McDonalds stock plunges over E. coli outbreak linked to Quarter Pounders

McDonald’s shares plunged as much as 6% Wednesday after an outbreak of E.coli that sickened almost 50 people and killed one was linked to the Golden Arches’ famous Quarter Pounder hamburgers.The largest burger chain in the world saw its shares drop from $314.70 a share at Tuesday’s closing to $299.61 a share by late Wednesday morning.“This public health scare is the last thing McDonald’s needs given that it’s already been struggling to drive growth,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.At least 49 people have fallen ill – including 10 who were hospitalized – after eating the burgers, the Centers for Disease Control and Prevention reported on Tuesday.The cases were reported across 10 states and primarily concentrated in Colorado and Nebraska, the CDC said.The E.

coli O157:H7 strain that led to the fast-moving McDonald’s outbreak can lead to serious illness. It is the same dangerous strain linked to a 1993 Jack in the Box outbreak that killed four children and infected more than 700 people across four US states. The CDC said it is investigating which McDonald’s ingredient is to blame for the illnesses.McDonald’s has stopped using fresh slivered onions and quarter pound beef patties at its locations in several states, according to the CDC.The CDC urged customers who experience diarrhea, fever, vomiting or signs of dehydration after eating a McDonald’s Quarter Pounder to contact their healthcare provider.Analysts have said the E.coli cases could hit McDonald’s fourth-quarter sales.On Wednesday, McDonald’s president Joe Erlinger tried to squash rising worries and assured customers they could safely return to restaurant locations. “We are very confident that you can go to McDonald’s and enjoy our classics,” Erlinger told the Today show on Wednesday.

“We took swift action yesterday to remove the Quarter Pounder from our menu.”McDonald’s did not immediately respond to a request for comment.I...