WikiStock

Global Securities Firms Regulatory Inquiry App

English
Download
Home-News-

E. Coli Contamination in U.S. McDonald's Burgers Causes Stock Price Drop

iconWikiStock

2024-10-23 23:42

The CDC reported E. coli contamination in McDonald's burgers, causing its stock to drop over 6% after hours.

  The Centers for Disease Control and Prevention (CDC) announced that a burger sold at some McDonald's locations in the U.S. has been contaminated with E. coli, causing McDonald's stock price to drop by over 6% in after-hours trading.

  On Tuesday, the CDC reported that an E. coli outbreak across 10 states has led to 49 infections, 10 hospitalizations, and 1 death. Those infected stated during interviews that they had previously eaten at McDonald's. This news caused McDonald's stock price to plummet by over 6% in after-hours trading.

  The CDC reported that from September 27 to October 11, 10 states in the U.S. reported E. coli infections linked to the consumption of the aforementioned McDonald's burger. Colorado reported the most cases, with 27, followed by Nebraska with 9. The death occurred in Colorado, involving an elderly person. Among the hospitalized, one child developed severe kidney complications. The infected individuals reported feeling unwell after consuming the “Quarter Pounder” burger at McDonald's, and tests confirmed they had contracted the O157:H7 strain of E. coli.

  (O157:H7 is a particularly virulent strain of E. coli. Infections can range from mild symptoms like fever, stomach pain, and nausea to severe complications such as bloody diarrhea, swelling, and in some cases, death due to kidney failure or multi-organ damage, especially in children under the age of 5.)

  The CDC believes that the actual number of infections is likely higher than 49.

  McDonald's (MCD.N) stated in a press release that the company is taking swift and decisive action in response to the E. coli outbreak in certain U.S. states. The company has temporarily removed Quarter Pounder burgers from menus in affected regions. McDonald's is closely working with suppliers and plans to restock the Quarter Pounder in the coming weeks. Preliminary investigations suggest that the outbreak may be linked to shredded onions used in the Quarter Pounder, which are supplied by a vendor serving three distribution centers.

  

Disclaimer:The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.