you'll still have them on the menu let's get back to kate rogers, who has more on the story. kate >> hi, melissa internal message just posted on mcdonald's website from its chief supply chain officer for north america, i'll read you some of the headlines here mcdonald's says we are taking swift and decisive action following an e. coli outbreak in certain states we're temporarily removing the quarter pounder from restaurants in the impacted area working in close partnership with suppliers to replenish supply for the quarter pounder in the coming weeks. all local restaurants have been instructed to remove affected product from supply. we've paused the distribution of all slivered onions, which we mentioned in the original hit in the impacted area, and the initial findings from the investigation indicate that some set of illnesses may be linked to slivered onions used in quarter pounder. initial findings indicate that the onions were sourced by single supplier that serves three distribution centers just a reminder for viewers, that the -- most of the people affected so far are in

kate rogers laid out what is happening with certain parts of the restaurant scene.vestors can still be comfortable with? >> good morning, dom. thanks for having me. i do think hinges are getting better at the industry level. we will have seen a better exit rate for the third quarter than we started. that makes me optimistic. there is still a lot of bifurcation here. they are fighting the value wars and still exposure doing well at this point. >> do we feel, brian, that these value wars are going to have an impact on these companies and their profit margins? is there going to be a race to the bottom getting the consumers in the door with the spending pattern for the year? >> i think it will be competitive. to be honest, mcdonald's, notwithstanding the issues we discussed, will get out of it quite well. this isn't going to go away quickly. this is a return to normal promotions in the food landscape. >> brian, where do you think the value is, so to speak? is it in the fast casual names or do we go up to high end? >> like i said, i do think that mcdonald's is reassertin

downgraded mcdonald's to neutral from buy this morning and cut his price target to 285 from 290 kate rogers is our restaurant correspondent. why don't, kate, i begin with you and you give us the background on this story involving mcdonald's what's going on? how was it discovered? how long has it been going on, et cetera? >> yeah, sure, tyler the company -- the cdc rather came out yesterday late afternoon with this warning. as you said, there were 49 cases, one death and this was spread across ten states now, out of an abundance of caution mcdonald's has essentially pulled the quarter pounder from restaurants in 12 states the majority of them being in mountain west states, colorado the first named state, seems to be the majority of cases are isolated there company spokespeople kind of walking the media through some of the developments including what they're focusing in on, sl slivered onions seem to be the most likely source of contamination, which is good news only in that they come from a single supplier with several distribution centers they're also not ruling out the idea that it could h

kate, thank you. >> maybe. >> kate rogers.w. >> guy usually says it like this, too. the next time i have coconut in my coffee will be the first time. anything other than half and half -- you need cream in your coffee. the four-minute aspirational experience, good luck on that. that's a big deal. then, also, going out there and saying, we are not going to raise menu prices until the end of fiscal '25, which will mean they'll have raised prices ten times in the last couple of years. they have a lot of work to do, i think, in terms of pricing, they've said they're lowering discounts. they pointed out they're going to have less food but higher quality food. he's saying the right things. he's certainly someone that has a track record that says he will address them. again, i think this is a guy that is obviously proven to be rock star status, but it's more from a marketing perspective than an operational one. if you think those are starbucks' problems, i'm not sure you get the quick solve. >> streamlining what's going on behind the

kate rogers joins us now. >>> the largest regulated water utility in the u.s. revealed it was the victim of cyberattack, new jersey-based american water, 14 million customers in 14 states it noticed the unauthorized activity last thursday prompting a pause in billing. >>> uber is rolling out eco-friendly features in an effort to lower emissions. an ev preference opt for fully electric vehicle and for drivers, uber is rolling out an a.i.-assistant to help drivers make the switch to electric vehicles. >>> and taylor swift, no surprise, has dethroned rihanna as the forbes' richest musician. worth $1.6 billion. in contrast to most musicians, taylor swift is the first to become a billionaire through her music. >> she's just brilliant about all of it, the business. >> incredible. >> the singing. kate rogers, thank you so much. >>> still ahead, police in australia are sent on a low-speed chase, see that guy right there, this is a sydney train station and that is a koala bear, the culprit on the loose, how the officers managed to help get this little guy to his final d

to kate rogers now with a look at what to expect from starbucks. kate? >> hey, scott.preliminary results that did miss estimates on the top and bottom line. in the u.s. and north america. same store sales fell 14%. this will be ryan nichols first quarter as ceo as he seeks to refocus the brand and include service starting in the u.s. last week nichols said in a message our first quarter performance makes it clear we need to fundamentally change our strategy so we can get back to growth. that is exactly what we are doing with our back to starbucks plan. he's already made changes we know to pricing, menu, management. more details will be key in how investors analyze the plans and how long they're willing to give them for a turn around. scott, we want to giveyou an update with mcdonald's and the e. coli outbreak. 90 cases total. 15 new hospitalizations. 27. that is 5 new, deaths stand at 1. 90 cases total. 20 hospitalizations, 1 death in 13 states. mcdonald's stock is dipping a bit. the company expected the case count to grow as the investigation continues of course and w

