Let’s dig into the relative performance of Flowers Foods (NYSE: FLO) and its peers as we unravel the now-completed Q1 perishable food earnings season.
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 slower Q1. As a group, revenues beat analysts’ consensus estimates by 3.4%.
In light of this news, share prices of the companies have held steady as they are up 1.5% on average since the latest earnings results.
Flowers Foods (NYSE: FLO)
With Wonder Bread as its premier brand, Flower Foods (NYSE: FLO) is a packaged foods company that focuses on bakery products such as breads, buns, and cakes.
Flowers Foods reported revenues of $1.55 billion, down 1.4% year on year. This print fell short of analysts’ expectations by 2.7%. Overall, it was a softer quarter for the company with a miss of analysts’ EBITDA and EPS estimates.
"Despite economic uncertainty and greater than expected category declines in the first quarter, Flowers' performance underscores the importance of our leading brands, each of which maintained or gained unit and dollar share," said Ryals McMullian, chairman and CEO of Flowers Foods.
Unsurprisingly, the stock is down 4.7% since reporting and currently trades at $16.26.
Read our full report on Flowers Foods here, it’s free.
Best Q1: Mission Produce (NASDAQ: AVO)
Founded in 1983 in California, Mission Produce (NASDAQ: AVO) grows, packages, and distributes avocados.
Mission Produce reported revenues of $380.3 million, up 27.8% year on year, outperforming analysts’ expectations by 28.4%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Mission Produce achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 14.3% since reporting. It currently trades at $12.05.
Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Beyond Meat (NASDAQ: BYND)
A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQ: BYND) is a food company specializing in alternatives to traditional meat products.
Beyond Meat reported revenues of $68.73 million, down 9.1% year on year, falling short of analysts’ expectations by 8.3%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Beyond Meat delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 43.1% since the results and currently trades at $3.65.
Read our full analysis of Beyond Meat’s results here.
Pilgrim's Pride (NASDAQ: PPC)
Offering everything from pre-marinated to frozen chicken, Pilgrim’s Pride (NASDAQ: PPC) produces, processes, and distributes chicken products to retailers and food service customers.
Pilgrim's Pride reported revenues of $4.46 billion, up 2.3% year on year. This result came in 1.6% below analysts' expectations. Overall, it was a softer quarter as it also logged a miss of analysts’ EBITDA estimates and a miss of analysts’ gross margin estimates.
The stock is down 12.2% since reporting and currently trades at $47.90.
Read our full, actionable report on Pilgrim's Pride here, it’s free.
Tyson Foods (NYSE: TSN)
Started as a simple trucking business, Tyson Foods (NYSE: TSN) is one of the world’s largest producers of chicken, beef, and pork.
Tyson Foods reported revenues of $13.07 billion, flat year on year. This print lagged analysts' expectations by 0.7%. In spite of that, it was a strong quarter as it recorded an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
The stock is down 11.1% since reporting and currently trades at $54.05.
Read our full, actionable report on Tyson Foods here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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