McDonald Shares Are Down Today: What's Going On?

McDonald’s Corporation MCD shares are trading lower Friday on reports indicating the company will spend $100 million plan to address the impact of a recent E. Coli outbreak.

What To Know: The outbreak, linked to slivered onions used in Quarter Pounder burgers, affected 104 individuals across 14 states and resulted in one death. In response, McDonald's temporarily removed Quarter Pounders from menus at 20% of its U.S. locations. The outbreak was confirmed by the U.S. Centers for Disease Control and Prevention (CDC) in October, prompting swift action from the company.

To address the crisis, McDonald's will invest $35 million in marketing and advertising campaigns to rebuild customer trust and foot traffic. Additionally, $65 million will be directed toward franchisee support, including deferrals on rent and royalties.

The outbreak hit as the company was working to improve sales through discounts and promotions, erasing nearly all of McDonald’s year-to-date gains. A $5 value meal had gained traction with low-income customers, boosting guest counts in the third quarter before the E. Coli crisis disrupted the momentum. Weekly sales dropped nearly 12% in late October and remain below last year's levels despite modest recovery in recent weeks.

MCD Price Action: McDonald shares were down 2.01% at $292.56 at the time of writing, according to Benzinga Pro.

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