### E. Coli Outbreak Linked to Onions in McDonald's Quarter Pounders Causes Major Drop in Sales

McDonald's experienced a sharp decline in sales and restaurant visits following a recent E. coli outbreak connected to its Quarter Pounder burgers. The Centers for Disease Control linked the outbreak to the slivered onions used in these popular burgers, resulting in 75 illnesses and one death in Colorado.

Following the federal health agency's report last Tuesday, McDonald's saw an immediate decrease in customer traffic. Visits plummeted by 6.4% across the United States and a significant 24% in Colorado, which had 26 reported cases, according to Placer.ai data. By Friday, the situation worsened, with visits falling by 10% nationwide and 33% specifically in Colorado.

During an earnings call on Tuesday, CFO Ian Borden acknowledged the negative impact on sales and guest counts. McDonald's intends to resume sales of its Quarter Pounder burgers without slivered onions after the Colorado Department of Agriculture confirmed that the beef patties tested negative for E. coli.

McDonald's CEO Chris Kempczinski assured that the company had taken swift action, removing all onions from Taylor Farms' Colorado facility and halting future onion supplies from this source. He expressed regret over the incident and emphasized ongoing efforts to restore consumer confidence.

Despite this crisis, McDonald's leaders conveyed optimism, indicating that the outbreak is now contained. The company reported adjusted earnings per share of $3.23, surpassing expectations of $3.20, and revenue of $6.87 billion, slightly above the projected $6.82 billion. Same-store sales in the US saw a modest growth of 0.3%, although this was below the 0.5% growth forecasted by analysts.

CEO Kempczinski highlighted how McDonald's had previously navigated through unanticipated challenges such as the COVID-19 pandemic and reaffirmed the company's readiness to reengage customers. Special deals, including a $5 value meal and limited-edition Grimace-themed shake, were credited with helping McDonald's gain traction with low-income consumers.

While acknowledging that the company's performance fell short of expectations this year, CFO Borden stressed the importance of focusing on value and affordability to attract discerning consumers facing financial pressures amid inflationary times.