McDonald’s says China meat scandal hurting sales

As the Chinese government investigates Husi, some McDonald’s restaurants have been left without beef or chicken. The plant in question also supplied some McDonald’s restaurants in Japan. McDonald’s is so far sticking by OSI, saying that it will work with other Husi plants in China to supply affected restaurants.

Yum Brands Inc. had also warned last week that the bad publicity has “shaken consumer confidence” and resulted in “significant, negative impact” at its KFC and Pizza Hut chains in China. The company, based in Louisville, Kentucky, has said it didn’t get a significant amount of ingredients from Husi and quickly moved to cut ties with OSI. But Yum had also been working to recover from a separate scandal over its chicken suppliers in 2012.

On Monday, OSI also issued a statement saying six of its employees in China have been detained by the Shanghai branch of the Public Security Bureau. Previously, Chinese regulators had said five employees had been detained.

Read more: http://www.pjstar.com/article/20140804/News/140809713#ixzz39THz6eHi

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