Yum! Brands Inc – TheNewsHub

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Harsh — Thu, 14 Nov 2024 20:19:15 +0000

CDC says 75 people affected in E. coli outbreak linked to McDonald's Quarter Pounders

suimt — Fri, 25 Oct 2024 20:08:54 +0000

A deadly E. coli outbreak linked to McDonald‘s Quarter Pounders has led to 75 cases in 13 states, the Centers for Disease Control and Prevention said Friday, as it investigates the source of the spread.

The outbreak has led to 22 hospitalizations and one previously reported death of an older adult in Colorado.

Out of 61 patients with information available, 22 have been hospitalized and two people have developed a serious condition that can cause kidney failure, called hemolytic uremic syndrome. All of the 42 people who were interviewed by the CDC reported eating at McDonald’s, while 39 people reported eating a beef hamburger, the agency said.

Those with infections ranged between ages 13 and 88, according to the CDC. The agency reiterated that the number of cases in the outbreak is likely much higher than what has been reported so far. The CDC added that the outbreak may not be limited to the states with related cases. That is because many patients do not test for E. coli and recover from an infection without receiving medical care, the CDC said. It also usually takes three to four weeks to determine if a sick person is part of an outbreak.

Shares of the restaurant chain closed down 3% on Friday. The stock has fallen 7% since the CDC announced the outbreak on Tuesday, initially citing 49 cases and one death across 10 states.

McDonald’s declined to comment on the update, citing the company’s statement when the outbreak was first announced.

Quarter Pounder hamburgers are a core menu item for McDonald’s, raking in billions of dollars annually.

Health officials are closely examining the slivered onions used in the Quarter Pounder as a likely contaminant. McDonald’s has instructed restaurants in the affected area to remove slivered onions from their supply, and has paused the distribution of that ingredient in the region.

McDonald’s stores in Colorado, Kansas, Utah, Wyoming as well as parts of Idaho, Iowa, Missouri, Montana, Nebraska, Nevada, New Mexico and Oklahoma have temporarily stopped using Quarter Pounder slivered onions and beef patties, according to the CDC.

McDonald’s identified California-based produce giant Taylor Farms as the supplier for the sliced onions the company removed from its supply chain. Taylor Farms has issued a recall on four raw onion products due to potential E. coli contamination. Burger King, Pizza Hut, KFC and Taco Bell have pulled onions from select restaurants in response to the outbreak.

But federal agencies are also investigating the Quarter Pounder’s beef patty as a potential culprit.

As the CDC and other federal agencies trace cases and work to contain the outbreak, McDonald’s has pulled Quarter Pounders from restaurants in the affected areas. Around a fifth of McDonald’s U.S. restaurants are not selling Quarter Pounder burgers.

McDonald’s spokespeople said Wednesday that it is too early to tell if the outbreak is having any effect on traffic to its restaurants.

The company is expected to report its third-quarter earnings on Tuesday and could share more details with investors about the situation on the conference call.

The outbreak comes after several quarters of sluggish U.S. sales for McDonald’s. Price-sensitive consumers have not been visiting restaurants as much, leading McDonald’s and other fast-food chains to turn to value meals to boost sales. Wall Street analysts are expecting the company to report U.S. same-store sales growth of 0.5% for the third quarter, according to StreetAccount estimates.

For now, McDonald’s is trying to reassure customers that its menu items are safe to eat and drink and that it is taking the outbreak seriously. Experts told CNBC that barring a more serious crisis, the damage to its brand may be minimal, as with an E. coli outbreak linked to Wendy’s two years ago.

Yum Brands and Burger King pull onions from select restaurants after McDonald's E. coli outbreak

suimt — Thu, 24 Oct 2024 19:56:50 +0000

A sign is posted in front of a Taco Bell restaurant in Richmond, California, on May 1, 2024.

Justin Sullivan | Getty Images

Burger King and Taco Bell owner Yum Brands have pulled onions from select restaurants following an E. coli outbreak tied to McDonald’s.

“As we continue to monitor the recently reported E. coli outbreak, and out of an abundance of caution, we have proactively removed fresh onions from select Taco Bell, Pizza Hut and KFC restaurants,” a Yum Brands spokesperson said in a statement to CNBC. “We will continue following supplier and regulatory guidance to ensure the ongoing safety and quality of our food.”

Yum did not specify how many of its restaurants are included in the measure.

