Following a public health alert linking McDonald's Quarter Pounder burgers to a deadly E. coli outbreak, CEO Chris Kempczinski reassured investors that the situation is now resolved. During a recent conference call, he stated that the company has addressed the issue and is moving forward.
McDonald's announced that the Quarter Pounder will be reintroduced in approximately 900 restaurants after its temporary removal. While the health authorities did not find E. coli in the burger's fresh beef patties, the FDA is investigating the onions used in the burger as a potential source of contamination. In response, McDonald's has indefinitely stopped sourcing onions from the current supplier and will offer the Quarter Pounder without onion slices.
Chief Financial Officer Ian Borden noted that shortly after the outbreak announcement, U.S. restaurant sales and traffic turned negative due to consumer reactions. However, he emphasized that the company does not expect a significant long-term impact on business operations.
