Q4 Rundown: B&G Foods (NYSE:BGS) Vs Other Shelf-Stable Food Stocks
Looking back on shelf-stable food stocks' Q4 earnings, we examine this quarter's best and worst performers, including B&G Foods (NYSE:BGS) and its peers.
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 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 21 shelf-stable food stocks we track reported a mixed Q4; on average, revenues were in line with analyst consensus estimates. while next quarter's revenue guidance was 10.6% below consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. The beginning of 2024 saw mixed inflation data, however, leading to more volatile stock performance, and while some of the shelf-stable food stocks have fared somewhat better than others, they collectively declined, with share prices falling 4.9% on average since the previous earnings results.
B&G Foods (NYSE:BGS)
Started as a small grocery store in New York City, B&G Foods (NYSE:BGS) is an American packaged foods company with a diverse portfolio of more than 50 brands.
B&G Foods reported revenues of $578.1 million, down 7.2% year on year, topping analyst expectations by 1.1%. It was a mixed quarter for the company, with optimistic earnings guidance for the full year but a miss of analysts' operating margin estimates.
B&G Foods delivered the slowest revenue growth of the whole group. The stock is up 13.7% since the results and currently trades at $10.66.
Is now the time to buy B&G Foods? Access our full analysis of the earnings results here, it's free.
Best Q4: Post (NYSE:POST)
Founded in 1895, Post (NYSE:POST) is a packaged food company known for its namesake breakfast cereal and healthier-for-you snacks.
Post reported revenues of $1.97 billion, up 25.5% year on year, outperforming analyst expectations by 2.4%. It was an exceptional quarter for the company, with an impressive beat of analysts' gross margin, operating profit, EBITDA, and EPS estimates. Its revenue growth also topped estimates, driven by strong top-line performance in its Post Consumer segment ($989 million of revenue vs consensus estimates of $905 million), which consists of ready-to-eat (“RTE”) cereal, pet food, and peanut butter.
Post scored the fastest revenue growth among its peers. The stock is up 6.5% since the results and currently trades at $99.95.
Is now the time to buy Post? Access our full analysis of the earnings results here, it's free.
Weakest Q4: J&J Snack Foods (NASDAQ:JJSF)
Best known for its SuperPretzel soft pretzels and ICEE frozen drinks, J&J Snack Foods (NASDAQ:JJSF) produces a range of snacks and beverages and distributes them primarily to supermarket and food service customers.
J&J Snack Foods reported revenues of $348.3 million, down 0.9% year on year, falling short of analyst expectations by 4%. It was a weak quarter for the company, with a miss of analysts' revenue and EPS estimates.
The stock is down 13.3% since the results and currently trades at $134.58.
Read our full analysis of J&J Snack Foods's results here.
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 $352.1 million, down 0.7% year on year, falling short of analyst expectations by 0.6%. It was a mixed quarter for the company, with a miss of analysts' organic revenue growth estimates. On the other hand, Utz guided full year 2024 earnings above expectations.
The stock is down 6.5% since the results and currently trades at $17.15.
Read our full, actionable report on Utz here, it's free.
Conagra (NYSE:CAG)
Founded in 1919 as Nebraska Consolidated Mills in Omaha, Nebraska, Conagra Brands today (NYSE:CAG) boasts a diverse portfolio of packaged foods brands that includes everything from whipped cream to jarred pickles to frozen meals.
Conagra reported revenues of $3.03 billion, down 1.7% year on year, in line with analyst expectations. It was a solid quarter for the company, with an impressive beat of analysts' organic revenue growth estimates. For the full year, it was comforting that organic sales guidance was maintained while operating margin guidance was raised.
The stock is up 0.8% since the results and currently trades at $29.31.
Read our full, actionable report on Conagra here, it's free.
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