Shanghai Husi Food Co.

McDonald's said on Monday that a recent scandal over expired meat from a Chinese food supplier has had a "significant negative impact" on sales in China, Japan and some other markets.

Five employees of a company accused of selling expired beef and chicken to McDonald's, KFC and other restaurants were detained by police Wednesday after an official said illegal activity was an organized effort by the supplier.

The companies said they immediately stopped using meat from the supplier, Husi Food Co., Ltd. The Shanghai office of China's food and drug agency said it was investigating and told customers to suspend use of its products.

McDonald's and KFC in China faced a new food safety scare after a Shanghai television station reported a supplier sold them expired beef and chicken. The companies said they immediately stopped using meat from the company, Husi Food Co., Ltd. The...

McDonald's said on Monday that a recent scandal over expired meat from a Chinese food supplier has had a "significant negative impact" on sales in China, Japan and some other markets.

Five employees of a company accused of selling expired beef and chicken to McDonald's, KFC and other restaurants were detained by police Wednesday after an official said illegal activity was an organized effort by the supplier.

The companies said they immediately stopped using meat from the supplier, Husi Food Co., Ltd. The Shanghai office of China's food and drug agency said it was investigating and told customers to suspend use of its products.

McDonald's and KFC in China faced a new food safety scare after a Shanghai television station reported a supplier sold them expired beef and chicken. The companies said they immediately stopped using meat from the company, Husi Food Co., Ltd. The...