McDonald's Is Bringing Quarter Pounders Back To 900 Restaurants After Outbreak

· Investopedia

Key Takeaways

  • McDonald's said that it will bring Quarter Pounders back to some 900 restaurants in Colorado, Kansas, and Wyoming, as well as portions of nine other states, after an E. coli outbreak last week.
  • Company officials identified slivered onions from distributor Taylor Farms' Colorado Springs facility as the likely source, and won't be serving them on the burger when sales resume there.
  • A number of other chains like Taco Bell and Burger King said they also have removed onions sourced from the same Taylor Farms facility from their operations.

McDonald's (MCD) will bring its Quarter Pounders back to the menu in more than 900 restaurants in Colorado, Kansas, and Wyoming, as well as portions of nine other states, after an E. coli outbreak last week.

Company officials identified slivered onions from distributor Taylor Farms' Colorado Springs facility as the likely source, and won't be serving them on the burger when sales resume there.

The fast-food giant said Sunday that testing by the Colorado Department of Agriculture ruled out the beef patties used in the burgers as the source of the outbreak.

"The issue appears to be contained to a particular ingredient and geography, and we remain very confident that any contaminated product related to this outbreak has been removed from our supply chain and is out of all McDonald’s restaurants," said Cesar Piña, McDonald's Chief Supply Chain Officer for North America.

Onion-Less Quarter Pounders Returning To Menu

McDonald's said it has asked suppliers to resume shipments of the beef patties to affected restaurants across a dozen states, with plans to bring them back to the menu without onions until further notice.

Rivals Yum! Brands (YUM)—the parent of Taco Bell and KFC—and Burger King owner Restaurant Brands International (QSR) also have recalled slivered onions from their operations that originated from the Colorado Springs Taylor Farms facility, according to reports.

McDonald's shares, which fell more than 7% last week, rose 2% when markets opened Monday. The chain is likely to provide further updates on the outbreak in its third-quarter earnings report Tuesday.

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