McDonald`s Corp

Fiscal Performance and Challenges: McDonald's reported a global comp sales decrease of 0.1% for 2024, with a 1.4% decline in U.S. comp sales for Q4 due to an E. coli outbreak. Despite a slight recovery in Q4 with a 0.4% increase in global comps, the overall performance fell short of expectations, highlighting the impact of external challenges like consumer spending pressure, particularly among low-income demographics.

U.S. Recovery Outlook: The company expects a full recovery from the E. coli incident by Q2 2025. January's launch of the McValue platform aims to enhance customer perception of value, with initial take rates aligning with expectations and an average check significantly exceeding promotional prices. Successful execution of value offers is crucial for reestablishing guest counts and driving higher average checks.

International Markets Performance: While the International Operated Markets (IOM) segment showed mixed results, with some markets (e.g., France, Canada) performing well, the UK and Australia remain under pressure from local competition and consumer cost concerns. Improvement efforts include value relaunches and strong marketing initiatives to regain market share.