Editor's note: McDonald's Canada tells CTVNews.ca, "We want to reassure our Canadian guests that the situation affecting some McDonald鈥檚 restaurants in certain U.S. states does not impact our Canadian restaurants, or menu items."
A day after after an E. coli outbreak tied to Quarter Pounders in the western part of the United States left one dead and 10 hospitalized, McDonald鈥檚 entered full damage-control mode.
鈥淲e are very confident that you can go to McDonald鈥檚 and enjoy our classics,鈥 McDonald鈥檚 USA President Joe Erlinger said on NBC鈥檚 鈥淭oday鈥 Wednesday. 鈥淚 want to say to our consumers that you can confidently go to McDonald鈥檚 today.鈥
The U.S. Centers for Disease Control and Prevention issued a Tuesday, reporting at least 49 illnesses across 10 states. Most of the illnesses are in Colorado and Nebraska, and most of the people who fell ill ate Quarter Pounders at McDonald鈥檚.
鈥淲e took swift action yesterday to remove the Quarter Pounder from our menu,鈥 Erlinger said. 鈥淚f there has been contaminated product within our supply chain, it鈥檚 very likely worked itself through that supply chain already.鈥
McDonald鈥檚 stock plunged 7 per cent in premarket trading 鈥 on pace for its worst day since March 12, 2020, when the world went into Covid lockdown.
The incident 鈥 and investors鈥 immediate dash to the exits 鈥 recalls Chipotle鈥檚 yearslong battle with E. coli and norovirus outbreaks at multiple locations starting in the summer of 2015. Over the course of three years, during which Chipotle repeatedly failed to contain numerous outbreaks, the once high-flying stock cratered, losing two thirds of its value.
Chipotle ultimately faced minimal fines 鈥 US$25 million from the U.S. Food and Drug Administration in 2020 鈥 but it struggled to win back grossed-out customers. The company eventually hired a new CEO, Brian Niccol, who just last month started a new stint at Starbucks. Niccol helped turn Chipotle around in 2018 by retraining the company鈥檚 food handlers to promote safety. The company also tested employees on food safety standards.
A year after Niccol started, the company鈥檚 stock fully recovered from its three-year outbreak nightmare.
Chipotle鈥檚 outbreak is the worst-case scenario for any restaurant chain, and McDonald鈥檚 E. coli situation appears to be limited, at least for now, to a supply issue. Slivered onions were probably the source of contamination, the U.S. Food and Drug Administration found, and McDonald鈥檚 has stopped using the onions and quarter-pound beef patties in several states, the CDC says.
Still, the investigation continues, and investors are on edge. The company in a statement said it was taking quick and decisive action to prevent the outbreak from spreading.
鈥淎cross the McDonald鈥檚 System, serving customers safely in every single restaurant, each and every day, is our top priority and something we鈥檒l never compromise on,鈥 the company said.
McDonald鈥檚 is no stranger to food-related scandal. In December 2003, a McDonald鈥檚 supplier was found to have an incident of mad cow disease, sending the stock momentarily plunging. The company later that month said it found no evidence that customers were avoiding the restaurant chain because of that isolated incident.
In 2004, filmmaker Morgan Spurlock鈥檚 smash-hit documentary 鈥淪uper Size Me鈥 sharply criticized McDonald鈥檚 for serving unhealthy food. The film and its subject matter gained significant media attention, and McDonald鈥檚 later that year ditched its supersize menu options. But investors were unphased: The stock rose about a quarter that year.
In 2011, the company was found to have used a kind of beef 锘縞olloquially known as 鈥減ink slime, 鈥渢reated with a chemical known as ammonium hydroxide. The company announced the next year it no longer uses pink slime, but rumors of continued use plagued the company for a decade 鈥 and McDonald鈥檚 had to release in 2021 to set the record straight.
But McDonald鈥檚 most famous food-related scandal was the 1992 hot coffee lawsuit, in which a woman spilled coffee on her lap and suffered third-degree burns. A jury agreed with her contention that the coffee was unreasonably hot, which it was, according to the American Museum of Tort Law. The coffee was 鈥30 to 40 degrees hotter than coffee served by other companies,鈥 the law museum said. The plaintiff in that case was initially awarded nearly US$3 million, but she settled for less, around US$480,000 after an appeal.
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