As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the shelf-stable food industry, including Hormel Foods (NYSE: HRL) and its peers.

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 mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.8%.

While some shelf-stable food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.1% since the latest earnings results.

Hormel Foods (NYSE: HRL)

Best known for its SPAM brand, Hormel (NYSE: HRL) is a packaged foods company with products that span meat, poultry, shelf-stable foods, and spreads.

Hormel Foods reported revenues of $3.19 billion, up 1.5% year on year. This print fell short of analysts’ expectations by 2%, but it was still a satisfactory quarter for the company with a solid beat of analysts’ EBITDA estimates but a miss of analysts’ revenue estimates.

Hormel Foods delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 1.5% since reporting and currently trades at $23.77.

Is now the time to buy Hormel Foods? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: 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 $410.2 million, down 3.9% year on year, in line with analysts’ expectations. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 11.7% since reporting. It currently trades at $92.80.

Is now the time to buy J&J Snack Foods? Access our full analysis of the earnings results here, it’s free for active Edge members.

Slowest Q3: TreeHouse Foods (NYSE: THS)

Whether it be packaged crackers, broths, or beverages, Treehouse Foods (NYSE: THS) produces a wide range of private-label foods for grocery and food service customers.

TreeHouse Foods reported revenues of $841.9 million, down 1.5% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ gross margin estimates.

Interestingly, the stock is up 24.8% since the results and currently trades at $23.78.

Read our full analysis of TreeHouse Foods’s results here.

Campbell's (NASDAQ: CPB)

With its iconic canned soup as its cornerstone product, Campbell's (NASDAQ: CPB) is a packaged food company with an illustrious portfolio of brands.

Campbell's reported revenues of $2.68 billion, down 3.4% year on year. This print beat analysts’ expectations by 0.9%. Taking a step back, it was a satisfactory quarter as it also produced a narrow beat of analysts’ organic revenue estimates but a slight miss of analysts’ gross margin estimates.

The stock is down 5.7% since reporting and currently trades at $28.33.

Read our full, actionable report on Campbell's here, it’s free for active Edge members.

B&G Foods (NYSE: BGS)

Started as a small grocery store in New York City, B&G Foods (NYSE: BGS) is an American packaged foods company with a diverse portfolio of more than 50 brands.

B&G Foods reported revenues of $439.3 million, down 4.7% year on year. This number was in line with analysts’ expectations. Overall, it was a strong quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is up 21.7% since reporting and currently trades at $4.83.

Read our full, actionable report on B&G Foods here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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