McDonald's Sees Global Sales Rise Despite Weak U.S. Consumer Traffic

McDonald's experienced a decline in U.S. sales during the fourth quarter of 2024, but strong international performance helped mitigate the impact. The company remains optimistic about a domestic rebound later this year.

The fast-food giant continues to recover from the E. coli outbreak linked to its Quarter Pounder hamburgers, which negatively affected consumer confidence. Additionally, attracting budget-conscious customers remains a challenge despite introducing more discounts and promotions.

McDonald's U.S. same-store sales, which measure sales at locations open for at least a year, saw a 1.4% drop in Q4.

Challenges With Low-Income Consumers

McDonald's CEO Chris Kempczinski addressed concerns about declining fast-food sales among low-income consumers. “That’s the landscape that we’re looking to navigate through. It’s why it’s so important that we make sure that we have a strong value program,” he stated during a conference call with investors.

Fast-food industry-wide sales to this demographic dropped significantly in the U.S. from October to December 2024, affecting overall traffic. McDonald's initial price hikes earlier in 2024 contributed to slowing sales, but the introduction of a $5 value meal in June briefly revived customer engagement. The offer was extended into the summer of 2025 due to its popularity.

Impact of E. coli Outbreak on Sales

The E. coli outbreak, first reported on October 22, led to 104 reported cases across 14 states, including 34 hospitalizations and one fatality in Colorado. The FDA concluded its investigation in December, confirming that McDonald's successfully contained the outbreak by discontinuing the use of contaminated raw onions.

Despite this, consumer hesitancy led to declining sales of the Quarter Pounder, one of McDonald's most profitable menu items. Additionally, McDonald’s saw weaker sales in the Rocky Mountain states, where the outbreak was concentrated. Full recovery in these regions is expected by the second quarter of 2025.

McDonald's Strategy for U.S. Market Recovery

To regain consumer trust and drive sales, McDonald’s is focused on increasing customer traffic before introducing new products that excite and encourage higher spending.

Two highly anticipated additions to the menu in 2024 include:

• Snack Wraps – Returning later this year due to strong customer demand.

• New Chicken Strips – Expected to boost sales among chicken lovers.

Additionally, McDonald’s is analyzing consumer demand for energy drinks through its beverage-focused CosMc’s chain, which launched as a test concept last year. The company aims to integrate insights from CosMc’s into its existing restaurants.

McDonald’s International Markets Outperform U.S. Sales

Steady Growth in Key Global Markets

While U.S. sales struggled, McDonald’s international company-operated markets saw slight growth in Q4, with Germany and Italy leading the way. However, the company faced similar challenges in the U.K., where attracting low-income customers remained difficult.

McDonald’s licensed international markets performed exceptionally well, with same-store sales rising by 4.1%. The company saw notable growth in Japan and the Middle East, where sales had previously lagged in recent years.

Overall Q4 Financial Performance

Despite a challenging domestic market, McDonald's global same-store sales increased by less than 1%, surpassing Wall Street’s anticipated 1.1% decline (FactSet data).

• Q4 Revenue: $6.38 billion (slightly below the expected $6.45 billion)

• Q4 Net Income: $2.01 billion (a 1% decline)

• Earnings Per Share: $2.83 (missed Wall Street's expectation of $2.85)

• Stock Performance: McDonald's shares rose 4% in early trading Monday

Outlook for 2025: Growth Through Value and Innovation

McDonald's expects U.S. sales to recover in 2025 as inflation eases and strategic menu changes encourage consumer spending. International markets are projected to continue their positive growth trajectory, particularly in Europe and Asia.

By reinforcing its value offerings, reintroducing popular menu items, and leveraging insights from CosMc’s, McDonald’s aims to strengthen its brand presence and boost consumer engagement in the months ahead.