OAK BROOK, Ill. - TreeHouse Foods, Inc. (NYSE: NYSE:THS) has announced a voluntary recall of various frozen waffle products due to potential contamination with Listeria monocytogenes, a harmful organism that can cause serious infections. The recall, which affects products distributed across the United States and Canada, includes multiple brands and descriptions identifiable by UPC, Lot Code, and Best By Date on the carton's end.
Listeria infection can be severe for vulnerable populations such as young children, the elderly, and those with weakened immune systems, with risks including high fever, severe headache, stiffness, nausea, abdominal pain, and diarrhea. It is particularly dangerous for pregnant women, as it can lead to miscarriages and stillbirths.
The potential contamination was identified through routine testing at the manufacturing facility. While there have been no confirmed reports of illness related to the recalled products, consumers who have purchased the affected items are advised to dispose of them or return them to the place of purchase for credit. The recall is being conducted with the knowledge of the U.S. Food and Drug Administration (U.S. FDA) and the Canadian Food Inspection Agency (CFIA).
Consumers with questions may contact the company at the provided phone number during business hours. This recall is a precautionary measure to prevent any possible health risks to consumers.
The complete list of affected products, including brand names like Always Save, Best Choice, Bettergoods, Breakfast Best, Clover Valley, Essentials, Food Lion, Foodhold, Giant Eagle, Good & Gather, Great Value, Hannaford, Harris Teeter, H-E-B Higher Harvest, Kodiak Cakes, No Name, Pics by Price Chopper, Publix, Schnucks, SE Grocers, Simple Truth, Tops, Western Family, and more, can be found on the TreeHouse Foods website.
This information is based on a press release statement from TreeHouse Foods, Inc.
In other recent news, TreeHouse Foods has been in the limelight with Stifel raising its share target following a solid Q2 performance. The financial results showcased earnings before interest, taxes, depreciation, and amortization (EBITDA) surpassing the company's own guidance, attributed to a more robust margin outcome. TreeHouse Foods confirmed its revenue forecast for 2024 and refined its EBITDA projection.
Stifel's revised price target reflects an 8x multiple on its 2025 EBITDA estimates, indicating a potential modest increase in the stock value. Despite a slight decline in net sales for the second quarter of 2024, TreeHouse Foods exceeded its adjusted EBITDA guidance and maintained its full-year net sales outlook. The company also repurchased $89 million in common stock this year, highlighting its commitment to shareholder value.
Analysts from Stifel continue to hold a conservative yet optimistic outlook for TreeHouse Foods' financial trajectory. The company's performance in the upcoming months, particularly in terms of EBITDA growth and margin improvements, will be critical in determining the stock's future direction. These are recent developments that investors should take note of.
InvestingPro Insights
In light of TreeHouse Foods' recent product recall, investors may be curious about the company's financial health and market position. According to InvestingPro data, TreeHouse Foods has a market capitalization of $2.19 billion, with a revenue of $3.38 billion over the last twelve months as of Q2 2024. Despite the recall, the company's stock has shown resilience, with a 3.36% price return over the past week and a 9.93% return over the last three months.
An InvestingPro Tip highlights that TreeHouse Foods' management has been aggressively buying back shares, which could signal confidence in the company's long-term prospects despite short-term challenges like product recalls. Additionally, another InvestingPro Tip indicates that the company's net income is expected to grow this year, potentially offsetting any financial impact from the recall.
It's worth noting that TreeHouse Foods has a high shareholder yield, according to InvestingPro Tips, which may be attractive to investors looking for value in the consumer staples sector. However, the company's gross profit margin is weak, which could be a concern given the potential costs associated with the recall.
For those interested in a deeper analysis, InvestingPro offers 6 additional tips for TreeHouse Foods, providing a more comprehensive view of the company's financial situation and market position.
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