McDonald’s plans to sell $1 billion in products from scratch
McDonald’s Corp., the world’s biggest fast-food chain, said it plans to spend more than $1.6 billion to make up for losses in the United States and Europe caused by food safety and foodborne illnesses.
The plan includes buying and selling a large number of food products made in China, a source familiar with the matter said.
McDonald’s said the investment will include buying up food-processing and manufacturing operations in the U.S. and Europe and adding them to its portfolio in China.
The company has been struggling with growing foodborne illness, which is becoming more widespread as Americans become more conscious of eating at home.
Its shares were down 3% in after-hours trading.
McDon’s shares have gained in recent weeks after its shares fell more than 7% in the first six months of 2017.