A quarter pounder with cheese, fries and a drink at a McDonald's restaurant in El Sobrante, California, on October 23, 2024.
David Paul Morris | Bloomberg | fake images
In the wake of last month's E. coli outbreak linked to McDonald's chopped onions, the fast-food giant said it will invest more than $100 million to boost restaurant sales and accelerate the recovery of affected franchises.
Of that total, $65 million will be invested in supporting owners who have lost business, focusing on those in the most affected states. Approximately $35 million will be invested in traffic-generation programs, including marketing efforts, according to a memo to owners and employees seen by CNBC.
McDonald's will also push “local recovery plans for highly impacted markets” with more details to come in the coming weeks, according to the memo.
“We have navigated a complex and rapidly changing situation, moved at an unmatched pace, and shown the true character of our brand through an unwavering dedication to the safety and well-being of our customers. As we enter the ' Recovery,' we will continue to maintain 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 of Diseases that linked 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 chopped onions, to all restaurant menus nationwide after temporarily removing the menu item at 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 does not appear to be an ongoing food safety concern related to this outbreak at McDonald's restaurants.”
