CHINA TOPIX

11/22/2024 05:56:37 am

Make CT Your Homepage

McDonald's January Sales Drop, Dragged by China, Japan

McDonald's

(Photo : Reuters) A woman walks past the logo of McDonald's outside its restaurant in Tokyo February 5, 2015.

McDonald's has reported a worse-than-expected drop in January sales, dragged down by its Asian restaurants.

The world's biggest fast food chain said, global sales in January fell 1.8 percent higher than the projected 1.2 percent drop. Last month's sales suffered amid food safety scandals in China and Japan.  

Like Us on Facebook

McDonald's meat supplier in China, Shanghai Husi Food Co., was accused of using expired meat, which prompted McDonald's to take meat products off its menus in China.

In December, McDonald's was forced to ration fries after a labor dispute in the U.S. ports resulted in a shortage of potato supply.  Also in the same month, it was reported that a human tooth was found in the fries, while plastic was found in its chicken nuggets. 

McDonald's is currently struggling to win back its customers. The company said "brand recovery" was its top priority in Asia. The fast food chain said it has suspended ties with Shanghai Husi parent OSI Group LLC, while its Japan unit placed supply chain monitoring under its chief financial officer.

These are just some of the challenges incoming CEO Steve Easterbrook will be facing as he takes a new turn in the company. 

The eight straight months of global sales decline led to the resignation of Chief Executive Don Thompson. Easterbrook will replace Thompson beginning March 1. 

"I don't think we're going to see a major bounce back this year," said Darren Tristano, executive vice president at Chicago-based research firm Technomic Inc. "It's a tough, competitive market."

The stock also fell 1.4 percent to US$92.72 in New York, Monday. McDonald's shares declined 3.4 percent in 2014.

Real Time Analytics