McDonald’s Corporation is investing $100 million to boost sales and assist franchisees following a major E. Coli outbreak that deterred customers.
In a memo obtained by News, the company announced that Quarter Pounder burgers with slivered onions are now available nationwide. McDonald’s is allocating $35 million to advertising and marketing efforts, while also committing $65 million to franchisee support programs, such as rent and royalty deferrals.
The E. Coli outbreak, linked to the fresh slivered onions used on Quarter Pounders, was reported by the US Centers for Disease Control and Prevention (CDC) in October. The incident, which resulted in one death and over 100 illnesses, prompted McDonald’s to temporarily remove Quarter Pounders from 20% of its 13,000+ US locations.
Sales have struggled since, with Second Measure reporting a nearly 12% drop in the week ending October 27 compared to the prior week. While there has been some recovery, sales remain below last year’s levels. The outbreak has also impacted McDonald’s stock, which has fallen by approximately 7%, wiping out most of its gains for the year.
Before the E. Coli outbreak, McDonald’s had been attempting to revitalize sales through high-profile promotions and value deals, including a $5 meal that appealed to budget-conscious customers and boosted third-quarter traffic.
According to the CDC, 104 cases of E. Coli illness have been reported across 14 states. However, the Food and Drug Administration (FDA) stated on Monday that there are no ongoing food safety concerns related to the outbreak.
McDonald’s is now focusing on regaining customer trust and rebuilding its brand image after the crisis. The company’s $35 million marketing push aims to emphasize food safety measures and reassure diners about the quality of its ingredients. Franchisees, many of whom faced financial strain due to the drop in sales, are also being supported through financial relief measures.
Industry analysts note that while the outbreak has been a setback, McDonald’s previous success with value-driven strategies could help the brand recover. Consumer trust and transparency will be key in the coming months as the company navigates the fallout and works to strengthen its position in the competitive fast-food market.
This isn’t the first time McDonald’s has dealt with food safety challenges, but the scale of the E. Coli incident underscores the importance of rigorous supply chain oversight. The company has not disclosed whether it plans to make long-term changes to ingredient sourcing or safety protocols, though experts suggest such measures could help mitigate future risks.
Despite the difficulties, McDonald’s remains a dominant player in the fast-food industry, with a vast global footprint and a strong customer base. As sales slowly recover, the company will need to balance immediate damage control with strategic initiatives to drive long-term growth and regain its pre-outbreak momentum.
