Spotting Winners: Mondelez (NASDAQ:MDLZ) And Shelf-Stable Food Stocks In Q3

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Mondelez (NASDAQ:MDLZ) and the best and worst performers in the shelf-stable food industry.

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 0.8%.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Mondelez (NASDAQ:MDLZ)

Founded as Nabisco in 1903, Mondelez (NASDAQ:MDLZ) is a packaged snacks powerhouse best known for its Oreo, Cadbury, Toblerone, Ritz, and Trident brands.

Mondelez reported revenues of $9.74 billion, up 5.9% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a significant miss of analysts’ EBITDA and gross margin estimates.

Unsurprisingly, the stock is down 10.3% since reporting and currently trades at $54.08.

Read our full report on Mondelez 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 an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 13% since reporting. It currently trades at $93.93.

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 25.3% since the results and currently trades at $23.88.

Read our full analysis of TreeHouse Foods’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 $4.52 billion, down 6.8% year on year. This result met analysts’ expectations. Aside from that, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but organic revenue in line with analysts’ estimates.

General Mills had the slowest revenue growth among its peers. The stock is down 6.4% since reporting and currently trades at $46.40.

Read our full, actionable report on General Mills here, it’s free for active Edge members.

Hershey (NYSE:HSY)

Best known for its milk chocolate bar and Hershey's Kisses, Hershey (NYSE:HSY) is an iconic company known for its chocolate products.

Hershey reported revenues of $3.18 billion, up 6.5% year on year. This number surpassed analysts’ expectations by 2.2%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ organic revenue estimates.

The stock is up 3.6% since reporting and currently trades at $181.65.

Read our full, actionable report on Hershey here, it’s free for active Edge members.

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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