McDonald’s (MCD, Financials) reported better-than-expected earnings and revenue for the third quarter, with its U.S. same-store sales rebounding after a previous decline; impressively, a recent E. coli outbreak did little to dampen investor sentiment. .
The fast-food behemoth's earnings per share came in at $3.23, more than the $3.20 analysts had projected, while revenues touched $6.87 billion, also above projections of $6.82 billion.
Notwithstanding the strong financial performance, concerns remain about an E. coli outbreak linked to McDonald's Quarter Pounder burgers affecting 13 U.S. states. Claiming one fatality and 75 reported cases, the pandemic has raised questions over likely impact on American sales. While traffic and revenues dropped immediately after the pandemic, McDonald's Chief Financial Officer Ian Borden said that the company does not expect any significant long-term effect on its business.
McDonald's has addressed the issue by severing relations with the presumably contaminated slaved onion supplier, The company plans to get Quarter Pounders sans onions back into operation for affected sites next Monday.
"While the situation appears to be contained, and though it didn’t affect Q3 numbers, it’s certainly an important development, which I know is on many of your minds," CEO Chris Kempczinski said in addressing the matter. McDonald's is "sorry," he said, and he promised McDonald's is working to "make this right."
