McDonald’s stock drops following CDC report of E. coli outbreak tied to Quarter Pounders

McDonald’s experienced a drop in shares during after-hours trading after the Centers for Disease Control and Prevention (CDC) announced that an E. coli outbreak linked to McDonald’s Quarter Pounder burgers has resulted in 10 hospitalizations and one fatality.

The CDC reported a total of 49 cases across 10 states between September 27 and October 11, with the majority of cases occurring in Colorado and Nebraska. Many of the affected individuals reported consuming a McDonald’s Quarter Pounder prior to falling ill.

One patient developed hemolytic uremic syndrome, a severe condition that can lead to kidney failure. Tragically, an older adult in Colorado passed away as a result of the outbreak.

Following the news of the outbreak, McDonald’s shares decreased by approximately 7% in extended trading on Tuesday.

In response to the situation, McDonald’s released a statement indicating that they are taking prompt and decisive action. Initial investigations suggest that the illnesses may be linked to slivered onions sourced from a single supplier for three distribution centers. As a precautionary measure, McDonald’s has instructed all local restaurants to remove slivered onions from their supply and halted the distribution of this ingredient in affected areas.

Quarter Pounder hamburgers will be temporarily unavailable in several Western states, including Colorado, Kansas, Utah, and Wyoming, as well as certain regions of other states. McDonald’s is working closely with suppliers to restock ingredients and return the full menu to these states as soon as possible.

McDonald’s USA President Joe Erlinger reassured customers that the majority of states and menu items are unaffected by the outbreak. Other beef products, such as the cheeseburger, hamburger, Big Mac, McDouble, and double cheeseburger, do not contain the implicated onion product and remain safe for consumption.

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Erlinger emphasized McDonald’s commitment to food safety and expressed the company’s dedication to resolving the situation swiftly.

Quarter Pounder hamburgers are a significant menu item for McDonald’s, generating substantial revenue each year. In 2018, McDonald’s introduced fresh beef for its Quarter Pounders across the majority of its U.S. locations.

The CDC warned that the actual number of individuals impacted by the outbreak is likely higher than reported, as many people recover from E. coli infections without seeking medical attention. It can take several weeks to confirm if a patient is part of an outbreak.

E. coli is a type of bacteria commonly found in the gut of humans and animals. Certain strains can cause mild to severe illness if ingested through contaminated food or water.

Symptoms of an E. coli infection, such as stomach cramps, diarrhea, and vomiting, typically manifest three to four days after exposure. Most individuals recover within a week without requiring medical intervention.

Past incidents of E. coli outbreaks at McDonald’s have been reported, including a case in 2022 where six children developed symptoms after consuming Chicken McNuggets Happy Meals in Ashland, Alabama.

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