The fast food chain McDonald’s seems to be going from bad to worse. Just days ago he had to face a severe crisis after an E. coli outbreak was detected in its burgerswhich caused one death and more than 70 people affected in the United States; This week it presented the financial results for its third quarter, in which its sales fell again for the second consecutive quarter and ended even below estimates by Wall Street.
More specifically, as can be seen from the analysis of its latest balance sheet, Their sales, in restaurants open at least 13 months, showed a drop of 1.5%, well below what was projected by the market, which expected a decline of around 0.72%. In addition, it represents the most substantial drop in four years.
Another key fact is that this was the second consecutive negative quarter in terms of sales that the company showed. In the previous period it showed a decline of 1%, against the 0.4% growth that the market had projected at that time.
The fast food company also details that international markets are those that show the greatest weakness in their sales, with countries such as France, China and the United Kingdom leading the way.
Meanwhile, sales in the United States showed a growth of just 0.3% and that increase was related precisely to the strong marketing campaign deployed in that territory with special offer menus for US$5.
The truth is that this path seems to have been clouded after the E. coli outbreak that broke out in its establishments in the United States and that after an investigation it was concluded that the battery was present in raw onion, a key ingredient in its quarter-pound hamburgers. . In response, the chain removed the burgers from about 20% of its more than 13,000 U.S. stores.
According to the first projections, The company’s sales, after the E. coli outbreak, fell by around 30% in the United States, and that is why the market is now looking closely at the financial results for the fourth quarter, which will undoubtedly show the impacts of the health crisis.
In the immediate term, the firm’s shares seem to be quite far from recovering, last week they fell to almost 10% while, now, after knowing the results of its weak third quarter, its shares fell to around 0, 6%.
Beyond the numbers, The company once again offered its “quarter-pound” hamburgers, but without onions, in its stores in the United States, with the clear objective of leaving behind the incident that ended with one death and more than 70 people affected who had to be treated in health centers. A flurry of lawsuits are also expected from the victims, the end remains open.
Source: Ambito
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