McDonald’s, KFC Face Another China Food Scandal
Workers were seen mixing expired meat with fresh meat
McDonald’s (MCD) and Yum! Brands’ KFC (YUM) are facing another major food scandal in China.
Both companies apologized after a TV report caught workers from a local meat supplier picking meat from the floor. The report also showed workers mixing expired meat with fresh meat.
McDonald’s and KFC are still recovering from the 2012 scandal in China regard the excessive use of antibiotics in chicken. Both restaurants could struggle gain consumers’ trust now that a second major health hazard has emerged within the last few years.
The fast food market in China accounts for $174 billion. The two restaurants involved in the food scandal are at the top of the industry in sales.
MCD stock is down about 0.9% Monday morning. YUM stock is down 3.5%.
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Article printed from InvestorPlace Media, http://investorplace.com/2014/07/mcdonalds-kfc-china-mcd-stock/.
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