China's Chicken Supplier Probe Is Causing Problems For KFC

djjewelz / FlickrYum! Brands, the owner of KFC and Taco Bell, just warned that sales in its Chinese stores would fall short of expectations due to an

From the company's 8-K filing with the SEC:

Due to adverse publicity associated with a government review of China poultry supply - and the corresponding significant impact on KFC China sales during the last two weeks of December - we now expect China Division same-store sales to be -6% for the fourth quarter of 2012, versus our previous forecast of -4%. The Company expects full-year 2012 earnings per share, excluding Special Items, of approximately $3.24. We do not anticipate providing any further updates or commentary until our scheduled earnings release on February 4, 2013.

The new EPS expectation is below analysts' forecast calling for $3.26 per share.