Winners And Losers Of Q2: Beyond Meat (NASDAQ:BYND) Vs The Rest Of The Perishable Food Stocks
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at perishable food stocks, starting with Beyond Meat (NASDAQ:BYND).
The perishable food industry is diverse, encompassing large-scale producers and distributors to specialty and artisanal brands. These companies sell produce, dairy products, meats, and baked goods and have become integral to serving modern American consumers who prioritize freshness, quality, and nutritional value. Investing in perishable food stocks presents both opportunities and challenges. While the perishable nature of products can introduce risks related to supply chain management and shelf life, it also creates a constant demand driven by the necessity for fresh food. Companies that can efficiently manage inventory, distribution, and quality control are well-positioned to thrive in this competitive market. Navigating the perishable food industry requires adherence to strict food safety standards, regulations, and labeling requirements.
The 11 perishable food stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.4%.
Inflation progressed towards the Fed's 2% goal recently, leading the Fed to reduce its policy rate by 50bps (half a percent or 0.5%) in September 2024. This is the first cut in four years. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be debating whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
Luckily, perishable food stocks have performed well with share prices up 11.9% on average since the latest earnings results.
Beyond Meat (NASDAQ:BYND)
A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQ:BYND) is a food company crafting innovative, sustainable, and delicious alternatives to traditional meat products.
Beyond Meat reported revenues of $93.19 million, down 8.8% year on year. This print exceeded analysts’ expectations by 5.4%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ gross margin estimates and full-year revenue guidance exceeding analysts’ expectations.
Beyond Meat President and CEO Ethan Brown commented, “We are pleased to report a strong quarter of progress against our 2024 plan, a pivotal year on our path to sustainable operations and profitability. Key proof points include exceeding our Q2 revenue guidance; continued reduction in operating expenses and cash consumption; and our best quarterly gross margin since Q3 2021.
Beyond Meat achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 21.5% since reporting and currently trades at $6.38.
Is now the time to buy Beyond Meat? Access our full analysis of the earnings results here, it’s free.
Best Q2: Mission Produce (NASDAQ:AVO)
Founded in 1983 in California, Mission Produce (NASDAQ:AVO) grows, packages, and distributes avocados.
Mission Produce reported revenues of $324 million, up 23.9% year on year, outperforming analysts’ expectations by 40.3%. The business had an incredible quarter with an impressive beat of analysts’ earnings and gross margin estimates.
Mission Produce achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 21.2% since reporting. It currently trades at $12.97.
Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it’s free.
Cal-Maine (NASDAQ:CALM)
Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ:CALM) produces, packages, and distributes eggs.
Cal-Maine reported revenues of $640.8 million, down 7% year on year, falling short of analysts’ expectations by 1.8%. It was a softer quarter as it posted a miss of analysts’ earnings estimates.
Interestingly, the stock is up 15.3% since the results and currently trades at $74.75.
Read our full analysis of Cal-Maine’s results here.
Vital Farms (NASDAQ:VITL)
With an emphasis on ethically produced products, Vital Farms (NASDAQ:NATR) specializes in pasture-raised eggs and butter.
Vital Farms reported revenues of $147.4 million, up 38.5% year on year. This number beat analysts’ expectations by 6.5%. Overall, it was a stunning quarter as it also produced an impressive beat of analysts’ earnings and operating margin estimates.
Vital Farms pulled off the fastest revenue growth among its peers. The stock is flat since reporting and currently trades at $34.80.
Read our full, actionable report on Vital Farms here, it’s free.
Calavo (NASDAQ:CVGW)
A trailblazer in the avocado industry, Calavo Growers (NASDAQ:CVGW) is a pioneering California-based provider of high-quality avocados and other fresh food products.
Calavo reported revenues of $179.6 million, down 30.9% year on year. This number was in line with analysts’ expectations. Zooming out, it was a very strong quarter as it produced an impressive beat of analysts’ earnings estimates.
Calavo had the slowest revenue growth among its peers. The stock is up 17.9% since reporting and currently trades at $28.34.
Read our full, actionable report on Calavo here, it’s free.
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