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 Freshpet (NASDAQ: FRPT) and the best and worst performers in the perishable food industry.
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 slower Q1. As a group, revenues beat analysts’ consensus estimates by 3.4%.
Thankfully, share prices of the companies have been resilient as they are up 7.5% on average since the latest earnings results.
Freshpet (NASDAQ: FRPT)
Standing out from typical processed pet foods, Freshpet (NASDAQ: FRPT) is a pet food company whose product portfolio includes natural meals and treats for dogs and cats.
Freshpet reported revenues of $263.2 million, up 17.6% year on year. This print exceeded analysts’ expectations by 1.4%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ adjusted operating income estimates but full-year revenue guidance missing analysts’ expectations significantly.
“Despite the recent macro-economic headwinds, we believe Freshpet remains a structurally advantaged business with a long runway for growth in a category with long-term tailwinds. However, our growth year-to-date has not been as robust as we had anticipated so we are adapting our growth plans to the current economic challenges that our consumers are facing while continuing to drive the operational improvements that are essential to our long-term success,” commented Billy Cyr, Freshpet’s Chief Executive Officer.
Freshpet delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 1.8% since reporting and currently trades at $75.
Is now the time to buy Freshpet? Access our full analysis of the earnings results here, it’s free.
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 $380.3 million, up 27.8% year on year, outperforming analysts’ expectations by 28.4%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Mission Produce scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 18.3% since reporting. It currently trades at $12.47.
Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Beyond Meat (NASDAQ: BYND)
A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQ: BYND) is a food company specializing in alternatives to traditional meat products.
Beyond Meat reported revenues of $68.73 million, down 9.1% year on year, falling short of analysts’ expectations by 8.3%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Beyond Meat delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 67% since the results and currently trades at $4.26.
Read our full analysis of Beyond Meat’s results here.
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 $1.10 billion, flat year on year. This print missed analysts’ expectations by 1.8%. Overall, it was a softer quarter as it also produced a significant miss of analysts’ EBITDA estimates and a miss of analysts’ gross margin estimates.
The stock is up 2.6% since reporting and currently trades at $35.69.
Read our full, actionable report on Fresh Del Monte Produce here, it’s free.
Tyson Foods (NYSE: TSN)
Started as a simple trucking business, Tyson Foods (NYSE: TSN) is one of the world’s largest producers of chicken, beef, and pork.
Tyson Foods reported revenues of $13.07 billion, flat year on year. This number came in 0.7% below analysts' expectations. Aside from that, it was a strong quarter as it put up a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
The stock is down 10.5% since reporting and currently trades at $54.43.
Read our full, actionable report on Tyson Foods here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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