Quarter Pounders of cheese, fries and drinks are served at a McDonald’s restaurant in El Sobrante, California on October 23, 2024.
David Paul Morris | David Paul Morris Bloomberg | Getty Images
E. coli outbreak last month McDonald’s After the onion slices, the fast-food giant said it will invest more than $100 million to boost restaurant sales and accelerate the recovery of affected franchisees.
Of that amount, $65 million will be used to support owners who have lost business, targeting those in the hardest-hit states. About $35 million will be invested in traffic-driving initiatives, including marketing campaigns, according to a memo to owners and employees seen by CNBC.
McDonald’s will also drive “local recovery plans in severely impacted markets,” the memo said, with more details to be announced in the coming weeks.
“We responded to a complex and rapidly changing situation, moved at an unparalleled pace, and demonstrated the true character of our brand through an unwavering commitment to the safety and well-being of our customers. As we enter the ‘recovery’ phase, we We will continue to uphold our commitment to doing the right thing,” McDonald’s chief impact officer Michael Gonda and chief marketing and customer experience officer Tariq Hassan said in the memo.
wall street journal and Bloomberg Recovery investments were reported earlier.
During the company’s most recent earnings call last month, Chief Financial Officer Ian Borden told investors that after the U.S. Centers for Disease Control and Prevention announced an E. coli outbreak linked to McDonald’s Quarter Pounders, every Daily sales and traffic immediately turned negative. But executives said the company did not expect the situation to have a significant impact on its business.
The company this week completed work on reintroducing the Quarter Pounder burger (with sliced onions) to all restaurant menus nationwide after temporarily removing it from some locations, according to a memo to franchisees.
On Wednesday, the U.S. Centers for Disease Control and Prevention (CDC) released an update on the outbreak, which now lists 104 cases, 37 hospitalizations and one death in 14 states.
On the same day, the U.S. Food and Drug Administration said in a statement that “there does not appear to be an ongoing food safety issue at McDonald’s restaurants related to this outbreak.”
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