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China Meat Scandal Spreads: McDonald's Japan Slashes Guidance

Tyler Durden's picture




 

We warned last week that the scandal over Chinese meat supplier OSI was spreading (and Asians were increasingly shunning western fast-food restaurants) and now, as The FT reports, McDonald’s Japan has pulled its full-year profit guidance on the back of falling sales. It had previously forecast sales of $2.45bn for the year to December but warned it could not commit to new targets as it was too soon to estimate the scandal’s full impact.

 

 

As The FT reports, OSI processes the meat of 300m chickens a year in China, as well as other meats, vegetables and pre-assembled food such as sandwiches or wraps.

This is a problem for McDonalds as some of its 3,200 restaurants were forced to scratch chicken nuggets off the menu...

 

Fast-food chains have scrambled to redirect the supply chain after the Shanghai plant closed, and the loss of supply from all of OSI’s China plants could prove a challenge for McDonald’s, which relies on a smaller but tighter network of suppliers than does its chief rival, KFC.

 

...

 

“Supplies of some products to some China restaurants have been cut. We are trying hard to allocate supply from other sources and resume supply as soon as possible,” the fast-food chain said.

 

...

 

McDonald’s Japan, which is 50 per cent owned by the US fast food group and operates in its second biggest market by number of outlets, said that its “sales and profit expectations have been reduced” after its China-based supplier was found to be relabelling expired meat and breaching other food safety practices.

 

It had previously forecast sales of Y250bn ($2.45bn) for the year to December and net income of Y6bn, adding that it could not commit to new targets as it was too soon to estimate the scandal’s full impact.

*  *  *

At least it's a better excuse than the weather... but McDonalds is enough trouble as it is with Russia bans on some items and sales sliding...

 

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Tue, 07/29/2014 - 18:32 | 5019880 knukles
knukles's picture

Where's the beef?

Tue, 07/29/2014 - 18:42 | 5019904 Goldilocks
Goldilocks's picture

Wheres the beef? Wendy's Classic Commercial.
http://www.youtube.com/watch?v=l7udCXqTGFg (0:29)

Wendy's "Where's the Beef?" Commercial (1984)
http://www.youtube.com/watch?v=2MK9jJzbBT8 (0:29)

Tue, 07/29/2014 - 19:00 | 5019960 Stackers
Stackers's picture

Is it just me, or did everyone in that video clip have Aspergers ?

Tue, 07/29/2014 - 19:34 | 5020125 espirit
espirit's picture

It's been said before...

Ewwww.

Tue, 07/29/2014 - 20:23 | 5020326 NoDebt
NoDebt's picture

All those protest for $15/hr. pay from McDonalds workers sure fell silent in a hurry, didn't they?  All those first stories about an American-owned Chinese processing plan supplying the tainted meat.... they don't mention that the place is American-owned any more, do they?  Go ahead and re-read the story.  Now it's just a processing plant in China.  Further and further away the scandal recedes (if the plant was ever American-owned to begin with, which I highly doubt).

I'm not saying nothin'.  I'm just sayin': distration.  Make the joint look like it's fighting for it's life and it kinda takes the winds out of the sails of those asking for a hefty raise.  McDonalds is in NO danger from this scandal.  All they need to do is shut up for a while, let it fade from the headlines and they're back cranking out McNuggets, BigMacs and French Fries made by DuPont in no time.  And the $15/hr. movelent is swept aside, lost in the flood of bigger news.

And that right there is the closest thing you'll ever read from me to a conspiracy theory.

Tue, 07/29/2014 - 19:14 | 5020026 0b1knob
0b1knob's picture

Where's the CAT?  Its on the menu in Vietnam.   $70 for a fat cat?  The US could make a fortune exporting strays.

http://www.inquisitr.com/1379070/little-tiger-vietnams-taste-for-cat-meat/

 

Tue, 07/29/2014 - 19:16 | 5020045 Not Too Important
Not Too Important's picture

Ozzies eat 'roo. Good, too. Worked for Carl's Jr. for awhile.

Tue, 07/29/2014 - 19:18 | 5020055 Emergency Ward
Emergency Ward's picture

I think I'll stay away from 'Nam.

Tue, 07/29/2014 - 20:35 | 5020388 knukles
knukles's picture

Why?  We took Second Place in the South-East Asia War Games.  Can't do any worse.

Tue, 07/29/2014 - 21:05 | 5020524 Jack Burton
Jack Burton's picture

Goog idea kitty!

Tue, 07/29/2014 - 18:49 | 5019931 Skateboarder
Skateboarder's picture

*FDA research has shown there is no difference between cow meat, horse meat, fox meat, and cellulose.

Tue, 07/29/2014 - 18:55 | 5019944 Goldilocks
Goldilocks's picture

Classic Sesame Street animation - It's a squirrel
http://www.youtube.com/watch?v=cmjBLJ2thdA (0:15)

Tue, 07/29/2014 - 19:09 | 5020008 Juno Rock
Juno Rock's picture

That big "M" stands for;

 

MEDIOCRE 

Tue, 07/29/2014 - 19:19 | 5020056 Not Too Important
Not Too Important's picture

Switch to escolar?

