McDonald’s US Sales Just Saw Their Worst Drop Since the Pandemic — What Could That Mean for Your Wallet?
Written by
Lydia Kibet
Edited by
Zuri Anderson
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McDonald’s (MCD) recently reported a 1.4% decline in U.S. comparable sales in the fourth quarter of 2024, higher than the 0.6% Wall Street was projecting, suffering its worst drop since the COVID-19 pandemic.
Read on to find out why the Golden Arches’ sales dropped and what that means for your wallet and investments.
Also find out how much money you would have now if you invested in McDonald’s back in 2019.
Why McDonald’s Sales Dropped
The fast food giant’s demand took a hit following the E. coli outbreak, which began in October. The Centers for Disease Control and Prevention (CDC) reported 104 cases across 14 states, with 34 hospitalizations and one death linked to silvered onions served at McDonald’s.
In response, McDonald’s temporarily stopped selling Quarter Pounder burgers, a core menu item that is raking in billions each year. The company switched its suppliers for silvered onions, and in early December, the CDC declared that the outbreak is over. McDonald’s has since then brought back the menu item, but the company is still struggling with customer traffic.
As a way to recover traffic and bring back budget-conscious diners, the chain extended its $5 combo meal that was rolled out over summer and introduced the Chicken Big Mac in October. The strategy worked; however, analysts think that value meals only work if customers add non-discounted items to their orders.
The company reported $6.39 billion in revenue, missing consensus estimates of $6.44 billion. The net income stood at $2.02 billion, down from $2.04 billion the previous year. While same-store sales declined in the U.S. by 1.4%, global same-store sales increased 0.4% in the quarter compared to the 0.63% decline estimated by Wall Street.
What Next for McDonald’s?
The fast-food giant has faced significant challenges since the E. coli outbreak last year, but the management expects a strong rebound in the second quarter of 2025. The company is doubling down on value-focused menus and a digital ordering platform.
During the Q4 earnings call, the McDonald’s team said that it’s already seeing improvements for average check size and customer traffic in the U.S. and other markets. Chris Kempczinski, the president and CEO, noted that “the average check on a $5 meal deal for us in the U.S. is north of $10.”
If the management delivers as expected, McDonald’s anticipates noticeable gains in the second quarter.
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