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nlightn

07/30/14 9:22 PM

#209226 RE: nlightn #209225


$YUM,...Yum -6.2% AH; Chinese sales hurt by undercover report

> YUM states it has seen "a significant, negative impact to same-store sales at both KFC and Pizza Hut in China over the past 10 days" due to an undercover report regarding the practices of food supplier Shanghai Husi (a division of OSI Group). (8-K)

> The report alleged OSI sold chicken and beef beyond its expiration date, among other things. Yum has already cut ties with OSI over the scandal.

> Yum, whose Chinese sales had been recovering after getting clobbered last year by avian flu-related issues, says it's "too early to know how quickly sales will rebound in China."