Breaking News
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

WSJ: Yum! Brands Receives Shanghai Regulators' Support On Safety

12/23/2012 4:43 PM ET

The Shanghai Food and Drug Administration gave Yum! Brands Inc. (YUM: Quote) some shelter from criticism by China's state-run media of its food-safety practices, saying chicken sampled from the U.S. restaurant company's KFC arm complied with government limits on antibiotics, the Wall Street Journal reported.

However, the Shanghai Food and Drug Administration or SFDA is planning to conduct further investigations of potential food-safety violations by the company. The SFDA also reportedly said that tests showed what it called suspicious levels of an antiviral drug that will prompt additional attention.

In a filing with the U.S. Securities and Exchange Commission on Friday, the company said it is cooperating fully with the Chinese government's review of two poultry suppliers who provided chicken with unapproved levels of antibiotics to KFC. These suppliers represent an extremely small percentage of product to KFC. As such, the company does not anticipate a shortage of product supply. Recent publicity has resulted in moderate sales impact the past few days.

Yum is undergoing investigations by the SFDA, which said tests conducted by a third-party agency from 2010 to 2011 found eight batches of chicken supplied by Liuhe Group Co. had levels of antibiotics that didn't meet prescribed standards.

Yum said it stopped buying chicken from Liuhe in August.

Register
To receive FREE breaking news email alerts for Yum! Brands Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Chipmaker Advanced Micro Devices Inc. said Thursday after the markets closed that its first quarter loss narrowed from last year, helped by strong revenue growth in its graphics and visual solutions business. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue. After trending higher over the past few sessions, stocks showed a lack of direction throughout the trading day on Thursday. The major averages spent the session bouncing back and forth across the unchanged line before ending the day mixed. While the major averages closed on opposite sides of the unchanged line, they all showed only modest moves. U.S. Secretary Of State John Kerry said Thursday that he and his counterparts from Russia, Ukraine and the European Union have reached an agreement on a preliminary plan for ending the ongoing crisis in Ukraine. Kerry was speaking at the end of the Ukraine contact group's first meeting, comprising the foreign ministers of Russia, Ukraine, the EU and the U.S., in the Swiss city of Geneva.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.