell short of expectations, the company said its special deals – including $5 worth of meals, limited-edition Grimace-themed shakes and collector cups – helped McDonald’s break even for the first time. Helped in gaining share with consumers. one year.
“Consumers continue to be savvy about where they spend their money and with whom,” Borden said. “Although there is widespread consumer pressure, I think certainly low-income consumers and families are the consumers who are under more intense pressure. That’s why, obviously, we’re so focused on value and affordability.”
McDonald’s reported adjusted earnings of $3.23 per share, beating LSEG analysts’ expectations of $3.20.
The company earned revenue of $6.87 billion, beating expectations of $6.82 billion.
Global same-store sales declined 1.5%, worse than the 0.6% decline analysts were expecting.
Same-store sales in the US rose 0.3%, reversing the previous quarter’s loss but falling short of estimates for a 0.5% rise.
