According to CCTV News, on October 22nd local time, the Centers for Disease Control and Prevention (CDC) in the United States warned that McDonald's "Quarter Pound Hamburgers" have caused E. coli related illnesses in multiple states.
49 people infected with Escherichia coli after consuming McDonald's burgers in the United States
According to securities firm China, on Tuesday local time, the US Department of Public Health stated that the E. coli outbreak that caused at least one death is related to McDonald's "quarter pound" burger. The Centers for Disease Control and Prevention in the United States stated that the outbreak related to Hamburg has spread to 10 states, with a total of 49 people infected, including 10 hospitalized.
The accident mainly occurred in multiple states west of the Rocky Mountains (western mountainous region), and the Centers for Disease Control and Prevention reported that these patients had dined at McDonald's before falling ill, specifically mentioning eating a "quarter pound hamburger" burger.
The US Centers for Disease Control and Prevention (CDC) stated in its announcement that most people infected with E. coli will experience severe symptoms such as stomach spasms, diarrhea (usually bloody), and vomiting. Symptoms usually begin to appear 3 to 4 days after exposure to bacteria, and most people can recover without treatment for 5 to 7 days. Some people may experience serious kidney problems and require hospitalization.
McDonald's responds, stock price drops sharply after hours
According to The Paper, on the same day, McDonald's US President Joe Erlinger stated in a video on his official website, "We are taking swift action to restore all our menus in these states as soon as possible. I hope these measures reflect McDonald's commitment to food safety." At the same time, McDonald's issued an emergency response and temporarily removed materials suspected to be related to the accident, and the products involved will not be listed in some states.
McDonald's pointed out that preliminary results of the investigation suggest that some of the illnesses may be related to the shredded onions used in the four ounce beef burger, which were supplied by a supplier and served at three distribution centers. According to McDonald's safety regulations, all local restaurants have been instructed to remove the product from their supply and distribution of all shredded onions in affected areas has been suspended. Out of caution, four ounce beef burgers will also be temporarily removed from restaurants in the affected areas.
At the same time, all other menu options, including other beef products such as cheeseburgers, burgers, Big Mac, double decker McDonald's, and double decker cheeseburgers, are not affected and can be served.
There have been reports in the past of multiple cases of E. coli infection in McDonald's American restaurants. In 2022, at least six children in Alabama, USA, developed symptoms consistent with E. coli poisoning after consuming McDonald's Chicken McNuggets Happy Meal. Four out of six children were admitted to the hospital due to serious adverse reactions.
Affected by the incident, McDonald's stock price fell by more than 10% after trading, and ultimately fell by 5.8% after trading. The latest data shows that McDonald's market value exceeds 1.6 trillion yuan.
McDonald's China also has big news
On October 21st, CITIC Capital Holdings Limited announced that its private equity investment business, Xinchen Capital, has signed an agreement with CITIC Group to acquire its stake in McDonald's China mainland, Hong Kong, and Macau operations (hereinafter referred to as "McDonald's China").
After the transaction, the CITIC Capital consortium (including CITIC Capital and its private equity investment business, Xinchen Capital) remains the controlling shareholder of McDonald's China.
As of the date of this announcement, CITIC Holdings indirectly holds 19.23% equity in FFHL, which directly holds Grand Foods Holdings Limited ("GFHL"), a company that holds McDonald's business in mainland China and Hong Kong. After the sale is completed, CITIC Group will no longer hold equity in FFHL.
In 2017, CITIC Capital reached strategic partnerships with CITIC Group, Carlyle and McDonald's. In early 2020, out of optimism about the prospects of McDonald's China, CITIC Capital acquired a 22% stake in McDonald's China from CITIC Group, further expanding its shareholding to 42%.
In 2023, McDonald's Global announced the acquisition of Carlyle's minority stake in McDonald's China, increasing its ownership to 48%. In 2024, CITIC Capital announced an increase in McDonald's China, with a 52% stake held by the CITIC Capital consortium after the transaction is completed.
CITIC Capital stated that based on their firm confidence in the prospects of the Chinese economy and consumer market, as well as their continued optimism about the future development potential of McDonald's China, the CITIC Capital consortium has decided to continue to invest in McDonald's China.
According to disclosed data, the number of McDonald's restaurants in China has increased from 2500 in 2017 to 6500 in September 2024. Among them, the number of McDonald's stores in mainland China has exceeded 2.5 times that of 2017, and the total revenue and profit have also achieved significant growth. In terms of the number of restaurants, McDonald's China has become the second largest market for McDonald's globally and also the fastest-growing market.