kate rogers has more. ate. >> melissa, analysts are looking for eps of $3.20 adjusted on revenues of $6.82 billion for the third quarter for mcdonald's. same-store sales projected to fall 0.6%, but increase by 0.5% in the u.s. international operated markets and developmental licensed markets are thought to see a 1.2% loss. they've said consumers would continue to feel strapped and higher costs of living, particularly in u.s. markets. mcdonald's, remember, extended its value platform through the end of the year with its $5 meal, and expected to continue a value platform in 2025 that's yet to be revealed. we will hear from executives on two key topics. first, how the mcchicken launch is performing, and how the e. coli outbreak has impacted sales so far. mcdonald's set to start serving quarter pounders again in the 900 locations that pulled the burger. it will be served without onions as the investigation continues. the outbreak did sicken 75, killed one per the cdc, and will likely have some bearing on consum

kate rogers is at the port of los angeles with that story. hi, kate. >> hi, kelly. and center over the course of the next few months as negotiations continue. now last friday the ila said it wanteded more clear language related to automation at the east coast ports writing in part the ila negotiated restrictions on automation and semi-automation in the last contract. the ila just wants to tighten the language that no automation means no automation. this port is among the most auto automate in the country. that's due to higher volumes and different labor situations including ship to ground in the u.s. compared to ship to ship overseas. it's also a delicate balance between boosting productivity and retaining jobs for workers. another thing that factors in as we speak about competitiveness with u.s. ports versus international ports is not that all are operating 24/7. >> i will say that the u.s. is missing on furthering 24/7 operations. that's the key to moving the card. lessons learned from covid-19 and the supply chain crisis, the cargo wasn't moving. a combination of

kate rogers. tim? quarters on a combination of, i think, growth and some margin headwinds. i think you're in a case here, they missed slightly today on same-store sales, i think the street was at 3.3. but i think it was a bit of a relief. i think most folks are kind of neutral here. i think we want to wait to hear. they did reaffirm operating income. this is a company that has still got an impressive international growth story. >> but -- maybe i'm showing my age here, but -- the patrick doyle -- >> who are you talking to? >> those years are over. when you think about the great ceos what he did with this company -- >> sure. >> that ten-year period, it had among the best returns in the stock market. i don't know what you do to get that mojo back? >> coming out of covid, you kind of had peak domino's. other when i was in college, and it was a different domino's, by the way, it's a lot better now. i don't think -- this is an issue for a lot of that space. i think you had an environment where they had prici

kate rogers. tim, what do you make of this approach? wouldn't run too far away from promotional. >> really? >> i think pricing issues are a big deal for a company. we've gotten into this world where we are no longer as concerned about -- forget the low end, that's probably not starbucks' customer. it's not like they're that hard at work at promotional for that long. this was september, they were doing the bundles. they -- one of the things i heard, they were pulling them back because of operational challenges. so, i just think starbucks has to be very careful. there's is a dynamic here, where they are losing people. you add in the in-store operational dynamics are the biggest issue. that seems to be what he was talking about. if bundles were creating operational issues on top of operational issues, i would understand. but i think on the price side, people are paying attention. and they don't like it. >> i definitely agree with that. if i were a shareholder, which i am not, i would give him some time, though, right? let him do his thing.

. >>> let's get to kate rogers for a cnbc news update. >>> the biden administration says today some 8,000orth korean troops are now in the kursk region, where ukraine launched an incursion. antony blinken says the troops are expected to deploy in the next coming days. >>> at least 155 people have died in devastating flash flooding in the country, the majority in the valencia region. a year's worth of rain fell in eight hours. rescue teams are still searching for others who are missing in what could become europe's worth storm-related disaster in more than 50 years. >>> los angeles county is suing pepsi and coca-cola over plastic pollution. the lawsuit claimed that the two companies deceived customers that the single-use boltsing were actually repsychable. coke and pepsi did not respond to requests for comments. back over to you, tyler. >>> thank you. >>> comcast consider a spin-off of the cable network companies, a move that could drastically change the media space. we'll discuss that when "power lunch" returns right here on cnbc. ♪♪ ♪♪ ♪♪ at state street, we know everyone's trying to get

and we're going to turn to kate rogers who has the story for chipotle. kate? >> reporter: hi, dom.nalysts are looking revenues of 2.8 billion. same store sales increase by 6.3%. this is the first quarter since brian nickel departed for starbucks. investors will hear from interim scott boatright. he hasover seen the tech pipeline. it's been gaining in recent quarters with all income cohort which is is a rarity in this environment. it's also been able to consistently grow traffic as ore brands see it fall. chipotle brought back fan favorite brisket this quarter to the menu, so commentary around that performance will be key. the stock is up over 30% year to date. while it's far outperforming other fast food competitors it is also being outperformed by sweet green and cava up over 200% on the year. a lot of comparisons drawn to chipotle, has a bigger footprint than those two locations. back over to you. >> chris, let's turn to you for the trade on chipotle. this is $83 billion company. >> wow. >> you think of how big that is. >> they can't be as quick as these smaller, like sweet green

