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McDonald’s says Chinese meat scandal putting 2014 forecast “at risk”

August 6, 2014
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McDonald’s said that the scandal over its Chinese meat supplier Shanghai Husi, is hurting sales in the region and has put its global sales forecast for 2014 at risk. According to the Chicago Sun-Times, the world’s biggest hamburger chain said in a regulatory filing that there’s been “significant negative impact” in China, Japan and other affected markets. These regions make up about 10 percent of McDonald’s Corp.’s revenue. The company had previously said it expected the worldwide sales measure to be “relatively flat” for the year.

The Chinese meat supplier, which is a subsidiary of OSI Group LLC, was found via an undercover video to be using frozen expired meat in its burger products. Two weeks after the video was shown, McDonald’s restaurants in China are starting to serve its signature Big Mac and Chicken McNuggets. Beef and chicken items will return to Beijing and Guangzhau this week and Shanghai by the end of the month.

OSI also has launched a review of its manufacturing plants throughout China.

Source: Chicago Sun-Times

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