China: Slowing sales for fast food

KFC in China

China took a bite out of junk food in the third quarter.

Last week, Coca-Cola (KO, Fortune 500) said that sales in China grew an anemic 2% compared to 11% a year ago. Shares of the world’s largest beverage company lost more than 2% for the week.

China’s love affair with fried chicken also took a hit. KFC parent Yum Brands (YUM, Fortune 500), which also owns the Taco Bell and Pizza Hut brands, saw same-store sales growth in China decline to 6% from 19% last year.

It was more sour news for the world’s biggest fast food chain McDonald’s (MCD, Fortune 500). The company posted its worst quarterly restaurant sales growth in 9 years, sending shares more than 4% lower.

The company didn’t break out China sales, but said sales at restaurant open for at least one year in the Asia/Pacific region increased a meager 1.4%.

The outlook doesn’t look any better for the fourth quarter, according McDonald’s CEO Don Thompson. said

“Global economies remain challenging and our comparable sales for October are currently trending negative,” he said on a conference call.

The disappointing numbers are likely a result of the slowdown that’s been slamming the Chinese economy. Last week, the National Bureau of Statistics said that China’s economy slowed last quarter to its lowest level since early 2009.

China: Slowing sales for fast food – Oct. 21, 2012

GOP sees food fight as kids trash USDA fruit, vegetable guidelines

USDA school lunch guidelines

House Republicans say new U.S. Department of Agriculture USDA guidelines aimed at forcing students to eat fruits and vegetables are a failure because students across the country are simply tossing the healthy fare into the trash.

“[T]here remains great concern with the amount of food waste generated at school cafeterias, much of it brought on by requiring students to take fruits and vegetables rather than simply offer them,” Reps. John Kline R-Minn., Kristi Noem R-S.D. and Phil Roe R-Tenn. told USDA Secretary Tom Vilsack in a letter sent Thursday.

“This is a waste of federal, state and local funds and is contrary to the laws goal of feeding as many low-income and hungry children as possible,” they said. “Once again, we are aware USDA has attempted to address this situation by allowing greater choice in reimbursable meals, but students should not have to take additional food if they have no intention of eating it.”

Republicans have been criticizing USDA school lunch guidelines for the last few months, in particular USDA rules that set maximum-calorie guidelines for all meals subsidized by taxpayers. Last month, Rep. Steve King R-Iowa introduced the No Hungry Kids Act, which would repeal these calorie restrictions.

GOP sees food fight as kids trash USDA fruit, vegetable guidelines – The Hills Floor Action