The Centers for Disease Control and Prevention (CDC) reported an E. coli outbreak linked to McDonald's (MCD, Financial) "Big Three Ouncer" burger, affecting 49 people across ten states, including Colorado and Nebraska. This outbreak has resulted in 10 hospitalizations and one fatality. Most affected individuals had consumed the burger, with one patient developing hemolytic uremic syndrome, potentially leading to kidney failure.
As a result of this news, McDonald's stock dropped up to 10% in after-hours trading. The company responded promptly, indicating initial investigations suggest the outbreak may be related to sliced onions from a single supplier used in the burger. McDonald's has directed all local restaurants to remove the sliced onions from their supply and halt distribution in the impacted areas.
Furthermore, McDonald's has temporarily stopped selling the "Big Three Ouncer" burger in states like Colorado, Kansas, Utah, and Wyoming, as well as parts of other states while working with suppliers to replenish stock.
This food safety incident has notably impacted McDonald's share price, which initially plummeted nearly 10%, settling at a 5% decline. In contrast, competitors like Restaurant Brands International (QSR), Wendy's (WEN), and Shake Shack (SHAK) experienced stock increases.
Joe Erlinger, McDonald's U.S. President, emphasized that most states and menu items remain unaffected by the outbreak, assuring that other beef products such as cheeseburgers and Big Macs are safe, as they use different onion products.
As a globally renowned fast-food chain, McDonald's prioritizes food safety and has implemented measures such as employee training and a digital food safety system. This incident serves as a reminder for the restaurant industry of the importance of swift and transparent actions when faced with food safety issues. Erlinger reiterated McDonald's commitment to food safety and expressed hopes to quickly restore the full menu in affected states.
