Retailer Walmart (WMT) was hit today on fears over a deadly listeria outbreak linked to food sold at its stores.
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Product Recall
According to federal health officials, three people have died potentially as a result of eating ready-to-eat chicken fettuccine Alfredo products from Walmart and retail rival Kroger (KR).
The meals are sold nationwide at Walmart, under the Marketside brand, and at Kroger, under the Home Chef brand. Walmart has issued a product recall for the affected items.
The outbreak, which includes at least 17 people in 13 states, began last July, but the listeria bacteria were only found during a routine inspection in March. At least 16 people have been hospitalized, and there has been one pregnancy loss as a result.
Officials said they have not identified the specific source of the contamination but have identified cases of ill health through retail shopper records and interviews with sick people.
As a result, food producer FreshRealm said it was recalling products made before June 17.
Brand Sickener
The listeria strain tied to the outbreak has been detected in people who fell ill between July 24 and May 10, the U.S. Centers for Disease Control and Prevention (CDC) said. The deaths were in Illinois, Michigan, and Texas, but cases have been reported throughout the U.S.
As these are products which can be kept for a lengthy period of time, there are concerns that more cases may emerge.
In April, Walmart recalled celery sticks because of a potential listeria contamination. That was also found during random sampling by the Georgia Department of Agriculture.
The month before, the US Food and Drug Administration (FDA) labeled broccoli sold in bags at Walmart stores as ‘deadly’ due to potential listeria contamination.
Walmart has been touted by some analysts as a winner, given its reputation for value, during the current economic uncertainty. But nothing screams louder than listeria and product recalls for diminishing brand confidence.
Is WMT a Good Stock to Buy Now?
On TipRanks, WMT has a Strong Buy consensus based on 28 Buy and 1 Hold ratings. Its highest price target is $120. WMT stock’s consensus price target is $109.71 implying an 15.37% upside.
