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McDonald's Japan withdraws FY profit guidance after China food scare
July 29, 2014 / 6:21 AM / in 3 years

McDonald's Japan withdraws FY profit guidance after China food scare

TOKYO, July 29 (Reuters) - McDonald’s Holdings Co (Japan) on Tuesday withdrew its earnings guidance for the year to Dec. 31, citing an expected fall in sales and rising costs after a major meat supplier in China was shut down by regulators for food safety breaches.

The Japanese unit of the world’s biggest hamburger chain immediately switched to alternative chicken supplies both in China and Thailand but days later narrowed its sourcing to two existing suppliers in Thailand due to Japanese consumers’ widespread distrust of food originating in China. It said on Friday it expected some stores to sell out of some menu items due to the switch.

“We are not able today to assess the extent of the impact on our business,” McDonald’s Holdings, held 49.9 percent by McDonald’s Corp, said in a statement. (Reporting by Chang-Ran Kim; Editing by Chris Gallagher)

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