COMPANY ON A REBOUND CHEESECAKE FACTORY SPRINGS BACK AFTER HEALTH SCARE.Byline: Evan Pondel Staff Writer CALABASAS - A day after The Cheesecake Factory Inc. recalled a potentially lethal batch of white chocolate raspberry cheesecake, investors responded without fuss as the cake maker's shares rose almost 9 percent. The Calabasas-based company formally announced the recall in a statement early Tuesday morning, almost 12 hours after rumors of the contaminated contaminated, v 1. made radioactive by the addition of small quantities of radioactive material. 2. made contaminated by adding infective or radiographic materials. 3. an infective surface or object. cake hit Wall Street. But while Cheesecake Factory shares lost almost 9 percent Monday, they recouped most of their losses Tuesday, advancing $2.49, or 8.8 percent, to close at $30.69 on the Nasdaq market. ``All I can say is that the company handled the situation very well,'' said Sharon Zackfia, analyst with William Blair & Co. in Chicago. ``I don't think the bad cake will have any long-term effects on the company.'' Though no illnesses were reported, the company recalled cakes destined des·tine tr.v. des·tined, des·tin·ing, des·tines 1. To determine beforehand; preordain: a foolish scheme destined to fail; a film destined to become a classic. 2. for Olive Garden restaurants. Routine tests found traces of listeria Listeria /Lis·te·ria/ (lis-ter´e-ah) a genus of gram-negative bacteria (family Corynebacterium); L. monocyto´genes causes listeriosis. Lis·te·ri·a n. monocytogenes in the cake, a bacteria that can be fatal if ingested in·gest tr.v. in·gest·ed, in·gest·ing, in·gests 1. To take into the body by the mouth for digestion or absorption. See Synonyms at eat. 2. by those with weak immune systems. A serious case of listeriosis Listeriosis Definition Listeriosis is an illness caused by the bacterium Listeria monocytogenes that is acquired by eating contaminated food. The organism can spread to the blood stream and central nervous system. takes from one to six weeks to develop, according to the Food and Drug Administration. Of the 19 Olive Garden restaurants potentially affected by the tainted cake, most were located in Texas. None of the Olive Gardens in California was listed as a possible recipient, according to a statement issued by the company. Despite a seemingly unscathed Cheesecake Factory, Scott Tilghman, analyst with Ladenburg, Thalmann & Co. Inc. in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , said he thought the company should have been more proactive in its response to the news. Instead, the company waited all day Monday, he said, almost as if it was stunned by the market's reaction. ``And the question still remains open as to whether the problem is just a blemish blem·ish n. A small circumscribed alteration of the skin considered to be unesthetic but insignificant. blemish in Cheesecake's past or someone actually gets sick,'' Tilghman said. For 30 years, The Cheesecake Factory has operated without a single health scare from its baked goods. Orlando, Fla.-based Darden Restaurants, parent company of the Red Lobster and Olive Garden chains, is one of Cheesecake's most important outside vendors, Tilghman said. The company urges consumers with questions to call toll-free (888) 290-9437. |
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