Whole Foods Market Inc. (NASDAQ: WFM) is under fire by federal regulators after an inspection conducted back in February. By the looks of this, it could be tough for the giant organic grocer to swallow.
The U.S. Food and Drug Administration (FDA) noted in a letter, dated June 8, that a Whole Foods’ Massachusetts plant, which supplies ready-to-eat products, failed to manufacture, package and store food in a proper manner.
According to the regulators, Whole Foods kept dirty dishes near food, didn’t supply hot water at some hand-washing sinks and allowed high-pressure hoses used for cleaning to spray into areas where foods were being prepared.
However, the company issued a statement that it had corrected these issues and was “surprised” that the FDA had not reflected its “thorough and tangible steps” in the most recent letter. Although, the FDA did address that Whole Foods’ previous response was inadequate, in consideration that the company failed to describe steps that it would take to improve its food processing operations and compliance in the future.
Ultimately, the FDA cited Whole Foods for failing to keep its equipment in acceptable conditions. The agency noted perhaps one of the largest concerns saying that a sample taken from a machine used to chop vegetables tested positive for a non-pathogenic form of listeria.
The agency further posited that the pathogen’s presence suggests conditions exist in the Whole Foods’ plant that support the growth of dangerous forms of listeria.
Understandably, Whole Foods is lucky to have caught this before consumers suffered. As opposed to only fallout from regulators, consumer law suits and the like could have plagued this company as well. The last thing Whole Foods wants is to end up being the new Chipotle Mexican Grill.
Shares of Whole Foods closed down 2.9% at $32.52 on Tuesday, with a consensus analyst price target of $30.19 and a 52-week trading range of $28.07 to $41.97. In early trading indications Wednesday, the stock was down an additional 2.6% at $31.66.
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.