An analyst covering Menu Foods (whose recall of more than 60 million contains of food sparked the waves of recalls) says that large clients depend on their manufacturing capacity and will continue to be their clients.
Menu Foods also expects to once again begin shipping many of the recalled pet food brands in the second quarter and into the third quarter.
“All of those things essentially will see us, in my opinion, through the recall,” [Menu Foods CEO] Henderson said.
Cormark Securities analyst Aleem Israel agreed, saying Menu Foods has survived hard times in the past. He cited problems in 2005 when rising costs led the company to breach its bank covenants.
“He’s (Henderson) been in the situation where his back was against the wall,” he said from Toronto. “They were very good at managing their way out of that.”