McDonald's Japan to strengthen checks on chicken suppliers, says earnings likely to be hurt

McDonald's in Japan is increasing its checks on chicken from suppliers in China and Thailand after allegations a Chinese supplier sold expired chicken. It says the scare will hurt its earnings.

The U.S. fast-food chain's Japan unit on Tuesday withdrew this year's earnings and sales forecasts, citing uncertainties from the food scandal.

It promised to disclose information online about where its food comes from.

It said it will strengthen safety checks on suppliers it's still using in China, for apple pie, muffins and cookies, as well as its Thai chicken supplier.

Such checks will be extended to food items in Japan, the company said.

The Chinese food safety agency is investigating allegations Shanghai Husi Food Co., a McDonald's supplier, sold expired meat. McDonald's Japan has stopped using chicken from Husi.