McDonald's says China meat scandal hurting sales

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McDonald's says China meat scandal hurting sales
FILE - In this July 25, 2014 file photo, customers sit at a McDonald's restaurant in Hong Kong. McDonald’s says a scandal over a meat supplier in China is hurting sales in the region and its global sales forecast for 2014 is “at risk.” The world’s biggest hamburger chain said in a regulatory filing Monday, Aug. 4, 2014, that there’s been “significant negative impact” in China, Japan and other affected market. (AP Photo/Kin Cheung, File)
Customers eat at a McDonald's restaurant in Hong Kong Friday, July 25, 2014. McDonald's restaurants in Hong Kong have taken chicken nuggets and chicken filet burgers off the menu after a U.S.-owned supplier in mainland China was accused of selling expired meat. (AP Photo/Kin Cheung)
Customers enjoy their meal near an advertisement claiming to use 100 percent beef at a McDonald's restaurant in Beijing Tuesday, July 22, 2014. China's food safety agency on Tuesday announced a nationwide inspection of processing factories and meat suppliers used by a company accused of selling expired beef and chicken to McDonald's and KFC. (AP Photo/Ng Han Guan)
A Chinese man rests outside a McDonald's restaurant in Beijing Tuesday, July 22, 2014. China's food safety agency on Tuesday announced a nationwide inspection of processing factories and meat suppliers used by a company accused of selling expired beef and chicken to McDonald's and KFC. (AP Photo/Ng Han Guan)
A man wipes his mouth near logos for McDonald's and KFC restaurants in Beijing Tuesday, July 22, 2014. China's food safety agency on Tuesday announced a nationwide inspection of processing factories and meat suppliers used by a company accused of selling expired beef and chicken to McDonald's and KFC. (AP Photo/Ng Han Guan)
Pedestrians pass by a McDonald's restaurant in Beijing Tuesday, July 22, 2014. China's food safety agency on Tuesday announced a nationwide inspection of processing factories and meat suppliers used by a company accused of selling expired beef and chicken to McDonald's and KFC. (AP Photo/Ng Han Guan)
A man rests outside a McDonald's restaurant in Beijing Tuesday, July 22, 2014. China's food safety agency on Tuesday announced a nationwide inspection of processing factories and meat suppliers used by a company accused of selling expired beef and chicken to McDonald's and KFC. (AP Photo/Ng Han Guan)
A customer eats inside a KFC restaurant in Beijing Tuesday, July 22, 2014. China's food safety agency on Tuesday announced a nationwide inspection of processing factories and meat suppliers used by a company accused of selling expired beef and chicken to McDonald's and KFC. (AP Photo/Ng Han Guan)
A couple walks past a McDonald's restaurant in Beijing Tuesday, July 22, 2014. China's food safety agency on Tuesday announced a nationwide inspection of processing factories and meat suppliers used by a company accused of selling expired beef and chicken to McDonald's and KFC. (AP Photo/Ng Han Guan)
Customers have a meal at a McDonald's restaurant in Tokyo, Tuesday, July 22, 2014. McDonald’s Corp. said Tuesday its restaurants in Japan stopped using chicken from the Shanghai company Husi Food Co. McDonald’s said Husi provided about 20 percent of the meat of expired chicken used in its chicken nuggets in Japan. (AP Photo/Shizuo Kambayashi)
Customers have a meal at a McDonald's restaurant in Tokyo, Tuesday, July 22, 2014. McDonald’s Corp. said Tuesday its restaurants in Japan stopped using chicken from the Shanghai company, Husi Food Co. McDonald's said Husi provided about 20 percent of the meat of expired chicken used in its chicken nuggets in Japan. (AP Photo/Shizuo Kambayashi)
Customers buy their meals at a McDonald's restaurant in Tokyo on July 22, 2014. A scandal involving expired meat sold by a China unit of US food supplier OSI Group spread to Japan on July 22, as McDonald's confirmed that the now shut factory provided Chicken McNuggets to its restaurants. AFP PHOTO / Yoshikazu TSUNO (Photo credit should read YOSHIKAZU TSUNO/AFP/Getty Images)
Customers order food at a McDonald's restaurant in Tokyo on July 22, 2014. A scandal involving expired meat sold by a China unit of US food supplier OSI Group spread to Japan on July 22, as McDonald's confirmed that the now shut factory provided Chicken McNuggets to its restaurants. AFP PHOTO / Yoshikazu TSUNO (Photo credit should read YOSHIKAZU TSUNO/AFP/Getty Images)
A woman walks past a McDonald's restaurant in Shanghai on July 22, 2014. Chinese police are questioning staff of US food supplier OSI Group for selling expired meat, state media said on July 22, as a newspaper blasted foreign brands for failing to adopt a 'dedicated attitude' towards local consumers. Shanghai authorities on Sunday shut an OSI plant -- a supplier to McDonald's and KFC in China -- for mixing out-of-date meat with fresh product, re-labelling expired goods and other quality problems following an investigative report by a local television station. AFP PHOTO / JOHANNES EISELE (Photo credit should read JOHANNES EISELE/AFP/Getty Images)
People eat at a McDonald's restaurant in Shanghai on July 22, 2014. Chinese police are questioning staff of US food supplier OSI Group for selling expired meat, state media said on July 22, as a newspaper blasted foreign brands for failing to adopt a 'dedicated attitude' towards local consumers. Shanghai authorities on Sunday shut an OSI plant -- a supplier to McDonald's and KFC in China -- for mixing out-of-date meat with fresh product, re-labelling expired goods and other quality problems following an investigative report by a local television station. AFP PHOTO / JOHANNES EISELE (Photo credit should read JOHANNES EISELE/AFP/Getty Images)
People walk past a McDonald's restaurant in Shanghai on July 22, 2014. Chinese police are questioning staff of US food supplier OSI Group for selling expired meat, state media said on July 22, as a newspaper blasted foreign brands for failing to adopt a 'dedicated attitude' towards local consumers. Shanghai authorities on Sunday shut an OSI plant -- a supplier to McDonald's and KFC in China -- for mixing out-of-date meat with fresh product, re-labelling expired goods and other quality problems following an investigative report by a local television station. AFP PHOTO / JOHANNES EISELE (Photo credit should read JOHANNES EISELE/AFP/Getty Images)
BEIJING, CHINA - 2014/07/22: A KFC restaurant in a shopping mall. KFC, McDonalds, Pizza Hut and other Western brands are suffering a food safety crises in the Chinese market. On July 20, 2014, Shanghai Fuxi food Ltd. the meat supplier for well-known international fast food chains such as McDonalds and Yum Group, was exposed for using expired and bad chicken and beef. (Photo by Zhang Peng/LightRocket via Getty Images)
BEIJING, CHINA - 2014/07/22: A KFC restaurant in a shopping mall. KFC, McDonalds, Pizza Hut and other Western brands are suffering a food safety crises in the Chinese market. On July 20, 2014, Shanghai Fuxi food Ltd. the meat supplier for well-known international fast food chains such as McDonalds and Yum Group, was exposed for using expired and bad chicken and beef. (Photo by Zhang Peng/LightRocket via Getty Images)
BEIJING, CHINA - 2014/07/22: A McDonalds restaurant in a big shopping mall. KFC, McDonalds, Pizza Hut and other Western brands are suffering a food safety crises in the Chinese market. On July 20, 2014, Shanghai Fuxi food Ltd. the meat supplier for well-known international fast food chains such as McDonalds and Yum Group, was exposed for using expired and bad chicken and beef. (Photo by Zhang Peng/LightRocket via Getty Images)
BEIJING, CHINA - 2014/07/22: A KFC restaurant at a corner of street. KFC, McDonalds, Pizza Hut and other Western brands are suffering a food safety crises in the Chinese market. On July 20, 2014, Shanghai Fuxi food Ltd. the meat supplier for well-known international fast food chains such as McDonalds and Yum Group, was exposed for using expired and bad chicken and beef. (Photo by Zhang Peng/LightRocket via Getty Images)
This picture taken on July 20, 2014 shows workers producing food at the Shanghai Husi Food Co., a factory of US food provider OSI Group, in Shanghai. Shanghai city officials have shut a Shanghai Husi factory of US food provider OSI Group for selling out-of-date meat to restaurant giants including McDonald's and KFC, authorities said on July 21 in China's latest food safety scandal. CHINA OUT AFP PHOTO (Photo credit should read STR/AFP/Getty Images)
This picture taken on July 20, 2014 shows workers producing food at the Shanghai Husi Food Co., a factory of US food provider OSI Group, in Shanghai. Shanghai city officials have shut a Shanghai Husi factory of US food provider OSI Group for selling out-of-date meat to restaurant giants including McDonald's and KFC, authorities said on July 21 in China's latest food safety scandal. CHINA OUT AFP PHOTO (Photo credit should read STR/AFP/Getty Images)
This picture taken on July 20, 2014 shows a worker walking at the Shanghai Husi Food Co., a factory of US food provider OSI Group, in Shanghai. Shanghai city officials have shut a Shanghai Husi factory of US food provider OSI Group for selling out-of-date meat to restaurant giants including McDonald's and KFC, authorities said on July 21 in China's latest food safety scandal. CHINA OUT AFP PHOTO (Photo credit should read STR/AFP/Getty Images)
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NEW YORK (AP) - McDonald's said Monday that a scandal over a meat supplier in China is hurting sales in the region and its global sales forecast for 2014 is "at risk."

