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Yum Brands (YUM) can breathe a little easier after hearing China's government report chicken...

Yum Brands (YUM) can breathe a little easier after hearing China's government report chicken samples from the company's KFC division complied with government standards. A regulatory agency noted 32 samples passed tests on levels of antibiotics and steroids after the issue of contamination cropped up last week. With 44% of its revenue derived from China, Yum Brands knows full well it's important to protect its brand image in the nation.
Comments (6)
  • you should report the rest of the story to be fair to readers.

     

    SHANGHAI -- Shanghai regulators gave Yum Brands Inc. 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.
    But pressure remains as authorities pledged to press ahead with further
    investigations of potential food-safety violations by Yum. The Shanghai Food
    and Drug Administration also said that tests showed what it called
    suspicious levels of an antiviral drug that will prompt additional
    attention. Yum, which has said it is working with authorities and is
    committed to food safety, didn't respond to requests for comment over the
    weekend.
    24 Dec 2012, 07:23 AM Reply Like
  • I have to laugh! The "Chicken little" types who drove YUM down buying selling will be buying shares at a higher level now. YUM is poised to reach 75-80 in 2013!
    24 Dec 2012, 09:13 AM Reply Like
  • yup... added to my long-term position this past friday
    24 Dec 2012, 10:24 PM Reply Like
  • The credibility of the Chinese government is not very high in my opinion. But at the same time, in China, you can never be sure of anything. Profits before human lives is a time honored principle. After all if you have a billion plus people, replacing some of them would be as easy as pie.
    24 Dec 2012, 09:43 AM Reply Like
  • It is of no surprise that there will be high levels of "foreign substances" in the chickens. Looking at the rate of YUM's growth in china, you'll have to use some form of "foreign substance" to sustain that type of growth. Whether it's harmful for people or not...not sure. Then again, it is fried chicken.
    24 Dec 2012, 10:24 AM Reply Like
  • Kingkang loved your response so much it needs quoted somewhere.

     

    I notice that alot of foreign countries are starting to use antibiotics and hormones to pressure US companies.

     

    On the other hand, these additives shouldn't be in our food supply anyway.

     

    I went vegetarian anyway 2 years ago and a big reason was because of these additives, on top of the ethical issues.
    24 Dec 2012, 01:47 PM Reply Like
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