Shelf-Stable Food Stocks Q2 Results: Benchmarking Hormel Foods (NYSE:HRL)

As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the shelf-stable food industry, including Hormel Foods (NYSE:HRL) 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 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 3.6% since the latest earnings results.

Hormel Foods (NYSE:HRL)

Best known for its SPAM brand, Hormel (NYSE:HRL) is a packaged foods company with products that span meat, poultry, shelf-stable foods, and spreads.

Hormel Foods reported revenues of $3.03 billion, up 4.6% year on year. This print exceeded analysts’ expectations by 1.7%. Despite the top-line beat, it was still a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates.

"I am honored to rejoin this great company and partner with John Ghingo and the entire leadership team to focus on restoring profitable growth," said Jeff Ettinger, interim chief executive officer.

Unsurprisingly, the stock is down 13% since reporting and currently trades at $25.24.

Read our full report on Hormel Foods 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 an impressive beat of analysts’ EBITDA and 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 $185.50.

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.

Conagra delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 5.5% since the results and currently trades at $19.24.

Read our full analysis of Conagra’s results here.

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 $454.3 million, up 3.3% year on year. This number topped analysts’ expectations by 2%. Overall, it was a very strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is down 8.9% since reporting and currently trades at $105.

Read our full, actionable report on J&J Snack Foods here, it’s free.

Post (NYSE:POST)

Founded in 1895, Post (NYSE:POST) is a packaged food company known for its namesake breakfast cereal and healthier-for-you snacks.

Post reported revenues of $1.98 billion, up 1.9% year on year. This print beat analysts’ expectations by 1.9%. It was a strong quarter as it also put up a beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates.

The stock is up 2% since reporting and currently trades at $104.98.

Read our full, actionable report on Post here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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