Fast-food chain McDonald’s (MCD) plans to resume offering its Quarter Pounder burgers at its restaurants after investigations revealed that beef patties were not the source of an E. coli outbreak. The outbreak, which sickened 75 people across 13 states and claimed one life, prompted MCD to temporarily remove the burgers from menus in the affected areas.
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After testing fresh and frozen beef patties, the Colorado Department of Agriculture confirmed that beef products were not contaminated.
Investigators Shift Focus to Onions
With beef ruled out, the investigation now focuses on onions served with the burgers. The onions supplied by a Colorado Springs facility of Taylor Farms are being identified as the likely culprit of the E. coli outbreak. Consequently, the burger will be offered at the affected restaurants, but without onions.
In this regard, McDonald’s has taken steps to remove these onions from its supply chain and has indefinitely ceased sourcing onions from the facility. Also, Taylor Farms has issued a recall for several onion products as a precautionary measure.
It is worth mentioning that other fast-food chains, including Yum! Brands’ (YUM) Taco Bell, KFC, and Pizza Hut, along with Burger King, took similar steps by temporarily removing onions from their menu in the affected regions.
Importantly, the U.S. Food and Drug Administration (FDA) is currently collecting onion samples for analysis to determine the exact source of the E. coli contamination.
Is McDonald’s Stock a Buy or Sell?
Turning to Wall Street, MCD stock has a Moderate Buy consensus rating based on 17 Buys and 11 Holds assigned in the last three months. At $314.58, the average McDonald’s price target implies a 7.51% upside potential. Shares of the company have gained 12.58% in the past three months.
