McDonald's profit is 30% lower in the quarter

SÃO PAULO-amid problems with suppliers in Asia and underwhelming performance in the United States, McDonald's profits fell by 30% in the third quarter, compared with the same period in 2013, to $ 1.07 billion.
Net revenues declined 5% in the three months ended in September, to $ 6.99 billion, affected by problems in the quality of food delivered by McDonald's suppliers in China. The results in the Asia-Pacific region, Middle East and Africa were negatively affected by the issue and caused the loss of sales and profitability.
The total operating profit decreased 14% to $ 2.07 billion. Half of the effect came from problems with suppliers and the remainder reflected weaker performance in the United States and some European markets.
The high of 14 percent in profit tax and the increase in supplies also weighed negatively on the outcome of the quarter.
"The internal factors and external adversity proved to be larger than expected and will continue in the fourth quarter," wrote President Don Thompson in the results report. Global sales is expected ' same ' negative stores in October, said the Executive.
(Anna Bortolozi | Value)