It now appears that onions could be the reason for the E.Coli outbreak at McDonald’s (MCD), according to an exclusive report by Yahoo Finance. The fast food giant is in damage control mode as the company faces the fallout from an E. coli outbreak. The news has raised concerns about food safety and how the company handles the situation.
According to the report, this outbreak has resulted in around 20% of McDonald’s U.S. restaurants stopping the serving of Quarter Pounder burgers or onions. The report stated that this is around 2,700 restaurants out of the company’s 13,484 U.S. restaurants as of the end of the second quarter.
The E.Coli Outbreak Could Have Affected More People
Currently, the outbreak has led to 49 confirmed cases, including one death. However, according to the report, many more people could have been affected as the CDC typically takes three to four weeks to confirm if a sick person is part of an outbreak. Between September 27 and October 11, according to the timeline mentioned by the CDC, McDonald’s likely sold close to one million Quarter Pounders in the affected regions.
Onions Could Be the Culprit of the E.Coli Outbreak
While McDonald’s has not yet identified the exact source of the outbreak, early indications suggest that onions could be the culprit. According to the Yahoo Finance report, the company’s beef patties come from several suppliers, making cross-contamination possible. However, all impacted locations receive their onions from a single facility, making this ingredient a focus of the investigation.
A CDC spokesperson told Yahoo Finance that this would be the first time onions have been linked to an E. coli outbreak. The CDC is continuing its investigation, noting it’s still too early to determine whether onions or beef are responsible for the illnesses.
What Could Be the Impact of This Outbreak on MCD?
Meanwhile, MCD believes that it is still too early to assess the impact of this outbreak on foot traffic at its restaurants. At this point, McDonald’s has stated that its priority remains taking swift action by collaborating with health authorities and utilizing its resources to investigate the incident fully.
Is MCD Stock a Good Buy Now?
Analysts remain cautiously optimistic about MCD stock, with a Moderate Buy consensus rating based on 18 Buys and seven Holds. Over the past year, MCD has increased by more than 15%, and the average MCD price target of $317.81 implies an upside potential of 6.4% from current levels.
