McDonald’s Corp (NYSE:MCD) stock fell 0.71% (As on October 30, 11:15:39 AM UTC-4, Source: Google Finance) after the company reported global comparable sales slid 1.5 per cent year on year, more than the 0.6 per cent decrease estimated in a Visible Alpha survey of analysts. In the US, McDonald’s has extended a $5 meal deal introduced during the summer. There are signs that promotional activity has been working: comparable sales at McDonald’s roughly 13,500 US restaurants rebounded after a dip in the second quarter, rising by 0.3 per cent. Despite the pick-up in American sales, hopes for a revival have been overshadowed by an outbreak of E. coli linked to onions used on Quarter Pounder hamburgers in parts of the central US. The outbreak has led to more than 70 cases of illness and one death since it was announced a week ago. McDonald’s is resuming sales of Quarter Pounders in the region this week after health authorities and the company traced the contamination to a single vegetable processor in Colorado. McDonald’s has stopped buying onions from the supplier. Further, comparable sales in international licensed markets fell 3.5 per cent. McDonald’s cited the effects of the war in the Middle East and weaker sales in China, even as its Latin American business grew. McDonald’s in August started offering sets of collectible cups in more than 30 countries, which could lead to an increase in comparable sales. The company had 42,406 restaurants worldwide as of June, 95 per cent of them franchised.

Moreover, after years of food inflation, consumers are balking at the cost of burgers, fries and soft drinks. In response, McDonald’s had launched deals such as €4 Happy Meals in France, “three for £3” meal bundles in the UK and C$1 coffee in Canada.

MCD in the third quarter of FY 24 has reported the adjusted earnings per share of $2.26, missing the analysts’ estimates for the adjusted earnings per share of $2.30. The company had reported the adjusted revenue growth of 3 percent to $6.9 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue of $6.8 billion. Systemwide sales were flat (flat in constant currencies).  Consolidated operating income decreased 1% (1% in constant currencies). Results included $52 million of pre-tax transaction costs and non-cash impairment charges and $46 million of pre-tax restructuring charges associated with Accelerating the Organization. Lower Selling, general, and administrative expenses and higher Franchised margins drove positive operating income performance for the quarter

Additionally, the company declared a 6% increase in its quarterly cash dividend to $1.77 per share.