Why August Was a Terrible Month for McDonald's McDonald's reported a 3.7 percent drop in global sales in August on Tuesday.

By Kate Taylor

Opinions expressed by Entrepreneur contributors are their own.

McDonald's had a rough August – and it isn't the only fast-food chain that's struggling.

On Tuesday, McDonald's announced that its global comparable sales fell 3.7 percent in August. In the U.S., sales dropped 2.8 percent.

However, the biggest blemish on the report was the area that, until recently, had represented a point of growth for the burger chain: Asia/Pacific, Middle East and Africa (APMEA).

Related: McDonald's Tests a 60-Second Drive-Thru Guarantee

APMEA sales decreased 14.5 percent in August, due in large part to the Chinese expired meat scandal. In July, APMEA sales had increased 1.1 percent, driven by strong performance in China. McDonald's predicted that the supplier issue will negatively impact third quarter results by 15 cents to 20 cents per share in comparison to last year's results.

The only bright side for McDonald's – if there is one – is that the burger chain isn't the only company facing these issues. Burger King, Yum Brands and Starbucks were all affected by the Chinese expired meat scandal, with Yum Brands announcing last week that it estimated that same-store sales in China fell about 13 percent in the third quarter from a year ago. In the U.S., fast-food chains across the board are dealing with the largest protests from employees regarding minimum wage yet.

However, while chains with substantial sales in China are basically guaranteed a poor quarter and minimum wage strikes are bad PR for anyone in fast food, at this point McDonald's sales slump is beyond any singular issue. Domestic struggles have plagued McDonald's U.S. same-store sales for months on end, with August marking the fourth straight month of declines.

Related: Regulator Names McDonald's a 'Joint Employer'

Kate Taylor

Reporter

Kate Taylor is a reporter at Business Insider. She was previously a reporter at Entrepreneur. Get in touch with tips and feedback on Twitter at @Kate_H_Taylor. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Growing a Business

How to Break Free From Your Comfort Zone and Start Fueling The Growth of Your Company

Have you ever found yourself stuck in a pattern, circling the same solutions without finding your way forward? Here's how to break free from our self-imposed limitations.

Side Hustle

This 31-Year-Old Spends 2 Hours Per Week On His $3,000-a-Month Passive Income Side Hustle: 'Trust Your Vision'

Hansel Moore's home office "wasn't cutting it" — so he found another place to be creative.

Franchise

This Franchise Has Seen Remarkable Growth in the $5.3Bn Drug Testing Industry

Fastest Labs is a leader in the high-growth and recession-resistant drug, alcohol and DNA testing industry

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

Elon Musk's xAI Is Reportedly Set to Hire Thousands of 'AI Tutors' With Pay Up to $65 an Hour

Employees told Business Insider the company is expanding hiring soon.

Business News

Inflation Unexpectedly Rose in January. Here's What That Means for Rate Cuts.

The U.S. Bureau of Labor Statistics released its January Consumer Price Index on Wednesday.