McDonald’s (MCD) stock fell as much as 10% in after-hours trading on Tuesday. This comes after the Centers for Disease Control and Prevention announced that the company’s Quarter Pounder burger has been linked to E. coli outbreaks in some states, with most of the illnesses occurring in Colorado. And Nebraska.
“This is an ongoing outbreak investigation,” the CDC said on its website. “Most of the sick people reported eating McDonald’s Quarter Pounder burgers, and investigators are working quickly to determine which ingredients were contaminated.”
McDonald’s has stopped using raw sliced onions and quarter-pound beef patties in some states while the source of the infection is confirmed, the CDC said.
According to the agency, one person has died and 10 people have been hospitalized in 10 states due to the outbreak.
In an internal memo posted on McDonald’s website Tuesday evening, Cesar Piña, McDonald’s chief supply chain officer for North America, said the company was taking “swift and decisive action” to investigate. He said the initial results “indicate the possibility of some disease.” It relates to onion slices used in Quarter Pounders and may be sourced by a single supplier serving three distribution centers. ”
“As a result, in accordance with our safety protocols, all local restaurants have been directed to remove this product from their supply and we have suspended the distribution of all sliced onions in the affected area,” the company said. said.
From restaurants in affected areas, including Colorado, Kansas, Utah, and Wyoming, as well as parts of Idaho, Iowa, Missouri, Montana, Nebraska, Nevada, New Mexico, and Oklahoma. Temporarily remove a menu item. All other menu items are also available.
Close-up of McDonald’s Double Quarter Pounder and Cheeseburger, San Ramon, California, August 3, 2024. (Smith Collection/Gado/Getty Images) · Smith Collection/Gado via Getty Images
Fast food giant Chipotle (CMG) also experienced an E. coli outbreak and a norovirus outbreak in 2015. As a result, the company was forced to temporarily close 43 stores in Washington and Oregon.
The CDC declared the outbreak over in February 2016, and the company aggressively reviewed its food preparation methods.
But it took years for the Mexican fast-food giant to rebuild brand trust and recover its stock price in the wake of the crisis. The stock price has increased more than 500% since 2016.
Alexandra Canal is a senior reporter at Yahoo Finance. Follow her on X @allie_canalEmail LinkedIn, alexandra.canal@yahoofinance.com.
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