As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the perishable food industry, including Beyond Meat (NASDAQ:BYND) 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 decent Q1; on average, revenues beat analyst consensus estimates by 4.2%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and perishable food stocks have held roughly steady amidst all this, with share prices up 1.8% on average since the previous earnings results.
Beyond Meat (NASDAQ:BYND) A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQGS:BYND) is a food company crafting innovative, sustainable, and delicious alternatives to traditional meat products.
Beyond Meat reported revenues of $75.6 million, down 18% year on year, in line with analysts' expectations. Overall, it was a weak quarter for the company with a miss of analysts' earnings estimates.
Beyond Meat President and CEO Ethan Brown commented, “In Q1, we made solid progress against our 2024 priorities, including: hitting our first quarter revenue objective; reducing operating expenses and cash consumption year-over-year; bringing production in-house to reduce costs and improve quality; and commencing shipments of Beyond IV, the fourth generation of Beyond Burger and Beyond Beef, to our customers, to the praise of nutritionists and consumers alike.”
The stock is down 27.1% since reporting and currently trades at $5.98.
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Best Q1: Mission Produce (NASDAQ:AVO) Founded in 1983 in California, Mission Produce (NASDAQ:AVO) grows, packages, and distributes avocados.
Mission Produce reported revenues of $297.6 million, up 34.6% year on year, outperforming analysts' expectations by 31.4%. It was an incredible quarter for the company with an impressive beat of analysts' earnings estimates.
Mission Produce pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 2.4% since reporting. It currently trades at $11.15.
Weakest Q1: Fresh Del Monte Produce (NYSE:FDP) 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 $1.11 billion, down 1.8% year on year, falling short of analysts' expectations by 3.8%. It was a weak quarter for the company with a miss of analysts' gross margin and earnings estimates.
Fresh Del Monte Produce had the weakest performance against analyst estimates in the group. As expected, the stock is down 8.3% since the results and currently trades at $23.88.
Freshpet (NASDAQ:FRPT) Contrasting itself with the typical processed pet foods found throughout the industry, Freshpet (NASDAQ:FRPT) is a pet food company whose product portfolio includes natural meals and treats for dogs and cats.
Freshpet reported revenues of $223.8 million, up 33.6% year on year, surpassing analysts' expectations by 3.6%. Zooming out, it was a solid quarter for the company with an impressive beat of analysts' earnings estimates.
Freshpet had the weakest full-year guidance update among its peers. The stock is up 5.4% since reporting and currently trades at $115.51.
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 $4.36 billion, up 4.7% year on year, falling short of analysts' expectations by 1.5%. Revenue aside, it was a strong quarter for the company with a solid beat of analysts' gross margin and earnings estimates.
The stock is up 15.9% since reporting and currently trades at $41.
This content was originally published on Stock Story
