Reflecting On Shelf-Stable Food Stocks’ Q4 Earnings: Utz (NYSE:UTZ)
As the Q4 earnings season wraps, let's dig into this quarter's best and worst performers in the shelf-stable food industry, including Utz (NYSE:UTZ) 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 4.4% on average since the previous earnings results.
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' revenue estimates. On the other hand, Utz guided full year 2024 earnings above expectations.
“In 2023 we evolved through capacity, distribution and capability investments that position Utz to capture its full potential. In a dynamic environment, I am proud of our continued progress on building Utz into a pure-play U.S. snacking company of scale with an advantaged brand portfolio in the attractive Salty Snacks category,” said Howard Friedman, Chief Executive Officer.
The stock is down 6.5% since the results and currently trades at $17.15.
Read our full report on Utz 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.
Kraft Heinz (NASDAQ:KHC)
The result of a 2015 mega-merger between Kraft and Heinz, Kraft Heinz (NASDAQ:KHC) is a packaged foods giant whose products span coffee to cheese to packaged meat.
Kraft Heinz reported revenues of $6.86 billion, down 7.1% year on year, falling short of analyst expectations by 1.8%. It was a weaker quarter for the company, with a miss of analysts' revenue estimates. Gross margin also came in below expectations. With regards to guidance, full year EPS is projected to be slightly above Wall Street Consensus estimates.
The stock is down 0.4% since the results and currently trades at $36.
Read our full, actionable report on Kraft Heinz here, it's free.
TreeHouse Foods (NYSE:THS)
Whether it be packaged crackers, broths, or beverages, Treehouse Foods (NYSE:THS) produces a wide range of private-label foods for grocery and food service customers.
TreeHouse Foods reported revenues of $910.8 million, down 4.8% year on year, falling short of analyst expectations by 1.6%. It was a weak quarter for the company, with EPS slightly topping analysts' expectations. On the other hand, organic revenue was weak and below expectations. Also, its revenue and adjusted EBITDA guidance for the coming year both missed analysts' expectations.
The stock is down 15.1% since the results and currently trades at $36.32.
Read our full, actionable report on TreeHouse Foods here, it's free.
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