From the Kentucky Fried Chicken website:

KFC has learned that an internet hoax falsely claims that we are not using real chickens to make Kentucky Fried Chicken products. In order to lend an air of authenticity to the hoax, the hoax refers to a study supposedly done by the University of New Hampshire. The University of New Hampshire internet web site confirms that "there is no such research or study that was done here." Simply said, there is no truth to the hoax. Our chicken is purchased through many of the same suppliers that you might find in your local grocery store. Our chicken meets or exceeds USDA standards and it must pass our own rigorous internal quality guidelines.

This internet hoax is intended to destroy the trust that you have placed in KFC to provide high quality chicken meals at all of our restaurants. Although we hope that readers of the hoax will recognize it as obviously false, we take this or any other attack on the quality of KFC's product seriously. Accordingly, we intend to identify and prosecute the originators of the hoax to the maximum extent permitted by law.


So there.