McDonald’s Pledges $100 Million to Stores After E.coli Outbreak

Fast-food giant McDonald’s announced a massive $100 million investment package aimed at helping franchise stores recover from a recent E. coli outbreak linked to onions on its Quarter Pounder hamburgers according to the Associated Press.
The bulk of the financial commitment—$65 million—will be directed to franchises most severely impacted by the outbreak, which affected multiple states across the western United States. The crisis resulted in 104 reported illnesses, 34 hospitalizations, one death in Colorado, and four cases of serious kidney complications.
Beyond the direct financial assistance to affected locations, the remaining $35 million will be allocated to enhanced safety protocols and supply chain improvements.
The outbreak’s impact has been particularly severe in western states. According to the U.S. Centers for Disease Control and Prevention (CDC), Colorado reported the highest number with 30 confirmed cases, followed by Montana with 19, Nebraska with 13, and New Mexico with 10.
Additional cases were reported across multiple states, including eight each in Utah and Missouri, six in Wyoming, three in Kansas, two in Michigan, and one case each in Iowa, North Carolina, Oregon, Washington, and Wisconsin.
The CDC noted that the true number of sick people in this outbreak is likely much higher than reported, as many people recover without medical care and are not tested for E. coli. Additionally, recent illnesses may not yet be reported as it typically takes three to four weeks to determine if a sick person is part of an outbreak.
The source of the outbreak was traced to slivered yellow onions supplied by Taylor Farms, which issued a recall on October 22 for thousands of cases distributed to McDonald’s restaurants and other food service customers. The FDA has since classified the recalled onions at the highest risk level—Class I—indicating a reasonable probability that exposure to the product will cause serious adverse health consequences or death.
Newsweek contacted Taylor Farms via email on Saturday for comment.
The classification applies to onions distributed to food service facilities across several states, including Colorado, Kansas, Missouri, Nebraska, New Mexico, and Utah. In its recall notice, Taylor Farms urged customers to stop using the affected product and destroy it.
FDA testing on recalled onions detected a strain of E. coli with a harmful toxin in one onion sample, though officials noted it did not match the strain responsible for the reported illnesses. Further sample results are still pending. The bacterial strain involved in this outbreak is responsible for approximately 74,000 infections, over 2,000 hospitalizations and 61 deaths in the United States each year, according to CDC data.
In response to the crisis, McDonald’s removed Quarter Pounders from menus in several affected states during the early days of the outbreak. The company identified an alternate supplier for approximately 900 restaurants that temporarily stopped serving the burgers with onions.
The FDA has stated that there does not appear to be a continued food safety concern related to this outbreak at McDonald’s restaurants, as the implicated onions are now past their shelf life and no longer in circulation.
The financial impact of the outbreak has been significant for many franchise owners. The temporary menu modifications and associated publicity led to noticeable declines in customer traffic and sales, particularly in the affected regions. The newly announced recovery package aims to help these businesses rebuild customer confidence and offset losses incurred during the crisis.
McDonald’s has now resumed selling Quarter Pounders with slivered onions nationwide, signaling a return to normal operations.