Courtesy of Benzinga.
Just after Wednesday's closing bell, Yum! Brands (NYSE: YUM) filed an 8-K form with the SEC, which explained that the company "immediately terminated" its relationship with OSI Group globally upon learning of the Shanghai Husi issue.
The filing went on to state that due to the negative consumer reaction, its KFC and Pizza Hut stores in China have suffered "significant, negative" impact to same-store sales over the last 10 days.
Yum Brands also noted that it reserves the right to take "full legal action" regarding the impact to its business.
The company noted that if the negative consumer sentiment in China is prolonged it will have a "material effect" on full-year EPS.
Yum brands concluded by stating that it will provide further insight into the matter during its third quarter earnings call in October.
Posted-In: China OSI Group Shanghai Husi FoodsNews FDA Legal Global
