U.S. health authorities have identified McDonald’s hamburgers as the cause of a widespread E. coli outbreak reported in 10 states. On the 22nd (local time), McDonald’s shares fell sharply in after-hours trading.
According to the Wall Street Journal (WSJ), the Centers for Disease Control and Prevention (CDC) reported that since the end of September, 49 people in 10 U.S. states have been reported to have severe E. coli infections, all of whom had consumed McDonald’s hamburgers. Among the infected, 10 people were hospitalized, and one elderly person died.
The CDC noted that many people recover from E. coli infections without special treatment, so the actual number of infected individuals could be higher. The CDC identified the illness as being linked to the consumption of McDonald’s signature Quarter Pounder burger and is focusing its investigation on the onion slices and beef patties used in the product.
The CDC stated that the most infections have been reported in Colorado and Nebraska. McDonald’s suspects that the onion slices supplied to three distribution centers by one supplier may be the problem.
Additionally, McDonald’s has decided to temporarily suspend sales of the Quarter Pounder across four states—Colorado, Kansas, Utah, and Wyoming—and in certain areas of Idaho, Iowa, Missouri, Montana, Nebraska, Nevada, New Mexico, and Oklahoma. Cesar Pinilla, head of the North American supply chain, explained that “we consider food safety a top priority, as it should be,” and described the decision as being made “out of an abundance of caution.”
There is concern about the impact of the E. coli outbreak on McDonald’s performance. Following the report, McDonald’s stock, which closed slightly lower overnight, plunged by nearly 10% in after-hours trading. McDonald’s had previously reported a decline in same-store sales in the U.S. during the second quarter (April-June) of this year, for the first time since the COVID-19 pandemic.
The WSJ noted that previous food hygiene incidents have severely impacted the food service industry. For example, Chipotle overhauled its food safety practices after a series of food poisoning incidents between 2015 and 2018, but it took years to recover customer numbers, and the company paid $25 million (about 3.46 billion won) to settle lawsuits resulting from the food poisoning outbreaks.