McDonald's sales drop in October over food scandal in China
A statue of Ronald McDonald greets customers outside a McDonald's restaurant in Beijing on July 31, 2014. The chain reported Nov. 10, 2014, that sales slipped in October on weakness in the United States and a food-safety scandal in China. Credit: AP / Andy Wong
McDonald's Corp. says that a key global sales figure slipped 0.5 percent in October, with weakness in the United States and ongoing difficulties from a food-safety scandal in China weighing down its business.
The world's biggest hamburger chain said Monday that the decline in global sales at locations open at least 13 months included a 1 percent drop in the United States, and a 4.2 percent decline for the unit that includes the Asia-Pacific region, the Middle East and Africa.
McDonald's APMEA division has been trying to bounce back since the summer, when a TV report in China showed workers at one of its suppliers repackaging meat that was alleged to be expired. The claim has not been publicly confirmed by the supplier or the government.
The Oak Brook, Illinois, company said comparable sales for Europe fell 0.7 percent in October due to softness in Russia.
A year ago, its overall global sales figure rose 0.5 percent in October.
President and CEO Don Thompson said in a statement that consumers are increasingly looking for food where they have the option to customize it to their liking, as well as places that have convenient ways to order and pay.
McDonald's previously announced that it plans to expand its Create Your Taste offering that lets customers pick the buns and toppings they want on burgers by tapping a touch-screen.
The chain said that its U.S. restaurants were hampered by strong competition. Thompson previously said that McDonald's plans to combat this in party by simplifying its menu so that its restaurants have room to offer options best-suited for their regions. This process is expected to start in January.
One of McDonald's biggest challenges in the United States is long-held perceptions around the freshness and quality of its ingredients. The chain has been fighting to boost sales as customers gravitate toward foods they feel are more wholesome. As a result, diners have been heading to places like Chipotle, which markets its ingredients as being of superior quality.
McDonald's has more than 35,000 locations in more than 100 countries.
Shares were up 3 cents Monday morning at $95.13.
