Following last month’s E. coli outbreak linked to slivered onions in McDonald’s Quarter Pounders, the fast-food giant announced plans to invest more than $100 million to aid in recovery efforts and drive restaurant sales.
Of the total amount, McDonald’s will allocate $65 million to support franchisees who have experienced significant business losses, particularly in the states most affected by the outbreak. An additional $35 million will go toward marketing and other initiatives designed to boost traffic and restore customer confidence.
In a memo to franchisees and employees, McDonald’s emphasized its commitment to a “local recovery plan” tailored to markets most impacted by the outbreak. The company outlined that further details on these recovery efforts would be shared in the coming weeks.
“We have faced a challenging and rapidly evolving situation, and throughout it, we’ve remained committed to the safety and well-being of our customers,” said Michael Gonda, McDonald’s Chief Impact Officer, and Tariq Hassan, Chief Marketing and Customer Experience Officer, in the memo. “As we enter the recovery phase, we will continue to take action to support our franchisees and do the right thing.”
McDonald’s sales and traffic initially declined after the CDC linked the outbreak to the Quarter Pounder burgers, but the company expressed confidence that the incident would not have a long-term impact on its business. During the company’s latest earnings call, CFO Ian Borden noted that the situation quickly turned negative after the CDC’s announcement but assured investors that McDonald’s expected a quick recovery.
As part of the recovery process, McDonald’s has already resumed offering Quarter Pounders with slivered onions across all locations after temporarily pulling the item from the menu in some restaurants.
Meanwhile, the CDC reported that the E. coli outbreak now involves 104 cases, with 37 hospitalizations and one fatality across 14 states. However, the FDA has stated that there is no ongoing food safety concern tied to the outbreak at McDonald’s restaurants.
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