Q4 Rundown: Conagra (NYSE:CAG) Vs Other Shelf-Stable Food Stocks

Wrapping up Q4 earnings, we look at the numbers and key takeaways for the shelf-stable food stocks, including Conagra (NYSE:CAG) 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 4 shelf-stable food stocks we track reported a slower Q4. As a group, revenues missed analysts’ consensus estimates by 0.7%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.5% since the latest earnings results.

Conagra (NYSE:CAG)

Conagra reported revenues of $3.20 billion, flat year on year. This print exceeded analysts’ expectations by 1.5%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ organic revenue estimates but full-year EPS guidance missing analysts’ expectations.

Sean Connolly, president and chief executive officer of Conagra Brands, commented, "Our business returned to growth in the second quarter despite a continued challenging consumer environment as our investments paid off, driving strong market share performance. While momentum remains strong, we expect the business to be impacted by two headwinds in the back half including higher than expected inflation and unfavorable foreign exchange rates, leading us to update our fiscal 2025 outlook."

Unsurprisingly, the stock is down 2.8% since reporting and currently trades at $26.60.

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Best Q4: General Mills (NYSE:GIS)

General Mills reported revenues of $5.24 billion, up 2% year on year, outperforming analysts’ expectations by 1.9%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ gross margin estimates.

General Mills achieved the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.4% since reporting. It currently trades at $61.

Weakest Q4: Lamb Weston (NYSE:LW)

Lamb Weston reported revenues of $1.60 billion, down 7.6% year on year, falling short of analysts’ expectations by 4.3%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.

Lamb Weston delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 22.1% since the results and currently trades at $60.89.

Simply Good Foods (NASDAQ:SMPL)

Simply Good Foods reported revenues of $341.3 million, up 10.6% year on year. This number came in 1.7% below analysts' expectations. All in all, it was a mixed quarter for the company.

Simply Good Foods delivered the fastest revenue growth among its peers. The stock is down 1.6% since reporting and currently trades at $36.18.

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This content was originally published on Stock Story