Tyson shares tumble on Costco recall

by The City Wire staff ([email protected]) 29 views 

Shares of Tyson Foods tumble nearly 5% on Friday (Oct. 18) after retail giant Costco expanded a recall of some chicken products sold under the private label brand Kirkland Farms sold in the San Francisco area.

Tyson is not directly connected in the Costco product recall but its shares slid to $28.44, down $1.33 on heavy volume in early afternoon session of Friday (Oct. 18).

Tyson’s competitor Foster Farms is at the center of the recall as it supplied the rotisserie  chicken products that were contaminated with a strain of Salmonella. Friday’s recall, included 14,000 units of chicken products, on the heels of 9,000 packages recalled on Oct. 12.

Costco said it cooked the chicken well above the 165 degrees needed to kill Salmonella, which means the product likely became tainted through cross contamination.

Other chicken companies that suffered in the food safety gaff include Pilgrim’s Pride whose shares fell 7.63% to $15.14 on Friday. Sanderson Farms’ stock traded down almost 4% on Friday at $62.66.

Food safety advocates have said the need for safe food handling education continues as many times the spread of Salmonella could be mitigated by reducing cross contamination. Chicken must be cooked thoroughly to 165% internally to kill active Salmonella stains that are sometimes present in fresh poultry. Raw poultry should never come in contact utensils, dishes or countertops where fresh or raw vegetables are also prepared.