McDonald’s supplier recalls onions in wake of E. coli outbreak

McDonald’s (NYSE:MCD) supplier Taylor Farms has recalled yellow onions produced in its Colorado facility in the wake of the deadly E. coli outbreak linked to the fast-food chain’s Quarter Pounders.

Taylor Farms said the recall was done “out of an abundance of caution” and it hasn’t yet found any traces of E. coli. “We continue to work closely with FDA and CDC during this ongoing investigation,” it said in a statement.

US Foods (USFD), another customer of Taylor Farms, has told at least one restaurant it supplies to destroy the onions, Bloomberg reported.

The source of the outbreak, which led to one death and sickened 49 people across 10 states, is yet to be confirmed. “We fully expect to see more cases,” said CDC spokesperson Tom Skinner, noting that McDonald’s (MCD) moved “rather quickly” to prevent more E. coli cases.

McDonald’s (MCD) on Wednesday said slivered raw onions in its Quarter Pounders are likely to blame, but it didn’t rule out beef as the culprit. It also pulled the menu item from a fifth of its U.S. restaurants.

Baird downgraded McDonald’s (MCD) to Neutral as food safety concerns could impact short-term demand trends, although it doesn’t expect an “insurmountable” headwind to the chain’s longer-term model.