Looking back on perishable food stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Pilgrim's Pride (NASDAQ:PPC) and its peers.
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 satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.4%.
While some perishable food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.3% since the latest earnings results.
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 $4.37 billion, down 3.5% year on year. This print fell short of analysts’ expectations by 6.1%. Overall, it was a mixed quarter for the company with an impressive beat of analysts’ gross margin estimates.
“While we experienced a positive market environment with lower input costs and strong chicken demand in 2024, we elevated our performance across all regions through a continued focus on controlling what we can control,” said Fabio Sandri, Pilgrim’s President and CEO.
Pilgrim's Pride Total Revenue
Pilgrim's Pride delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 7% since reporting and currently trades at $53.89.
Founded in 1983 in California, Mission Produce (NASDAQ:AVO) grows, packages, and distributes avocados.
Mission Produce reported revenues of $334.2 million, up 29.2% year on year, outperforming analysts’ expectations by 17%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Mission Produce Total Revenue
Mission Produce delivered the biggest analyst estimates beat among its peers. The stock is down 9.7% since reporting. It currently trades at $10.66.
Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE:FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.
Fresh Del Monte Produce reported revenues of $1.01 billion, flat year on year, falling short of analysts’ expectations by 2%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates.
Interestingly, the stock is up 12.8% since the results and currently trades at $34.81.
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 $76.66 million, up 4% year on year. This number beat analysts’ expectations by 1.9%. More broadly, it was a softer quarter as it recorded a significant miss of analysts’ adjusted operating income estimates.
The stock is down 28.2% since reporting and currently trades at $2.55.
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 $1.11 billion, down 1.6% year on year. This print came in 1.5% below analysts' expectations. More broadly, it was a satisfactory quarter as it also recorded full-year revenue guidance exceeding analysts’ expectations but a miss of analysts’ organic revenue estimates.
The stock is down 6.9% since reporting and currently trades at $17.99.
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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