McDonald's has reported a 2.2 percent decline in month-on-month same-store sales. This was worse than the forecasted decline of 1.7 percent. Sales were down by 4.6 percent in the US, and 4 percent in Asia, the Middle East and Africa.

In the US, McDonald's sales have not grown since October 2013 and today's results represent the company's biggest monthly decline in over a decade. McDonald's has been battling competition from Burger King and Wendy's in the region and also faces increasing competition from Subway and Chipotle - two major food chains who highlight their use of fresh ingredients.

McDonald's is changing some menu options and trying to put more of a focus on custom meals and locally -sourced ingredients.

The company attributed some of the fall in sales to supplier problems in China and the relatively strong performance of the US dollar.

McDonald's has been working to attract diners back to their restaurants in China and Japan after a TV station aired a special report which showed its suppliers using gone-off meat and changing food production dates.

The fast food retailer was forced to find new suppliers to provide ingredients for popular items including its Big Mac and chicken nuggets.

Graph via Google

The company's stock price is expected to experience its biggest one day drop in over two years.

The poor results are expected to put "significant pressure" on the company's margins in the final quarter which could reduce fourth quarter profits by 7 to 10 cents a share.