McDonald's Q4 Earnings U

McDonald's U.S. sales fell 1.4% in Q4 due to lower customer spending and an E. coli outbreak. Despite this, strong international performance and global expansion plans lifted shares 4.8%, making McDonald's the top Dow performer on the day.

Daniel Miller
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BUSINESS | EARNINGS
McDonald’s U.S. Sales Drop as
Customers Spend Less
Fast-food chain's international business buoys its financial results;
shares rise
B y Heather Haddon Follow
UptfatafFeb. 10, 20254:59 pm E T
McDonald's expects t o open 2.200 restaurants globally this year. PHOTO: WAR 3 TAMA. GETTY IMAGES
McDonald’s MCD 4.80% < U.S. store sales and earnings fell as the burger chain
dealt with the fallout of a n E. coli outbreak hitting its domestic business last
year.
The company said its U.S. same -store sales declined 1.4% in the three months
ended Dec. 31, driven in part by customers spending less money per visit. A
slowdown in the pace of price increases across restaurants also contributed.
The chain's fourth-quarter revenue and adjusted earnings per share trailed
analysts' expectations. Some investors had feared steeper declines, and were
upbeat about the company's recovery in many international markets.
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2>'1W25, 6:17 P M McDonalds Q i Earrings: U.S. Sales Crop Fallowing E. Coll Outbreak - WSJ
McDonald's said it expects to open 2,200 restaurants globally this year, u p
slightly from the total it projected last year. Around 600 of those locations would
be in the U.S.
Shares in McDonald's climbed 4.8% to 3308.42, making it the best-performing
stock in the Dow in Monday trading.
Restaurants so far have reported mixed business results for the last three
months of 2024. Chipotle Mexican Grill, Yum Brands Taco Bell and Chili's owner
Brinker International said their restaurants brought in more customers last
quarter, while Starbucks, Pizza Hut and KFC marked declines in their domestic
markets.
McDonald's said consumers remain pressured, particularly low-income diners
and families. U.S. sales were sluggish in January, reflecting a broader slump in
the industry, McDonald's said.
"The industry is still seeing a fair bit of headwind," Chief Financial Officer Ian
Borden said.
McDonald's McDonald's had a n uneven 2024, as it
S t o c k - p r i c e p e r f o r m a n c e faced concerns about whether
53125 consumers were cutting visits
3iD.o because meal prices were too high.
3 0 ? 5 I.;’. . v. Last July, it reported its first drop in
same -store sales since 2020. Value
promotions and a new Chicken Big
Mac sandwich were providing a
boost to its U.S. locations before the
onset of its recent health crisis.
In October, federal health officials
linked a n E. coE outbreak to slivered
Feb. 2025 onions served on McDonald's
AnofFeb. 10.3:55p.m. ET Q u a r t er Pounder burgers. The
Source: FactSet
outbreak eventually infected a total
of 104 people across 14 states, resulting in 34 hospitalizations and one death, the
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