Scandal hurting McDonald's Asia earnings

McDonald's Corp, working to resume sales of beef and chicken in China this week after a supplier was accused of repackaging old meat, said the situation is hurting its sales in Asia.

"McDonald's businesses in China, Japan and certain other markets are experiencing a significant negative impact to results," the US fast-food company said in a filing on Monday. While McDonald's said it cannot yet estimate the full effect on 2014 earnings, the areas affected make up about 10 percent of consolidated revenue and the company's global same-store sales forecast for the year is "at risk".

McDonald's Japan business posted a 17.4 percent drop in same-store sales in July from a year earlier partly due to the China supplier scandal, according to the company's statement to the Tokyo Stock Exchange on Tuesday, a week after withdrawing its profit forecast because of the case.