(ABCNEWS.GO) — The owner of the KFC and Pizza Hut restaurant chains said Thursday a food safety scandal in China has hurt sales and might be severe enough to cut into the company's global profit.
Yum Brands Inc., in a filing with the U.S. securities regulator, gave no financial details and said it was too early to know when sales might rebound. But it said if the "significant sales impact" continues, it might hurt this year's profit.
The scandal erupted last week when a Shanghai TV station reported that Husi, owned by OSI Group Inc. of Aurora, Illinois, repackaged old beef and chicken and sold it to KFC and McDonald's Corp. restaurants in China. KFC and McDonald's stopped using product supplied by Shanghai Husi and Yum said its restaurants severed all ties with OSI in China, the United States and Australia.
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