McDonald’s will likely suffer a noticeable drop in their sales forecast for 2014 after a Chinese TV report exposed workers at a supplier using expired meat and altering food production dates. In a statement, McDonald’s said, “”As a result of the China supplier issue, the company’s global comparable sales forecast for 2014 is now at risk.”
The fast-food chain added that sales have dipped in Asia-Pacific, the Middle East and Africa, by 7.3%. There couldn’t be a worse time for the food scare, as McDonald’s in China still hasn’t recovered from a separate food scandal and a bird flu outbreak that ravaged sales last year. Despite the bad news, McDonald’s shares dropped by only 0.1% in Friday morning trading.
A bigger worry for the Golden Arches is serious competition from Wendy’s and Burger King. Stagnated job and wage growth have cut directly into overall sales. U.S. McDonald’s restaurants sales fell 3.2% in July. Sales have been down or flat since 2013.
McDonald’s is still the #1 global food chain, with more than 18,000 international restaurants. Kentucky Fried Chicken is #2 with 11,798 restaurants. Subways comes in at #3 with 10,109 restaurants. McDonald’s hires about one million workers in the U.S. every year. One in eight American workers have been employed by McDonald’s. Former employees include Shania Twain, Jay Leno and Pink.
Featured image via monkboughtlunch/stephen lioy
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