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Q4 Earnings Highlights: Kraft Heinz (NASDAQ:KHC) Vs The Rest Of The Shelf-Stable Food Stocks

Q4 Earnings Highlights: Kraft Heinz (NASDAQ:KHC) Vs The Rest Of The Shelf-Stable Food Stocks

Globe and Mail31-03-2025

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 Kraft Heinz (NASDAQ:KHC) and the best and worst performers in the shelf-stable food industry.
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 21 shelf-stable food stocks we track reported a slower Q4. As a group, revenues missed analysts' consensus estimates by 0.5% while next quarter's revenue guidance was 0.5% above.
While some shelf-stable food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.4% since the latest earnings results.
Kraft Heinz (NASDAQ:KHC)
The result of a 2015 mega-merger between Kraft and Heinz, Kraft Heinz (NASDAQ:KHC) is a packaged foods giant whose products span coffee to cheese to packaged meat.
Kraft Heinz reported revenues of $6.58 billion, down 4.1% year on year. This print fell short of analysts' expectations by 1.3%. Overall, it was a slower quarter for the company with full-year EPS guidance missing analysts' expectations.
'Although 2024 was a challenging year with our top line results coming in below our expectations, we remained disciplined in protecting profitability while driving industry-leading margins, generating strong cash flow, and returning $2.7 billion in capital to stockholders,' said Kraft Heinz CEO Carlos Abrams-Rivera.
The stock is up 2.4% since reporting and currently trades at $30.33.
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Known for its frozen garlic bread and Parkerhouse rolls, Lancaster Colony (NASDAQ:LANC) sells bread, dressing, and dips to the retail and food service channels.
Lancaster Colony reported revenues of $509.3 million, up 4.8% year on year, outperforming analysts' expectations by 2.8%. The business had a very strong quarter with a solid beat of analysts' EBITDA estimates.
Lancaster Colony scored the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 4.6% since reporting. It currently trades at $174.10.
Is now the time to buy Lancaster Colony? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $1.60 billion, down 7.6% year on year, falling short of analysts' expectations by 4.3%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts' expectations.
Lamb Weston delivered the weakest full-year guidance update in the group. As expected, the stock is down 31% since the results and currently trades at $53.90.
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 $1.97 billion, flat year on year. This print met analysts' expectations. More broadly, it was a mixed quarter as it also produced a decent beat of analysts' EPS estimates but a miss of analysts' EBITDA estimates.
The stock is up 8.6% since reporting and currently trades at $114.96.
Read our full, actionable report on Post here, it's free.
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 $2.89 billion, up 8.7% year on year. This number surpassed analysts' expectations by 1.6%. It was a very strong quarter as it also put up an impressive beat of analysts' gross margin and EBITDA estimates.
The stock is up 17% since reporting and currently trades at $170.75.
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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