Food and beverage company Pepsi (PEP) has a more dangerous recall on its hands than previously thought. Frito-Lay, a subsidiary of Pepsi, saw a recall of its Tostitos Cantina chips increased to Class I by the U.S. Food and Drug Administration (FDA).
This Class I rating from the FDA means that the Tostitos Cantina chips have the risk of causing “serious adverse health consequences or death.” However, it’s worth pointing out that these chips aren’t likely to be deadly for the majority of consumers due to the nature of this recall.
The recall was put in place by the FDA due to some packages of the Tostitos Cantina chips accidentally being filled with nacho cheese corn chips. That’s a problem as these chips contain milk, and that ingredient isn’t listed on the packaging. This makes them a danger to consumers with a dairy allergy.
Details of the Pepsi Frito-Lay Recall
The Pepsi Frito-Lay recall affects the company’s Tostitos Cantina Traditional Yellow Corn Tortilla Chips sold in 13-ounce bags with a UPC code of “28400 52848.” These chips have a guaranteed fresh date of May 20, 2025, and one of several manufacturing codes.
There are various manufacturing codes included in the recall. They include 18 13:XX, 471106505, 85 13:XX, 471106506, 85 13:XX, 471106507, 85 13:XX. The “XX” in these manufacturing codes can include numbers ranging from 30 to 55.
The recall isn’t weighing down PEP stock, which is up 2.38% as of Wednesday afternoon. That rise comes alongside a larger market recovery, as investors celebrate President Donald Trump pausing tariffs for 90 days.
Is PEP Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Pepsi is Moderate Buy based on nine Buy and seven Hold ratings over the last three months. With that comes an average price target of $164.43, representing a potential 14.55% upside.
