McDonald’s E. coli outbreak: The crisis sinking the hamburger giant in the stock market

McDonald's shares in decline after E. coli scandal: What can we expect?

McDonald's E. coli outbreak

McDonald's E. coli outbreak

McDonald’s is in full damage control mode as its shares took a hit, dropping by as much as 7% on Tuesday, following news of an E. coli outbreak.

In response to the outbreak, approximately one-fifth of McDonald’s restaurants across the United States have stopped serving quarter pounders and onions. This decision impacts around 2,700 locations out of the total 13,484 US outlets, according to Yahoo Finance.

The Centers for Disease Control and Prevention (CDC) issued a food safety alert on Tuesday. However, McDonald’s was already aware of the outbreak since late last week, as confirmed by company representatives. Swift action was taken to remove the two affected ingredients from the menu at impacted locations when the number of reported cases was still relatively low. As of now, there are 49 confirmed cases, tragically including one death.

The actual number of cases could be significantly higher. It usually takes the CDC about 3 to 4 weeks to determine if a sick individual is linked to an outbreak. During the period reported by the CDC, from September 27 to October 11, McDonald’s typically sells about 1 million quarter pounders in the affected regions.

McDonald’s is currently investigating the source of a recent outbreak, with initial suspicions pointing towards the onions.

Potential Sources of the Outbreak McDonald’s

Spokespeople have indicated that the beef patties are sourced from various suppliers. This means that if the contamination originated from the beef, it would suggest a widespread cross-contamination issue. Importantly, E. coli is typically eradicated when cooked at temperatures of 160 degrees Fahrenheit. McDonald’s stringent safety protocols mandate cooking burgers at a higher temperature of 175 degrees Fahrenheit.

Focus on Onion Supply

Interestingly, all affected locations receive their onions from a single facility. If these slivered onions are indeed the culprit, it would be unprecedented for this specific strain of E. coli to be transmitted via onions.

Historical Context

EFFINGHAM, IL – MARCH 30: A Quarter Pounder hamburger is served at a McDonald’s restaurant on March 30, 2017, in Effingham, Illinois. On this day, McDonald’s announced a shift to using fresh beef patties instead of frozen ones. (Photo Illustration by Scott Olson/Getty Images) · Scott Olson via Getty Images

This situation brings to mind the notorious Chipotle E. coli outbreak, which affected multiple ingredients between 2015 and 2018. The incident led to the company facing a substantial $25 million fine from the FDA.

McDonald’s is actively working to dispel any comparisons arising from the recent situation. With a reduced number of reported cases, the company suspects the issue originated further up the supply chain, likely limited to just two specific ingredients. The CDC has indicated that other ingredients remain unaffected.

Current Market Challenges for McDonald’s

This recent outbreak coincides with McDonald’s ongoing efforts to address challenges related to value perception and market share. Competitors like Yum! Brands (YUM), Burger King (QSR), and Wendy’s (WEN) are intensifying their focus on competitive pricing and promotional bundles.

Investigation Start Date: October 22, 2024

Investigation Status: Open

Recall Issued: No

In the Contaminated Food Section, the CDC has provided a list of states where McDonald’s has proactively removed slivered onions and beef patties. These states include:

The current outbreak statistics are as follows:

Once again, in the Contaminated Food Section, the CDC has reiterated the list of states where McDonald’s has removed slivered onions and beef patties:

The CDC, FDA, USDA FSIS, along with public health officials across various states, are actively investigating an outbreak of E. coli O157:H7 infections. A majority of those affected reported consuming the Quarter Pounder hamburger at McDonald’s prior to falling ill. At this point, the specific contaminated food ingredient remains unidentified.

McDonald’s is actively collaborating with investigation partners to pinpoint which specific food ingredient in their Quarter Pounders is causing customers to fall ill. As a precautionary measure, McDonald’s has halted the use of fresh slivered onions and Quarter Pound beef patties in multiple states during this ongoing investigation.

Contaminated Food Concerns

Reports have emerged that McDonald’s Quarter Pounder hamburgers are leading to illnesses, particularly affecting consumers in Colorado and Nebraska. In response, McDonald’s has decided to temporarily suspend the availability of Quarter Pounders in certain states as they implement key supply changes.

States Affected

McDonald’s outlets in the following regions are currently not using Quarter Pounder slivered onions and beef patties:

This proactive step is part of McDonald’s commitment to ensuring customer safety while investigators work diligently to identify the contaminated ingredient. It’s important to note that Quarter pound beef patties are exclusively used in Quarter Pounders, and the fresh slivered onions are primarily featured in these burgers, not other menu offerings.

Ongoing Investigation

The investigation aims to confirm the specific ingredient responsible for the illnesses and assess if it has been distributed to other restaurants or stores.

When to Contact Your Healthcare Provider

Understanding E. coli Symptoms

Most individuals infected with Shiga toxin-producing E. coli endure intense stomach cramps, diarrhea (often bloody), and vomiting. These symptoms typically emerge 3 to 4 days after the bacteria are ingested. While most recover without needing medical intervention within 5 to 7 days, some may develop severe kidney complications, known as hemolytic uremic syndrome (HUS), requiring hospitalization.

For further details on Escherichia coli infections, please refer to specialized medical resources or consult with a healthcare professional.

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