New York CNN –
McDonald’s is spending $100 million on marketing and to help franchisees hardest hit by a recent E. coli outbreak that sickened more than 100 people and hurt sales.
In a memo sent to employees and obtained by CNN, McDonald’s is spending $35 million on marketing, which includes a value deal focused on chicken nuggets, as well as $65 million directed toward franchisees who lost business in states where the outbreak occurred.
Visits and sales declined in October after the Centers for Disease Control and Prevention and the Food and Drug Administration said fresh cut onions served in the Quarter Pounder were the likely source of an E. coli outbreak.
More than 100 people have become ill in 14 states and several lawsuits have been filed against the chain. McDonald’s (MCD) shares are down about 7% over the past month.
“The importance, trust and love of Golden Arches has been hard-earned over nearly 70 years through our unwavering commitment to doing the right thing,” said the memo, which was signed by Michael Gonda, the chain’s chief impact officer for North America, and Tariq Hassan, chief marketing and customer experience officer. The past three weeks have made that even clearer.
McDonald’s said recent tests showed no E. coli bacteria in its food, and noted in the memo that the Quarter Pounder burger topped with chopped onions is now back on menus across the country.
On an earnings call after the outbreak, CEO Chris Kempczinski said the chain was “ready to do more if we need to to make sure we bring the full resources of McDonald’s” to win back customers.
The new marketing campaign includes TV ads promoting a 10-for-$1 McNuggets deal that can be redeemed weekly in the app until early next month. The chain is also continuing its successful $5 meal deal.
