McDonald’s Sales Drop After E. Coli Outbreak and Soaring Prices

McDonald's is still recovering from the E. Coli outbreak in late 2024 which resulted in more than 100 people across 12 states getting sick—and now things seem to be getting worse for the fast food chain. Whereas sales went up 4.3% this time last year, fourth-quarter earnings reports show sales have dipped 1.4%. "Our performance in 2024 did not meet our expectations," McDonald's CEO Chris Kempczinski said on a call with analysts. "It was a big year, and at times it felt like McDonald's was part of almost every major news story, reflecting the reach and visibility of our brand."

While traffic to restaurants has increased, guests are paying less, thanks to high prices not just as McDonald's but across the board for fast food and fast-casual restaurant chains. "We recognize that in several large markets, including the U.S., we have an opportunity to improve our value execution," Kempczinski said last year after poor second-quarter earnings in July 2024. "Consumers still recognize us as the value leader versus our key competitors but it's clear that our value leadership gap has recently shrunk. We are working to fix that with pace." Four months later the E. coli outbreak linked to slivered onions in Quarter Pounder burgers happened, and sales dipped.

MIAMI, FLORIDA USA - 05-29-2022 — Shutterstock

Even before the outbreak, guests were shocked at how expensive it had become to eat at McDonald's, especially for a family. "It's official. McDonald's is now prohibitively expensive," one very exasperated Redditor posted last year. "I went to a drive-thru to order a McChicken and medium fries. They charged me $8.35, but I drove out of the line before I reached the window. Then I went to another McDonald's, and walked inside to order the exact same thing. They charged me $9.50. I told them to cancel it, and walked away… This order barely cost $4 max a few years ago… I do not see myself paying for McDonald's ever again." Another commenter agreed, saying, "McDonalds was very cheap quality for a reasonable price, now they are trying to sell the same junk as REAL food… for THAT money I'm going to buy a REAL burger somewhere else… lol."

It's not all doom and gloom—McDonald's excellent loyalty program for customers is paying off, up 15% compared to last year. According to the earnings report, 175 million loyalty members across 60 markets spent $8 billion in the last quarter—a 30% increase compared to last year.

McDonald's also recently launched the new McValue menu to lure budget-conscious customers back to the chain. "Accelerating the Arches continues to be the right strategy as we focus on growing market share," Kempczinski says. "We're playing to win, focusing on our customers with outstanding value, exciting menu innovation and culturally relevant marketing."