"Escolar's wax ester content can cause keriorrhea (Greek: flow of wax), gempylotoxism or gempylid fish poisoning.[4] Symptoms range from stomach cramps to rapid loose bowel movements, occurring 30 minutes to 36 hours following consumption."

Ooo, maybe not.

Tue, 07/29/2014 - 19:37 | 5020138 espirit
espirit's picture

...Or maybe SWAI served at your fav restaurant.

I'll pass on the Vietnamese Catfish thankyoo.

Tue, 07/29/2014 - 18:52 | 5019938 BaghdadBob
BaghdadBob's picture

Upsize that! You 'Muck-Meat' dealing 'tards....

Tue, 07/29/2014 - 18:31 | 5019881 quasimodo
quasimodo's picture

I'm lovin it!

Tue, 07/29/2014 - 18:34 | 5019888 BurningFuld
BurningFuld's picture

But on the plus side...it could not happen to a nicer bunch of people.

Tue, 07/29/2014 - 18:39 | 5019898 WillyGroper
WillyGroper's picture

There's nothing that would make me happier than to see this domino to every pond scum sucking corporation for the untold grief and misery they've thrust on humans.

Tue, 07/29/2014 - 18:41 | 5019903 NOTaREALmerican
NOTaREALmerican's picture

And all this time we were looking for black SWANS.      It's not the SWANS we've got to worry about.   It's those chickens! 

Tue, 07/29/2014 - 18:42 | 5019907 alien-IQ
alien-IQ's picture

Unrelated but....Please file this in the already very crowded "You've got to be fucking kidding me" box:

Former Prime Minister Tony Blair wins million dollar Israeli leadership prize

http://www.telegraph.co.uk/news/politics/labour/4643809/Former-Prime-Min...

Tue, 07/29/2014 - 18:44 | 5019917 Publicus
Publicus's picture

Legalized bribery. He would be executed in China.

Tue, 07/29/2014 - 18:45 | 5019921 kowalli
kowalli's picture

Ok. Cool....

Tue, 07/29/2014 - 19:20 | 5020062 Not Too Important
Not Too Important's picture

That, or the nail gun . . .

Tue, 07/29/2014 - 18:48 | 5019928 Saucy-Jack
Saucy-Jack's picture

Pink slime bitchez....

Tue, 07/29/2014 - 18:51 | 5019933 tony wilson
tony wilson's picture

the church of england,catholic church the masons and royalty and the bbc have been providing human dna for meat burgers for years.

check out the missing person stats 100 of thousands of kids go missing every year never to be seen again.

people like jimmy saville where meat wranglers for elite sex parties.

selling tons of human meat for profit as kebabs and burgers is a profitable position

Tue, 07/29/2014 - 19:23 | 5020073 Not Too Important
Not Too Important's picture

Like the Canadian Holocaust? 50,000 kids slaughtered ritually, by all of the above? Never did find meat on their bones. Might be on to something here, Tony.

Sick bastards. God, I hope there's a punishment in the afterlife, cuz they sure get away with some sick shit here.

Tue, 07/29/2014 - 19:59 | 5020219 Pure Evil
Pure Evil's picture

What punishment might that actually be?

Writhing in a lake of fire for all eternity?

Some of those sick bastards might actually enjoy that.

Tue, 07/29/2014 - 18:51 | 5019937 Grouchy Marx
Grouchy Marx's picture

Given the Chinese history of adulteration of just about every bulk material product made, my only surprise is that the Chinese seem surprised. 

Tue, 07/29/2014 - 18:54 | 5019940 khakuda
khakuda's picture

Watching the video, none of those people said they were swearing off fast food, every one seemed committed to going back.  Looking at the long term record of YUM and MCD, betting against them over time would have been a very expensive proposition.

Tue, 07/29/2014 - 19:07 | 5020003 Yancey Ward
Yancey Ward's picture

WTF?  People don't like Quarter DogPounder With Cheese?

Tue, 07/29/2014 - 20:00 | 5020223 Pure Evil
Pure Evil's picture

Woof!

Tue, 07/29/2014 - 19:15 | 5020033 Goldilocks
Goldilocks's picture

McLibel - The documentary (Full) Review
www.youtube.com/watch?v=sBpbaVJo9gE (1:22:13)

Tue, 07/29/2014 - 20:58 | 5020488 Atomizer
Atomizer's picture

McDonalds can always enter into the Dog & Cat food service market. No change in menu options. Can you image the pet TV commercial jingles to attract these new 4 legged critters?

McMeow Mix Tender chicken nibbles.  

Tue, 07/29/2014 - 21:58 | 5020778 robertocarlos
robertocarlos's picture

McDonald's Canada has assured us that every burger is made with 100% Canadian beef.

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