Friday, February 22, 2019

First loss for McDonald‘s in 11 years


The famous fast food chain is set to make its first loss in over a decade.

The 2014 forecasted net loss of £97m which was reported by the Japanese arm of the company.

The loss is believed to be down to customer‘s lack of confidence in the quality of food that McDonalds provides. This year the chain came under fire after a video taken in their main China based food supplier was released showing appalling practices in the food processing factory resulting t in their burgers being referred to as ‘tainted meat‘. The video secretly filmed by a Shanghai broadcasting reporter captured scenes of workers handling food with bare unclean hands and picking up meat that had been dropped on the floor and returning it to the food processing machine.

The McDonald‘s Japan chief executive Sarah Casanova aims to turn the business around swiftly and regain consumers trust. Sarah Casanova has worked for the fast food company for 23 years and was previously their marketing head during 2004 to 2009. Sarah also spent some time as a regional manager for Singapore and Malaysia.

McDonald‘s Corp holds 49.9% of the Japanese McDonalds which has been struggling with sales.

With many competitors will the global chain be able to regain trust and prove it is just a blip in their previously strong profits.