McDonald’s is investing $100 million to recover from an E. coli outbreak that sickened more than 100 people and hurt the company’s sales. According to an internal memo obtained by CNN, the fast-food chain is dedicating $35 million to marketing efforts, including a special deal on its chicken nuggets, and $65 million to support franchisees in states most affected by the outbreak.
In October, McDonald’s saw a sharp decline in customer visits and sales after the Centers for Disease Control and Prevention (CDC) and the Food and Drug Administration (FDA) identified fresh, slivered onions on its Quarter Pounders as the likely cause of the outbreak.
Over 100 people in 14 states became ill, leading to several lawsuits being filed against the company. McDonald’s stock also dropped about 7% in the past month.
“The relevance, trust, and love for the Golden Arches has been built over nearly 70 years by our unwavering commitment to do the right thing. The past three weeks have only further demonstrated that,” said the memo, which was signed by Michael Gonda, Chief Impact Officer for North America, and Tariq Hassan, Chief Marketing and Customer Experience Officer.
McDonald’s has since confirmed that recent tests have found no trace of E. coli in its food, and Quarter Pounders with slivered onions are back on menus nationwide.
In an earnings call after the outbreak, CEO Chris Kempczinski stated that the company is “ready to do more if needed to ensure we are bringing all the resources of McDonald’s” to restore customer confidence.
As part of its recovery efforts, McDonald’s has launched a new marketing campaign, including TV ads promoting a 10-piece McNuggets deal for $1, which can be redeemed weekly through the McDonald’s app until early next month. The company is also continuing its popular $5 meal deal.