Yum Brands says China sales hit by food scandal
Fast-food owner Yum Brands says the food safety scandal connected to one of its meat suppliers has had a “significant, negative impact” on its sales at its KFC and Pizza Hut outlets in China over the past 10 days.
In a regulatory warning to investors, Yum says if the sales impact is sustained, it will have a material effect on full-year earnings.
Yum Brands has severed its relationship with Shanghai Husi, the meat processing facility which has been accused of repackaging expired meat products and selling them to fast food outlets, including KFC and Pizza Hut.