On Wednesday, McDonald’s and the Centers for Disease Control released statements warning customers of an outbreak of E. coli from contaminated ingredients.
The Centers for Disease Control and Prevention (CDC) reports that the outbreak has resulted in 49 confirmed cases. Of these, 10 patients have required hospitalization, and one older adult has died.
McDonald’s Stock Takes a Hit
Expectedly, the news caused McDonald’s stock to plummet.
On October 18, the stock closed at $316.56, the highest it had been in over a decade.
After the outbreak’s announcement on October 22, the stock plunged nearly $30 to $285.40, its lowest level since mid August. The stock has since partially rebounded, closing at $301.58.
Outbreak Details
Both the CDC and McDonald’s have named the Quarter Pounder as the most likely culprit. Although the specific ingredient responsible for transmitting E. coli has not yet been identified, initial results from the investigation suggest that the outbreak may has been caused by contaminated slivered onions.
The CDC reports that McDonald’s is “collaborating with investigation partners” and “proactively making … changes” to contain the outbreak.
According to McDonald’s, the dodgy onions in question were sourced from a single supplier, which in turn supplied three distribution centers.
“All local restaurants have been instructed to remove this product from their supply, and we have paused the distribution of all slivered onions in the impacted area,” McDonald’s press release says.
That area includes at least part of ten states, with most cases being in Colorado and Nebraska. Select stores in twelve states have been instructed by McDonald’s to stop serving Quarter Pounders and replace their slivered onions.
Though McDonald’s did not publicly identify the implicated distributor, evidence seems to point to Taylor Farms.
A notice by U.S. Foods, a Taylor Farms distributor, announced a recall of four onion products due to “potential E. coli contamination.”
E. coli Strain O157:H7
The strain of E. coli involved in this outbreak, O157:H7, is particularly virulent. According to Johns Hopkins Medicine, most patients experience severe stomach cramps, diarrhea, and vomiting a few days after ingesting the bacteria.
While most recover after a few days of suffering, severe cases can cause a fever higher than 102°F, and dehydration from an inability to retain liquids.
These symptoms can be life-threatening on their own. However, O157:H7 can also cause a deadly condition called hemolytic uremic syndrome, a kidney problem that requires hospitalization. One of the 10 people hospitalized from the current outbreak is a child suffering from HUS, according to the CDC.
Lawsuits, Fallout, and Bad Optics
At least two lawsuits have already been filed against McDonalds on behalf of affected individuals. The first was filed on Wednesday by Ron Simon & Associates on behalf of Colorado resident Eric Stelly, who fell sick after eating McDonald’s on October 4.
According to the related press release, Stelly required hospital treatment and is still recovering weeks later.
That might not be enough to stem the tide of bad press — or sinking stock price.
The timing is also unfortunate for former President Trump, who went viral on Sunday while working a drive-thru of a Pennsylvania McDonald’s location.
While the outbreak hasn’t reached Pennsylvania (at least, as of Thursday) the internet has already been quick to connect the two events.
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