Stock market data from financial platforms

McDonald's E. Coli Outbreak Sickens 75 Across 13 States; CEO Apologizes as Sales Drop 6%

Oct 29, 2024, 11:38 AM

McDonald's is facing a significant E. coli outbreak linked to its Quarter Pounder hamburgers, which has spread to at least 13 states and sickened at least 75 people, with 22 hospitalizations, two cases of kidney disease, and one reported fatality, according to the CDC. The company identified contaminated onions as the likely source and has removed the affected products from its restaurants. McDonald's CEO Chris Kempczinski issued an apology, stating, "We're sorry for what our customers experienced," and confirmed that the outbreak is behind them. The outbreak has impacted consumer confidence and sales, with McDonald's reporting a 6% drop in sales after the news broke and a 1.5% decline in global same-store sales in the third quarter. The company's shares have been volatile, logging their biggest weekly loss since March 2020, and McDonald's is now facing a proposed class-action lawsuit over the outbreak. Food safety inspectors have cleared the company's beef patties, shifting the investigation's focus to onions. McDonald's reaffirmed that the E. coli outbreak is not expected to have a material impact on its fiscal 2024 results.