Monday, December 22, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

McDonald’s sales hit by China scandal, US weakness

By
From page C6 | August 10, 2014 |

NEW YORK — McDonald’s says a global sales figure fell 2.5 percent in July, dragged down by persistent weakness in the U.S. and a food safety scare in China.

The world’s biggest hamburger chain said Friday that the decline included a 3.2 percent drop in the U.S. and a 7.3 percent drop in the unit encompassing Asia, the Middle East and Africa.

The results reflect what is likely to be just the beginnings of the fallout from a Chinese food scandal late last month. A TV report at the time showed workers at a McDonald’s supplier, OSI Group, repacking expired meat. McDonald’s subsequently stopped using the plant in Shanghai, which left many of its restaurants unable to provide a wide range of items including Big Macs and Chicken McNuggets.

The company has since been working with other OSI plants to restore supplies to the affected restaurants. Still, sales are likely to continue suffering given the sensitivities around food safety in China. Yum Brands, which owns KFC and Pizza Hut, says it did not rely as heavily OSI and quickly cut all ties with the company. But its sales have been battered as well.

McDonald’s Corp., which has more than 35,000 locations around the world, warned earlier this week that the scandal puts its global sales forecast for 2014 “at risk.” It had previously said it expects sales to be “relatively flat.”

If the figure were to fall, that would mark the first annual global sales decline since 2002. Janney Capital Markets analyst Mark Kalinowski also noted the decline in July could be the worst monthly showing in the past decade.

Back in the U.S., McDonald’s has failed to boost sales since October amid intensifying competition and shifting eating habits. The drop last month came despite its sponsorship of the World Cup.

Part of the problem is that chains like Chipotle are gaining favor by touting more wholesome ingredients and the ability to customize food. McDonald’s is trying to adapt on multiple fronts, including a “Build-Your-Own-Burger” test in Southern California and a new Bacon Clubhouse burger positioned as a premium offering at $5 or $6.

McDonald’s CEO Don Thompson has also noted that the company’s lower-income customers are struggling more financially, making them reluctant to eat out.

Thompson has also said McDonald’s complicated its menu and slowed down service by introducing too many items too quickly. He says the company is working on getting the basics rights — such as improving service.

The one bright spot in July was Europe, where sales at established locations edged up 0.5 percent.

McDonald’s shares rose 17 cents to $93.48 Friday afternoon. Over the past year, its stock is down about 5 percent.

 

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

Christmas comes early to San Marco Street park

By Ryan McCarthy | From Page: A1 | Gallery

 
Travis squadron delivers Christmas gifts to East Tabor

By Ryan McCarthy | From Page: A1 | Gallery

How this chunky Wade met Chunky Wade

By Tony Wade | From Page: A2

 
Multiple car accident blocks I-80 in Vacaville

By Glen Faison | From Page: A3 | Gallery

Solano Kwanzaa celebration set for Vallejo return

By Susan Hiland | From Page: A3

 
Lawyers off free legal advice in Fairfield

By Susan Hiland | From Page: A3

 
 
 
Famous Creations’ toy drive and cupcake sale

By Daily Republic staff | From Page: A4 | Gallery

Last-minute shopping at Vacaville Premium Outlets

By Daily Republic staff | From Page: A4 | Gallery

 
Kitchen fire dislocates family for Christmas

By Susan Hiland | From Page: A4 | Gallery

Fairfield police log: Dec. 20, 2014

By Susan Hiland | From Page: A9

 
Suisun City police log: Dec. 20, 2014

By Susan Hiland | From Page: A9

Weather for Dec. 22, 2014

By Daily Republic | From Page: B10

 
.

US / World

California puzzles over safety of driverless cars

By The Associated Press | From Page: A1

 
Timeline of events before and after NY cop deaths

By The Associated Press | From Page: A1

A look at the 2 NYC officers killed in ambush

By The Associated Press | From Page: A1

 
What’s being said about killings of 2 NYC officers

By The Associated Press | From Page: A1

Killer of 2 NYC officers had long criminal history

By The Associated Press | From Page: A1

 
Killings of 2 New York officers trigger backlash

By The Associated Press | From Page: A1

Pakistan makes arrests in Taliban school carnage

By The Associated Press | From Page: A5

 
Florida authorities say 1 police officer shot and killed

By The Associated Press | From Page: A5

Tent city sprouts in shadow of downtown Detroit

By The Associated Press | From Page: A5

 
US mulls putting NKorea on terrorism sponsor list

By The Associated Press | From Page: A5

Satanic Temple puts up display at Michigan Capitol

By The Associated Press | From Page: A5

 
Australian woman charged with murder of 8 children

By The Associated Press | From Page: A5

Exit poll: Ex-regime official is Tunisia’s new president

By The Associated Press | From Page: A5

 
.

Opinion

Faust and the 2015 federal budget

By Mike Kirchubel | From Page: A8

 
Obama, surgeon general still losing to NRA

By Francis Wilkinson | From Page: A8

Let the music begin

By Colleen Britton | From Page: A8

 
Editorial Cartoon: Dec. 22, 2014

By Daily Republic Syndicated Content | From Page: A8

 
.

Living

Community Calendar: Dec. 22, 2014

By Susan Hiland | From Page: A2

 
Today in History: Dec. 22, 2014

By The Associated Press | From Page: A2

Horoscopes: Dec. 23, 2014

By Holiday Mathis | From Page: B5

 
 
Horoscopes: Dec. 22, 2014

By Holiday Mathis | From Page: A7

.

