• McDonald’s Quarter Pounders have been linked to an E. coli outbreak in several states, the CDC said.
• McDonald’s said it will temporarily remove the burgers from menus in affected areas.
• Other fast food chains have recovered from similar food safety crises before.

A deadly E. Coli outbreak has been linked to the McDonald’s Quarter Pounder.

So far, one person has died and 10 others have been hospitalized in connection with the outbreak, which has affected 49 people in 10 states, the Centers for Disease Control and Prevention said Tuesday. McDonald’s said it believes the outbreak may be linked to the chopped onions used in its Quarter Pounder.

The fast food chain says it will temporarily remove the burger from the menu in several states.

“Negative food safety news is never welcomed by restaurant operators, especially those working to improve brand image after being sidelined in recent years on the consumer affordability front,” said Jon Tower, an analyst at Citigroup , in a note to customers. Bloomberg.

Tower said McDonald’s prospects depend on the company’s response, which includes taking responsibility, controlling the outbreak and overcorrecting on food safety issues, the outlet reported.

Examining how other fast-food giants have recovered from recent health crises could also provide insight into how McDonald’s will attempt to recover from the incident.

How Chipotle and Wendy’s bounced back from health scares

Several fast food brands have previously recovered from food safety incidents.

One of these is Chipotle, the fast-casual Mexican chain in which McDonald’s had a 90% stake until 2006.

In 2015 and 2016, hundreds of customers reported getting sick after eating at Chipotle stores. Chipotle’s stock price plummeted and the company ultimately agreed to pay a $25 million fine to settle criminal charges related to outbreaks that affected 1,100 people between 2015 and 2018.

But less than five years later, the company and its stock price had recovered. So what did Chipotle do?

In 2016, the company announced a series of new food safety protocols — such as rinsing produce multiple times and putting stickers on food storage containers to indicate when they were sanitized — and hired James Marsden, a professor at Kansas State University, to serve as executive director of food safety.

In 2017, Chipotle announced that its founder, Steve Ells, would step down as CEO in favor of someone with “demonstrated turnaround expertise.” In 2018, Brian Niccol, currently the CEO of Starbucks, took over as CEO of Chipotle after a successful stint at the helm of Taco Bell.

Niccol told The New York Times in 2019 that Chipotle had become “an industry leader” in food safety, adding: “We’re doing some really progressive things in food safety, and we will must do, because we’re committed to using real ingredients.”

Chipotle’s recovery may also have depended on expanding operations in areas unrelated to food safety. “They are exceptional in how well the brand has taken advantage of digital ordering,” Sara Senatore, a Bernstein analyst who followed Chipotle, told the Times in 2019.

Wendy has faced a similar situation. According to the CDC, Wendy’s restaurants were linked to an E. coli outbreak in six states between July and August 2022. A total of 109 people were infected, 52 of whom were hospitalized. No deaths were reported.

An investigation into the incident could not determine the specific food source responsible for the outbreak, but 46 people reported eating romaine lettuce served on burgers and sandwiches before becoming ill, the CDC said. As a precaution, the fast food chain removed romaine lettuce from menu items in the affected states.

Despite the E. coli outbreak, the company’s U.S. sales rose 7.7% in the third quarter of 2022 compared to the previous year.

In its latest corporate responsibility report, published in May, Wendy’s said it is committed to continually improving food safety standards and operating procedures and has conducted more than 12,000 food safety assessments at its restaurants worldwide.

What McDonald’s should do

The McDonald’s case differs from similar incidents at other fast-food chains mainly because of the iconic status of the Quarter Pounder, Alexandra Leung, the founder of Monogic, an F&B marketing and PR agency in Singapore and Hong Kong, told Business Insider.

“As a classic menu item, any food safety issue involving the Quarter Pounder could have a significant impact on consumer confidence and brand reputation, making it a more sensitive topic for McDonald’s,” she said.

The Quarter Pounder is important to McDonald’s menu – and to the brand more broadly. Menu classics like the Quarter Pounder have accounted for the majority of food sales in McDonald’s top markets in recent years. The company’s stock price fell nearly 10% in after-hours trading on Tuesday following the news.

However, Leung said the company’s established food safety management system and history of rigorous supplier audits could enable a more effective response.

The fast-food chain will also have to conduct thorough audits of its suppliers’ practices, she said.

In addition to continuing the recall of the affected items, McDonald’s must also communicate clearly with their customers throughout the process, Leung said.

“A clear message about the steps being taken to ensure food safety is crucial. This proactive approach will reassure customers that their health is a top priority,” said Leung. “Transparency is crucial in rebuilding trust with customers because it demonstrates responsibility and commitment to their safety.”