McDonald’s Stock Plummets After CDC Links E. coli Outbreak to Quarter Pounders

Shares of McDonald's Corporation (MCD) experienced a significant decline on Tuesday, October 22, 2024, following an announcement by the Centers for Disease Control and Prevention (CDC) that an E. coli outbreak is possibly linked to the company’s Quarter Pounder hamburgers.

The CDC reported that 49 cases of E. coli infection have been identified across 10 states, with 10 cases resulting in hospitalization and one death. Most of the individuals affected reported eating Quarter Pounder hamburgers at McDonald’s before falling ill. The specific contaminated food ingredient has not yet been determined.

In response to the outbreak, McDonald’s has stopped offering shaved onions and quarter-pound hamburger patties in several states where the cases are concentrated, particularly in Colorado and Nebraska. The company is collaborating with health authorities to investigate the source of the contamination.

The news led to a substantial drop in McDonald’s stock, with shares falling more than 9% to $286.27 in after-hours trading on Tuesday. This significant decline reflects investor concerns over the potential impact of the outbreak on the company’s reputation and sales.