McDonalds Sales Continue Decline after being Hit by China Meat Scandal

first_imgFast food chain McDonald’s has been posting continued loss since a Chinese media report revealed its suspected sale of expired beef and chicken used for the nuggets.Reports on the lack of quality of the meat from China’s Shanghai Husi Food, owned by US-based OSI Group, has hurt the MNC food chain.McDonald’s sales have slipped to a decade-worst low at 3.7 percent in August, following the suspected sale of expired meat, which was revealed during late July.The restaurant posted the sharpest decline since the drop of 4.7 percent in February 2003, it was revealed on Tuesday. In August, sales slipped by 14.5 percent across Asia-Pacific, Middle East and Africa, reported Wall Street Journal.The company stated that it recently changed the head of the US business team and has confirmed the resignation of its top US marketing executive after the China meat controversy.Shanghai Husi Food have also supplied meat to other big chains like Yum Brands and KFC but McDonald’s has been one of its biggest customers.McDonald’s has also apologised and is now seeking to restore customers’ trust in China, which has around 2,000 of its stores.The restaurant predicts the China issue will decline its third-quarter revenue by 15 cents to 20 cents per share. On Tuesday, McDonald’s stock prices slipped $1.41, by recording at $91.09 a share.”We are diligently working to effectively navigate the current market conditions to regain momentum,” WSJ quoted the press statement of McDonald’s Chief Executive Officer Don Thompson.Moreover, the fast food chain’s business has also dipped in its home market – USA. The sales plunged around 2.8 percent, which was worse than the estimation of 2 percent by analysts.The sales in Europe have also dipped by 0.7 percent in August, the company added.McDonald’s Joins Hands with Apple to Boost SalesApple unveiled its latest smartphone iPhone 6 on Tuesday. And McDonald’s, on the same day, announced that it would accept Apple pay in all of its US restaurants, following the launch of the mobile payments service, with an aim of making food purchases fast and easy for customers using iPhone 6 and other Apple devices.”We’re excited to see the mobile payments industry reach a potential inflection point. As the technology catches on, McDonald’s will be well positioned to leverage the investments we’ve made around the world,” Atif Rafiq, McDonald’s senior vice president and global chief digital officer, said in a statement.last_img

Add a Comment

Your email address will not be published. Required fields are marked *