This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

YUM! Brands Tumbling on Yet Another China Food Health Scare

Stocks in this article: MCD YUM

NEW YORK (TheStreet) -- YUM! Brands  (YUM - Get Report), the parent company of KFC and Pizza Hut along with McDonald's  (MCD - Get Report), the world's largest restaurant chain, were falling Monday in reaction to yet another food health scare in China.

Louisville-based YUM! was losing 3.4% to $74.77 while Oak Brook, Ill.-based McDonalds was falling 0.9% to $98.09.

McDonald's and Yum took to their official Chinese microblogs to issue an apology on Monday, shortly after the Shanghai Municipal Food and Drug Administration shut down the Shanghai Husi Food Company, a unit of Aurora, Ill.-based OSI Group which had sold processed meat products to YUM! and McDonald's which reportedly found their way into products sold at the popular restuarants.

Shanghai Husi's was forbidden to make further sales after allegations that the company was using rotten meat to make fast-food products, falsifying expiration dates, processing contaminated meat and mixing both expired and fresh meat in an extensive Chinese TV broadcast from Dragon TV channel.

The incident follows a 2012 scare regarding batches of chicken being packed with excessive amounts of antibiotics. On the current matter, a representative from McDonald's issued the following statement:

"We are committed to the highest standards of food safety and our customers are always our number one priority. If confirmed, the practices outlined in the report are completely unacceptable to McDonald's. We are no longer serving product from the facility. This matter is being thoroughly investigated and we are cooperating fully with the authorities".

Both Yum and McDonald's said they plan to conduct their own investigations but until then, they have stopped buying meat products from certain suppliers, a move that may result in shortages of their products. 

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs