Let’s dig into the relative performance of TreeHouse Foods (NYSE:THS) 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 20 shelf-stable food stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was in line.
While some shelf-stable food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.3% since the latest earnings results.
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 $801.4 million, up 1.6% year on year. This print exceeded analysts’ expectations by 1.7%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Unsurprisingly, the stock is down 11.7% since reporting and currently trades at $18.16.
Is now the time to buy TreeHouse Foods? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $2.61 billion, up 26% year on year, outperforming analysts’ expectations by 3.1%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and a solid beat of analysts’ organic revenue estimates.
Hershey delivered the fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $184.96.
Is now the time to buy Hershey? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Conagra (NYSE:CAG)
Founded in 1919 as Nebraska Consolidated Mills in Omaha, Nebraska, Conagra Brands today (NYSE:CAG) boasts a diverse portfolio of packaged foods brands that includes everything from whipped cream to jarred pickles to frozen meals.
Conagra reported revenues of $2.78 billion, down 4.3% year on year, falling short of analysts’ expectations by 1.7%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.
Conagra delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 5.3% since the results and currently trades at $19.29.
Read our full analysis of Conagra’s results here.
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 $424.4 million, down 4.5% year on year. This print lagged analysts' expectations by 1.2%. It was a softer quarter as it also produced EPS in line with analysts’ estimates and a miss of analysts’ EBITDA estimates.
B&G Foods had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is up 11.4% since reporting and currently trades at $4.60.
Read our full, actionable report on B&G Foods here, it’s free.
Kraft Heinz (NASDAQ:KHC)
The result of a 2015 mega-merger between Kraft and Heinz, Kraft Heinz (NASDAQ:KHC) is a packaged foods giant whose products span coffee to cheese to packaged meat.
Kraft Heinz reported revenues of $6.35 billion, down 1.9% year on year. This number beat analysts’ expectations by 1.2%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ gross margin estimates.
The stock is down 4.6% since reporting and currently trades at $27.29.
Read our full, actionable report on Kraft Heinz 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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