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Supply Chain Disruptions Causes McDonald’s To Turn To Imported Beef

McDonald’s has announced that it’s Canadian locations will have to start using imported beef due to the fallout and disruptions of the ongoing coronavirus pandemic.

A press release on the company's site explained how the temporary change in its beef supply has been implemented to meet the current demand it is experiencing. Pre-approved McDonald’s supplier and facilities will provide resources to the fast-food restaurants around the country, which usually use 100% Canadian beef.

The press release stated: “Until Canada’s beef supply stabilizes, we will source as much Canadian beef as we can and then supplement with imported beef. Tapping into the strength of our global supply chain will allow McDonald’s Canada to continue to serve our communities, without interruption.”

The closure of Cargill’s High River facility in Alberta has been listed as a reason behind the shift. McDonald’s is working closely with Cargill’s and its other suppliers to ensure restaurants are not impacted. A number of menu items have been temporarily removed, including the Angus burger.

“McDonald's is committed to supporting Canadian ranchers and farmers, and we look forward to returning to sourcing 100 percent Canadian beef as quickly as possible. — McDonald’s Canada.”

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The disruptions don’t stop there for McDonald’s. First-quarter sales for the company reportedly fell 6%, to $4.71bn in the period between January and March, with the declines continuing throughout April. Most sites throughout the U.S. and China remain open for drive-throughs and deliveries, but this clearly hasn’t been enough to prevent the fall.

Approximately 75% of McDonald’s global stores remain open, with China now almost reopening all of them. 99% of U.S. stores remain open, with most offering limited menus or dining options. Restaurants remain closed in key markets such as the United Kingdom, France and Italy, as lockdowns continue to apply. 

This comes as McDonald’s recorded a strong start to 2020, with same-store sales and sales at stores open for at least a year up by 7.2% worldwide. Same-store sales finished Q1 down 3.4%, almost entirely down to the outbreak of COVID-19.

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