NEW YORK (TheStreet) -- Shares of Yum! Brands (YUM) are down -3.24% to $74.91 in early market trading today after Chinese regulators shut down a local meat supplier for allegedly selling expired chicken and beef, Reuters reports.
The business was also hurt by a 2012 safety scandal in China, Reuters noted.
The shutdown also affects McDonald's (MCD), who's shares are down -1.07% to $97.93 today.
Yum!, the parent company of KFC and Pizza Hut, apologized to customers this morning and said they'll stop using the supplier.
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Separately, TheStreet Ratings team rates YUM BRANDS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate YUM BRANDS INC (YUM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows: