McDonals Corp. said that it’s business was been affected by the recent China food scare. In addition, it forced restaurants in the region to temporarily pull meat items in the menu.
The warning comes after the announcement of the food scare in China. Also, this food scare had drove away some customers in China.
On the other hand, McDonalds says that it will restore their full menus in some Chinese cities this week.
Shanghai-Husi food was been accused for repacking not fresh meat with fresh meat and sell it again to some outlets of fast-food. It’s 6 executives had been arrested by the police.
According to a regulatory filing from McDonalds, “While this matter will negatively impact results in the near term, we cannot reasonably estimate the impact on full year 2014 earnings at this time.”
The shares of McDonals had dropped into 0.5 percent at the mid-afternoon on the New York Stock Exchange.
Since the food scare had been broken down on July 20, the shares of McDonalds and Yum have fallen into 5.2 and 8.6 percent.
In addition, this food scare had affected the market accounts of McDonalds for about 10 percent of its total revenue.
The company had more than 3100 restaurants in Japan. It had forecasted it’s operating profit to be 11.7 billion yen for 2014.
KFC and Pizza Hut restaurants had also been affected by the said food scare on the previous days.
However, Yum did not quantify the total impact of the food scare in its total profit.
May this problem end at its soonest time.
This is based on ABS-CBN News.