Taco Bell, KFC, and Pizza Hut are pulling onions following E. coli outbreak
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Yum! Brands (YUM-0.62%) has taken precautionary measures by removing fresh onions from select locations of Taco Bell, Pizza Hut, and KFC in response to a recent E. coli outbreak that has impacted the restaurant sector.
“Out of an abundance of caution, we are proactively removing fresh onions” a Yum! Brands spokesperson confirmed to Quartz. The parent company did not reveal which locations or regions are affected, nor did it name the onion suppliers involved.
The parent company said it will continue to follow “supplier and regulatory guidance to ensure the ongoing safety and quality of our food,” the spokesperson added. Shares of Yum! Brands declined slight in late afternoon trading.
Yum! Brands is not alone in this onion crisis; McDonald’s has suggested the E. coli outbreak may be linked to the raw onions used on its Quarter Pounders. So far, the outbreak has resulted in 49 reported cases across 10 states, numerous hospitalizations, and one death. It has led to one lawsuit. Moreover, it’s prompted McDonald’s (MCD+1.03%) to yank the Quarter Pounder from 20% of its more than 14,000 U.S. locations.
Food distributors like U.S. Foods (USFD-0.77%) and Sysco Corp. have raised concerns regarding the use of the affected onions. Additionally, Taylor Farms, one of McDonald’s suppliers, has issued a recall of its yellow onions, despite not detecting E. coli.
Like Yum! Brands, Sysco told Quartz it is closely monitoring the situation amid the ongoing probe by public health inspectors, including the Food and Drug Administration (FDA), the U.S. Department of Agriculture (USDA), and the Centers for Disease Control and Prevention (CDC). The USDA is analyzing the beef patties in the burgers, while the FDA is concentrating on the onions.
On Wall Street, financial firm Baird has downgraded McDonald’s stock rating, citing a slump in sales tied to the E. coli outbreak. The burger giant is set to report earnings on Oct. 29.
