McDonald's value meals turn around US sales in third quarter
Value meals helped turn around McDonald’s U.S. sales in the third quarter
Value meals helped turn around McDonald's U.S. sales in the third quarter, but that recovery could be dented in the final months of the year by an E. coli outbreak tied to the company's Quarter Pounder hamburgers.
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 deal drew lower-income consumers back to McDonald's and improved customers' value perceptions.
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 around 3,000 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.
Chris Kempczinski, McDonald's chairman, president and CEO, apologized for the outbreak Tuesday on a conference call with investors. He said it was the first major public health issue tied to McDonald's in more than 40 years.
“Nothing is more important to us than the safety of our customers,” Kempczinksi said. “The recent spate of E. coli cases is deeply concerning, and hearing reports of how this has impacted our customers has been wrenching for us.”
McDonald's said it has stopped sourcing onions from that supplier and expects to put the Quarter Pounder back on all of its U.S. menus within the week, although it will be served without onions at 900 stores.
“I’m relieved that this situation
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