Former McDonald’s CEO Jim Skinner analyzed the status of the fast food industry as the American economy slows down on ‘The Claiman Countdown’.
McDonald’s sales took an important hit In its latest quarter E. Due to the outbreak of coli, a person was attached to onions killing and sent to more than two dozen hospitals.
CEO Chris Campsinski told analysts during an earning call on Monday that sales at US stores slipped 1.4% during the fourth quarter, which was largely linked to the effect of “E. coli outbreaks” Was done. ”
The company recorded a revenue of $ 6.39 billion, an estimate of Wall Street $ 6.44 billion.
Federal health officials announced that the outbreak was “closed” in December after diseases in late October. E. There were 104 confirmed cases of coli O157: H7 stress in 14 states, climbing 34 with hospitalization. , The CDC said that one death was linked to outbreaks early.
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Raw onions were served as topping on quarter pounders, after the beef was denied a possible source of outbreak. The agency said it had completed inspection at the Colorado processing plant Taylor formsWho remembered McDonald’s onion, and an anonymous onion farm in the state of Washington.
A fourth pounder hamburger is served at McDonald’s restaurant. (Scott Olson / Getty Image / Getty Images)
On discovering outbreaks, McDonald’s removed the quarter pounders from the menu in its 900 restaurants in the affected areas and stopped purchasing onions processed in the colorado springs feature of Taylor Farms.
Officials said the company was watching “strong sales” during the first few weeks of October before the outbreak surfaced.
In the fourth quarter, while the US stores had little positive traffic, the company said the customers were spending less. A part of the issue was that its quarter pounder was “a high margin” item, according to the officials.
Kempczinski said that e. The coli effect is now “localized for areas with the greatest effect.”
On April 28, 2022, an indication has been posted in front of a McDonald’s restaurant in San Leandro, California. (Justin Sulivan / Getty Image / Getty Images)
He said, “Think about the Rocky Mountains Region. It was actually the sub -station of the issue. And it is below vs. vs. where we were going under that effect,” he said, saying that the effect in the area in that area Is absorbed.
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The company hopes that the fiscal will overcome food security issues until the beginning of the second quarter.
After the outbreak, officials stated that the company “invested to bring consumers back to the price, strength and clearly digital offers” and invested to gain confidence.
| Langer | Security | Last | Change | Change % |
|---|---|---|---|---|
| Municipal corporation | McDonald’s Corp. | 308.42 | +14.12 |
+4.80% |
McDonald’s plan to further enhance its price programs in the first quarter to “ensure that we are providing with good value in the major price and foundation of the industry.”
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Nevertheless, CFO Ian Borden told analysts that its approach to 2025 reflects the current environment of soft to reduce the traffic of the restaurant industry in the US and our many large markets. ”
