(Reuters] -McDonald’s Corp fell short of its revenue and profit forecasts on Thursday due to lower sales and higher costs in Australia and China. The result was due in part to the fact that growth in America in the fourth-quarter had been slowed by pandemic curbs.

The world’s biggest burger chain saw its operating costs rise 14% to $3.61 Billion due to supply chain issues. It also increased the wages in the United States by spending more on ingredients like chicken and beef.

China sales contracted by almost 3%, as cities ban dining at restaurants in order to prevent new outbreaks. Shares plunged nearly 3%. Sales growth in Australia was muted when compared with a year ago.

McDonald’s (NYSE) stated that “COVID-19” continued to have varying government restrictions regarding restaurant hours and limited dine in capacity, as well as closing of dining rooms.

According to Refinitiv data, sales rose in Italy, Germany and France. However, total revenue increased by 13% to $6.01 Billion in the three-months ended December 31. The company still missed the market expectations of $6.03 Billion.

The costs of the fast food chain, which has over 40,000 outlets in more than 100 countries, are rising. McDonald’s raised its prices for 2021 but higher profits continue to weigh on the company’s profit. It was forced to raise wages in order to keep workers in America, which is its biggest market.

McDonald’s lost $2.23 per share to analysts’ average of $2.34 on a per-share basis.

U.S. Same-store Sales increased 7.5% to 6.8%, according to analysts. It was due to McRib’s launch, higher prices, and loyalty program-driven growth digitally.

The global same-store sales rose 12.3% versus Wall Street’s estimates of an increase of 10.73%.