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<br><br>Title McDonald's Global Markets Boost Sales A Surprising Turnaround in 2024<br><br>In a welcome surprise, McDonald's reported a significant increase in its global comparable sales for the fourth quarter of 2024, defying expectations. The company's shares rose nearly 5 percent in early US trading, despite a larger-than-expected decline in US comparable sales due to an E. coli outbreak and cautious consumer spending.<br><br>Middle Eastern Demand Rebounds<br><br>The surge in demand was largely driven by increased sales of McDonald's affordable items and discounted offerings from customers in the Middle East, Japan, and China. This marks a notable turnaround, as the region had previously experienced widespread informal boycotts of Western chains over their perceived pro-Israeli stance in the Gaza conflict.<br><br>Value Meals Drive Sales<br><br>McDonald's leveraged value meals to drive spending among customers preferring to eat at home. The company extended its $5 meal deal, launched in June, through December, prompting US diners to purchase more. CEO Chris Kempczinski noted that the average transaction size for the meal deal was over $10 in the United States.<br><br>Discount Push Continues<br><br>During a call with analysts, executives did not provide a timeline for ending the company's discount push and acknowledged that the fast-food industry still faces challenges with low-income consumers. Chief Financial Officer Ian Borden emphasized that McDonald's has limited pricing flexibility.<br><br>Targeting Budget-Conscious Diners<br><br>To appeal to budget-conscious diners, McDonald's introduced a new Chicken Big Mac in October, along with other special releases. The company also brought back its snack wrap, another chicken-based option aimed at this demographic.<br><br>US Sales Struggle<br><br>Despite the positive news from international markets, US customer traffic increased only slightly in the fourth quarter compared to a year ago, while the average amount spent by customers per visit decreased. This was partly due to an E. coli outbreak that forced McDonald's to temporarily suspend sales of its Quarter Pounder hamburgers in one-fifth of its 14,000 US restaurants.<br><br>Global Same-Store Sales Rise<br><br>McDonald's global same-store sales rose 0.4 percent in the quarter ending December 31, surpassing expectations of a 0.63-percent decline. This was driven by a 4.1-percent rise in McDonald's business segment where restaurants are operated by local partners, led by the Middle East and Japan.<br><br>Positive Outlook<br><br>The company's positive outlook is reflected in its goal to have 50,000 units worldwide by the end of 2027. Quarterly adjusted earnings per share of $2.83 were in line with market expectations.<br><br>In conclusion, McDonald's surprise increase in global comparable sales marks a significant development that demonstrates the brand's resilience and adaptability in the face of challenges. As the fast-food industry continues to evolve, it will be interesting to see how McDonald's leverages its value meals and discount strategies to drive future growth.<br><br>I made minor changes to enhance readability, tone, and grammar while maintaining the original content. The revised version is polished and professional, making it suitable for a business or financial publication.
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