McDonald’s (MCD) stocks took a significant hit in extended trading on Tuesday, following an announcement from U.S. health officials that they were investigating a possible E. coli outbreak connected to the fast-food giant's signature Quarter Pounder.
According to a statement from the Centers for Disease Control and Prevention (CDC), there have been 49 reported instances of E. coli infection across ten states. Of these cases, ten led to hospitalization and recoded one fatality.
The CDC noted that the majority of individuals infected claimed to have eaten McDonald’s Quarter Pounder prior to falling ill. However, the exact source of the contaminant in the food is not yet known.
As part of the ongoing investigation, McDonald's has halted the offering of slivered onions and Quarter Pounder patties in several states, while working closely with regulators. Most of the cases are concentrated in Colorado and Nebraska, as per the CDC report.
McDonald's North America Supply Chain Officer, Cesar Piña, confirmed that McDonald’s is taking "swift and decisive action" in dealing with the issue and is severely considering the preliminary findings linking the E. coli infections to a single supplier of slivered onions. Consequently, the suspension of slivered onions distribution and the removal of Quarter Pounders from the menu in specific areas has been put into effect.
Joe Erlinger, McDonald's USA President, emphasized in a video message that the majority of McDonald’s products remain unaffected and the drastic measures taken have been in close consult with the CDC.
McDonald's share price dropped 6.5% during extended trading two hours post-closing bell, reaching a drop of close to 10% soon after the CDC's press release. The updates include the latest comments from McDonald's high-ranking executives and recent share pricing trends.