McDonald’s has resumed sales of its Quarter Pounder burgers in all US locations after investigating an E. coli outbreak that left dozens ill and resulted in at least one death.
The company confirmed that its beef patties were not the source of the outbreak, based on testing conducted by the Colorado Department of Agriculture (CDA).
Beef Patties Cleared, Onions Suspected
The fast-food chain had temporarily suspended the sale of Quarter Pounders last week in roughly 20 percent of its US restaurants as a precautionary measure while investigations were underway.
Samples of McDonald’s beef patties, tested by the CDA, came back negative for E. coli contamination. This has led the company to lift the suspension.
Cesar Piña, McDonald’s North America Chief Supply Chain Officer said:
“The issue appears to be contained to a particular ingredient and geography, and we remain very confident that any contaminated product related to this outbreak has been removed from our supply chain,”.
The U.S. Food and Drug Administration (FDA) identified slivered onions used in Quarter Pounders as another potential source of the outbreak.
McDonald’s responded by discontinuing its partnership with the onion supplier, Taylor Farms, and removing the ingredient from its supply chain.
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Changes in Supply Chain and Operations
McDonald’s announced it would resume sales of the Quarter Pounder at 900 restaurants that historically received onions from Taylor Farms’ Colorado Springs facility.
The sandwiches will now be sold without slivered onions as a precautionary measure.
Despite the return of the Quarter Pounder, McDonald’s is facing legal challenges from several individuals affected by the outbreak.
In addition, the US Centers for Disease Control and Prevention (CDC) issued an advisory urging those who recently ate Quarter Pounders and developed symptoms like diarrhea, fever, or vomiting to seek medical attention.
The Impact of the Outbreak on McDonald’s Business
The outbreak has already impacted McDonald’s stock performance, with shares falling more than 7.5 percent since the CDC’s initial report.
The timing of the outbreak coincides with financial headwinds for the company, which reported its first quarterly sales decline in more than three years in July.
Amid rising food costs, fast-food giants like McDonald’s and Burger King have focused on offering value-oriented meal deals to retain lower-income customers feeling the pressure of increasing prices.
With this recent outbreak and the subsequent impact on sales and stock prices, McDonald’s faces additional challenges in maintaining customer trust and financial stability.
Looking Ahead
With the return of the Quarter Pounder to menus and the beef patties cleared of contamination, McDonald’s is taking measures to ensure the safety of its supply chain and regain consumer confidence.
As the company navigates ongoing lawsuits and the aftermath of the outbreak, its next steps will be critical in stabilizing its market position and mitigating further financial and reputational damage.
