McDonald’s and Shrek: How to Run a Recall
Whether you’re a fan of McDonald’s or curse the company for the effect of its food on your waistline, you can’t deny that the fast-food haven has improved its image over the years. McDonald’s now offers healthier menu options, like fruit and salad, and innovations like its McCafé coffee brand have been a hit with customers. Further, the company has always connected with kids. So when news hit that its Shrek-themed drinking glasses contained potentially dangerous levels of cadmium, a carcinogen that can cause kidney ailments, the results could have been severe. There goes McDonald’s again, creating a health hazard. And worse, they could be poisoning the kids who adore Ronald McDonald, Grimace and, by extension, those salty french fries.
So McDonald’s issued a swift recall of the offending glasses. And analysts are giving the company high marks for its response to a potential disaster. “The takeaway from all this is that they were very proactive,” says Jack Russo, an equity research analyst who covers McDonald’s for Edward Jones, an investment banking and advisory firm based in St. Louis, Mo.
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