McDonald’s value meals turn around US sales in third quarter with customers hungry for deals

Value meals helped move astir McDonald’s U.S. income successful nan 3rd 4th pinch customers smarting from higher prices each over, but that betterment could beryllium dented successful nan last months of nan twelvemonth by an E. coli outbreak tied to nan company’s Quarter Pounder hamburgers.

U.S. same-store income — aliases income astatine stores unfastened astatine slightest a twelvemonth — roseate 0.3% successful nan July-September period, nan institution said Tuesday. McDonald’s launched a $5 worth meal successful precocious June aft a disappointing 2nd quarter, and it said nan worth connection resonated pinch consumers.

The $5 woody was truthful successful that McDonald’s precocious extended it to December astatine astir of its U.S. stores.

But past week, a situation hit. McDonald’s pulled Quarter Pounders disconnected nan paper astatine 900 stores aft nan U.S. Food and Drug Administration wished that nan burger’s slivered earthy onions were nan apt origin of E. coli contamination. The outbreak has killed 1 personification and sickened astatine slightest 75 others crossed 13 states.

McDonald’s said Sunday it has stopped getting onions from that supplier and expects to put nan Quarter Pounder — without onions — backmost connected each of its U.S. menus soon. But it’s not yet clear really overmuch nan callback wounded demand.

McDonald’s besides struggled extracurricular nan U.S. successful nan 3rd quarter. Chinese request was anemic arsenic nan that nation’s system slows, pinch customers choosing cheaper rivals, and nan institution has besides been wounded by nan warfare successful nan Middle East.

McDonald’s same-store income fell 1.5% companywide during nan 3rd quarter. That was worse than nan 0.6% diminution Wall Street was predicting, according to analysts polled by FactSet.

McDonald’s gross roseate 3% to $6.87 cardinal for nan quarter. That was somewhat higher than nan $6.82 cardinal analysts were predicting.

McDonald’s nett income fell 3% to $2.25 billion. Adjusted for one-time items, including nan costs associated pinch acquiring McDonald’s business successful Israel, nan institution earned $3.23 per share, which was higher than nan $3.21 per stock Wall Street was expecting.

Shares of McDonald’s Corp. were level earlier nan opening doorbell Tuesday.