McDonald’s 2024 combo: Inflation, a health crisis and a side of politics

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Life under the Golden Arches hasn’t been easy this year.

McDonald’s has faced a customer revolt over pricey Big Macs, an unsolicited cameo in election-season crossfire, and now an E. coli outbreak — just as the company had been luring customers back with more affordable burgers.

Still, like U.S. consumers themselves, Mickey D’s remains in sturdy shape heading into 2025, despite its ongoing challenges.

The fast-food giant reported Tuesday that it had reversed its recent U.S. sales drop, posting a 0.3% uptick in the third quarter. Foot traffic was still down slightly, but the company said its summer of discounts was paying off.

“We will stay laser-focused on providing an unparalleled experience with simple, everyday value and affordability that our consumers can count on as they continue to be mindful about their spending,” CEO Chris Kempczinski said in a statement alongside the earnings report.

The financial results come toward the end of a humbling year for the nearly $213 billion restaurant chain, whose shares remained steady on the heels of its latest earnings. Kempczinski sought to reassure investors that the E. coli outbreak, linked to Quarter Pounder burgers, was under control after the health crisis temporarily dented the company’s stock and caused U.S. foot traffic to drop nearly 10% in the days afterward, according to estimates by Gordon Haskett financial researchers.

“We view it as being behind us,” Kempczinski said on Tuesday’s earnings call.

Despite a difficult quarter, McDonald’s looks resilient in the face of various pressures, analysts say — something the company shares with U.S. consumers overall.

Relative to other major brands, like Starbucks, that have struggled to reconnect with customers who are watching their wallets, McDonald’s has done an “excellent job” of bringing diners back, said Ravi Dhar, the director of Yale University’s Center for Customer Insights.

“McDonald’s has also done a good job of embedding the brand in popular culture to enhance its relevance and meaning around fun and family. But it also needed to modify the product line to meet the expectations of a consumer who is on a tight budget,” he said.

McDonald’s didn’t respond to requests for comment.

Nearly 80% of Americans now see fast food as a ‘luxury,’ survey says