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McDonald’s Global Sales Drop Amid China Food Scandal

The McDonald's story 1:05

The Earth's biggest hamburger chain is finding that the world isn't lovin' it so much. McDonald's said Friday that its global sales dropped 2.5 percent in July amid a food scandal in China and lukewarm demand in the U.S. The decline included a 3.2 percent drop in the U.S. and a 7.3 percent drop in the unit encompassing Asia, the Middle East and Africa. The results reflect what is likely to be just the beginnings of the fallout from a Chinese food scandal late last month, after a TV report showed workers at a McDonald's supplier repacking expired meat. McDonald's stopped using supplies from the plant in Shanghai, which left many of its restaurants unable to serve much of its menu, including Big Macs and Chicken McNuggets.

McDonald's, which has more than 35,000 locations around the world, warned earlier this week that the scandal puts its global sales forecast for 2014 "at risk." It had previously said it expects sales to be "relatively flat."

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-- The Associated Press and NBC News staff