Menu Foods is not the only one that is feeling financial troubles lately. On Wednesday, Petsmart cut its third-quarter and 2007 profit forecasts which caused its shares to go down by five percent.
The company stated that weak consumer spending has hurt their bottom line. They also added that profits have gone down due to unusually warm weather which has affected their cold-weather product line.
For the current quarter, Petsmart expects earnings of 17 cents to 20 cents a share. Previously, it forecast 21 cents to 23 cents.
Chief Executive Philip Francis said the pet food recalls would cut Petsmart sales by “some tens of millions of dollars” by the end of the year.
Petsmart expects to have all of the recalled brands back on store shelves by the second quarter of next year.