As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the shelf-stable food industry, including Post (NYSE:POST) 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 Q3. As a group, revenues beat analysts’ consensus estimates by 0.9%.
Luckily, shelf-stable food stocks have performed well with share prices up 125% on average since the latest earnings results.
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 $2.25 billion, up 11.8% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but a significant miss of analysts’ gross margin estimates.
Unsurprisingly, the stock is down 5.6% since reporting and currently trades at $101.04.
Read our full report on Post here, it’s free for active Edge members.
Best Q3: 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 $410.2 million, down 3.9% year on year, in line with analysts’ expectations. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 11.3% since reporting. It currently trades at $92.47.
Is now the time to buy J&J Snack Foods? Access our full analysis of the earnings results here, it’s free for active Edge members.
Slowest Q3: 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 $841.9 million, down 1.5% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ gross margin estimates.
Interestingly, the stock is up 23.9% since the results and currently trades at $23.61.
Read our full analysis of TreeHouse Foods’s results here.
The Marzetti Company (NASDAQ:MZTI)
Known for its frozen garlic bread and Parkerhouse rolls, The Marzetti Company (NASDAQ:MZTI) sells bread, dressing, and dips to the retail and food service channels.
The Marzetti Company reported revenues of $482.8 million, up 3.5% year on year. This number topped analysts’ expectations by 1.8%. Zooming out, it was a satisfactory quarter as it also produced a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ gross margin estimates.
The stock is up 6.9% since reporting and currently trades at $169.15.
Read our full, actionable report on The Marzetti Company here, it’s free for active Edge members.
Simply Good Foods (NASDAQ:SMPL)
Best known for its Atkins brand that was inspired by the popular diet of the same name, Simply Good Foods (NASDAQ:SMPL) is a packaged food company whose offerings help customers achieve their healthy eating or weight loss goals.
Simply Good Foods reported revenues of $369 million, down 1.8% year on year. This print was in line with analysts’ expectations. However, it was a slower quarter as it recorded a miss of analysts’ EBITDA estimates and a miss of analysts’ gross margin estimates.
The stock is down 21.3% since reporting and currently trades at $19.66.
Read our full, actionable report on Simply Good Foods here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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