McDonald's comparable sales in August fell in every region around the world and the company says the food safety issue in China will hurt third quarter results. Fred Katayama reports.
Consumers just aren't lovin' it. McDonald's comparable sales fell in every region around the world last month. Sales at the world's largest restaurant chain fell in the U.S., marking the 10th straight month the Golden Arches registered no sales growth. Younger consumers keep opting for fast casual restaurants like Chipotle. It was worse overseas for Big Mac, especially Asia. Sales there fell nearly 15 percent. Consumers avoided McDonald's amid the food safety scare involving expired meat from a supplier in China. Even Japan, which had also sourced meat from that supplier before finding alternative sources, got hit hard, with sales falling a record 25 percent. And sales slid in Europe, too, largely because Russia temporarily shut down some McDonald's outlets in Moscow. Russia's food safety watchdog said it ordered the closures for sanitary reasons, but these actions came amid the tensions between the West and Russia over the Ukraine crisis. McDonald's now forecasts that the supply issue in China will hurt its third quarter results by 15 to 20 cents a share. McDonald's shares, off more than 4 percent this year, slipped lower in early trading. Back home, McDonald's and its fast-food rivals face another issue: workers protesting for higher wages. It just can't get a break today.