McDonald’s Corp (MCD) and food safety officials have ruled out beef as the source of an E. coli outbreak linked to the chain’s popular Quarter Pounders. The investigation has taken a new turn, focusing on the onions served on the burgers.
The Colorado Department of Agriculture, after conducting extensive tests on fresh and frozen beef patties from McDonald’s locations within the state, found no traces of E. coli. However, the source of the outbreak remains under investigation, with the spotlight now on the onions.
The E. coli outbreak, first reported last week by federal health officials, has impacted 75 individuals across 13 states, resulting in one fatality. In response, McDonald’s has temporarily removed Quarter Pounders from menus in the affected areas and is actively cooperating with regulatory agencies investigating the outbreak.
Following the negative test results for beef, McDonald’s plans to resume selling Quarter Pounders in the affected restaurants within the coming week. However, the company has announced that fresh onions will not be used to dress the burgers in these locations for the foreseeable future.
McDonald’s has stopped purchasing onions from a Colorado facility operated by Taylor Farms, the supplier of the slivered onions used in McDonald’s restaurants linked to the E. coli cases. Taylor Farms previously recalled yellow onions from its Colorado Springs facility last week, stating that no traces of E. coli were found in their pathogen tests.
While McDonald’s awaits the results of tests on the implicated onions, the Food and Drug Administration (FDA) announced on Friday that it is collecting onion samples for analysis as part of its efforts to pinpoint the cause of the outbreak.
This development comes amidst a period of challenges for McDonald’s. The fast-food giant has faced scrutiny for raising prices faster than inflation, attracting criticism from Sen. Elizabeth Warren (D-Mass.). The E. coli outbreak has also prompted other fast-food chains, such as Burger King and Yum Brands, to remove onions from their menus as a precautionary measure.
Despite these challenges, analysts believe McDonald’s is well-positioned to manage the outbreak and that the impact on the company’s stock is likely to be minimal.
McDonald’s Corp closed at $292.61 on Friday, down 2.97% for the day. In after-hours trading, the stock saw a slight increase of 0.031%. Over the past five days, McDonald’s has dropped 7.66%. Year-to-date, the stock is down 1.49%, according to data from Benzinga Pro.
