By Laurie Burkitt, Jacob Bunge and Julie Jargon 

BEIJING--The U.S. owner of a meat supplier in Shanghai apologized and promised a swift response Monday after McDonald's Corp. and Yum Brands Inc. suspended purchases in China in the wake of allegations it sold expired chicken and beef to restaurants.

McDonald's and Yum, parent of KFC and Pizza Hut, said they halted orders from Shanghai Husi Food Co., owned by OSI Group Inc. of Aurora Ill., after local Chinese media reported that Shanghai Husi was selling meat products beyond their shelf life.

China's Food and Drug Administration announced it halted on Sunday all business activities of Shanghai Husi and that it launched a nationwide investigation of the company.

OSI, a longtime supplier to both fast-food companies, said its executives were "appalled" by the report and apologized to its customers and consumers. The company "has formed an investigation team, is fully cooperating with inspections being conducted by relevant, supervising government agencies, and is also conducting its own internal review," it said.

OSI said it thinks the media report showcased an "isolated event" but "takes full responsibility for the situation and will take appropriate actions swiftly." A spokeswoman declined to comment further.

In a statement on its official microblog account posted late Monday, Starbucks Corp. said it pulled a chicken applesauce panini available at some of its Chinese stores because its supplier used chicken ingredients from Shanghai Husi. It also pledged to adhere to its global quality standards as well as Chinese law. "We put quality and safety first," it said.

The episode is the latest in a long series of food-industry flaps in China that have prompted calls for improved safety standards and oversight. Concerns about the conditions of domestic hog farms and the use of antibiotics in poultry production have spurred China's government to push modernization in the meat sector--moves that often include Chinese industry turning to Western companies for raw materials and expertise.

Closely held OSI, which had $6.1 billion in sales last year and ranks among the largest U.S. meat processors, has been active in China since 1991 and currently operates in eight cities there, supplying meat as well as produce. OSI began supplying McDonald's Chinese operations in 1992 and Yum in 2008, according to the meat processor's website.

Meat-industry experts said that expired meat likely represented a quality problem, rather than a food-safety threat. However, the perception of lax quality control within a key supplier to major restaurant chains was expected to resonate with Chinese consumers, many of whom prize imported brands and foreign labels because these are believed to maintain higher standards than their Chinese rivals.

"It will raise questions about U.S. food processors in general," said Michael Doyle, professor and director of the Center for Food Safety and Quality Enhancement at the University of Georgia. "Perception is reality."

McDonald's spokeswoman Heidi Barker said Monday that if the practices described in media reports were confirmed, they would be "completely unacceptable to McDonald's."

The company said it has switched to other suppliers, and was cooperating fully with authorities investigating the issue.

McDonald's, which has more than 2,000 outlets in China, has been trying to solidify its standing with Chinese consumers. The company faced tough times in the country last year, with sales at stores open 12 months or more down 3.6% compared with 2012.

The development could be a bigger setback for Yum, which has just begun to recover from food-safety issues that had dogged the company for more than a year.

A Chinese media report in November 2012 alleged that two KFC chicken suppliers had been using growth hormones and excessive levels of antibiotics to help chickens grow faster. The claims, which quickly spread online, tapped into widespread consumer fears in China over food safety.

Government officials investigated, and recommended Yum strengthen its poultry supply-chain practices, which Yum said it had done. Still, Yum's sales in China struggled for much of last year, further hurt by a bird-flu outbreak last spring. The company has staged a recovery recently with new menu items and marketing campaigns. Last week, Yum reported that in the second quarter of this year, same-store sales in China rose 15%, driven by 21% growth at KFC. Sales in China account for more than half of Yum's revenue.

Yum said its decision to stop buying meat from Husi would cause temporary supply shortages for two breakfast products at some KFC restaurants and a beef product at Pizza Hut outlets. Yum said it "will not tolerate any violations of government laws and regulations from our suppliers."

Yum shares on Monday fell 3.3% and McDonald's shares fell 1.4%.

OSI, which traces its roots to a suburban Chicago meat market founded in 1909, has built its business on processing huge volumes of meat for restaurant chains that require a steady, consistent supply around the world. In 1955, OSI struck what would become a lasting alliance with McDonald's, agreeing to supply the then-fledgling burger chain with beef patties.

China has been a major focus for OSI as it seeks to keep pace with the demands of customers targeting the world's largest market for chicken and pork. Along with McDonalds and Yum, OSI supplies Chinese operations of Burger King Worldwide Inc., Subway, Papa John's International Inc. and Starbucks Corp., according to OSI.

OSI last year opened its ninth and 10th plants in China, part of a $750 million investment to become one of China's biggest poultry producers, capable of processing more than 300 million chickens per year through complexes that include hatcheries, farms, feed mills and slaughterhouses.

The same approach has been adopted by rivals such as Tyson Foods Inc. of Springdale, Ark., the largest U.S. meat processor. However, Tyson earlier this year said its expansion in China would slow as consumers' demand for poultry in the country cooled following recent outbreaks of avian influenza.

Write to Laurie Burkitt at laurie.burkitt@wsj.com, Jacob Bunge at jacob.bunge@wsj.com and Julie Jargon at julie.jargon@wsj.com

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