McDonald’s does not expect an E. coli outbreak linked to Quarter Pounders sold in 12 states to impact its financial performance. CEO Chris Kempczinski apologized for the food safety issue.
McDonald’s onion-linked E. coli cases spread across 13 states
McDonald’s is being sued after an E. coli outbreak impacted restaurants across at least 13 states.
With Quarter Pounders expected to return to all U.S. restaurants this week, McDonald’s officially apologized for the E. coli outbreak which so far has sickened 75 persons and left one person dead.
“We are certainly very sorry if someone got sick at our restaurant for eating an onion that we use on our (Quarter Pounder) and I am relieved that I think we are now past this and on the road to getting back to serving our customers,” chairman and CEO Chris Kempczinski said during a teleconference call with investors Tuesday.
Kempczinski said he was “relieved that this situation appears to be contained and I remain confident in the safety of eating at McDonald’s.”
The fast food chain is expected to have Quarter Pounders back on the menu at all of its U.S. restaurants in the coming week, Kempczinski said.
McDonald’s sales up in US, down 1.5% worldwide
In the months before the E. coli outbreak, McDonald’s saw a slight increase in sales in the U.S. During the July-September period, sales in the U.S. rose 0.3%, driven by consumers ordering $5 Meal Deals, the company said Tuesday.
Thanks to the $5 Meal Deal, McDonald’s saw an increase in orders totaling more than $10 and growth among low-income customers for the first time in more than a year, the company said. As a result, McDonald’s will keep the $5 Meal Deal on menus in most of its restaurants into December.
The E. coli outbreak, announced Oct. 22, did not have an impact on McDonald’s sales from July to September – and is not expected have an effect on the company’s business, chief financial officer Ian Borden said.
In October, along with the release of the Chicken Big Mac, McDonald’s had seen a good start to the fourth quarter period, which runs October to December, with comparable sales up compared to a year ago, the company said.
But the company’s performance “so far this year has fallen short of our expectations,” Kempczinski said.
This comes after an April-June period in which the restaurant chain reported a 1% decline in global sales and U.S. sales down 0.7%. The dip was the first decline in global sales for McDonald’s since the fourth quarter of 2020 when the U.S. economy, amid the COVID-19 pandemic, had its sharpest annual drop since 1946.
Globally, McDonald’s sales dropped 1.5% in the third quarter. Revenue of nearly $6.9 billion outperformed the $6.82 billion expected by analysts polled by S&P Global Market Intelligence.Profit fell 3% to $2.25 billion below the estimated $2.3 billion analysts polled by S&P Global Market Intelligence had estimated.
McDonald’s shares were up nearly 1% Tuesday morning after dipping as much as 2% in pre-market trading.
E. coli outbreak linked to McDonald’s Quarter Pounders
Slivered onions served on McDonald’s Quarter Pounders have been identified as the likely cause of the E. coli outbreak. McDonald’s suspended the use of onions from distributor Taylor Farms’ Colorado Springs facility, where a Food and Drug Administration investigation is ongoing.
Beef patties used in the Quarter Pounder were not found to have evidence of E. coli, according to the Colorado Department of Agriculture.
The 900 restaurants that had pulled the sandwich will serve Quarter Pounders without onions, the company said. Those restaurants are in Colorado, Kansas, Wyoming, and also in parts of Idaho, Iowa, Missouri, Montana, Nebraska, Nevada, New Mexico, Oklahoma and Utah.
Health officials have reported 75 total illnesses from E. coli infections in 13 states as of Oct. 25, with 22 hospitalizations and one death in Colorado. E. coli illnesses have been reported between Sept. 27 and Oct. 10, according to the Centers for Disease Control and Prevention. Two people also developed hemolytic uremic syndrome, a serious condition that can cause kidney failure.
Health officials say there have been likely more sickened in the outbreak and McDonald’s said Sunday the case numbers would likely grow.Three lawsuits have been filed against McDonald’s in relation to the outbreak, with lawyers for those who have already filed suit anticipating more to come.
Contributing: Fernando Cervantes Jr., Max Hauptman, Natalie Neysa Alund, James Powel, and Mary Walrath-Holdridge.
Follow Mike Snider on X and Threads: @mikesnider & mikegsnider.
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