Federal food regulators have heightened their concerns over recalled eggs sold at Costco (COST) stores, reclassifying the risk level to their most severe category due to potential salmonella contamination. The eggs, sold under the wholesale retailer’s Kirkland Signature brand, were initially recalled on November 27 by New York-Handsome Brook Farms.
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
FDA Updates its Notice Regarding COST Eggs
However, in an updated notice issued by the U.S. Food and Drug Administration (FDA), the regulator elevated the recall to Class I. This classification indicates a “reasonable probability” that consuming the product could lead to serious health consequences or even death.
The recall involves around 10,800 retail units of organic, pasture-raised eggs sold in 24-count cartons. These eggs were distributed to 25 Costco locations across Alabama, Georgia, North Carolina, South Carolina, and Tennessee starting November 22.
The targeted product is labeled as “Organic Pasture Raised” and features a Universal Product Code (UPC) of 9661910680, with a use-by date of January 5, 2025. The FDA has urged customers who purchased these eggs to return them immediately to Costco for a full refund.
The heightened classification underscores the serious nature of the risk. Salmonella, a bacterial infection, can cause severe gastrointestinal symptoms and, in vulnerable populations like children, the elderly, and those with weakened immune systems, may lead to life-threatening complications.
Is COST a Buy or Sell?
Analysts remain cautiously optimistic about COST stock, with a Moderate Buy consensus rating based on 18 Buys and eight Holds. Over the past year, COST has soared by more than 40%, and the average COST price target of $1,066.04 implies an upside potential of 11.2% from current levels.
