KFC Sales Continue to Drop Following Expired Meat Scandal

KFC is facing a continued decline in revenue in the Czech Republic following a food safety scandal involving the use of expired meat. According to reporting from Hospodářské noviny, the company has seen a sustained drop in sales, with financial figures for the first three months of 2026 now available.

The financial downturn follows a regulatory discovery by the State Agricultural and Food Inspection Authority (SZPI). On April 13, 2026, Czech health inspectors discovered nearly nine kilograms of expired meat at a KFC location in Liberec.

Regulatory Investigation and Findings

The discovery of the expired products has prompted the SZPI to open a formal investigation into the restaurant’s operations. Beyond the specific findings in Liberec, the regulatory body has initiated wider inspections to determine if the issue is systemic across other locations in the region.

The presence of nearly nine kilograms of meat beyond its expiration date has placed the chain under intense scrutiny from both food safety regulators and consumers, contributing to the reported volatility in the company’s quarterly earnings.

Business Context and Market Precedents

The current situation in the Czech Republic mirrors previous global food safety crises that have significantly impacted the valuation and sales of fast-food chains. Corporate history indicates that expired meat scandals can lead to rapid erosions of consumer trust and sharp revenue contractions.

A notable precedent occurred in July 2014 in China, where both KFC and McDonald’s were embroiled in a major food-safety scandal. In that instance, a supplier identified as Shanghai Husi Food Co., owned by the OSI Group, was found to be selling expired beef and chicken to restaurant chains.

The 2014 scandal was characterized by severe supply chain failures. Reports from Dragon TV at the time revealed that Shanghai Husi Food had repackaged old meat with new expiration dates. The Shanghai Food and Drug Administration subsequently closed the supplier’s plant after evidence emerged of workers mixing expired meat with fresh batches and picking up meat that had fallen on the floor.

The financial impact of the China scandal was severe. KFC, which was the largest chain restaurant in China at the time, experienced a 37 percent drop in sales following the revelations.

Supply Chain Vulnerabilities

Analysis of the 2014 disaster suggests that the crisis was exacerbated by poor supplier auditing and an over-reliance on the reputation of long-term partners. McDonald’s and Yum Brands, the parent company of KFC and Pizza Hut, had worked with the OSI Group for decades, leading to a reliance on predictable, staged audits rather than surprise checks.

The failure of these audit systems allowed the supplier to fake inspections, highlighting a critical vulnerability in the fast-food industry’s supply chain management. The 2014 event became one of the most damaging food safety scandals in the history of modern retail in China, forcing both Yum Brands and McDonald’s to overhaul their supplier control mechanisms.

As KFC navigates the current regulatory inquiry in the Czech Republic and the resulting decline in first-quarter revenue for 2026, the company faces the challenge of restoring consumer confidence in its local quality control and supply chain integrity.