kate rogers joins us now. 7-eleven will be closing more than 400 underperforming store in the u.s. by the end of the year. the parent company said they were shutting down for a variety of reasons including slowing sales and a decrease in cigarette purchases and didn't say which locations would be closing. the fda will bar compound inversion of the eli lilly blockbuster weight loss and diabetes drug. in a court filing the agency middle compounding facilities would be allowed while there is a shortage of the active ingredient. the fda removed the ingredient from the list of drug shortages impacting the ability to sell a version of the drug. and crocs is releasing a line of crocs for dog and it's part of the annual croc-tober campaign, according to the products association, pet owners spend almost $150 billion on pet-related expensive. my toddler loves his crocs and i don't know how they'll go over with crocs. >> we have tried for bowie, my dog, slippers to protection his paws in the winter. no. he kicks them off

how will this week's headlines impact results and how will it stack up cnbc's kate rogers has the detailsbiggest names reporting next week have been in the news for different reasons this week. mcdonald's and starbucks but when it comes to earnings, they and others will be subject to the value equation with consumers. mcdonald's currently facing an e. coli outbreak in 13 states tied to slivered onions used in quarter pounders, had already signalled the back half of the year could be a challenge given consumer discernment around value. it extended its $5 value through the end of the year and it remains to be seen if the outbreak will lead to an image issue. starbucks pulling 2025 guidance and giving preliminary numbers but the company is undergoing a revamp with its new ceo, steering away from previously offered discounts and focusing on the premium experience it's long been known for. the question is, will consumers pay up it's a tall order for brian nickel and value has been less of a factor for some of the sector's best performers over the year. chipotle has seen consumers willing to pa

. ♪ >>> welcome back i'm kate rogers with your cnbc news update.iden addressed a u.s. policy that forcibly separated generations of indigenous children from their families >> the federal government has never, never formally apologized for what happened until today. i formally apologize >> these children were sent to federally-backed boarding schools for more than 150 years for forced assimilation. biden called the apology long overdue. >>> former abercrombie & fitch ceo will be in a courtroom to enter his plea in his federal sex trafficking and prostitution case prosecutors say the dozens of men were allegedly recruited from 2008 to 2015 to have sex with jeffries under false promises of modeling jobs for the company. his lawyer says he will plead not guilty >>> and miami dolphins quarterback tua tagovailoa has been cleared to play sunday against the arizona cardinals after the dolphins say he passed the league's five-step concussion protocol. he has not played since he suffered a concussion in week two of the season. it was at least his third in hi

kate rogers joins us with those highlights right now. kate, what are you hearing? >> hi, becky.nes. the first time we've heard from him since the e. coli outbreak. telling analysts the situation is contained and nothing is more important nan than safety. and he called the recent case of e. coli cases deeply concerning. taylor springs, the most likely source. and colorado department of agriculture confirmed sunday they did not detect e. coli from mcdonald's beef patties that rules the meat out as the source. he is confident that they can return quarter pounders which they're set to do. . proud of franchisees unwavering commitment. and it remains safe to eat at mcdonald's. andrew. >> kate, did he give any answers as to whether -- how much it's impacted sales since? >> not yet, becky. there have been reports from sales, from placer.ai, those reports were down 4.6%. we haven't gotten it yet. i'll be sure to to bring you updates when we get them. >> thank you. >>> we've got an update from "the washington post" from npr saying more than 200,000 ended up cancelling their digital subscr

kate rogers joins us with more from the port of los angeles. ust last year. good morning, kate. >> hey, joe, good morning. automation, as you said, really front and center over the course of the next few months for dock workers on the east coast as those negotiations continue. last friday the ila wants more clear language related to automation at the ports writing in part "the ila negotiated restrictions on automation and semiautomation, they want to tighten language no automation means no automation." as you said at the port of last where we are live today automation is in use and this port is among the most automated in the country, but only about 3 to 5% of global parts are fully automated and foreign ones automate more quickly d ly due higher volumes and a balancing act for boosting workers and retaining jobs. >> when it comes to jobs here today and those seen into the future. there's a lot of this that has to be handled with tough conversations but getting around this corner and over these hurdles is going to be paramount for the american e

kate rogers joins us now with more on that front hi, kate >> hi, becky, good morning we'll start withfood giant down the company had been linked to an e. coli outbreak with its quarter pounder product. this is the first outbreak of foodborne illness at mcdonald's since 2018, more than 500 people were sickened from bacteria in its salads the company says the issue may be linked to slivered onions used in quarter pounder and sourced by a sing le supplier. there are 49 cases of illness, 10 hospitalizations and one death per the cdc. the company said all local restaurants have been instructed to remove the product from supply and the distribution of slivered onions has been paused in the impacted area it is also temporarily removing the quarter pounder from restaurants in colorado, kansas, utah and wyoming as well as portions of idaho, iowa, missouri, montana, nebraska, nevada, new mexico, and oklahoma >>> and then moving on to starbucks. late yesterday warning with preliminary results that missed across the board and suspending the 2025 full year guidance. this is clearly a big change in