Is Your Quarter Pounder Safe? E. Coli Outbreak Leads To McDonald’s Stock Drop

Shares of McDonald’s declined in after-hours trading on Tuesday following a report from the Centers for Disease Control and Prevention (CDC) about an E. coli outbreak linked to the company’s Quarter Pounder burgers. This outbreak has resulted in ten hospitalizations and one death.

According to the CDC, there have been 49 reported cases across ten states from September 27 to October 11, with the majority of illnesses occurring in Colorado and Nebraska. The agency noted that a significant number of affected individuals had consumed a Quarter Pounder from McDonald’s.

One patient developed hemolytic uremic syndrome, a serious condition that can lead to kidney failure, and an elderly person in Colorado has died.

Shares plummet

In response to the outbreak, McDonald’s shares fell by approximately 7% in after-hours trading on Tuesday.

In a statement, McDonald’s indicated that it is taking “swift and decisive action” in light of the E. coli outbreak affecting certain states.

Preliminary results from an ongoing investigation suggest that some cases may be connected to slivered onions, which are thinly sliced fresh onions used in the Quarter Pounder and supplied by a single supplier serving three distribution centers. Consequently, McDonald’s has directed all local restaurants to remove slivered onions from their inventory and has suspended the distribution of this ingredient in the impacted areas.

McDonald’s to restock ingredients

As a result, Quarter Pounder hamburgers will be temporarily unavailable in several Western states, including Colorado, Kansas, Utah, and Wyoming, along with parts of other states. The company stated that it is collaborating with suppliers to restock ingredients.

Joe Erlinger, President of McDonald’s USA, mentioned in a video that most states and menu items remain unaffected by the outbreak. He clarified that other beef products, such as the cheeseburger, hamburger, Big Mac, McDouble, and double cheeseburger, are not involved in the outbreak since they use a different type of onion.

Erlinger expressed the company’s intent to swiftly restore its full menu in the affected states, emphasizing McDonald’s commitment to food safety.

McDonald’s Quarter Pounder

The Quarter Pounder is a significant item on McDonald’s menu, generating billions of dollars in revenue annually. In 2018, the company introduced fresh beef for its Quarter Pounders at most U.S. locations.

The CDC stated that the actual number of people impacted by the outbreak is likely much higher than reported due to many individuals recovering from E. coli infections without medical attention or testing. The agency also noted that it typically takes three to four weeks to confirm whether a sick patient is part of an outbreak.

What is E.coli?

E. coli encompasses a group of bacteria commonly found in the intestines of humans and animals. Certain strains can lead to mild to severe illnesses if ingested through contaminated food or water.

Symptoms, which may include stomach cramps, diarrhea, and vomiting, generally appear three to four days after exposure to the bacteria. Most individuals recover within five to seven days without treatment.

There have been previous instances of E. coli reported at McDonald’s locations. For example, in 2022, at least six children in Ashland, Alabama, exhibited symptoms consistent with E. coli infection after consuming Chicken McNuggets Happy Meals. Four of those children required hospitalization due to severe complications.

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