Entertainment

TVGrid Dec 22

By Daily Republic Syndicated Content | From Page: B6

 
Review: ‘The Interview’ deserves to be seen

By Jake Coyle | From Page: B7

Happy day: Elton John, David Furnish marry in England

By The Associated Press | From Page: B7

 
TVGrid Dec 23

By Daily Republic Syndicated Content | From Page: B7

‘Hobbit’ goes out on top with $90.6 million 5-day debut

By The Associated Press | From Page: B7

 
Good news from Tom Brokaw: His cancer is in remission

By The Associated Press | From Page: B7

.

Sports

The Week Ahead: Not much of a break for Christmas

By Paul Farmer | From Page: B1

 
Steelers, Packers win, move into playoffs

By The Associated Press | From Page: B1 | Gallery

Raiders knock Bills out of playoffs with 26-24 win

By The Associated Press | From Page: B1 | Gallery

 
Kings snap 5-game losing skid, beat Lakers 108-101

By The Associated Press | From Page: B1 | Gallery

Burns gives Sharks late-night win over Blues in OT

By The Associated Press | From Page: B1

 
Super-G crash makes Vonn wait in bid for record

By The Associated Press | From Page: B2

NFL Roundup: Cowboys end 4-year drought, make playoffs

By The Associated Press | From Page: B2 | Gallery

 
7 hurt when lightning strikes near Tampa Bay game

By The Associated Press | From Page: B2

India’s Arjun Atwal wins Dubai Open

By The Associated Press | From Page: B2

 
Documents: FSU QB Winston cleared in conduct hearing

By The Associated Press | From Page: B2

.

Business

US companies eager to embrace Cuba face hurdles

By The Associated Press | From Page: B6

 
Survey: US gas prices fall 25 cents per gallon

By The Associated Press | From Page: B6

.

Obituaries

Marian Kay Zutz

By Nancy Green | From Page: A4

 
Bart Ferro

By Nancy Green | From Page: A4

.

Comics

Zits Dec 23

By Daily Republic Syndicated Content | From Page: B4

 
Get Fuzzy Dec 23

By Daily Republic Syndicated Content | From Page: B4

Pickles Dec 23

By Daily Republic Syndicated Content | From Page: B4

 
Rose is Rose Dec 23

By Daily Republic Syndicated Content | From Page: B4

Beetle Bailey Dec 23

By Daily Republic Syndicated Content | From Page: B4

 
Peanuts Dec 23

By Daily Republic Syndicated Content | From Page: B4

Garfield Dec 23

By Daily Republic Syndicated Content | From Page: B4

 
For Better or Worse Dec 23

By Daily Republic Syndicated Content | From Page: B4

Baldo Dec 23

By Daily Republic Syndicated Content | From Page: B4

 
Blondie Dec 23

By Daily Republic Syndicated Content | From Page: B4

Dilbert Dec 23

By Daily Republic Syndicated Content | From Page: B4

 
Frank and Ernest Dec 23

By Daily Republic Syndicated Content | From Page: B4

Sally Forth Dec 23

By Daily Republic Syndicated Content | From Page: B4

 
B.C. Dec 23

By Daily Republic Syndicated Content | From Page: B4

Wizard of Id Dec 23

By Daily Republic Syndicated Content | From Page: B4

 
Baby Blues Dec 23

By Daily Republic Syndicated Content | From Page: B4

Sudoku Dec 23

By Daily Republic Syndicated Content | From Page: B5

 
Bridge Dec 23

By Daily Republic Syndicated Content | From Page: B5

Word Sleuth Dec 23

By Daily Republic Syndicated Content | From Page: B5

 
Crossword Dec 23

By Daily Republic Syndicated Content | From Page: B5

Cryptoquote Dec 23

By Daily Republic Syndicated Content | From Page: B5

 
Garfield Dec 22

By Daily Republic Syndicated Content | From Page: A6

B.C. Dec 22

By Daily Republic Syndicated Content | From Page: A6

 
Wizard of Id Dec 22

By Daily Republic Syndicated Content | From Page: A6

For Better or Worse Dec 22

By Daily Republic Syndicated Content | From Page: A6

 
Get Fuzzy Dec 22

By Daily Republic Syndicated Content | From Page: A6

Baby Blues Dec 22

By Daily Republic Syndicated Content | From Page: A6

 
Baldo Dec 22

By Daily Republic Syndicated Content | From Page: A6

Zits Dec 22

By Daily Republic Syndicated Content | From Page: A6

 
Peanuts Dec 22

By Daily Republic Syndicated Content | From Page: A6

Dilbert Dec 22

By Daily Republic Syndicated Content | From Page: A6

 
Sally Forth Dec 22

By Daily Republic Syndicated Content | From Page: A6

Pickles Dec 22

By Daily Republic Syndicated Content | From Page: A6

 
Rose is Rose Dec 22

By Daily Republic Syndicated Content | From Page: A6

Frank and Ernest Dec 22

By Daily Republic Syndicated Content | From Page: A6

 
Blondie Dec 22

By Daily Republic Syndicated Content | From Page: A6

Beetle Bailey Dec 22

By Daily Republic Syndicated Content | From Page: A6

 
Sudoku Dec 22

By Daily Republic Syndicated Content | From Page: A7

Cryptoquote Dec 22

By Daily Republic Syndicated Content | From Page: A7

 
Bridge Dec 22

By Daily Republic Syndicated Content | From Page: A7

Word Sleuth Dec 22

By Daily Republic Syndicated Content | From Page: A7

 
Crossword Dec 22

By Daily Republic Syndicated Content | From Page: A7