McDonald’s Corp. sales rose in the fourth quarter after growth in the chain’s international business made up for a decline in the US.
Global same-stores sales climbed by 0.4%, while analysts polled by Bloomberg were anticipating a decline. That snapped two straight negative quarters for McDonald’s prompted by diners cutting down on restaurant outings and boycotts following the Israel-Hamas war.
US sales were the weak spot, falling 1.4% in the quarter, a steeper decline than analysts were anticipating. Guest counts grew slightly, but the average order size shrank from a year ago, when higher prices helped buoy checks.
In the quarter, McDonald’s contended with an E. coli outbreak in the US that killed one person, sickened more than 100 and spooked customers. McDonald’s pledged $100 million toward efforts to win guests back.
At the same time, the chain was promoting a $5 meal deal launched in June to reverse perceptions that its food was too expensive.
The US result was offset by the company’s two international divisions, with the business that includes Japan and the Middle East posting a 4.1% increase in same-store sales. Still, the company warned that the war has harmed its business, and that the negative effects could continue until the conflict concludes.
