无码中文字幕一Av王,91亚洲精品无码,日韩人妻有码精品专区,911亚洲精选国产青草衣衣衣

USEUROPEAFRICAASIA 中文雙語Fran?ais
China
Home / China / Business

Yum Brands: Scandal may affect earnings

By Reuters | China Daily | Updated: 2014-08-01 07:09

A television expose showing improper meat handling by a supplier caused "significant, negative" damage to sales at its KFC and Pizza Hut restaurants in China over the past 10 days, US-based Yum Brands Inc said on Wednesday.

"If the significant sales impact is sustained, it will have a material effect on full-year earnings per share," Yum said in a regulatory filing.

Shares in Yum, which counts China as its No 1 market, tumbled 6.2 percent on the New York Stock Exchange in extended trading, down $4.50 to $68.50.

The latest food safety scandal to rock China came as Yum's restaurant sales in the country had just begun recovering from a slide last year due to an avian flu outbreak and another food safety scare.

In a note titled Big Trouble in Big China, Janney Capital Markets analyst Mark Kalinowski said McDonald's Corp faces the next most risk after Yum. He noted that Papa John's International Inc also operates company-owned restaurants in the Beijing area.

After an undercover local TV report that alleged workers at Shanghai Husi Food Co Ltd used expired meat and doctored food production dates, regulators closed the factory on July 20. The plant is part of OSI Group, a US food supplier. Police have detained five people, including Shanghai Husi's head and quality manager.

Yum, which has nearly 6,400 restaurants in China, immediately terminated its global relationship with OSI, which was not a major supplier to the company. It said the move had "minimal disruption" to the availability of menu offerings in China.

Food safety has been a big concern for Chinese consumers after dairy products tainted with the industrial chemical melamine sickened many thousands and led to the deaths of six infants in 2008.

McDonald's, which has just over 2,000 restaurants in China, has had a long relationship with OSI and was more dependent on the supplier than Yum.

Many of those restaurants were hit by meat shortages after McDonald's ended its relationship with OSI in China.

McDonald's Holdings Co withdrew its earnings guidance for the year after the scandal forced it to switch to alternative chicken supplies. A McDonald's Japan executive said sales had dropped 15 percent to 20 percent due to the food scare.

 

Editor's picks
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US