--- title: How Kraft's Mac and Cheese Recall Will Affect Its Stock Price description: A look back at history shows that stocks can often bounce back from a recall in short order. Of course, not all product recalls are created equal. authors: - name: Susie Poppick url: https://money.com/author/susie-poppick/ at_money_since: 2013 articles: 117 covers: - Business - Banking - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Personal Finance - Retirement - Shopping - Taxes - Technology social: - https://x.com/susiepoppick former_staff: true published: '2015-03-18T17:02:11.000Z' modified: '2015-03-18T17:02:11.000Z' section: Business tags: - falling stock prices - kraft - mac and cheese - metal - metal pieces - product recalls - Recall - stock - stock prices - stocks word_count: 297 canonical: https://money.com/kraft-mac-and-cheese-recall-effect-on-stock-prices/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Kraft macaroni & cheese](https://img.money.com/2015/03/150318_em_kraftdip.jpg) Busy parents aren't the only ones concerned about Kraft's [recall of about 242,000 cases](http://fortune.com/2015/03/18/kraft-mac-cheese-recall-metal-pieces/) of Macaroni & Cheese Dinner because some boxes may contain shards of metal. Investors may fear the mistake, which has not caused any reported injuries to date, could take a toll on Kraft's stock. The share price has dropped about 2% since the announcement, but the big question is whether any damage will be lasting. Based on history, that's fairly unlikely. Less than four years ago, Kraft faced a similar recall of about 137,000 cases of its Velveeta Shells & Cheese single-serve cups because a few were discovered to contain wire bristle pieces. The stock (Kraft back then was part of a larger company that has since been renamed Mondelez International) dipped for just a couple of days and then bounced back within weeks. ![MDLZ Chart](http://content.money.com/wp-content/uploads/2015/03/90567a64cc7ce922da1168815739c5f7.png) Further back in February 2007, Kraft had to [recall Oscar Mayer chicken strips](http://usatoday30.usatoday.com/money/industries/food/2007-03-02-meat-recall-usat_x.htm) believed to be contaminated with Listeria, leading to nearly 3 million pounds of meat being pulled from shelves. That big recall hurt the stock for longer, but shares came back to previous prices by summertime. ![MDLZ Chart](http://content.money.com/wp-content/uploads/2015/03/6ff1a5207b7a3bbe631ddd58608e9edc.png) Other companies have also experienced fairly quick stock price recoveries after product recalls. In 2006, a [recall](http://news.cnet.com/Dell-to-recall-4-million-batteries/2100-1044_3-6105486.html) of more than 4 million Dell notebook batteries due to fire risk caused the tech company's stock to dip, though it rebounded after just a few months. In general, it's unlikely for product recalls to have a long-term effect on company stock prices (or [sales](http://www.investopedia.com/articles/investing/010815/how-do-recalls-affect-company.asp), for that matter). Then again, there are always exceptions. After Hasbro had to recall a million Easy-Bake Ovens in 2007, following serious safety problems causing burns and other injuries, the share price sank progressively over the course of months—taking about a year to fully recover. ![HAS Chart](http://content.money.com/wp-content/uploads/2015/03/98452a9792e4e43c5c0cc477e440c156.png) [HAS](http://ycharts.com/companies/HAS) data by [YCharts](http://ycharts.com) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/kraft-mac-and-cheese-recall-effect-on-stock-prices/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Business", "item": "https://money.com/business/" }, { "@type": "ListItem", "position": 3, "name": "Branding", "item": "https://money.com/branding/" }, { "@type": "ListItem", "position": 4, "name": "How Kraft's Mac and Cheese Recall Will Affect Its Stock Price" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/kraft-mac-and-cheese-recall-effect-on-stock-prices/#webpage", "url": "https://money.com/kraft-mac-and-cheese-recall-effect-on-stock-prices/", "name": "How Kraft's Mac and Cheese Recall Will Affect Its Stock Price", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2015-03-18T17:02:11.000Z", "mainEntity": { "@id": "https://money.com/kraft-mac-and-cheese-recall-effect-on-stock-prices/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/kraft-mac-and-cheese-recall-effect-on-stock-prices/#breadcrumb" }, "dateModified": "2015-03-18T17:02:11.000Z" }, { "@type": "Article", "headline": "How Kraft's Mac and Cheese Recall Will Affect Its Stock Price", "articleSection": "Business", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2015/03/150318_em_kraftdip.jpg", "width": 5120, "height": 3407, "caption": "150318_EM_KraftDip" }, { "@type": "ImageObject", "url": "https://content.money.com/wp-content/uploads/2015/03/90567a64cc7ce922da1168815739c5f7.png", "width": "", "height": "" }, { "@type": "ImageObject", "url": "https://content.money.com/wp-content/uploads/2015/03/6ff1a5207b7a3bbe631ddd58608e9edc.png", "width": "", "height": "" }, { "@type": "ImageObject", "url": "https://content.money.com/wp-content/uploads/2015/03/98452a9792e4e43c5c0cc477e440c156.png", "width": "", "height": "" } ], "author": [ { "@type": "Person", "name": "Susie Poppick", "url": "https://money.com/author/susie-poppick/", "@id": "https://money.com/author/susie-poppick/#author", "image": "https://img.money.com/2014/05/14-05-21_bio_author_poppick.jpg?quality=85&w=190&h=190&crop=1", "email": "susie_poppick@moneymail.com", "sameAs": [ "https://x.com/susiepoppick" ] } ], "publisher": "https://money.com/#organization", "datePublished": "2015-03-18T17:02:11.000Z", "description": "A look back at history shows that stocks can often bounce back from a recall in short order. Of course, not all product recalls are created equal.", "abstract": "A look back at history shows that stocks can often bounce back from a recall in short order. Of course, not all product recalls are created equal.", "@id": "https://money.com/kraft-mac-and-cheese-recall-effect-on-stock-prices/", "inLanguage": "en-US", "dateModified": "2015-03-18T17:02:11.000Z", "wordCount": 297, "keywords": [ "falling stock prices", "kraft", "mac and cheese", "metal", "metal pieces", "product recalls", "Recall", "stock", "stock prices", "stocks" ], "about": [ { "@type": "Thing", "name": "Business", "sameAs": [ "https://en.wikipedia.org/wiki/Business" ] }, { "@type": "Thing", "name": "Branding", "sameAs": [ "https://en.wikipedia.org/wiki/Branding" ] } ] } ] } ```