Per week after health authorities publicly linked a deadly E. coli outbreak McDonald's Quarter Pounder Burgers company CEO Chris Kempczinski told investors that the situation is now behind them.
“The way we've handled the issue, now that we're moving … we expect it to be behind us,” Kempczinski said on the corporate's conference call Tuesday.
In his prepared remarks, he said the “situation appears to be contained.”
On Sunday, McDonald's said Quarter Pounder burgers would again make up a few fifth of its presence within the U.S., where the corporate discontinued the menu item after the outbreak. That's around 3,000 restaurants, the corporate told CNBC on Tuesday.
Health authorities have found no E. coli within the burger's fresh beef patties, however the Food and Drug Administration remains to be investigating the chopped onions utilized in Quarter Pounders as a probable source. McDonald's has stopped sourcing onions from the supplier indefinitely, and around 900 locations will serve the Quarter Pounder without onion slices.
McDonald's saw day by day sales and traffic to its U.S. restaurants decline in the times immediately following the outbreak announcement as consumers reacted to the news, CFO Ian Borden said. He added that the corporate doesn’t expect any material impact to the business.
Now McDonald's is targeted on reassuring diners and returning to the upper sales of early October, fueled by its $5 meal and the introduction of the Chicken Big Mac.
“What I would say is that we certainly believe that the most important events are behind us and that the work that needs to be done now is focused on restoring consumer confidence and getting our U.S. business back to normal strong dynamic that I just talked about,” Borden said.
On Tuesday, McDonald's reported third-quarter U.S. same-store sales rose 0.3% in comparison with the identical period last yr, reversing a decline within the second quarter but barely weaker than StreetAccount's forecast growth of 0. 5% failed.
McDonald's beat Wall Street estimates for its quarterly profit and revenue, but overall same-store sales fell 1.5% because of weaker demand in key international markets.
Shares of McDonald's fell as much as 2.5% in premarket trading on Tuesday but recovered through the conference call. When markets opened, the stock was roughly flat.
At the beginning of the decision, Kempczinski apologized to customers for the situation.
“The recent wave of E. coli cases is deeply concerning, and we are distressed by reports of how this has impacted our customers,” Kempczinski said. “On behalf of the entire system, we regret what our customers have experienced. We express our sincerest and deepest condolences and are determined to make amends.”
As of Friday, 75 health cases in 13 states have been linked to the outbreak, including one death in an older adult.
At least three lawsuits have already been filed against McDonald's by victims of the outbreak.
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