McDonald’s E. coli outbreak tied to fresh onions is over

An E. coli outbreak that hit McDonald’s Corp. is over, the U.S. Centers for Disease Control and Prevention said Tuesday.
Fresh, slivered onions at McDonald’s were the likely source of the outbreak, the CDC said, in line with previous reports. Beef had been ruled out earlier as the potential cause.
The Food and Drug Administration also said Tuesday that it had closed its investigation. The announcements give “certainty and validation from leading health authorities, which will be meaningful for our customers and communities,” McDonald’s said.
A total of 104 people in 14 states reported illnesses, according to the CDC. However, the number of sickened individuals probably was much larger because many recover without medical care and aren’t tested for E. coli. McDonald’s had stopped sourcing onions from a Colorado facility of supplier Taylor Farms, which issued a recall after the outbreak.
It’s not yet clear how or at what stage E. coli entered the supply chain, a McDonald’s spokesperson said in a media briefing. That’s why the chain has stopped sourcing from both the facility that processed the onions and the farm where they originated, the representative said.
McDonald’s said it’s working with industry groups and health officials to see if additional checks are needed for produce, adding that it’s confident in its supply chain processes.
The chain disclosed the outbreak on Oct. 22 and temporarily yanked Quarter Pounders, which have the slivered onions, from many restaurants. It also pledged to spend $100 million to revive sales and support franchisees after the E. coli news scared away many diners.
In a memo sent to employees and franchisees that was seen by Bloomberg News, McDonald’s said the company was investing $35 million in marketing and ads. Additionally, the company told Bloomberg it is spending $65 million on programs that support franchisees, such as deferrals on rent and royalties.
Lately, the company has been seeking to bring customers in with the limited-time-offer McRib and the announcement of a new value menu.
Foot traffic and sales took a beating after officials announced they were investigating an E. coli outbreak linked to the fresh slivered onions.
In the week that ended Oct. 27, sales fell nearly 12% compared with the previous week, according to Bloomberg Second Measure data, which tracks debit and credit card transactions by U.S. consumers.
The outbreak came as McDonald’s had been working to overcome slow sales with splashy promotions and steep discounts. Its $5 value meal resonated with low-income customers in the U.S. and drove guest counts in the third quarter, before the chain was rocked by E. coli.
Shares of the company, which finished trading Tuesday up 0.7% at $294.50, are nearly flat for the year.