It's Kind Of Embarrassing If You Believe This Ridiculous KFC Myth - Tasting Table
Briefly

Persistent myths claim KFC uses genetically modified or hormonally altered chickens that grow extra legs, enormous breasts, or lack beaks, feathers, and feet. Those claims are false; no government agency forced Kentucky Fried Chicken to change its name in 1991. The mutant-chicken rumor began circulating around 1995. KFC shortened its name for multiple reasons, chiefly to avoid paying a licensing fee after the state of Kentucky trademarked 'Kentucky' and to downplay the 'F' in 'fried' as the company diversified toward healthier menu options. The trademark issue was later resolved, but the false myth has caused ongoing public relations harm.
Have you heard the one about the mutant chickens that KFC uses in its restaurants? If you believe the stories - and there are a few variations - KFC genetically modified chickens so they would have multiple legs, resembling big, feathery spiders. In other versions, the chickens are said to be so full of hormones and chemicals that they develop enormous breasts or even lack beaks, feathers, and feet.
Incidentally, the mutant chicken story began circulating around 1995. KFC changed its name for several reasons but chief among them was that the state of Kentucky trademarked its name. Kentucky Fried Chicken became KFC to avoid paying the Commonwealth of Kentucky a licensing fee for using the word "Kentucky" in its name. That issue has since been resolved, but for years, KFC avoided using "Kentucky" in marketing.
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