McDonald’s share price plummets on Quarter Pounder link to E.coli
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McDonald’s (NYSE:MCD) shares were losing ground in Tuesday’s after-hours trading after the Centers for Disease Control issued a warning about an outbreak of E. coli in Colorado and Nebraska linked to the hamburger chain’s Quarter Pounder.
According to early reports, 10 people have been hospitalized and one older person has died.
McDonald’s (MCD) is collaborating with the CDC, U.S. Food and Drug Administration, U.S. Department of Agriculture, and Food Safety and Inspection Service to determine what food ingredient in the Quarter Pounder is making customers ill.
The company told the CDC that it has stopped using fresh slivered onions and quarter pound beef patties in several states to help identify the contaminated ingredients, both of which are only used on the Quarter Pounder.
MCD shares dropped by as much as 10% on the news, while competitors Burger King (QSR), Wendy’s (WEN), and Shake Shack (SHAK) have seen share prices spike higher in concert.