Let’s dig into the relative performance of Beyond Meat (NASDAQ:BYND) and its peers as we unravel the now-completed Q3 perishable food earnings season.
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 10 perishable food stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 8.2%.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
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 $81.01 million, up 7.6% year on year. This print exceeded analysts’ expectations by 1%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ EBITDA estimates but full-year revenue guidance meeting analysts’ expectations.
Beyond Meat President and CEO Ethan Brown commented, “We are pleased to report that in the third quarter we returned to growth, increasing net revenues on a year-over-year basis, while continuing to expand gross margin and reduce operating expenses on both a sequential and year-over-year basis. Looking ahead, we expect to increase our cash reserves by year-end and pursue further balance sheet restructuring in 2025.”
Beyond Meat delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 42.9% since reporting and currently trades at $3.76.
Is now the time to buy Beyond Meat? Access our full analysis of the earnings results here, it’s free.
Best Q3: Mission Produce (NASDAQ:AVO)
Founded in 1983 in California, Mission Produce (NASDAQ:AVO) grows, packages, and distributes avocados.
Mission Produce reported revenues of $354.4 million, up 37.4% year on year, outperforming analysts’ expectations by 63.5%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ gross margin estimates.
Mission Produce scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 17% since reporting. It currently trades at $14.41.
Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it’s free.
Weakest 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 $785.9 million, up 71.1% year on year, exceeding analysts’ expectations by 11.5%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS and adjusted operating income estimates.
Interestingly, the stock is up 35.3% since the results and currently trades at $104.
Read our full analysis of Cal-Maine’s results here.
Dole (NYSE:DOLE)
Known for its delicious pineapples and Hawaiian roots, Dole (NYSE:DOLE) is a global agricultural company specializing in fresh fruits and vegetables.
Dole reported revenues of $2.06 billion, flat year on year. This print beat analysts’ expectations by 3.2%. However, it was a slower quarter as it logged a miss of analysts’ EPS estimates.
The stock is down 19.3% since reporting and currently trades at $13.54.
Read our full, actionable report on Dole here, it’s free.
Tyson Foods (NYSE:TSN)
Started as a simple trucking business, Tyson Foods (NYSE:TSN) is one of the world’s largest producers of chicken, beef, and pork.
Tyson Foods reported revenues of $13.57 billion, up 1.6% year on year. This number surpassed analysts’ expectations by 1%. It was an exceptional quarter as it also produced an impressive beat of analysts’ gross margin estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is down 2.5% since reporting and currently trades at $57.37.
Read our full, actionable report on Tyson Foods here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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