Fast-food giant McDonald's warned today that 2001 earnings could be lower than forecast due to problems in Europe, where there have been outbreaks of mad cow disease and more recently foot-and-mouth disease.
The firm, which reported an unusual profit fall of 7 per cent in its fourth quarter, began seeing its sales drop in Europe, one of its largest markets, late last year.
McDonald's says its hamburgers remain free of any contamination from foot and mouth and has repeatedly stressed the muscle meat it uses for the products is not associated with mad cow disease.
McDonald's said it is taking several measures to combat consumers' wariness in Europe and its effect on business, including boosting menu variety, strengthening communication with customers, reviewing budgets and cutting capital expenditures in some emerging markets.