McDonald’s faced a challenging 2024, and the situation worsened when an E. coli outbreak severely impacted its sales and reputation. The fast-food giant saw a 1.4% decline in fourth-quarter sales at U.S. locations open for at least a year—a stark contrast to the 4.3% growth recorded in the same period the previous year. This drop in performance reflects growing consumer concerns over food safety and the company’s struggle to maintain its value-driven customer base.
CEO Chris Kempczinski acknowledged the company’s struggles, stating, “Our performance in 2024 did not meet our expectations.” The outbreak, which sickened more than 100 people across multiple states, led to several lawsuits against the chain. According to international news updates, the Centers for Disease Control (CDC) identified fresh slivered onions used in Quarter Pounders as the probable source of contamination, officially declaring the outbreak over in November.
Economic Setback and Declining Customer Trust
The outbreak came at an already difficult time for McDonald’s, as customers had started shifting their spending habits due to rising menu prices. Economic news updates suggest that many budget-conscious consumers sought more affordable alternatives, causing McDonald’s value perception to decline.
With the outbreak further damaging its reputation, McDonald’s saw a major dip in sales, especially in November. While the numbers improved slightly in the following months, full recovery is not expected until the second quarter of 2025.
McDonald’s Invests in Marketing and a New Value Menu
In an effort to rebuild trust and regain lost customers, McDonald’s invested $100 million in aggressive marketing campaigns. Additionally, the company introduced a new budget-friendly “McValue” menu in January, designed to make dining at McDonald’s more affordable.
The average price of McDonald’s menu items has surged by about 40% since 2019, in line with rising costs. However, the company hopes the McValue menu will alleviate concerns about affordability. So far, initial feedback has been positive, with executives stating that the new menu is showing promising results.
Bright Spots: Breakfast Sales and Global Expansion
Despite its struggles in the U.S., McDonald’s breakfast segment remains a bright spot for the company. The chain has been serving breakfast for 50 years in the U.S., and its market share in this category has been growing.
Beyond the American market, McDonald’s international development licensed markets saw a 4.1% rise in sales, particularly in the Middle East. Although the brand faced some boycotts and backlash in the region, its performance remained resilient.
Future Plans: Expansion and Menu Innovation
Looking ahead to 2025, McDonald’s is planning a major expansion, with 2,200 new restaurant openings worldwide. A quarter of these new locations will be in mature markets like the U.S. Additionally, the company aims to boost its chicken offerings, including the introduction of new chicken tenders, the return of the beloved Snack Wrap, and limited-time offerings like the Chicken Big Mac.
While the road to recovery remains challenging, McDonald’s is determined to regain customer trust and strengthen its position in the fast-food industry. By focusing on affordability, menu expansion, and international growth, the company hopes to navigate through this difficult phase and return to stronger financial performance.
