McDonald's Sales Drop Following Expired Food Scandal

McDonald’s same-store sales fell 2.5% globally in July following a health scare with a food supplier that forced the burger chain to withdraw menu items in China.

The company said the scandal, in which a food supplier was found to be selling expired meat, has put its global sales forecast for 2014 “at risk.”

Some of the burger chain’s restaurants in China were able to sell only soda and fries in the immediate aftermath of the scandal.

Analysts were expecting a same-store sales drop of 1.1% globally. Comparable sales fell 3.2% in the U.S. and 7.3% in China for the month of July.

McDonald’s has been struggling to boost sales amid growing competition from fast casual brands such as Chipotle and better-burger chains like Five Guys.

The company is trying to execute a turnaround by simplifying its menu, speeding up customer service, and adding healthier options to the menu.

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