On October 23rd, McDonald's US stock market fell nearly 6% before trading. On the news front, the United States has experienced a serious E. coli infection incident related to it.
A hamburger suspected of containing Escherichia coli
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.
The Centers for Disease Control and Prevention (CDC) stated in a report that there are currently 49 people in the United States who have fallen ill from consuming "quarter pound hamburgers," and the CDC has launched an investigation into this matter. It is reported that currently, 10 people, including 1 child, are hospitalized in the United States due to infection related diseases, and 1 person has died.
This is a rapid epidemic investigation. Most patients reported consuming a quarter pound burger from McDonald's, and investigators are quickly identifying which food ingredient was contaminated, "said the Centers for Disease Control and Prevention.
The agency pointed out that McDonald's has removed the ingredients from these burgers, which will no longer be available for purchase in certain states. Officials stated that the majority of the patients are from Colorado and Nebraska. The agency stated that McDonald's is working with investigators to determine which ingredients are causing people to get sick. During the investigation, the company has stopped using "fresh onion shreds" and quarter pound beef patties in certain states.
The symptoms of Escherichia coli include severe stomach spasms and diarrhea, as well as vomiting. Symptoms usually appear three to four days after ingestion of bacteria. Most patients do not require treatment and can recover in five to seven days. However, the Centers for Disease Control and Prevention has stated that some individuals may experience severe kidney problems and require hospitalization for treatment.
McDonald's Latest Response
On the 22nd, Joe Erlinger, the President of McDonald's (MCD. N) in the United States, stated in a video on the 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, which will not be available in certain 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 quarter pound 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, a quarter pound burger will also be temporarily removed from restaurants in the affected areas.
At the same time, McDonald's stated that 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.
McDonald's China Business 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.
According to the announcement of CITIC Group, CITIC Group has agreed to sell and the buyer has agreed to purchase 19.23% equity of Fast Food Holdings Limited ("FFHL"), and the buyer will also bear an outstanding shareholder loan worth approximately $74 million ("Sale"). The total cost of the sale is $430.3 million.
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.