Let’s dig into the relative performance of SunOpta (NASDAQ:STKL) and its peers as we unravel the now-completed Q2 shelf-stable food earnings season.
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 Q2. As a group, revenues missed analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was 0.7% below.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. Thankfully, shelf-stable food stocks have been resilient with share prices up 5.6% on average since the latest earnings results.
SunOpta (NASDAQ:STKL)
Committed to clean-label foods, SunOpta (NASDAQ:STKL) is a sustainability-focused food and beverage company specializing in the sourcing, processing, and packaging of natural and organic products.
SunOpta reported revenues of $171 million, up 21.1% year on year. This print exceeded analysts’ expectations by 6.9%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ earnings estimates and full-year revenue guidance exceeding analysts’ expectations.
“We delivered another quarter of outstanding growth, reflecting strong underlying demand and solid execution on operational initiatives aimed at sustainable supply chain effectiveness and efficiency,” said Brian Kocher, Chief Executive Officer of SunOpta.
SunOpta scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 18% since reporting and currently trades at $6.24.
Is now the time to buy SunOpta? Access our full analysis of the earnings results here, it’s free.
Best Q2: BellRing Brands (NYSE:BRBR)
Spun out of Post Holdings in 2019, Bellring Brands (NYSE:BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands.
BellRing Brands reported revenues of $515.4 million, up 15.6% year on year, outperforming analysts’ expectations by 2%. The business had an exceptional quarter with an impressive beat of analysts’ gross margin and organic revenue growth estimates.
The market seems happy with the results as the stock is up 15.9% since reporting. It currently trades at $57.24.
Is now the time to buy BellRing Brands? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Lamb Weston (NYSE:LW)
Best known for its Grown in Idaho brand, Lamb Weston (NYSE:LW) produces and distributes potato products such as frozen french fries and mashed potatoes.
Lamb Weston reported revenues of $1.61 billion, down 4.9% year on year, falling short of analysts’ expectations by 5.5%. It was a disappointing quarter as it posted underwhelming earnings guidance for the full year and a miss of analysts’ organic revenue growth estimates.
Lamb Weston delivered the weakest full-year guidance update in the group. As expected, the stock is down 20.3% since the results and currently trades at $62.67.
Read our full analysis of Lamb Weston’s results here.
General Mills (NYSE:GIS)
Best known for its portfolio of powerhouse breakfast cereal brands, General Mills (NYSE:GIS) is a packaged foods company that has also made a mark in cereals, baking products, and snacks.
General Mills reported revenues of $4.71 billion, down 6.3% year on year. This number lagged analysts' expectations by 3%. It was a slower quarter as it also recorded a miss of analysts’ organic revenue growth estimate.
Read our full, actionable report on General Mills here, it’s free.
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 $444.6 million, down 5.3% year on year. This number beat analysts’ expectations by 2%. Zooming out, it was a very strong quarter as it recorded a miss of analysts’ earnings and gross margin estimates.
The stock is down 3.4% since reporting and currently trades at $8.37.
Read our full, actionable report on B&G Foods here, it’s free.
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