One of the fastest moving stocks today is McDonald’s (MCD) but for all the wrong reasons. The company is trying to recover after a major E. coli scare.
The toxic bacteria was found in a number of Quarter Pounder burgers, resulting in one death so far and 10 hospitalizations. Most of these occurred in Colorado and Nebraska, and the burgers were recalled from McDonald’s restaurants in Iowa, Idaho, Nebraska, Oklahoma, New Mexico, Nevada, Missouri, and Montana. No other menu items have been affected or recalled.
The early consensus is that the slivered onions found in the Quarter Pounder were to blame, but the findings are only preliminary so far. As a result of the recall, McDonald’s stock is down 5.07% today to $298.73. The stock price was relatively flat over the last few days, up until Wednesday.
What to Expect from MCD Stock?
Over the past few months, McDonald’s stock has been climbing steadily higher, moving from $252 in July to a high of $316 just days ago. Now, it is in sharp decline, with worries that it will fall even further,
Investors should be aware that the company’s stock price has performed admirably this year and should recover relatively quickly. The fast action on dealing with the E. coli problem should limit any further bad publicity, but MCD stock will take a further hit, we suspect, as the news cycle continues to focus on this problem.
The worry at the moment is that consumer traffic will be affected and people will simply stay away from McDonald’s while the news spreads. A bacteria scare like this has the potential to be very damaging in the short term but should not hurt McDonald’s very much when taking 2024 as a whole. It should soon be a blip on the radar that will disappear and not affect traffic for next month, in all likelihood.
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