McDonald’s Corporation (MCD), Yum! Brands, Inc. (YUM), Dunkin Brands Group Inc (DNKN): More Food Trouble In China

McDonald’s Corporation (NYSE:MCD)

McDonald’s is another big player in China. While most people know it for its famous golden arches, it is also one of the largest ice cream retailers in the country. In fact, it has a fleet of stand-alone ice cream shops. That means that a milk scare could ensnare it along with Dunkin’.

Of course, McDonald’s Corporation (NYSE:MCD) sells much more than just ice cream. For example, the company’s chicken nuggets are a mainstay menu item and it, too, has felt a sales hit from the chicken quality issues facing YUM. Management expects the sales drop to impact at least the first quarter’s results.

The company’s stores sell such a varied list of items that almost any food scare could have an impact on sales. The same holds true for Burger King Worldwide Inc (NYSE:BKW), which has a relatively small footprint in China that management is looking to expand aggressively.

Open Eyes

China isn’t as open and well regulated as the United States. While that isn’t a reason to avoid companies that have pegged their long-term growth on China’s industrialization, it is an issue that should be monitored. With so many food scares, investors shouldn’t be prepared for the next one.

The article More Food Trouble In China originally appeared on Fool.com and is written by Reuben Gregg Brewer.

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