Last week, McDonald’s (NYSE: MCD) recalled 12 million Shrek (Nasdaq: DWA) glasses due to potential toxicity issues. Apparently, the issue is concerning many parents because the topic is still trending on Google (Nasdaq: GOOG) and other search engines.
McDonald’s has been one of the strongest stocks during the recession. Thus, valuations have been relatively strong. We recommend keeping an eye on this issue as it could cause a sales dip this quarter.
As you would expect, MCD has moved quickly to remedy the situation. Given the short term nature of the issue, any pullbacks could be seen as longer term buying opportunities.