McDonald's Posts Disappointing July Sales as China and U.S. Weigh

Fast-food chain McDonald's reported worse-than-expected sales results for the month of July, weighed down the most by the Asia/Pacific, Middle East and Africa region, where comparable sales fell 7.3%. That's after food quality and safety issues at a McDonald's supplier and other food companies in China that weighed on supplies. U.S. comparable sales fell 3.2% as the company said it faced continuing broad-based challenges. Morgan Stanley analyst John Glass said, "We're at a loss to explain McDonald's share loss in the U.S." He called for more decisive action in corporate cost reductions going forward. Shares of McDonald's were falling in Friday trading on the results.