In a troubling development for McDonald's, shares have significantly dropped following a severe E. coli outbreak linked to its popular Quarter Pounder hamburger. Reports indicate that there have been at least 75 infections associated with the outbreak, resulting in 10 hospitalizations and one confirmed death. The Centers for Disease Control and Prevention (CDC) is currently investigating the situation, with all interviewed individuals having consumed McDonald's prior to falling ill [c23928e3].
In response to the outbreak, McDonald's has taken precautionary measures by temporarily withdrawing Quarter Pounders from menus in about 20% of its 14,000 US locations, particularly in four states and parts of eight others as health officials continue their investigation [e2a35e69]. This incident compounds the challenges McDonald's is already facing, including ongoing supply chain issues and a lawsuit from the Federal Trade Commission regarding alleged price-fixing of beef [f77025e7].
On October 29, 2024, consumers Amanda McCray and William Michael Kraft filed a proposed class-action lawsuit against McDonald's due to the E. coli outbreak, seeking over $5 million in damages for affected consumers [d8767b61]. The lawsuit highlights the seriousness of the outbreak, which has sickened many and raised significant concerns about food safety at the fast-food chain.
The situation has prompted other fast-food chains to act as well. Burger King has removed onions from 5% of its locations, and Yum Brands has also taken similar precautions by pulling onions from their menus [84218284]. The FDA has confirmed that Taylor Farms, identified as the onion supplier, initiated a voluntary recall in light of the outbreak [84218284].
As National French Fry Day approaches, the fast-food giant is also dealing with disruptions in its supply chain, particularly after Lamb Weston, its largest fry supplier, announced the closure of a factory due to declining fry sales [f77025e7]. This factory closure, alongside the health crisis, raises significant concerns about the company's operational stability and consumer trust.
Despite these challenges, McDonald's continues to promote its fries, offering a free medium order with any purchase through its app [84706a42]. However, the juxtaposition of these promotions against the backdrop of health and supply chain issues presents a complex picture for McDonald's and the fast-food industry as a whole [f77025e7]. The broader economic implications are also noteworthy, as rising inflation and tightening consumer budgets may influence fast-food sales trends moving forward [f77025e7].