Walmart Shares Drop Amid Rising Listeria Outbreak Death Toll
Walmart has recently experienced a decline in its stock prices, attributed to a rising listeria outbreak tied to prepackaged pasta meals. The situation has escalated, with the death toll linked to this outbreak climbing amidst reports of additional illnesses.
Current State of the Listeria Outbreak
As of now, the outbreak has led to six confirmed deaths and a total of 27 illnesses reported across 18 states. This significant rise in cases marks an increase from 20 illnesses and four deaths reported in late September. The outbreak began in August 2024 and has been linked to precooked pasta produced by Nate’s Fine Foods, based in Roseville, California.
Details of the Recall
In September, Nate’s Fine Foods recalled nearly 245,000 pounds of pasta products, including linguine, fettuccine, and penne. These items were distributed to various grocery stores, including Walmart and Trader Joe’s. The recall followed tests identifying the same listeria strain found in contaminated chicken fettuccine Alfredo and meatball linguine products.
- Deaths linked to listeria: 6
- Reported illnesses: 27
- States affected: 18
- Weight of recalled pasta: 245,000 pounds
Health Risks of Listeriosis
Listeriosis poses serious health threats, particularly to vulnerable populations such as older adults, pregnant women, newborns, and individuals with weakened immune systems. Initial symptoms can include fever, muscle aches, and gastrointestinal issues. Pregnant women face heightened risks, including miscarriage and severe infections in newborns.
Previous Health Alerts and Recalls
This isn’t the first instance of listeria-related recalls involving Walmart. Earlier this year, celery sticks were recalled due to potential contamination discovered during testing by the Georgia Department of Agriculture. Additionally, broccoli sold at Walmart stores was labeled as ‘deadly’ due to similar concerns.
Market Implications
The impact of such food safety issues extends beyond consumer health. Recalls can severely affect a brand’s reputation, leading to stock fluctuations. Investors should remain cautious when considering grocery stocks in these circumstances.
Walmart Stock Overview
Despite the current challenges, Walmart’s stock is still viewed positively by analysts. The consensus rating on TipRanks is a “Strong Buy,” based on 29 ratings, with a highest price target set at $129. The average price target stands at $115.93, indicating a potential upside of 15.28%.
As the listeria outbreak unfolds, stakeholders and investors are advised to closely monitor developments related to food safety and company responses to mitigate risks.
