McDonald's is investing over $100 million to fight the E. coli outbreak

A Quarter Pounder with cheese, fries and a drink arranged at a McDonald's restaurant in El Sobrante, California, on October 23, 2024.

David Paul Morris | Bloomberg | Getty Images

In the wake of the E. coli outbreak last month McDonald's The fast food giant said it would invest more than $100 million to boost restaurant sales and speed recovery among affected franchisees.

Of that, $65 million will be invested in supporting owners who have lost their business, particularly in the hardest-hit states. About $35 million will be invested in traffic-enhancing programs, including marketing efforts, according to a memo to owners and employees seen by CNBC.

McDonald's will also advance “local recovery plans for severely impacted markets,” with further details to be announced in the coming weeks, the memo said.

“We have navigated a complex and rapidly changing situation, moving forward at an unprecedented pace and demonstrating the true character of our brand through an unwavering commitment to the safety and well-being of our customers. As we enter the phase of 'recovery,' we will. We remain committed to doing the right thing,” said the memo from McDonald's Chief Impact Officer Michael Gonda and Chief Marketing and Customer Experience Officer Tariq Hassan.

The Wall Street Journal and Bloomberg previously reported on the recovery investments.

During the company's most recent earnings call last month, Chief Financial Officer Ian Borden told investors that daily sales and traffic increased immediately after an announcement from the Centers for Disease Control and Prevention that linked the E. coli outbreak to McDonald's Quarter Pounders , turned negative. However, the company does not expect the situation to have a material impact on its business, executives said.

This week, the company completed the return of Quarter Pounder burgers with slivers of onion to menus at all restaurants nationwide after temporarily removing the menu item at some locations, the notice to franchisees said.

On Wednesday, the CDC released its latest update on the outbreak, which now includes a total of 104 cases, 37 hospitalizations and one death in 14 states.

That same day, the Food and Drug Administration said in a statement: “There does not appear to be any ongoing food safety concerns related to this outbreak at McDonald's restaurants.”

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