OAK BROOK, Ill. (AP) – McDonald’s said Tuesday that a key global sales figure fell 3.7 percent in August, driven lower as the world’s biggest hamburger chain’s unit that includes the Asia-Pacific region dropped 14.5 percent due to a food-safety scandal in China.
That unit also includes the Middle East and Africa.
McDonald’s Corp. said earlier this month that it will monitor its suppliers in China more closely after a food-safety scandal in the country hurt its sales and reputation. The announcement came after a TV report in July showed workers at McDonald’s supplier Shanghai Husi Food Co. – a division of OSI Group Inc. – repacking expired meat. McDonald’s stopped using the plant in Shanghai.
The company plans to increase audits and video monitoring at its suppliers and send more employees to meat production facilities to ensure its food is prepared safely. It has also named a new food safety officer and created a hotline where employees can report poor food safety practices.
McDonald’s is not the only fast-food company to be hurt by food-safety concerns in China. Yum Brands Inc., whose brands include KFC and Pizza Hut, has also stopped using meat from the Shanghai plant and said that its restaurants cut all ties with OSI in China, the U.S. and Australia.