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2024-12-22

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McDonald's Spending $100M To Lure Back Customers Following E. Coli Outbreak

McDonald's is spending $100 million to try to recover from the E. coli outbreak that killed one customer and sickened more than 100 others.

A company memo sent to employees said the fast-food giant was investing $65 million in hard-hit franchisees in the states where the food poisonings took place, CNN reported Friday.

The other $35 million will reportedly pay for marketing efforts, including to promote a value meal featuring the company's Chicken McNuggets.

McDonald's stock price has plunged 7.5% since Oct. 22, when the outbreak was first reported.

A total of 104 people in 14 states were infected between Sept. 12 and Oct. 21, leading to 34 hospitalizations and four cases of hemolytic uremic syndrome, a serious condition that can cause kidney failure, according to the Centers for Disease Control.

The CDC has tied the E. coli cases to fresh, slivered onions that were used to garnish Quarter Pounder hamburgers.

During a third-quarter earnings call late last month, McDonald's acknowledged that the outbreak hurt its sales momentum, without providing any figures.

But cell phone data and other signals compiled by the Placer.ai location analytics company show a 7.7% decline last month in visits to McDonald's restaurants in Colorado, which had the most E. Coli cases — including the lone fatality — compared to October 2023.

McDonald's stock fell 0.5% Monday, to $291.10 a share.

Read moreRFK Jr. Shares McDonald's Meal With Trump After Slamming President-Elect's 'Poison' DietColorado Teen Suffers Kidney Failure After Eating McDonald's Quarter Pounder, Shocked Family: 'She Never Had Any Health Problems Ever'McDonald's Visits Plunge 9% After E. Coli Outbreak