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Q3 Earnings Outperformers: J&J Snack Foods (NASDAQ:JJSF) And The Rest Of The Packaged Food Stocks

StockStory - Wed Jan 24, 4:29AM CST

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Let's dig into the relative performance of J&J Snack Foods (NASDAQ:JJSF) and its peers as we unravel the now-completed Q3 packaged food earnings season.

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, prepared meals, 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 29 packaged food stocks we track reported a slower Q3; on average, revenues missed analyst consensus estimates by 2.2% while next quarter's revenue guidance was 10.9% below consensus. Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, but packaged food stocks held their ground better than others, with the share prices up 9.8% on average since the previous earnings results.

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 $443.9 million, up 10.8% year on year, topping analyst expectations by 5.4%. It was a mixed quarter for the company, with an impressive beat of analysts' revenue estimates but a miss of analysts' earnings estimates.

Dan Fachner, J&J Snack Foods President and CEO, commented, “J&J Snack Foods ended fiscal 2023 on a strong note, including record sales and profitability for both the fourth quarter and full year. We achieved these results through the dedicated efforts of our J&J employees across the business, as well as the positive impact of various operational and strategic initiatives we have undertaken over the past two years. Fiscal fourth quarter net sales increased to a record $443.9 million, driven by Food Services sales growth of 5.3%, Retail segment sales growth of 21.2% and Frozen Beverages sales growth of 20.6%. In addition, our work to improve profit margins continues to gain momentum led by a 32.8% gross margin in the quarter and lower distribution expenses. Operating income and adjusted EBITDA increased 93.0% and 55.2%, respectively, for the fourth quarter and 77.2% and 46.3%, respectively for fiscal 2023.

J&J Snack Foods Total Revenue

J&J Snack Foods achieved the biggest analyst estimates beat of the whole group. The stock is up 1.5% since the results and currently trades at $162.85.

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

Best Q3: Lamb Weston (NYSE:LW)

Best known for its Grown in Idaho brand, Lamb Weston (NYSE:LW) produces and distributes potato products such as frozen french fries and mashed potatoes.

Lamb Weston reported revenues of $1.73 billion, up 35.7% year on year, outperforming analyst expectations by 1.9%. It was a decent quarter for the company, with a beat of analysts' revenue estimates. Looking forward, while revenue guidance was maintained from the previous outlook, EPS guidance was raised.

Lamb Weston Total Revenue

Lamb Weston scored the fastest revenue growth among its peers. The stock is up 4.4% since the results and currently trades at $109.56.

Is now the time to buy Lamb Weston? Access our full analysis of the earnings results here, it's free.

Slowest Q3: Cal-Maine (NASDAQ:CALM)

Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ:CALM) produces, packages, and distributes eggs.

Cal-Maine reported revenues of $523.2 million, down 34.7% year on year, falling short of analyst expectations by 0.4%. It was a weak quarter for the company, with a miss of analysts' revenue and EPS estimates.

Cal-Maine had the slowest revenue growth in the group. The stock is up 0% since the results and currently trades at $54.9.

Read our full analysis of Cal-Maine's results here.

Post (NYSE:POST)

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

Post reported revenues of $1.95 billion, up 23.2% year on year, in line with analyst expectations. It was a mixed quarter for the company, with EPS slightly topping analysts' expectations. On the other hand, its operating margin and adjusted EBITDA missed analysts' expectations and it continued to show declines in its sales volumes.

The stock is up 8.5% since the results and currently trades at $92.58.

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

Tyson Foods (NYSE:TSN)

Started as a simple trucking business, Tyson Foods (NYSE:TSN) today is one of the world’s largest producers of chicken, beef, and pork.

Tyson Foods reported revenues of $13.35 billion, down 2.8% year on year, falling short of analyst expectations by 2.7%. It was a weak quarter for the company, with a miss of analysts' gross margin estimates.

The stock is up 13.7% since the results and currently trades at $53.35.

Read our full, actionable report on Tyson Foods here, it's free.

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The author has no position in any of the stocks mentioned

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