27.6 C
Washington

McDonald’s to invest more than $100 million to speed up recovery after E. coli outbreak

Date:

Share:

A Quarter Pounder with cheese, fries and a drink arranged at a McDonald’s restaurant in El Sobrante, California, on Oct. 23, 2024.

David Paul Morris | Bloomberg | Getty Images

In the wake of last month’s E. coli outbreak tied to McDonald’s slivered onions, the fast-food giant said it will invest more than $100 million to boost restaurant sales and speed up the recovery at affected franchisees.

Of that total, $65 million will be invested into supporting owners who have lost business, targeting those in the hardest-hit states. Approximately $35 million will be invested in traffic-driving programs, including marketing efforts, according to a memo to owners and employees viewed by CNBC.

McDonald’s will also be driving “local recovery plans for highly impacted markets” with more details to come in the weeks ahead, the memo said.

“We have navigated a complex and fast changing situation, moved at an unmatched pace, and showed the true character of our brand through unwavering dedication to the safety and well-being of our customers. As we enter the ‘Recovery’ phase, we will continue to uphold our commitment to do the right thing,” said the memo from McDonald’s Chief Impact Officer Michael Gonda and Chief Marketing and Customer Experience Officer Tariq Hassan.

The Wall Street Journal and Bloomberg earlier reported the recovery investments.

During the company’s most-recent earnings call last month, Chief Financial Officer Ian Borden told investors that daily sales and traffic turned negative immediately following a Centers for Disease Control and Prevention announcement that linked the E. coli outbreak to McDonald’s Quarter Pounders. But the company does not expect the situation to have a material effect on its business, executives said.

This week, the company completed the return of Quarter Pounder burgers, with slivered onions, to all restaurant menus nationwide after temporarily removing the menu item from some locations, according to the memo to franchisees.

On Wednesday, the CDC issued its latest update on the outbreak, which now includes a total of 104 cases, 37 hospitalizations and one death across 14 states.

The same day, the Food and Drug Administration said in a statement that “there does not appear to be a continued food safety concern related to this outbreak at McDonald’s restaurants.” 

Don’t miss these insights from CNBC PRO

Source link

Subscribe to our magazine

━ more like this

S&P 500 futures are little changed ahead of May jobs report: Live updates

Traders work on the floor at the New York Stock Exchange (NYSE), on the day of Circle Internet Group's IPO, in New York City,...

Labubu Mania: How BLACKPINK'S Lisa Made This Oddball Toy A Viral Must-Have | Know EVERYTHING | N18G

Last Updated:June 05, 2025, 23:00 IST LifestyleLabubu, the mischievous yet kind-hearted vinyl toy from Pop Mart’s ‘The Monsters’ series, has taken the internet...

Major data broker hack impacts 364,000 individuals’ data

NEWYou can now listen to Fox News articles! Americans’ personal data is now spread across more digital platforms than ever. From online...

Why Plant-Based Protein Fits Better With Your Skin And Gut Goals?

In today’s world of mindful eating and holistic wellness, it’s not enough for your nutrition to only build muscle or aid weight loss, it...