McDonald's said that key global sales figure fell 3.7 percent in August due to the food-safety scandal in China.
McDonald's is not the only fast-food company to be hurt by food-safety concerns in China. Yum Brands Inc., whose brands include KFC and Pizza Hut, has also stopped using meat from the Shanghai plant and said that its restaurants cut all ties with OSI in China, the U.S. and Australia.McDonald's anticipates the China scandal will hurt its third-quarter results by about 15 cents to 20 cents per share compared with its year-ago results. The Oak Brook, Illinois, company said that it will update its 2014 financial guidance when it reports its third-quarter results in October.In the U.S., sales at established locations in operation at least 13 months declined 2.8 percent in August. The figure dipped 0.7 percent in Europe due to weakness in Russia. McDonald's said that soft revenue is expected to pressure its U.S. margin performance in the third quarter.Aside from dealing with the China food-safety scandal, McDonald's faces increasing competition and shifting eating habits. Part of the problem is that chains like Chipotle are gaining favor by touting more wholesome ingredients and the ability to customize food. McDonald's is trying to adapt on multiple fronts, including a "Build-Your-Own-Burger" test in Southern California and a new Bacon Clubhouse burger positioned as a premium offering at $5 or $6. (More: Build-your-own burger at McDonald's soon?)McDonald's shares fell 41 cents to $92.09 in morning trading. Its shares have fallen 9 percent over the past three months.
Should Machines Decide Who Lives And Dies In A War? Ex-CIA Chief Answers
Kriti Sanon Says Instagram Has No Option To Report AI-Generated Images Of Her
What Anthropic, Monks And The Cusp Of Consciousness Teach About Tomorrow
Nikhil Kamath's Big AI Bet: Why India Should Look Beyond Silicon Valley
When Will India Get Its Own Apple, Samsung? Ashwini Vaishnaw Reveals Timeline
Neeru Saini On Fitness, Focus & Her Love for Churma!
NDTV Lifeline- Himanshu Saini on the Secret to Eating Well: More Greens, Healthier Desserts
Hockey Champions Savita Punia & Neha Goel on Fitness, Recovery & The Meaning of Health
Millets: The Superfood That's Good for You and the Planet
Yoga, Millets, Vaccines: S Jaishankar On How India Is Building Stronger Ties | NDTV World Summit
McDonald's is not the only fast-food company to be hurt by food-safety concerns in China. Yum Brands Inc., whose brands include KFC and Pizza Hut, has also stopped using meat from the Shanghai plant and said that its restaurants cut all ties with OSI in China, the U.S. and Australia.McDonald's anticipates the China scandal will hurt its third-quarter results by about 15 cents to 20 cents per share compared with its year-ago results. The Oak Brook, Illinois, company said that it will update its 2014 financial guidance when it reports its third-quarter results in October.In the U.S., sales at established locations in operation at least 13 months declined 2.8 percent in August. The figure dipped 0.7 percent in Europe due to weakness in Russia. McDonald's said that soft revenue is expected to pressure its U.S. margin performance in the third quarter.Aside from dealing with the China food-safety scandal, McDonald's faces increasing competition and shifting eating habits. Part of the problem is that chains like Chipotle are gaining favor by touting more wholesome ingredients and the ability to customize food. McDonald's is trying to adapt on multiple fronts, including a "Build-Your-Own-Burger" test in Southern California and a new Bacon Clubhouse burger positioned as a premium offering at $5 or $6. (More: Build-your-own burger at McDonald's soon?)McDonald's shares fell 41 cents to $92.09 in morning trading. Its shares have fallen 9 percent over the past three months.