The recent E. coli outbreak linked to Quarter Pounders at McDonald’s in the western United States has placed the company at the center of a health and reputation crisis. With one person dead and 10 hospitalized, McDonald’s USA President Joe Erlinger quickly sought to reassure customers about the safety of its products, while the restaurant chain promptly removed Quarter Pounders from the menu in the affected states. The situation has led to a significant drop in the company’s stock, highlighting the fragility of consumer trust in the face of food safety crises.

The McDonald’s incident brings to mind the prolonged Chipotle scandal from 2015 to 2018, when multiple E. coli and norovirus outbreaks affected the fast-food chain. Over those three years, Chipotle saw a loss of two-thirds of its market value due to its inability to contain the outbreaks. It took a leadership change and the implementation of strict food safety standards under the new CEO, Brian Niccol, to restore the company’s reputation and regain consumer trust. This was achieved through extensive staff retraining and a revision of food safety procedures, eventually allowing the company’s stock to return to pre-crisis levels.

Chipotle’s case serves as a clear example for McDonald’s, which is now facing a similar crossroads. The speed with which the chain handles the crisis and ensures the safety of its products will determine the long-term impact on its reputation and stock value. For now, the Food and Drug Administration has identified sliced onions as a possible source of contamination, leading the company to suspend their use in several states. However, the investigation is ongoing, and consumers remain wary.