Shares of McDonald’s Corp. fell on Wednesday at the New York Stock Exchange following reports of an E. coli outbreak linked to its popular Quarter Pounder burgers. The outbreak has resulted in one death and left over three dozen individuals ill, prompting significant concern among consumers and investors alike.
In response to the crisis, Joe Erlinger, president of McDonald’s USA, announced the temporary removal of the Quarter Pounder from its menu as well as the pullout of slivered onions and beef patties used in the popular burger. The company decision came after health authorities, including the Centers for Disease Control and Prevention (CDC), started investigating the source of the E. coli outbreak, which has hospitalized ten patients across multiple states.
The CDC has issued a Food Safety Alert, detailing an ongoing investigation into the outbreak, which spans Colorado, Kansas, Utah, Wyoming, and parts of Idaho, Iowa, Missouri, Montana, Nebraska, Nevada, New Mexico, and Oklahoma. “Most people in this outbreak are reporting eating the Quarter Pounder hamburger at McDonald’s before becoming sick. It is not yet known which specific food ingredient is contaminated,” the CDC said.
As the investigation unfolds, McDonald’s is collaborating closely with the CDC, the U.S. Food and Drug Administration (FDA), the U.S. Department of Agriculture (USDA), and health authorities in affected states. Authorities aim to pinpoint the contaminated ingredient responsible for the illnesses associated with the Quarter Pounder.
In light of the ongoing situation, the CDC has emphasized that the actual number of cases may be significantly higher than reported, as many individuals recover without seeking medical attention or testing for the infection. The agency notes that it typically takes three to four weeks to confirm if a patient is part of an outbreak.
Currently, there aren’t any reports indicating that the E. coli outbreak has spread to McDonald’s franchises outside the U.S. In the Philippines, the McDonald’s franchise is owned by Alliance Global Group Inc., a publicly listed company. While the company has not reported any incidents outside the US, the situation remains fluid as authorities continue their investigation.
The outbreak poses a considerable challenge for McDonald’s, which has built its brand on consistent quality and safety. As the company navigates this crisis, it faces heightened scrutiny from regulators and consumers alike, potentially impacting its reputation and financial performance in the long term.
