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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Food & drink

McDonald’s says E.coli woes 'behind' after unveiling drop in sales

McDonald’s Corp has reassured investors that issues relating to an E.coli outbreak linked to its Quarter Pounder burgers has now passed.

"How we’ve handled the issue, now that we’re moving [...] we view it as being behind us,” chief executive Chris Kempczinski said in a post-earnings call on Tuesday.

He had also apologised for the issue, which has so far led to 49 reported illnesses and one death across 10 US states.

"We offer our sincere and deepest sympathies, and we are committed to making this right," he added.

It comes after the fast food giant on Tuesday reported a drop in comparable sales for a second consecutive quarter due to pressure in China, France and the UK and war in the Middle East.

Global comparable sales fell by 1.5% over the third quarter, marking a steeper decline than the 0.72% forecast by analysts.

This reflected a 0.3% increase in the US, but falls of 2.1% and 3.5% across internationally operated and developmental licensed markets respectively.

Weakness across the UK and France drove sales down across internationally operated markets, McDonald’s said.

“War in the Middle East and negative comparable sales in China more than offset positive comparable sales in Latin America,” it added, hitting figures in international developmental licensed markets.

Overall, revenue climbed by 3% to $6.87 billion year on year, while diluted per-share earnings fell by 1% to $3.13.

“We will stay laser-focused on providing an unparalleled experience with simple, everyday value and affordability that our consumers can count on as they continue to be mindful about their spending,” chief executive Kempczinski had commented in the results.

Shares were trading flat at $296.60 on Tuesday.

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