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McDonald's CEO apologises for E.coli outbreak

Results were dented by 'the continued impact of the war in the Middle East' and negative comparable sales in China, McDonald's said

Published: Tue 29 Oct 2024, 8:57 PM

Updated: Tue 29 Oct 2024, 8:59 PM

  • By
  • AFP

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Photo: File

Photo: File

McDonald's reported a dip in profits Tuesday as the protracted Middle East conflict weighed on results and the chain's CEO apologised for a food safety scare.

The fast-food giant, which has contended in the last week with an E. Coli outbreak in the western United States, saw a modest uptick in comparable sales in its home market, but lower sales in other regions.

The chain reported a third-quarter profit of $2.3 billion, down three per cent from the year-ago period on revenues of $6.9 billion, up three per cent.

Global comparable sales decreased 1.5 per cent.

In the United States, higher order sizes offset a drag from a drop in guest counts. The chain also cited higher delivery sales.

But results were dented by "the continued impact of the war in the Middle East" and negative comparable sales in China, McDonald's said. Those negatives more than offset gains in Latin America.

McDonald's also said it encountered weakness in France and Britain.

The chain's US operations has been in crisis mode following an E. coli outbreak linked to McDonald's Quarter Pounder hamburgers, mainly in the western United States.

Restaurants in a dozen US states had temporarily pulled the burgers from their menus amid an outbreak that saw dozens of customers sent to the hospital and one person die.

Chief Executive Christopher Kempczinski reiterated that the company had removed from its supply chain the source of slivered onions believed to be the root cause of the problem, he told analysts on a conference call.

"The recent spate of E. coli cases is deeply concerning and hearing reports how this has impacted our customers is wrenching for us," he said. "On behalf of the entire system, we are sorry for what our customers have experienced."

Shares dropped in pre-market trading, but by mid-day were up 0.2 percent.

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