A quarter pounder with cheese, fries and a drink is prepared at a McDonald's restaurant in El Sobrante, California, on October 23, 2024.
David Paul Morris | Bloomberg | Getty Images
Following an E. coli outbreak last month McDonald's The fast food giant said it will invest more than $100 million to boost restaurant sales and accelerate the recovery of affected franchisees.
Of this total, $65 million will be invested in supporting owners who have lost their businesses, targeting those in the most affected states. Nearly $35 million will be invested in traffic drive programs, including marketing efforts, according to a memo to owners and employees seen by CNBC.
McDonald's will also lead “local recovery plans for severely impacted markets” with more details in the coming weeks, the memo said.
“We have navigated a complex and rapidly changing situation, moving at an unparalleled pace, and demonstrating the true character of our brand through unwavering dedication to the safety and well-being of our customers. As we enter the ‘recovery’ phase, we will work to… At McDonald's, Chief Marketing and Customer Experience Officer, Tariq Hassan: “We continue to stand by our commitment to doing the right thing.”
The Wall Street Journal and Bloomberg previously reported on the recovery investments.
During the company's most recent earnings call last month, CFO Ian Borden told investors that daily sales and traffic went negative immediately after the Centers for Disease Control and Prevention's announcement linking the E. coli outbreak to the McDonald's Quarter Pounder. But executives said the company does not expect the situation to have a material impact on its business.
The company this week completed the return of its Quarter Pounder burger, with sliced onions, to all restaurant menus nationwide after temporarily removing the menu item from some locations, according to the memo to franchisees.
On Wednesday, the CDC issued its latest update on the outbreak, which now includes a total of 104 cases, 37 hospitalizations, and one death in 14 states.
On the same day, the FDA said in a statement: “There do not appear to be ongoing food safety concerns related to this outbreak at McDonald's restaurants.”
