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Coca-Cola’s CEO says McDonald’s E. coli outbreak won’t hurt sales
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Coca-Cola’s CEO says McDonald’s E. coli outbreak won’t hurt sales

Coca-Cola President and CEO James Quincey attends a press conference with the President of the International Olympic Committee (IOC) and the CEO and Executive Director of China Mengniu Dairy, as part of the 134th Session of the International Olympic Committee (IOC) in the SwissTech Convention Center in Lausanne, on June 24, 2019.

Fabrice Coffrini | AFP | Getty Images

Coca-cola CEO James Quincey said the company does not expect an E. coli outbreak related to this McDonald’s to hurt the beverage company’s sales.

“If you look at what’s been in the media so far, in terms of the states affected, I would say it’s not going to have a big, significant impact on the business at this stage,” Quincey said of the third quarter of Coca Cola. earnings call on Wednesday.

McDonald’s is Coca-Cola’s largest restaurant customer and the symbiotic relationship between the two companies has existed for almost seventy years. Most recently, CNBC reported that Coca-Cola contributed marketing funds to McDonald’s this summer for its $5 meal, which includes a small soda, to make it more attractive to franchisees who might otherwise be wary of deep discounts.

“We’re a big partner of McDonald’s, they’re a big partner of us,” Quincey said. “We will help them in any way we can as they work through the things that are happening here.”

On Tuesday, the Centers for Disease Control and Prevention announced that it has linked an E. coli outbreak in 10 states to McDonald’s Quarter Pounder burgers. The agency said 49 cases have been reported, with one fatality.

CDC researchers have focused on two ingredients as possible causes: the burger’s onions and the fresh beef patties. Both ingredients are unique to the Quarter Pounder burgers, although cooking the patties to the correct internal temperature should kill the bacteria.

McDonald’s said in a statement Tuesday that Quarter Pounders will be temporarily unavailable in several western states, including Colorado, Kansas, Utah and Wyoming, and parts of other states. The company also said it has ordered all local restaurants to remove sliced ​​onions from their inventory and has halted distribution of that ingredient in the affected area.

“We’re confident you can go to McDonald’s and enjoy our classics. We took swift action yesterday to remove the Quarter Pounder from our menu,” McDonald’s U.S. President Joe Erlinger said Wednesday morning on NBC’s “Today” – show.

At this time, it is unclear what impact the outbreak will have on McDonald’s own sales.

The outbreak comes as consumers generally spend less at restaurants, hurting both McDonald’s and Coca-Cola. McDonald’s and its fast-food rivals have used discounts in the hope that deals will bring customers back, while Coca-Cola is helping push the combo meals to boost its own sales.

Despite sluggish consumer spending, Coke’s third-quarter profits and sales exceeded Wall Street expectations, thanks to higher prices. The company’s shares fell more than 2% in morning trading.