NEW YORK — McDonald’s faces mounting challenges in the aftermath of a deadly E. coli outbreak linked to its popular Quarter Pounder burgers. Since the Centers for Disease Control and Prevention (CDC) released an advisory warning Tuesday, shares of the fast-food giant have dropped 7%, prompting the company to assess its next steps to regain consumer trust and investor confidence.

The CDC initially reported 49 people infected across 10 states, including one death. As of Friday, the number has risen to 75 cases in 13 states, with 22 hospitalizations. Health investigators suspect slivered onions supplied by Taylor Farms as the likely contaminant in the Quarter Pounders. Following the discovery, McDonald’s removed Taylor Farms onions from its supply chain, while Taylor Farms issued a recall for four raw onion products due to potential E. coli contamination, although U.S. Foods, not associated with McDonald’s, supplied the affected batch to other restaurants.

In response to the crisis, McDonald’s has pulled Quarter Pounders from affected regions, with approximately 20% of U.S. locations temporarily suspending the item. The company has also instructed these areas to eliminate slivered onions and paused new onion shipments. McDonald’s spokespersons have yet to comment on any potential impact on sales, although the company is slated to release its third-quarter earnings on October 29.

CDC’s Findings and Ongoing Investigation

The CDC, along with affected states, continues to investigate the specific source of contamination within McDonald’s supply chain. The agency has yet to rule out whether undercooked beef patties might also be a factor, though experts believe widespread undercooking at multiple locations is unlikely. Instead, focus remains on the slivered onions as the primary suspect, with CDC officials examining McDonald’s food preparation practices for cross-contamination risks.

Epidemiologist Dr. Thomas Jaenisch from the Colorado School of Public Health expects the investigation to take an additional two to three weeks, stressing the importance of quickly pinpointing the contamination source to prevent further cases.

Potential Impact on McDonald’s Brand and Business

The E. coli outbreak comes at a sensitive time for McDonald’s, as it navigates an increasingly competitive market with price-conscious consumers. Analysts warn that McDonald’s may face slumping sales if public confidence wanes, though experts believe the company’s proactive crisis management could limit the fallout. While similar incidents have damaged brands like Chipotle and Jack in the Box, McDonald’s robust crisis response mechanisms and deep supply chain experience may help it navigate the current crisis more effectively.

“McDonald’s is a sophisticated organization with a solid supply chain,” said KeyBanc analyst Eric Gonzalez. “They have the tools to contain this outbreak, but they’ll need to act swiftly to reassure the public.”

Despite the immediate stock dip, experts predict McDonald’s brand image may hold steady, provided the company maintains transparency and enacts further safety measures. The CDC suggests further state or regional cases may emerge, but experts hope McDonald’s corporate measures will curb the outbreak’s scope.

What Comes Next

Health experts, including University of California meat scientist Xiang Yang, suggest McDonald’s closely monitor its safety protocols nationwide, even in unaffected regions. Food safety attorney Bill Marler has recommended that McDonald’s consider covering medical expenses for affected consumers, similar to Jack in the Box’s approach in its own E. coli crisis. McDonald’s is already facing at least two lawsuits linked to the outbreak, but experts predict these legal challenges will have a limited impact on the brand.

The broader food service industry is watching closely, as the response from one of its largest players may set new standards in addressing foodborne illness outbreaks. “McDonald’s has a chance to demonstrate industry leadership,” said Dr. Darin Detwiler, a professor of food policy at Northeastern University, “but it will need to double down on sanitation and testing across all its locations.”

While McDonald’s continues to mitigate the outbreak’s effects, experts believe that with timely and effective response, the burger giant will likely recover its footing, potentially without long-term brand damage.

McDonald’s Stock Price and Analytics