McDonalds Global Sales Rise Despite US Market Slowdown

The world’s largest restaurant chain, McDonald’s, has demonstrated resilience in its fourth-quarter performance, posting a 0.4 per cent increase in global comparable sales, defying market analysts’ expectations of a decline.

The unexpected recovery was primarily driven by robust international performance, with licensed operations showing a 4.1 per cent sales growth, particularly in the Middle East and Japan. The directly operated international segment managed a modest 0.1 per cent increase, contributing to the overall positive outcome.

The US market, however, presented challenges for the fast-food giant, recording a concerning 1.4 per cent drop in comparable sales. This decline was attributed to reduced customer spending per visit and the temporary withdrawal of Quarter Pounder burgers from 20 per cent of US locations following E. coli concerns linked to slivered onions in October.

Total revenue for the period reached £6.38 billion, marginally below the £6.4 billion recorded in the previous year. Despite domestic headwinds, McDonald’s chairman and chief executive Chris Kempczinski remained optimistic, emphasising the company’s commitment to winning customers through value offerings and menu innovation.

The company’s system-wide sales, encompassing both company-owned and franchised restaurants, exceeded £130 billion for the full year. The market responded positively to the results, with McDonald’s shares closing up £14.12, or 4.8 per cent, at £308.42 in New York trading.

The Golden Arches’ performance reflects its enduring strength in international markets, effectively counterbalancing domestic challenges. This global presence, established since its 1940 founding in California, continues to prove valuable in maintaining growth momentum across its network of more than 40,000 outlets worldwide.