McDonald’s said sales in markets including China and Japan are experiencing a “significant negative impact” since a food safety scandal in China last month ago forced it to halt the sale of items such as Big Macs and Spicy McWings.
The affected markets account for about 10 per cent of its total revenue, the world’s largest burger chain said in a regulatory filing on Monday.
McDonald’s said that while the scandal would hurt results in the near term, it could not currently estimate the impact on earnings for the full year, saying only that the company’s global comparable sales forecast for 2014 is now “at risk.”
This announcement from McDonald’s follows a similar announcement from Yum! Brands on July 30.
In that announcement, Yum! said it was unclear what the impact to its sales in China would be as a result of the supplier scandal, which broke out following a report on Chinese television. Yum! also said the Shanghai FDA has launched an investigation into the company’s relationship with supplier Shanghai Husi as a result.
This latest announcement also follows what was a disappointing second quarter for McDonald’s, which on July 22 reported earnings per share that missed expectations on global comparable store sales that were flat year over year.
Near noon on Monday, shares of McDonald’s were down 0.6%, while Yum! Brands was up 0.4%.
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