McDonald's January Sales Drop, Dragged by China, Japan
Geann Pineda | | Feb 10, 2015 12:38 AM EST |
(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.
©2015 Chinatopix All rights reserved. Do not reproduce without permission
EDITOR'S PICKS
-
Did the Trump administration just announce plans for a trade war with ‘hostile’ China and Russia?
-
US Senate passes Taiwan travel bill slammed by China
-
As Yan Sihong’s family grieves, here are other Chinese students who went missing abroad. Some have never been found
-
Beijing blasts Western critics who ‘smear China’ with the term sharp power
-
China Envoy Seeks to Defuse Tensions With U.S. as a Trade War Brews
-
Singapore's Deputy PM Provides Bitcoin Vote of Confidence Amid China's Blanket Bans
-
China warns investors over risks in overseas virtual currency trading
-
Chinese government most trustworthy: survey
-
Kashima Antlers On Course For Back-To-Back Titles
MOST POPULAR
LATEST NEWS
Zhou Yongkang: China's Former Security Chief Sentenced to Life in Prison
China's former Chief of the Ministry of Public Security, Zhou Yongkang, has been given a life sentence after he was found guilty of abusing his office, bribery and deliberately ... Full Article
TRENDING STORY
-
China Pork Prices Expected to Stabilize As The Supplies Recover
-
Elephone P9000 Smartphone is now on Sale on Amazon India
-
There's a Big Chance Cliffhangers Won't Still Be Resolved When Grey's Anatomy Season 13 Returns
-
Supreme Court Ruled on Samsung vs Apple Dispute for Patent Infringement
-
Microsoft Surface Pro 5 Rumors and Release Date: What is the Latest?