Date
20 November 2017
Extensive news coverage on the Husi food scandal has hurt sales at KFC and Pizza Hut outlets in China. Photo: Bloomberg
Extensive news coverage on the Husi food scandal has hurt sales at KFC and Pizza Hut outlets in China. Photo: Bloomberg

Expired meat scandal hurting Yum store sales

Yum Brands Inc. said the expired meat scandal involving Shanghai Husi Food Co. has hurt same-store sales of KFC and Pizza Hut outlets in China over the last 10 days, the Wall Street Journal reported.

US-based OSI Group, which owns Shanghai Husi, was not a major supplier to Yum stores, but “extensive news coverage” has “shaken consumer confidence” and “impacted brand usage,” the fast-food chain operator was quoted as saying.

Chinese authorities have accused Shanghai Husi of intentionally selling meat beyond its shelf life to restaurant companies.

Yum said it is “too early know how quickly sales will rebound in China” but warned that if the declines continue, they could hurt full-year earnings per share, according to the newspaper.

The group said on July 20 it halted orders from Shanghai Husi.

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CG

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