The Food and Drug Administration (FDA) has launched an investigation into Taylor Farms, a supplier for McDonald's Corporation (NYSE: MCD), after multiple people fell ill with E. coli linked to the restaurant chain's Quarter Pounder.
What Happened: According to an NBC News report, Taylor Farms has recalled four of its onion products, citing "potential E. coli contamination." The company reportedly sent out a notice asking customers to get rid of the affected products.
The FDA is investigating the McDonald's supplier and currently believes slivered onions served on McDonald's hamburgers are the most likely source of contamination. McDonald's announced that it stopped serving its fresh slivered onions across several states earlier this week.
An FDA spokesperson reportedly confirmed on Thursday that the agency is still "looking at all possible sources."
There are currently 49 reported cases of E. coli linked to the outbreak, resulting in 10 hospitalizations and one death. The specific strain of E. coli responsible is called O157:H7, and it produces a strong toxin that may cause damage to the lining of the small intestine.
McDonald's shares plunged on Wednesday after the Centers for Disease Control and Prevention (CDC) announced late Tuesday that an E. coli outbreak had been identified across 10 states. As of Thursday afternoon, the global restaurant chain's stock has recovered some of its losses, but is still down more than 4% for the week, according to data from Benzinga Pro.
MCD Price Action: At the time of writing Thursday, McDonald's stock was up 1.01% at $301.58, according to data from Benzinga Pro.