McDonald’s Battles E.Coli Outbreak

Key Takeaways:

• CDC links E. coli outbreak in Mountain West states to McDonald’s Quarter Pounders
• Health Impact: 49 cases, 1 death, 10 hospitalized
• Slivered onions from supplier Taylor Farms are the suspected culprit
• Stock down over 5% since the news

McDonald’s Response to E. coli Outbreak

MCD (McDonald’s) has temporarily stopped selling Quarter Pounders at about 20% of its U.S. locations after an E. coli outbreak affected nearly 50 people across 10 states. In response, McDonald’s has removed Quarter Pounder patties and slivered onions from restaurants in several states, including Colorado, Kansas, Utah, and parts of Idaho and Iowa. Although McDonald’s confirmed its burgers are cooked at 175 degrees—well above the 160 degrees needed to kill E. coli—the company suspects that slivered onions, which are served raw, maybe the source of the outbreak.

Taylor Farms, a produce supplier, reported no traces of E. coli in its onions from its Colorado facility, though it has pulled its yellow onions as a precaution. However, Taylor Farms hasn’t confirmed if it supplied onions to McDonald’s affected locations.

Details on the Outbreak & Stock Reaction

The CDC has linked 49 E. coli cases to Quarter Pounders, with the most cases in Colorado (26 people) and Nebraska (9 people). Tragically, one adult died in Colorado, and 10 people have been hospitalized. Most cases involve severe stomach cramps and diarrhea, with some patients developing hemolytic uremic syndrome (HUS), a condition that can lead to kidney failure. Those experiencing serious symptoms are urged to seek medical help.

McDonald’s stock fell over 5% following the outbreak, marking a tough time for the fast-food chain amid high food costs and evolving customer expectations. This follows a previous outbreak in 2018, linked to McDonald’s salads, which affected over 500 people.