McDonald’s invests over $100 million in E. coli outbreak recovery

In the wake of last month’s E. coli outbreak linked to McDonald’s cut onions The fast food giant said it will invest more than $100 million to boost restaurant sales and speed recovery at affected franchisees.

Of the total, $65 million will be invested in supporting owners who have lost business, targeting those in the hardest-hit states. About $35 million will be invested in traffic-driving programs, including marketing efforts, according to a memo to owners and employees seen by CNBC.

McDonald’s will also run “local recovery plans for heavily impacted markets” with more details in the coming weeks, the note said.

“We have navigated a complex and rapidly changing situation, moved at an unmatched pace, and demonstrated the true character of our brand through unwavering dedication to the safety and well-being of our customers. As we enter the ‘Recovery’ phase, we will continue to uphold our commitment to doing the right thing,” read the memo from McDonald’s Chief Impact Officer Michael Gonda and Chief Marketing and Customer Experience Officer Tariq Hassan.

The Wall Street Journal and Bloomberg previously reported the recovery investments.

During the company’s most recent earnings call last month, CFO Ian Borden told investors that daily sales and traffic turned negative immediately after an announcement from the Centers for Disease Control and Prevention linked the E. coli outbreak to McDonald’s Quarter Pounders. But the company does not expect the situation to have a material effect on its business, executives said.

This week, the company implemented the return of Quarter Pounder burgers, with ground onions, to all restaurant menus nationwide after temporarily removing the menu item from some locations, according to the memo to franchisees.

On Wednesday, the CDC issued its latest update on the outbreak, which now includes a total of 104 cases, 37 hospitalizations and one death in 14 states.

The same day, the Food and Drug Administration said in a statement that “there does not appear to be a continuing food safety concern related to this outbreak at McDonald’s restaurants.”