The U.S. Centers for Disease Control and Prevention (CDC) has said that the E. coli outbreak linked to McDonald’s (MCD) Quarter Pounder burgers is over and its investigation into the matter is now closed.
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The CDC said that, as of December 3, 104 people were made ill, 34 people were hospitalized, and one person died because of an outbreak of E. coli at several McDonald’s restaurant locations, primarily in the U.S. Midwest.
The outbreak was first reported on October 22 and has been isolated to slivered onions that were served on the company’s Quarter Pounder hamburgers. McDonald’s was quick to take action, temporarily removing Quarter Pounder burgers from some locations following the outbreak. However, the Quarter Pounder has since been brought back to all McDonald’s locations.
Sales Fallout
Although the E. coli outbreak is officially over, McDonald’s continues to deal with the sales fallout. Foot traffic at McDonald’s U.S. restaurants was down 6.6% year-over-year in November. Traffic had been down more than 10% at the end of October.
McDonald’s is reportedly planning to invest more than $100 million in marketing and financial assistance for franchisees that have been impacted by the E. coli outbreak. The restaurant chain also brought back its popular McRib sandwich despite holding a “farewell tour” for it in 2023, and plans to launch a new value meal in 2025.
MCD stock has fallen 7% since the E. coli outbreak was first made public in late October. The company’s share price is flat on the year, having risen less than 1%.
Is MCD Stock a Buy?
The stock of McDonald’s has a consensus Moderate Buy rating among 27 Wall Street analysts. That rating is based on 17 Buy and 10 Hold recommendations made in the last three months. The average MCD price target of $322 implies 9.87% upside from current levels.
