AuBJ – Fast-food chain McDonald’s saw its international sales drop 2.5% in July, presumably due in large part to the food safety scare that happened in China. The world’s fast-food chain with more than 35,000 locations around the world, saw a 3.2% drop in the U.S. and a 7.3% drop in the unit covering Asia, the Middle East and Africa. Business picked up in other regions to help mitigate some of the loss.
The results reflect what’s believed to be an initial fallout from a Chinese food scandal late last month after a TV report showed workers at a McDonald’s supplier, OSI Group, repacking expired meat. McDonald’s has since stopped using supplies from the plant in Shanghai.
Analysts believe sales will continue to fall amidst concerns about food safety in China. Yum Brands, which owns KFC and Pizza Hut, was also caught up in the scandal and has cut ties with OSI Group.