E. Coli Outbreak Linked to McDonald’s Quarter Pounders

Published On Oct 22, 2024, 5:07 PM

The C.D.C. has reported an E. coli outbreak linked to McDonald's Quarter Pounder hamburgers, resulting in nearly 50 illnesses and one death. McDonald's has halted the sale of Quarter Pounder beef patties and slivered onions in affected locations while health investigators work to identify the contaminated ingredient. The outbreak has primarily affected people in Colorado and Nebraska, with the majority of cases occurring after the consumption of Quarter Pounders.

Stock Forecasts

Given the serious health risks associated with the E. coli outbreak, the negative publicity around McDonald's and the potential for decreased consumer trust may lead to a drop in sales and overall stock performance. Investors should be cautious as short-term disruptions could heavily impact McDonald's operational efficiencies.

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McDonald's shares sank around 10% in after-hours trading on Tuesday following news of an E. coli outbreak linked to its burgers.

Shares of McDonald's were down 9.2% after the bell. McDonald's has proactively removed the slivered onions and beef patties used for the quarter pounder hamburgers from stores in the affected states while the investigation continues, the company informed the CDC. Quarter pounders in some states may be temporarily unavailable, according to the CDC's statement.

McDonald's raised wages for its employees at corporate-owned restaurants over the past three years. It pledged that company-owned restaurants would increase to $15 an hour by 2024.