Q3 Earnings Highlights: General Mills (NYSE:GIS) Vs The Rest Of The Packaged Food Stocks
Let's dig into the relative performance of General Mills (NYSE:GIS) and its peers as we unravel the now-completed Q3 packaged food earnings season.
As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods, prepared meals, or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences.The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.
The 29 packaged food stocks we track reported a slower Q3; on average, revenues missed analyst consensus estimates by 2.2% while next quarter's revenue guidance was 10.9% below consensus. Investors abandoned cash-burning companies to buy stocks with higher margins of safety, but packaged food stocks held their ground better than others, with the share prices up 9.2% on average since the previous earnings results.
General Mills (NYSE:GIS)
Best known for its portfolio of powerhouse breakfast cereal brands, General Mills (NYSE:GIS) is a packaged foods company that has also made a mark in cereals, baking products, and snacks.
General Mills reported revenues of $5.14 billion, down 1.6% year on year, falling short of analyst expectations by 4.1%. It was a weak quarter for the company, with a miss of analysts' topline estimates including revenue and organic revenue growth.
“While we saw a slower-than-expected volume recovery in the second quarter amid a continued challenging consumer landscape, we generated bottom-line growth thanks primarily to strong HMM cost savings,” said General Mills Chairman and Chief Executive Officer Jeff Harmening.
The stock is down 5.5% since the results and currently trades at $63.03.
Read our full report on General Mills here, it's free.
Best Q3: Lamb Weston (NYSE:LW)
Best known for its Grown in Idaho brand, Lamb Weston (NYSE:LW) produces and distributes potato products such as frozen french fries and mashed potatoes.
Lamb Weston reported revenues of $1.73 billion, up 35.7% year on year, outperforming analyst expectations by 1.9%. It was a decent quarter for the company, with a beat of analysts' revenue estimates. Looking forward, while revenue guidance was maintained from the previous outlook, EPS guidance was raised.
Lamb Weston scored the fastest revenue growth among its peers. The stock is up 4.6% since the results and currently trades at $109.74.
Is now the time to buy Lamb Weston? Access our full analysis of the earnings results here, it's free.
Slowest Q3: 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 $523.2 million, down 34.7% year on year, falling short of analyst expectations by 0.4%. It was a weak quarter for the company, with a miss of analysts' revenue and EPS estimates.
In addition, the egg industry saw outbreaks of highly pathogenic avian influenza (HPAI) in November 2023. Cal-Maine wasn't spared, and it was forced to depopulate approximately 1.5 million laying hens, or 3.3% of its total flock.
Cal-Maine had the slowest revenue growth in the group. The stock is down 0.8% since the results and currently trades at $54.44.
Read our full analysis of Cal-Maine's results here.
Tyson Foods (NYSE:TSN)
Started as a simple trucking business, Tyson Foods (NYSE:TSN) today is one of the world’s largest producers of chicken, beef, and pork.
Tyson Foods reported revenues of $13.35 billion, down 2.8% year on year, falling short of analyst expectations by 2.7%. It was a weak quarter for the company, with a miss of analysts' gross margin estimates.
The stock is up 14.1% since the results and currently trades at $53.57.
Read our full, actionable report on Tyson Foods here, it's free.
Utz (NYSE:UTZ)
Tracing its roots back to 1921 when Bill and Salie Utz began making potato chips in their kitchen, Utz Brands (NYSE:UTZ) offers salty snacks such as potato chips, tortilla chips, pretzels, cheese snacks, and ready-to-eat popcorn, among others.
Utz reported revenues of $371.9 million, up 2.5% year on year, in line with analyst expectations. It was a mixed quarter for the company, with EPS exceeding expectations. On the other hand, its full year sales guidance was lowered.
The stock is up 34.9% since the results and currently trades at $16.39.
Read our full, actionable report on Utz here, it's free.
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The author has no position in any of the stocks mentioned
