Market Analysis

One person has died and dozens have fallen ill due to E. coli infections linked to McDonald's (NYSE) Quarter Pounder hamburgers across ten states, with Colorado being the hardest hit, reporting 26 cases, according to the U.S. Centers for Disease Control and Prevention (CDC).

The E. coli outbreak, associated with one of McDonald's signature menu items, has affected 49 individuals, resulting in 10 hospitalizations. The implicated strain, E. coli O157
, is known to cause severe illness and was responsible for a notorious outbreak in 1993 that claimed the lives of four children who consumed undercooked hamburgers at Jack in the Box (NASDAQ).

Following this news, shares of the global fast-food giant fell approximately 6% in after-hours trading. A livestock trader indicated that the outbreak might impact U.S. cattle futures by potentially decreasing demand for beef.

All individuals interviewed during the outbreak investigation reported eating at McDonald's prior to their illnesses, with most specifically mentioning the Quarter Pounder. While the precise ingredient responsible for the outbreak has yet to be determined, investigators are currently focusing on fresh, slivered onions and fresh beef patties, as stated by the CDC.

Most reported illnesses occurred in Colorado and Nebraska. According to McDonald's North America Chief Supply Chain Officer, Cesar Piña, early investigation findings suggest that a subset of illnesses may be associated with slivered onions sourced from a single supplier serving three distribution centers.

In response, McDonald's has proactively withdrawn the slivered onions and beef patties used for Quarter Pounder hamburgers from locations in the affected states as the investigation continues. The company has also temporarily removed the Quarter Pounder from menus in impacted areas, including Colorado, Kansas, Utah, and Wyoming, while working with suppliers to replenish their stock within the week.

E. coli symptoms can include severe stomach cramps, diarrhea, and vomiting, with most infected individuals experiencing symptoms three to four days after consuming contaminated food or drink. However, symptoms can manifest anywhere from one to ten days following exposure, according to Colorado's public health department.

In 2015, Chipotle (NYSE
) faced significant sales declines and reputational damage due to E. coli outbreaks in several states, although that outbreak involved a different strain typically associated with less severe illness compared to E. coli O157
.

Besides Colorado, the CDC has reported small clusters of illnesses in Nebraska, Utah, and Wyoming linked to the Quarter Pounder, with isolated cases also recorded in Kansas, Missouri, Oregon, Iowa, Wisconsin, and Montana.

Paraphrasing text from "Reuters" all rights reserved by the original author.