McDonald's sales forecast 'at risk' after China food scare

Shares of the world's largest burger chain were down 0.6 percent $92.77 premarket on Friday.

McDonald's said this month that sales in markets, including China and Japan, were experiencing a "significant negative impact" following a local Chinese TV report on July 20 that showed workers at a supplier using expired meat and doctoring food production dates.

The company said in July it expected full-year global comparable sales to be "relatively flat" due to increased competition, pricing and other cost pressures.

"However, as a result of the China supplier issue, the Company's global comparable sales forecast for 2014 is now at risk," the company said on Friday.

McDonald's said same-restaurant sales in Asia-Pacific, Middle East and Africa fell 7.3 pct in July.

Worldwide comparable sales at restaurants open at least 13 months fell 2.5 percent last month.

Analysts on average had expected a 1.1 percent fall, according to research firm Consensus Metrix.

The fast-food giant has been struggling in its home market, where tough competition from Wendy's Co and Burger King Worldwide Inc , as well as sluggish job and wage growth, are hurting sales.

U.S. same-restaurant sales fell 3.2 percent in July. Those sales have been down or flat since November 2013.

Analysts polled by Consensus Metrix had expected a 2.6 percent fall in comparable sales in the United States.

(Reporting by Sruthi Ramakrishnan, Devika Krishna Kumar in Bangalore; Editing by Joyjeet Das and Saumyadeb Chakrabarty)