The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how perishable food stocks fared in Q2, starting with Vital Farms (NASDAQ: VITL).
The perishable food industry is diverse, encompassing large-scale producers and distributors to specialty and artisanal brands. These companies sell produce, dairy products, meats, and baked goods and have become integral to serving modern American consumers who prioritize freshness, quality, and nutritional value. Investing in perishable food stocks presents both opportunities and challenges. While the perishable nature of products can introduce risks related to supply chain management and shelf life, it also creates a constant demand driven by the necessity for fresh food. Companies that can efficiently manage inventory, distribution, and quality control are well-positioned to thrive in this competitive market. Navigating the perishable food industry requires adherence to strict food safety standards, regulations, and labeling requirements.
The 11 perishable food stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.7% while next quarter’s revenue guidance was 2.7% above.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.7% since the latest earnings results.
Vital Farms (NASDAQ: VITL)
With an emphasis on ethically produced products, Vital Farms (NASDAQ: VITL) specializes in pasture-raised eggs and butter.
Vital Farms reported revenues of $184.8 million, up 25.4% year on year. This print exceeded analysts’ expectations by 8%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
"We delivered second quarter results that exceeded our initial expectations, demonstrating the overall strength of our business model and expanding year-over-year consumer awareness of our strong brand," said Russell Diez-Canseco, Vital Farms' President and Chief Executive Officer.
Vital Farms achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 12.4% since reporting and currently trades at $41.94.
Best Q2: Mission Produce (NASDAQ: AVO)
Founded in 1983 in California, Mission Produce (NASDAQ: AVO) grows, packages, and distributes avocados.
Mission Produce reported revenues of $357.7 million, up 10.4% year on year, outperforming analysts’ expectations by 11.7%. The business had an incredible quarter with a beat of analysts’ EPS and gross margin estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.4% since reporting. It currently trades at $11.92.
Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Beyond Meat (NASDAQ: BYND)
A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQ: BYND) is a food company specializing in alternatives to traditional meat products.
Beyond Meat reported revenues of $74.96 million, down 19.6% year on year, falling short of analysts’ expectations by 8.6%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA and gross margin estimates.
Beyond Meat delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 40.2% since the results and currently trades at $1.75.
Read our full analysis of Beyond Meat’s results here.
Fresh Del Monte Produce (NYSE: FDP)
Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE: FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.
Fresh Del Monte Produce reported revenues of $1.18 billion, up 3.8% year on year. This print beat analysts’ expectations by 2.2%. It was an exceptional quarter as it also produced a solid beat of analysts’ EBITDA and EPS estimates.
The stock is down 4.7% since reporting and currently trades at $34.36.
Read our full, actionable report on Fresh Del Monte Produce here, it’s free.
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 $1.10 billion, up 72.2% year on year. This result topped analysts’ expectations by 21.3%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates.
Cal-Maine delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 8.3% since reporting and currently trades at $96.23.
Read our full, actionable report on Cal-Maine here, it’s free.
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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