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McDonald's spends $100 million to lure customers back after E. coli outbreak

The slivered onions on McDonald's Quarter Pounder burgers have been linked to an E. coli outbreak.  Brendan McDermid/Reuters/File
The slivered onions on McDonald's Quarter Pounder burgers have been linked to an E. coli outbreak. Brendan McDermid/Reuters/File

McDonald’s is allocating $100 million to address the fallout from a recent E. coli outbreak linked to its Quarter Pounders, which sickened over 100 people across 14 states and damaged sales. The company is spending $35 million on marketing campaigns, including a value deal featuring 10-piece chicken nuggets for $1, and $65 million to support franchisees in affected states.

The outbreak, traced to slivered onions on Quarter Pounders, caused a significant decline in sales and visits in October. McDonald’s stock dropped 7% over the past month, and multiple lawsuits have been filed. However, the company announced that recent tests found no E. coli in its food, and Quarter Pounders with onions have returned to menus nationwide. McDonald’s is spending $100 million on marketing

In a memo, McDonald’s emphasized its commitment to rebuilding trust, with North America chief impact officer Michael Gonda and chief marketing officer Tariq Hassan highlighting the brand's legacy of responsibility. CEO Chris Kempczinski stated that McDonald’s is prepared to deploy further resources to regain customer loyalty.

The marketing push also includes the continuation of its $5 meal deal, aiming to attract customers back to its restaurants.

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