McDonald's, the world's biggest fast-food chain by revenue, on Tuesday reported declining sales at established restaurants across all regions in August, the fifth monthly drop since July 2012. The company warned that a China supplier scandal would reduce third-quarter profit by 15 to 20 cents a share, raising pressure on its chief executive, Don Thompson, to improve results. Among other challenges, analysts blame bloated menus for slower service and say the company is struggling to compete with resurgent rivals like Wendy's and Burger King. Mark Kalinowski, a Janney Capital Markets analyst, on Tuesday cut his profit forecasts for McDonald's in a note titled "That's Not Ketchup ... It's Blood." Restaurant sales in the Asia-Pacific, Middle East and Africa region that includes China and Japan fell a steeper-than-expected 14.5 percent. Sales at restaurants in the United States open at least 13 months were off 2.8 percent, also more than expected.
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