McDonald's warns of big setback after China expired meat scandal
August 6, 2014, 12:00 am TWN
NEW YORK--McDonald's said Monday that a recent scandal over expired meat from a Chinese food supplier has had a "significant negative impact" on sales in China, Japan and some other markets.
The fast food giant also said it was working to regain customer confidence in a region that accounts for 10 percent of its revenues.
On July 21, Shanghai officials shut the Shanghai Husi Food Co. following a television report alleging the plant mixed out-of-date meat with fresh product. Chinese police later detained five Shanghai Husi officials.
As a consequence, "McDonald's businesses in China, Japan and certain other markets are experiencing a significant negative impact to results," the company said in a quarterly securities filing.