UPDATE 1-McDonald's Japan withdraws profit guidance after China food scare

martes 29 de julio de 2014 04:02 GYT

* McDonald's Japan has changed suppliers after scandal in China

* Getting chicken from Thailand, may consider meat from Brazil

* Company already struggling due to convenience story competition (Adds CEO comment, details on response to Husi meat scandal)

TOKYO, July 29 (Reuters) - McDonald's Holdings Co (Japan) withdrew its earnings guidance for the year on Tuesday and said it was working on a contingency plan after a major meat supplier in China was shut down by regulators for food safety breaches.

It also said it would consider seeking damages from the supplier.

The Japanese unit of the world's biggest hamburger chain immediately switched to alternative chicken supplies both in China and Thailand after the scandal broke last week.

But days later it narrowed its sourcing to two existing suppliers in Thailand due to Japanese consumers' widespread distrust of food originating in China.

McDonald's Japan had forecast an operating profit of 11.7 billion yen ($115 million) for the full year to Dec. 31, up 1.5 percent from 2013, and net profit of 6 billion, up 17 percent.

For the six months to June 30 it reported a 50 percent plunge in operating profit to 3.5 billion yen and a 59 percent drop in net profit to 1.85 billion yen.   Continuación...