McDonald's stock edged higher early Thursday after the Centers for Disease Control and Prevention and the Food and Drug Administration issued a recall for slivered onions in the wake of an E. coli outbreak.
The Dow giant tumbled Wednesday after the CDC linked the fast-food chain's Quarter Pounder burgers to an E. coli outbreak.
Late Wednesday, the CDC and FDA issued a recall for the slivered onions suspected of being the ultimate cause.
The CDC said Tuesday night the outbreak had hit 10 states, with 10 hospitalizations and one death. "Most" of the 49 people reported falling sick said they ate a McDonald's Quarter Pounder.
McDonald's Stock
McDonald's stock tumbled 5.1% to 298.57 on Wednesday, but shares came off intraday lows of 290.83. Shares of the Dow Jones giant closed closed back in a buy zone, but above the 292.21 entry and the 50-day line.
Shares rose a fraction early Thursday.
Starting in late 2015, Chipotle Mexican Grill faced a series of serious foodborne illness outbreaks, triggering a huge multiyear sell-off in CMG stock. Chipotle shares fell 1.4% Wednesday.
Separately, Starbucks reported weaker-than-expected preliminary results for its fiscal fourth quarter. Same-store sales fell vs. a year earlier for a third straight quarter, led by a 10% U.S. drop. New CEO Brian Niccol, brought over from running Chipotle to revive Starbucks, said the coffee chain must "fundamentally change" but said "our problems are fixable."
Starbucks stock tumbled to 93.69 Wednesday morning, undercutting its 50-day line. But shares rebounded to close up 0.9% to 97.65. SBUX stock is working on a 99.51 flat-base buy point.
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