McDonald’s is still in the spotlight, but its stock is showing signs of slowing, after the company was forced to admit that it was using a counterfeit chip on its french fries.
McDonald’s, which is owned by parent company McDonald’s Corp., said in a statement on Thursday that it would stop using the counterfeit chip in all of its French fries, which will be produced in Mexico.
The chip, known as the “chip-in-the-fry” and “Chipotle Chip,” has been used by many other fast-food chains in recent years.
The news was greeted with anger on Twitter, where users began posting videos and photos of the fake chip.
Some of the reactions were swift and harsh, including one from an Ohio man who said the chip was “too cheap to make.”
But McDonald’s isn’t alone.
In September, McDonald’s revealed that its suppliers were using counterfeit chips for the same reason it was.
The company said that its supply chain was “strong and secure.”
McDonald’s said that it had stopped using the chips after finding them to be inferior.
Last month, the Department of Justice and the Food and Drug Administration launched an investigation into the chip’s use in McDonald’s french fries, after a complaint was filed against McDonald’s by the Federal Trade Commission.
The agency said that McDonald’s was in violation of the False Claims Act, which allows businesses to sue companies for false advertising.
McDonald’s, McDonalds restaurants and its marketing company have all said that the chip is safe and that it’s not being used to make counterfeit french fries in any way.
Despite the controversy, McDonald`s shares rose more than 6 percent in after-hours trading.
McDonalds said that sales at its stores rose 5.9 percent last year, a sign that consumers have become more willing to spend on items they want.
The stock is up more than 1,000 percent in the past year.
Read more at Reuters