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U.S. same-store sales — or sales at stores open at least a year
— rose 0.3% in the July-September period, the company said
Tuesday. McDonald's launched a $5 value meal in late June after
a disappointing second quarter, and it said the value message
resonated with consumers.
The $5 deal was so successful that McDonald's recently extended
it to December at most of its U.S. stores.
But last week, a crisis hit. McDonald's pulled Quarter Pounders
off the menu at 900 stores after the U.S. Food and Drug
Administration determined that the burger's slivered raw onions
were the likely cause of E. coli contamination. The outbreak has
killed one person and sickened at least 75 others across 13
states.
McDonald's said Sunday it has stopped getting onions from that
supplier and expects to put the Quarter Pounder — without onions
— back on all of its U.S. menus soon. But it's not yet clear how
much the recall hurt demand.
McDonald’s also struggled outside the U.S. in the third quarter.
Chinese demand was weak as the that nation’s economy slows, with
customers choosing cheaper rivals, and the company has also been
hurt by the war in the Middle East.
McDonald’s same-store sales fell 1.5% companywide during the
third quarter. That was worse than the 0.6% decline Wall Street
was predicting, according to analysts polled by FactSet.
McDonald’s revenue rose 3% to $6.87 billion for the quarter.
That was slightly higher than the $6.82 billion analysts were
predicting.
McDonald’s net income fell 3% to $2.25 billion. Adjusted for
one-time items, including the costs associated with acquiring
McDonald’s business in Israel, the company earned $3.23 per
share, which was higher than the $3.21 per share Wall Street was
expecting.
Shares of McDonald’s Corp. were flat before the opening bell
Tuesday.
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