McDonald's E. Coli Outbreak Sends Stock to the Bottom of the Dow
McDonald's stock is slumping Wednesday after the CDC said an E. coli outbreak is linked to the restaurant's Quarter Pounders. Here's what you need to know.


McDonald's (MCD) is the worst Dow Jones stock Wednesday after the Centers for Disease Control and Prevention (CDC) announced it is investigating an E. coli outbreak linked to the fast-food chain's Quarter Pounder hamburgers.
"This is a fast-moving outbreak investigation," the CDC said, adding that most of those impacted reported eating the restaurant's Quarter Pounders. Investigators are "working quickly" to identify which ingredient is contaminated. "McDonald's has pulled ingredients for these burgers, and they won't be available for sale in some states."
The CDC's food safety alert currently lists 49 cases across 10 states, which have caused 10 hospitalizations and one death, adding that most illnesses have occurred in Colorado and Nebraska. However, the true number of sick people could be much higher, because "many people recover without medical care and are not tested for E. coli," the federal agency said.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
McDonald's is working with investigators to determine what food ingredient is making people sick and has stopped using fresh slivered onions and quarter-pound beef patties in several states in the meantime.
"Across the McDonald's System, serving customers safely in every single restaurant, each and every day, is our top priority and something we'll never compromise on," the company said in a statement. "It is why we are taking swift and decisive action following an E. Coli outbreak in certain states."
Is McDonald's stock a buy, sell or hold?
McDonald's stock has lagged the broader market in 2024, up 8% on a total return basis (price change plus dividends) vs the S&P 500's 24% gain. But Wall Street remains bullish on the blue chip stock.
According to S&P Global Market Intelligence, the average analyst target price for MCD is $315.91, representing implied upside ofmore than 5% to current levels. Additionally, the consensus recommendation is Buy.
Financial services firm Jefferies is one of the more bullish outfits on the consumer discretionary stock with a Buy rating and $345 price target.
"Although we are not discounting the risk to guest perception/food safety concerns, we believe the near-term impact could prove less dire than that of prior outbreaks elsewhere in the industry," says Jefferies analyst Andy Barish."
The analyst adds that he's waiting for additional commentary to see whether near-term estimates will need to be adjusted.
"Longer term, we continue to see opportunities for modest margin expansion, strong free cash flow conversion, healthy balance sheet and total shareholder return, and accelerating unit growth that should continue to support the multiple and stock," he notes.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
S&P 500 Hits New Highs as Rally Resumes: Stock Market Today
Tech stocks were the biggest gainers on Wall Street today, with Nvidia and Dell making notable moves.
-
The Shutdown Standoff Is Heading for Its Next Big Test
A key mid-October deadline could intensify the shutdown fight in Washington, and the fallout could soon hit workers and your wallet.
-
S&P 500 Hits New Highs as Rally Resumes: Stock Market Today
Tech stocks were the biggest gainers on Wall Street today, with Nvidia and Dell making notable moves.
-
Should You Buy Gold as It Tops $4,000? Here's What the Experts Say
Rate cuts, a weak dollar and macro uncertainty have helped create a "perfect storm" for gold this year. Should investors add exposure or is it too late to buy?
-
Preferred Bank Stocks: The Investment Retirees (and Others) May Be Missing Out On
Most large banks issue preferred stocks that pay out fixed dividends, often with higher yields than bonds. Should you make room for them in your portfolio?
-
Don't Let Your Equity Compensation Trip You Up: A Financial Expert's Guide
Stock options, RSUs and other executive perks can come with some serious strings attached. To avoid a nasty tax surprise, you need a plan.
-
Rally Fades on Mixed AI Revolution News: Stock Market Today
All three main U.S. equity indexes opened higher but closed lower as a seven-session winning streak for the S&P 500 came to an end.
-
The Spendthrift Trap: Here's One Way to Protect Your Legacy From an Irresponsible Heir
A spendthrift clause in an estate plan can protect an inheritance from a financially irresponsible child's debts and poor decisions.
-
Adapting to AI's Evolving Landscape: A Survival Guide for Businesses
Like it or not, AI is here to stay, and opting out could be disastrous for your organization. Instead, focus on what you can control and be flexible, as AI is still evolving.
-
S&P, Nasdaq Hit New Highs: Stock Market Today
A late-day rally wasn't enough to lift the Dow into the green as its six-session winning streak came to an end.