A new food scandal has erupted in China, threatening to tarnish the reputations of McDonald's and Yum Brands.
An American-owned meat factory operating in China has been accused of selling out-of-date and tainted meat to clients including McDonald's and Yum Brands, which owns the KFC, Taco Bell and Pizza Hut chains.
McDonald's and Yum Brands say they have stopped buying meat from the processing plant, Shanghai HUSI Food, which is a subsidiary of Illinois-based OSI Group.
Shares in Yum Brands were down by about 3.5% Monday. McDonald's stock was also edging down by nearly 1%.