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McDonald's Shares Rise as Quarter Pounder Burgers Back on The Menu Amid E. Coli Scare
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McDonald's Shares Rise as Quarter Pounder Burgers Back on The Menu Amid E. Coli Scare
Nov 3, 2024 12:57 PM

01:56 PM EDT, 10/28/2024 (MT Newswires) -- McDonald's (MCD) shares rose intraday Monday as the fast-food giant announced the planned return of its Quarter Pounder hamburgers in all restaurants this week after ruling out beef patties as the potential source of a recent E. coli outbreak.

On Friday, the Centers for Disease Control and Prevention and the US Food and Drug Administration said the number of E. coli cases potentially linked to Quarter Pounder had reached 75 across 13 US states as of Thursday. The outbreak has resulted in one death, the US health authorities said at the time. McDonald's temporarily removed the Quarter Pounder from restaurants in the impacted areas.

On Sunday, the company said testing results from the Colorado Department of Agriculture confirmed that there was no detection of E. coli in the samples taken of Quarter Pounder beef patties. There's no further testing planned for beef patties, which have been ruled out as the source of the outbreak, McDonald's North America Chief Supply Chain Officer Cesar Pina said in an internal message that was published on the company's website.

"We are now confident in asking our beef suppliers to produce a new supply of fresh beef patties for the impacted areas," Pina said. "We will resume distribution of that fresh supply, and the Quarter Pounder is expected to be available in all restaurants in the coming week."

McDonald's shares were up 1.5% in Monday afternoon trade. The stock fell 3% Friday, making it the worst performer on the Dow Jones Industrial Average.

Following the outbreak, the company decided to stop sourcing onions from Taylor Farms' facility in Colorado Springs, Colorado, indefinitely. "Over the past few days, you've likely seen that additional food service providers and restaurant brands that received onions from this facility have moved to stop selling and/or recall onions," Pina said Sunday.

The FDA is continuing its investigation into the facility, Pina said.

The 900 McDonald's locations that historically received slivered onions from Taylor Farms' Colorado Springs facility will resume Quarter Pounder sales without the onions, Pina said. Those restaurants are across Colorado, Kansas, and Wyoming, as well as parts of Idaho, Iowa, Missouri, Montana, Nebraska, Nevada, New Mexico, Oklahoma, and Utah.

On Friday, Taylor Farms said it preemptively recalled yellow onions from its Colorado facility that were sent to certain foodservice customers.

Taylor Farms didn't respond to MT Newswires' request for comment on the latest development, while the CDC and the FDA redirected to their Friday statements.

McDonald's is scheduled to report its third-quarter financial results Tuesday.

Price: 297.19, Change: +4.58, Percent Change: +1.57

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