Yum! Brands: KFC Too Dirty For China

Americans are well aware of scandals involving unsafe product making their way from China, but few would have expected an American company operating in China to be accused of similar unsafe practices. That is, however, what happened to KFC in recent weeks, and the reason for its parent company Yum! Brands, Inc. (NYSE:YUM) loss of almost 5% of its value today after an earnings report release.

Last December, Chinese Government Food Safety agencies began an investigation into the chicken used by the fast food chain. The investigation was triggered by a China Central Television report which revealed that some farmers the company buys chicken from use...