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McDonald’s adding meat back to menu in Chinese cities

The problems at OSI, a key supplier to McDonald's, are a salutary lesson to companies doing business in China on the need for proper supervision.Dale de la Rey/AFP—Getty Images

Beef and chicken burgers are reportedly back on the menu at some McDonald’s restaurants in China, as the chain is planning to resume sales of those items after a supplier came under investigation for allegedly selling expired meats.

The restaurant operator is adding the items back on the menu in Chinese cities including Beijing and Guangzhou later this week, according to Bloomberg News. The company didn’t say when it would begin selling beer and chicken burgers, nor disclose the number of cities affected by the decision.

Regulators last month shut down Shanghai Husi Food Co Ltd, a unit of Illinois-based OSI, after a local Chinese TV broadcast aired an incriminating documentary program. The program showed footage of meat safety violations, among other wrongdoings. McDonald’s and U.S.-based peer Yum Brands Inc. (YUM), which is the parent of KFC, Pizza Hut and Taco Bell, both immediately sought to distance themselves from the supplier.

China is one of nine markets McDonald’s (MCD) classifies as “major markets”–regions that comprise 75% of the restaurant chain’s total revenue. McDonald’s has been expanding in China by adding hundreds of stores annually in that region. The market is also important for Yum, which is the biggest operator of fast-food restaurants in China.