McDonald’s Corporation’s fourth-quarter results for 2024 revealed the significant aftermath of an October E. coli outbreak linked to slivered onions in Quarter Pounders, resulting in a 1.4% decline in U.S. same-store sales. This performance marked the company’s weakest quarterly showing since the second quarter of 2020, prompting a comprehensive recovery strategy, according to QSR.
The outbreak’s impact reached its peak in early November, with the Rocky Mountain region continuing to experience sales declines compared to pre-outbreak figures. However, the company reported improving trends through November and December, ultimately achieving positive guest count growth in the final month of the year. McDonald’s projects a complete recovery by the beginning of the second quarter of 2025.
Despite these challenges, U.S. franchisee performance demonstrated resilience, with locations averaging cash flows exceeding $500,000 per unit in 2024. The company notably maintained its strongest share of lowest-income consumers during the fourth quarter, contrasting sharply with broader industry declines in this demographic segment.
Global performance showed modest gains, with comparable sales increasing 0.4 percent in the fourth quarter. International markets, including the United Kingdom, Canada, France, and Germany, saw a 0.1% increase, while International Developmental Licensed Markets, encompassing China, Japan, Brazil, and India, achieved 4.1% growth. The company’s overall global comparable sales for fiscal 2024 decreased by 0.1%.
The company’s digital engagement expanded significantly during this period, reporting approximately 170 million active users across 60 markets over a 90-day period. System-wide sales to loyalty members reached a substantial total of about $30 billion in 2024, indicating strong digital platform adoption.
Value initiatives remained central to customer retention strategies, with the $5 Meal Deal continuing throughout the fourth quarter and generating average transactions exceeding $10. The beginning of 2025 saw the introduction of the McValue menu platform, which consolidates various promotional offers including in-app deals, local specials, and Buy One, Add One for $1 promotions across different dayparts.
Menu innovation played a crucial role in the company’s strategy, featuring the introduction of the Chicken Big Mac and the return of the McRib in December. The McCrispy sandwich expanded its presence to over 70 markets globally, with plans for near-complete market coverage by the end of 2025. Future menu developments include the reintroduction of Snack Wraps and new chicken strip offerings, as McDonald’s aims to increase its chicken market share by one percentage point through 2026.
The beverage category has emerged as a growing focus area, with the company exploring opportunities through its CosMc’s concept, particularly in hot and iced coffee, refreshers, and energy drinks. January brought announcements of plans to close larger CosMc’s locations while proceeding with smaller format units, reflecting a strategic adjustment in the beverage segment approach.
Restaurant expansion continues as a key priority in the company’s growth strategy. McDonald’s concluded 2024 with 13,557 U.S. locations, adding a net 100 restaurants year-over-year. International growth proved more substantial, adding 1,555 locations and reaching 29,920 stores. The total system-wide count reached 43,477 restaurants by the end of 2024, with ambitious plans to achieve 50,000 locations by 2027.
Looking ahead to 2025, McDonald’s plans approximately 2,200 new restaurant openings globally. This expansion includes about 550 new locations across the U.S. and International Operated Markets, while International Developmental Licensed Markets will see more than 1,600 new restaurants, with roughly 1,000 planned for China alone.
The company projects that the first quarter of 2025 will be its lowest-performing period, citing several factors including ongoing E. coli recovery efforts, the impact of the previous year’s leap day, and generally subdued industry conditions at the start of the year. However, executives anticipate gradual improvement in operating conditions throughout 2025.
The breakfast segment will receive particular attention in 2025, marking the 50th anniversary of McDonald’s breakfast service in the United States. The company plans to introduce new promotions and innovations in this daypart, building on the success of current offerings that have helped increase market share during morning hours.
Commenting on this article, the nation’s leading E. coli lawyer, who also filed the first lawsuits in the deadly McDonald’s E. coli outbreak, said, “Loss of trust in a company and its services is often a consequence of an outbreak of foodborne illness. Time will tell if all of McDonald’s customers return to the business.”
