McDonald's CEO Chris Kempczinski recently stated that the E. coli outbreak associated with the company's Quarter Pounder burgers is now in the past.
Health authorities linked the outbreak to the popular menu item, resulting in a temporary suspension of its sale in around 3,000 U.S. locations.
Kempczinski assured investors that the situation is under control and the company is focused on regaining consumer confidence and returning to previous sales levels.
The outbreak, which affected 75 people across 13 states and resulted in one fatality, led McDonald's to indefinitely stop sourcing slivered onions from the implicated supplier.
While E. coli was not found in the fresh beef patties used for the Quarter Pounders, the FDA is investigating the onions as a potential source of contamination.
As a precaution, approximately 900 locations will serve the Quarter Pounder without slivered onions until further notice.
Following the outbreak announcement, McDonald's experienced a decline in daily sales and customer traffic.
However, the company does not expect a significant impact on its overall business.
McDonald's is now focused on reassuring customers and regaining the strong sales momentum it had at the beginning of October.
In the third quarter, the company reported a modest increase in same-store sales in the U.S., recovering from a decline in the previous quarter.
However, overall same-store sales decreased by 1.5% due to weaker demand in international markets.
During the investor call, Kempczinski expressed deep concern for affected customers and apologized on behalf of McDonald's.
The company is committed to making things right and rebuilding trust.
McDonald's faces the challenge of managing public perception while maintaining its market position.
The company has already faced lawsuits from victims of the outbreak, highlighting the potential legal consequences.
The stock market initially reacted negatively to the outbreak, but McDonald's shares recovered during the conference call.
Analysts will closely monitor the company's performance as it seeks to regain its position in the U.S. market.
McDonald's response to the crisis will be crucial for its financial health and long-term reputation.
The company must prioritize food safety practices to prevent future outbreaks, especially in an industry where consumer trust is essential.