Shelf-Stable Food Stocks Q3 Teardown: Hershey (NYSE:HSY) Vs The Rest

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the shelf-stable food industry, including Hershey (NYSE:HSY) 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 Q3. As a group, revenues beat analysts’ consensus estimates by 0.9%.

While some shelf-stable food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.4% since the latest earnings results.

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 $3.18 billion, up 6.5% year on year. This print exceeded analysts’ expectations by 2.2%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ organic revenue estimates.

"Third quarter results surpassed expectations, as strong innovation, strategic brand investments, and market leading execution drove momentum across business segments," said Kirk Tanner, The Hershey Company President and Chief Executive Officer.

Interestingly, the stock is up 5.4% since reporting and currently trades at $184.66.

Is now the time to buy Hershey? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: 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 $410.2 million, down 3.9% year on year, in line with analysts’ expectations. The business had a very strong quarter with a solid beat of analysts’ EBITDA and EPS estimates.

The market seems happy with the results as the stock is up 9.1% since reporting. It currently trades at $90.67.

Is now the time to buy J&J Snack Foods? Access our full analysis of the earnings results here, it’s free for active Edge members.

Slowest Q3: 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 $841.9 million, down 1.5% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and gross margin estimates.

Interestingly, the stock is up 24% since the results and currently trades at $23.62.

Read our full analysis of TreeHouse Foods’s results here.

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 $3.19 billion, up 1.5% year on year. This print lagged analysts' expectations by 2%. Taking a step back, it was a satisfactory quarter as it also produced an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ revenue estimates.

Hormel Foods had the weakest performance against analyst estimates among its peers. The stock is up 3.7% since reporting and currently trades at $24.30.

Read our full, actionable report on Hormel Foods here, it’s free for active Edge members.

BellRing Brands (NYSE:BRBR)

Spun out of Post Holdings in 2019, Bellring Brands (NYSE:BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands.

BellRing Brands reported revenues of $648.2 million, up 16.6% year on year. This result surpassed analysts’ expectations by 2.3%. However, it was a slower quarter as it logged full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ gross margin estimates.

BellRing Brands achieved the fastest revenue growth among its peers. The stock is up 17.6% since reporting and currently trades at $30.13.

Read our full, actionable report on BellRing Brands here, it’s free for active Edge members.

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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