McDonald’s vows to restore trust after food poisoning case, authorities predict increase in cases

On October 23, a person who ate a McDonald’s Quarter Pounder hamburger contracted food poisoning caused by enterohemorrhagic Escherichia coli O157, and the company is in a hurry to investigate the cause and take measures to restore trust. Taken in 2017 in Westminster, Colorado (2024 Reuters/Rick Wilking)

So far, 49 people in the western and midwestern United States have complained of food poisoning, and one person has died. According to the US Centers for Disease Control and Prevention (CDC), 10 people were hospitalized. A McDonald’s spokesperson said the food poisoning outbreak was limited to the United States.

A CDC spokesperson said, “We expect the number of food poisoning cases to increase in the future.

Previous outbreaks of O157 food poisoning at major US fast food chains have caused consumers to avoid the chains for months.

Under these circumstances, McDonald’s has removed the Quarter Pounder from the menu at approximately 20% of its 14,000 restaurants in the United States. Joe Erlinger, president of the US division, emphasized the need to regain public trust.

Quarter Pounders have been removed from menus in Colorado, Kansas, Utah, and Wyoming, as well as in some states including Idaho, Iowa, Missouri, Montana, Nebraska, Nevada, New Mexico , and Oklahoma.

The CDC and McDonald’s are investigating whether the raw onion and ground beef may have been the cause of the food poisoning.

The US Department of Agriculture (USDA) said on the 23rd that beef samples were being tested, but that onions may be the culprit.

McDonald’s stock price closed the same day at $298.57, down 5.1% from the previous day. During the trading session, the stock traded as low as $290.88 at one point.

Analysts have warned that the incident could damage the McDonald’s brand.

“In the worst case scenario, the number of food poisoning cases could increase, or several ingredients or suppliers could be affected, widening the problem and damaging the brand ,” said Arun Sundaram, an analyst at CFRA Research.

“Given the events of the past 24 hours, our priority is to re-establish US consumer confidence,” said McDonald’s Erlinger.

Raymond James analyst Brian Vaccaro said it took Chipotle a year and a half to stabilize, with Jack in the Box sales declining for four straight seasons.

Chipotle’s stock price fell nearly 50% between 2015 and 2018, when cases of norovirus infections were reported, following E. coli.

Analysts say the issue could weigh on McDonald’s sales in the fourth quarter of 2024, but it’s too early to say whether it will be a stronger outbreak than O157 food poisoning in the past .

McDonald’s is trying to prevent the damage from an E.coli outbreak that has already killed one and sickened dozens. An outbreak in 2015 hurt Chipotle’s same-store sales for several quarters.

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Ananya as the US Consumer and Retail Division Specialist covers breaking and business news about major companies including Walmart, Nike, Procter & Gamble, PepsiCo and Coca-Cola among other scheduled cruises in USA, Apparel Manufacturers, Discount Stores, Beverages, Second Hand Dealers, Restaurants, Luxury companies. She writes long-form campaign stories supported by data sets explaining current consumer demand trends in the US and the impact of macroeconomic conditions on retailers and companies. As a leader in the department, she guides and trains newer members of the team bringing them up to speed with experience in the department.