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McDonald’s will invest more than 0 million in the recovery from the E.coli outbreak
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McDonald’s will invest more than $100 million in the recovery from the E.coli outbreak

A Quarter Pounder with cheese, fries and a drink arranged at a McDonald’s restaurant in El Sobrante, California, on October 23, 2024.

David Paul Morris | Bloomberg | Getty Images

In the wake of last month’s E. coli outbreak McDonald’s Chopped onions, the fast-food giant said it will invest more than $100 million to boost restaurant sales and accelerate recovery among affected franchisees.

Of that total, $65 million will be invested in supporting owners who have lost business, targeting those in the hardest-hit states. About $35 million will be invested in traffic-boosting programs, including marketing efforts, according to a memo to owners and employees viewed by CNBC.

McDonald’s will also drive “local recovery plans for hard-hit markets,” with more details to follow in the coming weeks, the memo said.

“We navigated a complex and rapidly changing situation, moved at an unprecedented pace and demonstrated the true character of our brand through unwavering commitment to the safety and well-being of our customers. As we enter the ‘Recovery’ phase, we will continue to uphold our commitment to doing the right thing,” said the memo from McDonald’s Chief Impact Officer Michael Gonda and Chief Marketing and Customer Experience Officer Tariq Hassan.

The Wall Street Journal and Bloomberg previously reported on the recovery investments.

During the company’s most recent earnings call last month, Chief Financial Officer Ian Borden told investors that daily sales and traffic turned negative immediately following an announcement from the Centers for Disease Control and Prevention linking the E. coli outbreak to McDonald’s Quarter Pounders. But the company does not expect the situation to have a material effect on its business, executives said.

This week, the company completed the return of Quarter Pounder burgers, with sliced ​​onions, to all restaurant menus nationwide after temporarily removing the menu item from some locations, according to the memo to franchisees.

On Wednesday, the CDC released its latest update on the outbreak, which now includes a total of 104 cases, 37 hospitalizations and one death in 14 states.

The same day, the Food and Drug Administration said in a statement that “there appears to be no ongoing food safety concern associated with this outbreak at McDonald’s restaurants.”

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