McDonald's Stocks Rise as Quarter Pounder Returns to Menu Following E. Coli Scare

McDonald's stock experienced a surge on the New York Stock Exchange on Monday morning. This surge came after the fast-food giant announced on Sunday that their Quarter Pounders were back on the menu. The popular menu item had been temporarily removed due to an E. coli outbreak.

Testing Confirms No E. Coli in Quarter Pounder Beef Patties

In a press release, McDonald's stated that the Colorado Department of Agriculture had completed their testing. The results confirmed that there was no detection of E. coli in the samples taken from Quarter Pounder beef patties from restaurants in the area. The company was also informed that no further testing of the beef patties was planned.

Precautionary Measures Taken During E. Coli Outbreak

Last week, McDonald's took drastic measures due to the E. coli outbreak. The company removed Quarter-Pound beef patties from its menu across the western parts of the country. The outbreak had resulted in 75 people falling ill in 13 states, with 22 hospitalizations and one death.

McDonald's announced that the 900 restaurants that had received slivered onions from Taylor Farms' Colorado Springs facility would resume sales of Quarter Pounders. However, these would be sold without slivered onions. The restaurants in question are located in Colorado, Kansas, and Wyoming, as well as parts of Idaho, Iowa, Missouri, Montana, Nebraska, Nevada, New Mexico, Oklahoma, and Utah.

The Impact of Negative Press on McDonald's

Bloomberg, citing data from Gordon Haskett Research Advisors, reported that the negative press surrounding McDonald's had resulted in a nearly 5% drop in foot traffic to the chain last Wednesday compared to the same time last year.

In terms of the stock market, McDonald's shares closed down 7.5% last week. This marked the worst five-day stretch for the company since March 2020. However, shares rebounded early on Monday, rising by more than 2%.

Continued Investigation into Taylor Farms' Colorado Springs Facility

McDonald's stated that the FDA is continuing its investigation into Taylor Farms' Colorado Springs facility. The company also suggested that lawmakers on Capitol Hill should investigate the vulnerabilities of America's food supply chain. This comes in light of the influx of unvetted migrants over the past 3.5 years, many of whom have been employed in factory farms and food processing plants.

Bottom Line

The return of the Quarter Pounder to McDonald's menu has been met with a positive response from the stock market. However, the recent E. coli outbreak and the impact it had on the company's reputation and stock value raises questions about the safety and integrity of America's food supply chain. What are your thoughts on this matter? Do you think more should be done to ensure the safety of our food? Share this article with your friends and let us know your thoughts. Don't forget to sign up for the Daily Briefing, which is available every day at 6pm.