Frozen Food Gains Momentum: Is NOMD Poised to Lead the Pack?

Frozen foods have been gaining rapid traction nowadays due to their convenience, durability and availability of healthier choices. Nomad Foods Limited NOMD commands a dominant position in the savory frozen food space. Led by a solid portfolio of iconic brands, the company offers a diverse lineup of frozen foods, ranging from fish and meat to veggies, desserts and ready meals.

Fast-paced lives with hectic schedules, dynamic consumer preferences and value consciousness have further intensified the need for frozen ready-to-eat solutions. As such, NOMD is leaving no stone unturned in acquiring a leadership position in the frozen aisle and becoming consumers’ frozen favorite. NOMD has adopted a multi-pronged approach, with product launches, market expansion, sustainability efforts and prudent buyouts.

Innovation remains a cornerstone of NOMD’s strategy, reinforcing its commitment to superior tasting and appetizing offerings. Nomad Foods’ acquisition of Fortenova Group's Frozen Food Business Group has strengthened its foothold in the European frozen food space by adding renowned brands like Ledo and Frikom. Its buyout of Findus Switzerland has enhanced NOMD’s geographic reach into Switzerland, with a natural extension for the Findus products and brand family, with an entry for Green Cuisine. Other acquisitions like Goodfella's and Aunt Bessie's Limited further bolstered the company’s position in the frozen food space.

In its first-quarter 2025 earnings call, management cited that the frozen category has outpaced the overall food industry by almost one percentage point over the last decade, positioning itself nearer to market leadership. Trends such as convenience, sustainability, value and taste have been bolstering growth in NOMD’s frozen category.

Management further expressed its confidence in the frozen category’s long-term potential. Hence, Nomad Foods is strategically positioned to leverage the evolving market trends and cater to consumers' growing nutritional needs.

NOMD’s Competition in the Frozen Food Dominance

Conagra Brands, Inc. CAG and Tyson Foods, Inc. TSN are the major companies competing with Nomad Foods in the frozen food space.

Like NOMD, Conagra is focused on accomplishing a significant presence in the frozen food industry. It offers a vast range of frozen foods spanning vegetables, meals and plant-based alternatives. Innovation plays a vital role in Conagra’s portfolio, seeking to deliver taste across iconic and emerging brands. Net sales for the Refrigerated & Frozen segment were $1.1 billion in third-quarter fiscal 2025. Success in the frozen space demonstrates Conagra’s commitment to innovation and supply-chain modernization.

Tyson Foods emphasizes increasing presence in the frozen aisle. It offers a broader lineup of fresh, value-added, frozen and refrigerated products. TSN’s Prepared Foods unit includes manufacturing frozen and refrigerated food products, like pepperoni, pizza crusts, ready-to-eat sandwiches, tortilla products, appetizers, soups, sauces, side dishes, meat dishes and processed meats. In second-quarter fiscal 2025, Prepared Foods segment sales were $2.4 billion. Tyson Foods is likely to capitalize on the growing trends in the frozen food arena.

NOMD’s Price Performance, Valuation and Estimates

Nomad Foods’ shares have gained 5.5% year to date against the industry’s 2.2% dip.

From a valuation standpoint, NOMD trades at a forward price-to-earnings ratio of 8.11X compared with the industry’s average of 15.98X.

The Zacks Consensus Estimate for NOMD’s 2025 and 2026 EPS indicates year-over-year growth of 7.3% and 8.7%, respectively. The company’s EPS estimates for 2025 and 2026 have moved southward in the past 30 days.

Nomad Foods currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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