McDonald’s Corp. (MCD) shares took a significant hit after the closing bell on Tuesday, following a report from the U.S. Centers for Disease Control and Prevention (CDC) linking an E. coli outbreak to the fast-food chain’s iconic Quarter Pounder burgers.
The CDC announced it is actively investigating the outbreak, which has sickened 49 people across 10 states in the West and Midwest. A concerning development is that one individual has died and 10 others have been hospitalized due to the infection.
The investigation is still ongoing, but the CDC has identified a strong connection between the outbreak and Quarter Pounder hamburgers sold at McDonald’s. In response, McDonald’s has taken immediate action, removing ingredients used in Quarter Pounder burgers from its supply chain. This means that Quarter Pounder burgers and other products containing those ingredients are currently unavailable for sale in certain regions.
The CDC is working diligently to identify the specific ingredient responsible for the outbreak. This is a crucial step to contain the spread of the bacteria and prevent further illnesses. McDonald’s has stated that they are cooperating fully with the CDC’s investigation and will keep the public updated on their findings.
The impact of the outbreak was immediate and severe for McDonald’s stock price. According to Benzinga Pro, MCD shares closed Tuesday down by 9.56%, trading at $284.73. This significant drop reflects investor concerns about the potential financial and reputational damage associated with the outbreak.
As the investigation progresses, McDonald’s and the CDC will be under intense scrutiny. Consumers are watching closely, as are health authorities and investors. The outcome of the investigation will determine the future of the Quarter Pounder burger, as well as McDonald’s stock price.
