McDonald’s reported a decline in profit on Tuesday (29/10) as the protracted conflict in the Middle East weighed on its performance. The chain’s CEO also apologized for recent food safety issues in the United States.
The fast food giant, which faced an E. Coli outbreak in the western United States last week, saw a slight increase in sales in the US market, but lower in regions another.
The network reported a profit in the third quarter of $2.3 billion, down three percent from the same period last year. At the same time their income was $6.9 billion, which rose three percent.
Global sales data fell 1.5 percent.
In the United States, higher order volumes offset headwinds from lower customer numbers. The chain also reported higher delivery sales.
But the results were hit by “the impact of the ongoing war in the Middle East” and negative sales in China, McDonald’s said. The decline was greater than their profits from the Latin American division.
McDonald’s also said it was experiencing a decline in France and the UK. The restaurant chain’s operations in the US have been in crisis following an E. coli outbreak linked to McDonald’s Quarter Pounder hamburgers, particularly in the western United States.
Their restaurants in dozens of US states have pulled the burger from their menus, amid an outbreak that sent dozens of customers to the hospital and one person died.
CEO Christopher Kempczinski reiterated that the company had removed waste from its supply chain, he told analysts at a press conference.
“The recent spate of E. coli cases is very concerning and it is heartbreaking for us to hear reports of the impact this is having on our customers,” he said.
“On behalf of the entire system of this company, we apologize for the experiences of our customers,” he said.
McDonald’s shares fell in premarket trading, but by midday they were up 0.2 percent. [ns/lt]
2024-10-29 21:15:00
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