The world's biggest hamburger chain said in a regulatory filing that there's been "significant negative impact" in China, Japan and other affected markets. These regions make up about 10 percent of McDonald's Corp.'s revenue.

The Oak Brook, Illinois-based company had previously said it expected the worldwide sales measure to be "relatively flat" for the year.

The updated guidance comes after a Chinese TV report last month showed workers at one of McDonald's meat suppliers in Shanghai using expired meat. The supplier, Shanghai Husi Food Co., is a division of OSI, a company based in Aurora, Illinois that has been a longtime supplier to McDonald's around the globe. It counts numerous other fast-food chains as its clients.

As the Chinese government investigates Husi, some McDonald's restaurants have been left without beef or chicken. The plant in question also supplied some McDonald's restaurants in Japan. McDonald's is so far sticking by OSI, saying that it will work with other Husi plants in China to supply affected restaurants.

Yum Brands Inc. had also warned last week that the bad publicity has "shaken consumer confidence" and resulted in "significant, negative impact" at its KFC and Pizza Hut chains in China. The company, based in Louisville, Kentucky, has said it didn't get a significant amount of ingredients from Husi and quickly moved to cut ties with OSI. But Yum had also been working to recover from a separate scandal over its chicken suppliers in 2012.

On Monday, OSI also issued a statement saying six of its employees in China have been detained by the Shanghai branch of the Public Security Bureau. Previously, Chinese regulators had said five employees had been detained.

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