McDonald’s shares fell after the CDC said the outbreak of E. coli linked to Quarter Pounders

McDonald’s stocks fell in extended trading on Tuesday after the Centers for Disease Control and Prevention said the outbreak of E. coli linked to McDonald’s Quarter Pounder burgers has led to 10 hospitalizations and one death.

The agency said 49 cases were reported in 10 states between September 27 and October 11, with most of the infections in Colorado and Nebraska. “The majority” of people who got sick reported eating McDonald’s Quarter Pounder, the CDC added.

One of the patients developed hemolytic uremic syndrome, a serious condition that can cause kidney failure. An elderly man died in Colorado.

McDonald’s shares fell nearly 7% in after-hours trading on Tuesday.

In a statement on Tuesday, McDonald’s said it was taking “immediate and decisive action” following the outbreak of E. Coli in certain states.

The company said preliminary findings from an ongoing investigation show some of the illnesses may be linked to sliced ​​onions — or fresh onions cut into thin slices — used in the Quarter Pounder and found by a single supplier serving three distribution centers. McDonald’s has ordered all local restaurants to remove the salvaged onion from their inventory and temporarily halt distribution of that ingredient in the affected area.

Quarter Pounder hamburgers will be temporarily unavailable in several Western states, including Colorado, Kansas, Utah and Wyoming, as well as parts of other states, McDonald’s said. It added that it is working with suppliers to replenish the ingredients.

Most states and menu items are unaffected by the outbreak, McDonald’s USA President Joe Erlinger said in a video. The company’s other beef products, including the cheeseburger, hamburger, Big Mac, McDouble and double cheeseburger, are not affected, he added. Those sandwiches use a different type of onion product.

“We are working quickly to bring our full menu back to these states as soon as possible,” Erlinger said. “I hope these measures demonstrate McDonald’s commitment to food safety.”

Quarter Pounder hamburgers are a staple of McDonald’s menu, bringing in billions of dollars each year. In 2018, McDonald’s is introducing new beef Quarter Pounders across most of its US restaurants.

The CDC said the number of people affected by the outbreak “may be much higher” than has been reported so far. The agency said that’s because more people are recovering from E. coli without testing or seeking medical attention. It also takes three to four weeks to determine if a sick patient is part of an outbreak, the CDC added.

IE. coli refers to a group of bacteria found in the intestines of almost all humans and animals. But some types of bacteria can cause serious to painful illness if a person eats contaminated food or drinks contaminated water.

Symptoms, including stomach cramps, diarrhea and vomiting, usually begin three to four days after ingesting the bacteria, according to the CDC. Most people recover without treatment after five to seven days.

There have been several past reported cases of E. coli in McDonald’s restaurants.

In 2022, at least six children developed symptoms consistent with E. coli after eating McDonald’s’ Chicken McNuggets Happy Meals in Ashland, Alabama. Four of the six children were admitted to the hospital after experiencing severe side effects.