The food scandal problem between China, Japan and McDonalds
According to a statement made by the company said they might not meet up with their sales forecast for this year as a result of their China supply issues.
Their affected markets account for 10% of revenues, the company said and last month, McDonalds suspended sales of its nuggets in Hong Kong amid concerns about a Chinese meat supplier, which its supplies came from a Chinese company, Shanghai Husi Food, whose operations have been suspended by regulators after local media reports claimed it re-processed out-of-date meat.
McDonalds said at the time nearly 500 stores in Japan had removed chicken nuggets from their menus, adding that sales were expected to resume after it switches to other suppliers in China and Thailand. Sales of its Big Macs and Spicy McWings were also halted in some cities.
McDonalds said it could not currently estimate the impact on earnings for the full year, but added that it was “undertaking recovery strategies to restore the trust and confidence of our customers”.
Analyst Mark Kalinowski from Janney Capital Markets said: “Risks have ticked up in the near-term regarding McDonalds business in China and Japan.”
He estimates that same-store sales in the region will fall 5% in the three months to September.
Other fast food chains such as the KFC and Pizza Hut owner Yum Brands have also said their business has been affected as a result of the scare.