McDonald鈥檚 hit by keen rivalry, supplier fallout
Print Edition
MCDONALD’S Corp’s sales fell at established restaurants in all regions last month, hurt by stiff competition in the United States and the fallout from a supplier scandal in Japan and China.
Worldwide sales at restaurants open at least 13 months fell 0.5 percent. Analysts on average estimated a 2.2 percent decline, said research firm Consensus Metrix.
Same-restaurant sales in the Asia-Pacific, Middle East and Africa region fell 4.2 percent, the company said yesterday. Analysts estimated a 6.1 percent drop.
Diners shunned the chain in China and Japan after a television news expose showed workers mishandling meat at a key supplier in China, and McDonald’s scrambled to find new sources for ingredients to make its Chicken McNuggets and Big Macs.
Comparable sales in the US fell 1 percent, below the 1.9 percent decline analysts expected.
The world’s biggest restaurant chain by revenue has been struggling to compete with resurgent rivals such as Wendy’s Co and Burger King Worldwide Inc as well as privately held chains such as In-N-Out Burger and Chick-fil-A.
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