It comes after restaurant supplier U.S. Foods on Wednesday issued a recall notification for four onion products produced by Taylor Farms. It is unclear if Yum removed the onions from select locations in response to the recall.

Restaurant Brands International’s Burger King is removing onions from 5% of its U.S. restaurants after reviewing its supply chain and determining those onions originated at the Taylor Farms Colorado facility at the center of the recall.

The burger chain said it only uses whole, fresh onions. Its employees cut, peel, wash and slice the onions at its restaurants.

“Despite no contact from health authorities and no indications of illness, we proactively asked our 5% of restaurants who received whole onions distributed by this facility to dispose of them immediately two days ago and we are in the process of restocking them from other facilities,” a Burger King spokesperson said in a statement to CNBC.

U.S. Foods does not distribute onions for McDonald’s restaurants, and the company has not publicly named Taylor Farms as a supplier. Taylor Farms has not responded to CNBC’s request for comment.

Health authorities are currently investigating the source of the E. coli outbreak, which has led to one death and 49 confirmed cases across 10 states, including Colorado, Nebraska and Wyoming. The Centers for Disease Control and Prevention has interviewed 18 people, 14 of whom remember eating a Quarter Pounder burger from McDonald’s, as of Tuesday.

In response to the outbreak, McDonald’s has pulled Quarter Pounders from roughly a fifth of its U.S. restaurants. The investigation has honed in on two ingredients in the burgers: the fresh beef patties and slivered onions.

McDonald’s said the affected restaurants all source onions from a single facility, which washes and slices the onions. Its beef patties, on the other hand, come from multiple suppliers in the region. If cooked according to internal standards, the temperature would kill any E. coli in the patty.

— CNBC’s Kate Rogers contributed reporting for this story.

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Starbucks taps former Chipotle executive as global chief brand officer

suimt — Fri, 18 Oct 2024 19:25:54 +0000

Tressie Lieberman, the incoming global chief brand officer at Starbucks.

Courtesy: Starbucks

Starbucks has tapped Chipotle alum Tressie Lieberman as its global chief brand officer, a newly created position and the latest executive change under Brian Niccol after he left Chipotle and took over as CEO of the coffee chain last month.

In Niccol’s first week on the job at Starbucks, he outlined his plan for turning around the chain’s slumping sales in the U.S. For the past three quarters, Starbucks has reported same-store sales declines for its home market as its occasional customers buy fewer macchiatos and Refreshers.

Among four top priorities Niccol described in his plan was improving the company’s branding. He wants to remind customers about the chain’s coffee expertise and its special coffee-shop experience, according to his open letter.

“Starbucks is a brand people love. It’s time to tell our story again and reintroduce Starbucks to the world. Tressie is the perfect person to help us do that. She has a proven track record of building strong brands, developing compelling products, creating great customer experiences, and leading breakthrough marketing,” Niccol said in a statement on Friday.

Niccol created a similar global chief brand officer role at Chipotle when he took over there in 2018.

Lieberman will start at Starbucks on Nov 4. and report to Niccol.

Most recently, she served as chief marketing officer for Yahoo. Prior to that role, she was vice president of digital marketing and off-premise at Chipotle between 2018 and 2023. She also overlapped with Niccol when both executives were at Pizza Hut and Taco Bell, which are owned by Yum Brands.

In addition to Lieberman’s hiring, Starbucks said Friday that Dawn Clark, the company’s executive creative director, and Angele Robinson-Gaylord, who leads store development, will now report to Sara Trilling, Starbucks’ president of North America.

The company is also unifying its global communications and corporate affairs departments into a single team.

Previously, Starbucks announced that Michael Conway, the company’s North America CEO, was retiring. Niccol’s predecessor Laxman Narasimhan had appointed Conway to the role last year. After his departure, the company eliminated the position, instead adding Lieberman’s new role. Trilling also now reports directly to Niccol.

In China, Molly Liu is now the sole CEO, after splitting the position with longtime leader of that unit, Belinda Wong, since last year.

Starbucks’ China business has been struggling, hurt by the country’s sluggish economy and the proliferation of local coffee chains that can undercut its prices. Last quarter, the company’s same-store sales slid 14% in China, its second-largest market.

Before his ouster, Narasimhan had said that Starbucks was in the early stages of exploring strategic partnerships for its China business.

Niccol is expected to share more details on his turnaround plans during the company’s fiscal fourth-quarter earnings call on Oct. 30.