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KFC parent Yum slammed by chicken scare in China

KFC parent Yum slammed by chicken scare in China

February 5th, 2013 in News

NEW YORK (AP) -

Yum Brands warned Monday that it expects its profit for the year to decline as the parent company of KFC, Pizza Hut and Taco Bell continues to reel from a controversy over its chicken suppliers in China.

A drop in 2013 would snap an 11-year streak of double-digit profit growth.

The company, based in Louisville, Ky., gave the grim forecast after its profit in the fourth quarter fell 5 percent, with a key sales figure in China dropping.

For January and February, the company expects sales at restaurants open at least a year in China to plummet 25 percent.

Since an investigation aired on national Chinese television on Dec. 18, Yum has been dealing with an "onslaught of negative media attention" over its chicken suppliers, spokesman Jonathan Blum said. The TV station had reported that Yum's suppliers were ignoring regulations and giving chickens unapproved levels of antibiotics.