McDonald's Global Sales Drop 3.7% in August

McDonald's issued an announcement yesterday morning in the United States, saying that its global same-store sales fell by 3.7% in August, which was lower than the market's forecast of 3.1%. Same-store sales in the Asia Pacific, Middle East and Africa regions fell by 14.5%. McDonald's said that sales in all regions have declined, mainly due to the impact of the recent Chinese out-of-date meat scandal and the increasingly fierce competition in the US market. The Fuxi incident reduced the company's third-quarter earnings per share by 15 to 20 cents.

Fuxi drags down Japanese sales by 25%

The issue of the use of expired meat by the supplier, Shanghai Fuxi Food, was exposed in late July. On September 1, McDonald's China announced the latest list of five meat suppliers. Instead of the previous Fuxi, five meat suppliers, McKey, Cargill, Hormel, Trident, and Sunner, became McDonald's Chinese meat suppliers.

Relevant person in charge of McDonald's China stated that he was thoroughly investigating the food safety strategy in China, planning to monitor video surveillance of meat production bases and increasing the review of suppliers. In the future, he will also add a food safety supervision function to be performed by the national food safety person in charge. Independent of the supply chain management department and reporting directly to the CEO of China.

Shanghai Fuxi is also one of the McDonald's meat suppliers in Japan. Japan's McDonald's Holdings released data on the 9th, showing that McDonald's sales in Japan decreased by 25.1% year-on-year in August. The number of customers decreased by 16.9% year-on-year, which was an increase from the 9.6% decrease in July. The per capita spending of customers also decreased by 9.8%, both setting the biggest drop this year.

McDonald's Performance Hits the Biggest Decline in 11 Years

In the wake of the Fuxi event and the sluggish US consumer spending, McDonald’s global same-store sales fell 3.7% in August, the largest decrease since the 4.7% decline in February 2003. In addition to the influence of the Fuxi event in the Asia-Pacific region, McDonald's development in the traditional US and European markets also encountered resistance.

Data showed that US same-store sales fell 2.8% in August, the fourth consecutive monthly decline; European same-store sales fell 0.7%. In addition, the Russian court recently requested the suspension of several McDonald's restaurants in Russia. Some analysts believe that the multi-national development of McDonald's will directly affect the performance of this year's performance.

data

August McDonald's global same-store sales fell 3.7%

Same store sales decreased 14.5% in Asia Pacific, Middle East and Africa

Japan's McDonald's sales decreased by 25.1% year-on-year in August

US same-store sales fell 2.8% in August