McDonald’s trying to restart sales

McDonald’s, working to resume sales of beef and chicken in China this week after a supplier was accused of repackaging old meat, said the situation is hurting its sales in Asia.

“McDonald’s businesses in China, Japan and certain other markets are experiencing a significant negative impact to results,” the Oak Brook, Illinois-based company said in a filing yesterday. While McDonald’s said it can’t estimate the full effect on 2014 earnings, the areas at issue make up about 10 percent of consolidated revenue and the company’s global same-store sales forecast for the year is “at risk.”

Separately, McDonald’s Japan business posted a 17.4 percent drop in same-store sales in July from a year earlier, according to the company’s statement to the Tokyo Stock Exchange yesterday.

The world’s largest restaurant chain has been working to stanch the damage to its sales and reputation since supplier Shanghai Husi became the subject of a government probe into the altering of expiration dates on food.

Bloomberg