U.S. CDC: Onions May Have Been Source of E. Coli Outbreak at McDonald's (MCD.US)

The U.S. Centers for Disease Control and Prevention said Wednesday that quarter-pound burgers and other menu items containing onion slices at McDonald's (MCD.US) may be the source of an E. coli outbreak that has made 90 people ill. The outbreak, which was first reported on Oct. 22, was linked to sliced onions. The U.S. Food and Drug Administration and the company have confirmed that Taylor Farms was a supplier in the affected areas and have recalled several batches of yellow onions from its Colorado plant. The FDA said Wednesday it had begun inspections at the Taylor Farms processing center in Colorado, where 29 people have become ill from the outbreak. The FDA added that an onion grower in Washington state was also under investigation. The CDC said the number of illnesses had increased by 15 from the previous 75, with 27 people hospitalized and one death. The company and Colorado agriculture officials also ruled out the quarter-pounder burger as the source of the outbreak on Sunday. The E. coli O157:H7 strain that caused the outbreak can cause "very serious illness," especially in the elderly, children and people with compromised immune systems, the FDA said. Symptoms can appear from days to nine days after consuming contaminated food, the FDA said. As of Oct. 30, the outbreak had affected Colorado, Kansas, Utah, Wyoming, Iowa, Missouri, Montana, Nebraska, New Mexico, Oregon, Wisconsin, Washington and Michigan. "The more cases that pop up in the news, the harder it is for McDonald's to reposition itself," said Jim Sanderson, an analyst at Northcoast Research. McDonald's said it would resume sales of the quarter-pounder burgers this week, after the company temporarily removed the burger from menus at a fifth of the 14,000 restaurants affected in the U.S. McDonald's executives didn't address the potential impact on sales on Tuesday, with CEO Chris Kempczinski apologizing to customers and adding that he "has full confidence in the safety of our food."