Another Food Scandal in Asia Harming McDonald’s Corporation (MCD)

Mcdonalds FoodMcDonald’s Corporation (NYSE:MCD) seems to be facing bad time as far as the serving of food items are concerned. If facing a food scandal in China last year wasn’t enough, it was the turn of Japan, another Asian economy, to spoil the mood of the chain of food restaurant.

In effect, whatever steps that McDonald’s Corporation (NYSE:MCD) might have taken to restore its brand in one country, has been nullified by a fresh scandal emanating from another country. However, both belonged to the Asian region. Therefore, it was bound to impact the overall Asian market performance for the company as a whole.

Human Teeth

The chain of food restaurant operator disclosed that four cases of adulterated food came to their knowledge in Japan. McDonald’s Japan said that a human tooth was found in a pack of French fries that was sold in Osaka in August last year. Similarly, a piece of hard plastic was found in December in Fukushima prefecture. This time, it was in a chocolate sundae. Later, it was confirmed that the plastic was a part of the dessert making machine. However, it injured a child slightly.

The company has allowed a third-party organization to examine the tooth, McDonald’s Japan failed to find out as to how the teeth could find a way in the pack. It noted that the teeth were not fried and the staff has not reported about a missing tooth. The company claims workers of the plant always wear masks.

Blue Vinyl

During the weekend, a piece of blue vinyl found its way in a chicken nugget that was sold at one of its northern prefecture restaurants of Aomori. In another incident in Tokyo, a customer found a piece of transparent vinyl while he was eating a nugget on December 31. However in that case, the company indicated that an employee lost the object.

The four incidents have raised the issue food safety. The company’s Director and SVP, Takehiko Aoki, tried to differential the Chinese and Japan issues. He said that McDonald’s respond to individual contamination issues differently compared to a bigger food quality issues.

Isolated Incidents or Problem?

The company believes that these are insolated incidents and not a bigger food quality issue but it will have to convince consumers of that.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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