McDonald’s CEO Chris Kempczinski has issued a formal apology to customers affected by a recent E. coli outbreak linked to the chain’s popular Quarter Pounder burgers in the U.S., acknowledging the setback amid the company’s efforts to boost sluggish sales.
“We are deeply sorry for what our customers experienced,” Kempczinski expressed, adding that the company is fully committed to addressing the issue and regaining customer trust. While executives believe the public health concern has been contained and is unlikely to significantly impact overall sales, they recognize it has added pressure on the business at a time when many customers are reining in dining expenses.
On Tuesday, two affected customers filed a proposed class-action lawsuit against McDonald’s, with additional legal actions anticipated. Meanwhile, McDonald’s is striving to turn around sales performance, which fell by 1.5% in stores open at least a year in the three months ending in September—a continuation of declining sales observed earlier this year.
International markets were notably affected, with drops reported in the UK, France, China, and the Middle East. To counter the trend, McDonald’s is focusing on affordability, recently introducing a $5 Happy Meal promotion in the U.S. and experiencing a modest sales rise there. In the UK, value deals such as the Three for £3 and £2.75 breakfast bundle are part of the strategy, along with popular menu additions like the “Grimace” shake, which have sparked consumer interest.
“We are beginning to see progress,” said CFO Ian Borden, though he acknowledged that ongoing conflict in the Middle East could continue to impact business in that region. He added that the company plans to keep prices stable for now to maintain customer loyalty, noting the ongoing “resistance” to price increases.
The financial impact of the E. coli incident, which affected at least 75 people, was not reflected in the latest quarterly report, which showed revenue up 3% to over $6.8 billion, while profits dropped 3% to $2.25 billion. The company has since halted its relationship with Taylor Farms, its onion supplier, believed to be the source of the contamination, and has started to resume Quarter Pounder sales in the U.S.
Borden expressed confidence in McDonald’s ability to regain momentum, stating, “The most significant events are behind us. We’re committed to restoring the strong momentum in our business.”
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