McDonald's Japan Calls Foul on Chinese Chicken

Restaurant Chain Plucks Chinese Product From Menu; Will Use Meat From Thailand

July 25, 2014 4:10 a.m. ET

A woman holding an umbrella walks past a McDonald's restaurant, operated by McDonald's Holdings Co. Japan in Tokyo. Bloomberg News

TOKYO— McDonald's MCD +0.39% Holdings Co. (Japan) Ltd. said Friday it has decided to stop selling all chicken products produced in China after reports earlier this week that a Chinese food supplier may have shipped expired meat.

"We made this decision as worries are growing over McDonald's chicken products made in China due to the reports on Shanghai Husi Food Co.," said Sarah L. Casanova, president and CEO of McDonald's Japan, in a news release.

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The issue, which on Monday prompted KFC owner Yum Brands Inc.YUM +0.27% and McDonald's Corp.'s China arm to drop the China-based food supplier, on Tuesday spread to Japan.

Japan's biggest restaurant chain by revenue said earlier this week that its outlets here cut ties with Shanghai Husi Food Co., an arm of OSI Group Inc. of Aurora, Ill. Shanghai Husi has been accused in Chinese media reports of selling meat products beyond their shelf life.

McDonald's Japan had used China-produced chickens on eight items, including its Chicken McNuggets and its Chicken Fillet-O.

The company said that it will use chicken products made in Thailand from now on.