Bill Snyder

Try Jim Cramer's Action Alerts PLUS
CLICK HERE NOW

Mad-Cow Case Confirmed in Washington State

12/23/03 - 08:54 PM EST

Bill Snyder

Updated from 6:20 p.m. EST

The Department of Agriculture on Tuesday said it has confirmed at least one case of mad-cow disease in Washington state, but it says no tainted meat has entered the food supply.

The news immediately sparked a selloff in shares of McDonald'sMCD, the world's largest consumer of beef, and other restaurant chains. In after-hours trading, McDonald's was off as much as 98 cents, or 4%, at $24.30.

Wendy'sWEN was down 90 cents, or 2.27% after hours to $38.76.

Also down after hours was Outback SteakhouseOSI, which lost 90 cents, or 2%, to $43.73, after gaining 47 cents in regular trading, and Lone Star Steakhouse and SaloonSTAR, which was off $2.18, or 9.4%, to $21.05, after gaining 68 cents during the day.

Tyson FoodsTSN, which processes chicken and pork in addition to beef, was up 38 cents in the after-hours market, to $14.36, a gain of 2.72%.

Secretary of Agriculture Ann Veneman said it appears that no beef tainted with the deadly disease worked its way into the food supply of the U.S. "We are confident in the safety of our food supply," she said.

Veneman said at a news conference that the infected cow was either sick or injured and therefore not destined for the food supply.

Mad cow disease, also known as bovine spongiform encephalopathy (BSE), had previously not been found in the U.S., but it decimated the European and British cattle industry in the 1990s and in 2001.

In a press release, McDonald's said that the meat packer in question has no connection to the company's supply chain.

Jim Cramer, a founder of TheStreet.com, cautioned investors not to overreact.

"I've seen McDonald's hit before [on safety concerns], and it comes right back," he said during the "Kudlow & Cramer" show on CNBC. Indeed, an hour after the announcement, McDonald's began climbing from its after-hours lows and was trading at $24.54.





Bill Snyder



05/19/08
Cramer on Top Searched Stocks: Yahoo!

Yahoo! is among the most searched stocks on TheStreet.com. Here's what Cramer had to say about the stock recently.


05/17/08
Jim Cramer's Best Blogs

Catch up on his thinking on the hottest topics of the past week.


04/26/08
Coming Week: Make or Break

Investors will have to deal with a Fed meeting and another flood of earnings and economic data.


05/19/08
Top Rocket Stocks: Ensco

Ensco International and Echelon have the potential to move higher in coming days.


04/28/08
Monday's Analysts' Upgrades, Downgrades

See who made what calls.


05/19/08
Telecom Giants See a Savior in Video

The addition of video is helping telecom companies compete against cable and satellite companies.


05/19/08
Contract Expiration Tempers Oil's Rise

The June West Texas Intermediate contract reflects selling pressure ahead of Tuesday's expiration. But stocks in the sector are generally trading higher.


05/19/08
Analysts' Upgrades, Downgrades: Amazon

See who made what calls.


Your Recent Quotes: Quote Up0 | Quote Down0
Dow S&P 500 NASDAQ
Oil*
Gold
10 Yr
0.00%
%
%
%
Data delayed 20 min
Sign up for our FREE newsletters now.

Keep on top of the market and the critical information you need to make more profitable investing decisions.

  • Cramer's Daily Booyah!
  • Before the Bell

Privacy Policy

See All Free Newsletters

Premium Stock Ideas