US Markets
Wednesday, October 23rd, 2024 5:44 pm EDT
Key Points
- The CDC has linked 49 E. coli cases and one fatality across 10 states to McDonald’s Quarter Pounder burgers, prompting McDonald’s to collaborate with the CDC, USDA, and FDA.
- McDonald’s has pulled Quarter Pounder burgers from restaurants in affected areas, and the CDC is investigating uncooked onions and beef patties as potential sources, with onions being the more likely culprit.
- The outbreak has led to a 5% drop in McDonald’s stock as concerns grow about potential sales impacts, affecting approximately 20% of its U.S. restaurants.
In late October, the Centers for Disease Control and Prevention (CDC) informed McDonald’s about a potential link between its Quarter Pounder burgers and an E. coli outbreak. Initially, the number of cases was smaller, but by Tuesday, the CDC attributed 49 cases and one fatality across 10 states to the outbreak. In response, McDonald’s collaborated with the CDC, U.S. Department of Agriculture, and the Food and Drug Administration to address the issue. By the time the CDC issued an advisory on Tuesday, McDonald’s had already decided to pull Quarter Pounder burgers from restaurants in the affected areas.
Currently, approximately 20% of McDonald’s U.S. locations have stopped selling Quarter Pounders. As of Tuesday, the CDC had interviewed 18 confirmed cases, with 12 individuals recalling that they ate a Quarter Pounder burger prior to falling ill. This outbreak adds to the challenges McDonald’s faces, as it struggles to regain customers amid rising prices and attempts to re-engage diners with promotions like a $5 value meal deal.
In a statement released on Tuesday, Cesar Pina, McDonald’s North American chief supply chain officer, confirmed the company’s decision to remove the Quarter Pounder from restaurants in the affected regions, which include Colorado, Kansas, Utah, Wyoming, and parts of eight other states. The CDC is investigating both the beef patty and the uncooked onions used in the Quarter Pounder as potential sources of contamination. However, since McDonald’s uses multiple beef suppliers and cooks its burgers to an internal temperature designed to kill bacteria, the onions are now considered the more likely culprit.
McDonald’s relies on a single onion supplier in the region, which processes and distributes the onions. As a precaution, the company has halted onion distribution and asked restaurants in the affected areas to remove their onion supplies. The reported cases of illness occurred between September 27 and October 11, a time frame during which McDonald’s sold approximately one million Quarter Pounders in the impacted areas.
The outbreak has also affected McDonald’s stock performance, with shares dropping 5% in afternoon trading as investors worry about potential declines in sales due to the health scare. The company is now facing heightened risks as it works to contain the outbreak, address public health concerns, and mitigate potential long-term impacts on its brand and revenue.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/10/23/mcdonalds-e-coli-cdc-notified-about-outbreak-last-week.html
