According to records, by the end of 2014, KFC had 4,828 branches in China and has been opening hundreds of new outlets every year.
Kentucky Fried Chicken (KFC) has sued three Chinese companies for 1.5 yuan ($242,000) for spreading false rumours about its food and also demanding an apology.
The rumours which appeared on the WeChat app explained that Kfc uses chicken which are genetically modified to have six wings and eight legs and it spread through at least 4,000 subsequent posts.
A case has now been filed before a court in Shanghai.
Qu Cuirong, KFC China's President, noted, "This not only seriously misled consumers, but also hurt our brand”.
The company named the original posters as Shanxi Weilukuang Technology Company Ltd, Taiyuan Zero Point Technology Company and Yingchenanzhi Success and Culture Communication Ltd.
The company's owner, Yum Brands, warned of a drop in profits for 2014 after one of the suppliers to its Chinese stores was accused of selling old meat.
KFC, along with fast food giant McDonald's, stopped using meat from the supplier after its operations were suspended in last year July.