Part 4/8:
The fundamental decline in stock prices post-outbreak reflects how institutional investors perceived the risks associated with food safety incidents. Historically, there is a pattern wherein the media coverage of illnesses can create a long-lasting impact on consumer choices. When consumers perceive a health risk, their immediate reaction is often to avoid the establishment, which can lead to significant revenue loss for the restaurant chain. Research into past outbreaks shows that the stock's decline is less about the restaurant's ultimate demise and more about the temporarily clouded revenue prospects as consumers become wary.