Core Insights - Hormel Foods Corporation's shares rose 3% intra-day following the release of fourth-quarter earnings that met expectations and a positive fiscal 2026 outlook, which mitigated concerns over significant impairment charges [1] Financial Performance - The company reported fourth-quarter adjusted earnings of $0.32 per share, aligning with analyst forecasts, while revenue increased by 1.5% year over year to $3.2 billion, slightly below the consensus estimate of $3.24 billion [2] - On a GAAP basis, Hormel recorded a quarterly loss of $0.10 per share, primarily due to $234 million in non-cash impairment charges related to a minority investment in its International segment and certain intangible assets in the Retail segment [2] Future Outlook - Hormel projected fiscal 2026 earnings between $1.43 and $1.51 per share, with revenue expectations of $12.2 billion to $12.5 billion, surpassing analyst expectations of $1.37 per share [3] Segment Performance - Organic net sales in the fourth quarter rose by 2%, with the Foodservice segment achieving notable organic growth of 6.5% [4] - However, adjusted segment profit declined across all divisions, with the Retail segment profit decreasing by 23% despite a 1% increase in sales, indicating ongoing margin pressures in that sector [4]

Core Insights - Hormel Foods Corporation reported earnings per share (EPS) of $0.32, exceeding estimates of $0.30, but down from $0.42 in the same quarter last year, indicating a need for further analysis of year-over-year performance and analyst estimates [2][6] - The company's revenue for the quarter ending October 2025 was approximately $3.19 billion, slightly below the estimated $3.22 billion, but representing a 1.5% increase from the previous year, showing resilience in a competitive market [3][6] - Strategic cost-cutting measures, increased pricing, and steady demand for turkey products are expected to drive future profits, helping to offset high input costs associated with beef and pork [4][6] Financial Metrics - Hormel's price-to-earnings (P/E) ratio is approximately 27.47, indicating investors are willing to pay $27.47 for each dollar of earnings [5] - The price-to-sales ratio is about 1.08, and the enterprise value to sales ratio is around 1.03, reflecting the company's valuation relative to its sales [5] - The current ratio of 2.47 indicates a strong ability to cover short-term liabilities with short-term assets [5]

Core Insights - General Mills, Inc. (GIS) is a large-cap stock with a market capitalization of $24.6 billion, specializing in branded consumer foods [1][2] - The company has a strong portfolio of iconic brands, such as Cheerios and Nature Valley, which contribute to its premium pricing power and consumer loyalty [2] - GIS has experienced a significant decline in stock performance, dropping 31.5% from its 52-week high of $67.40 [3][4] Financial Performance - In Q1, GIS reported an adjusted EPS of $0.86, exceeding Wall Street's expectations of $0.81, and revenue of $4.52 billion, surpassing the forecast of $4.50 billion [6] - Over the past six months, GIS shares have fallen 14.9%, and over the past 52 weeks, they have decreased by 30.3%, underperforming the First Trust Nasdaq Food & Beverage ETF (FTXG) [4][5] Market Challenges - GIS is facing challenges such as declining sales, government scrutiny of pricing, and a shift in consumer preferences towards private-label products [5] - Sales are projected to decline by 3.3% over the next 12 months, primarily due to falling volumes in core categories like cereals and snacks [5] - Competitor Kellanova (K) has shown resilience, with a 1.6% increase over the past six months and 3.2% gains over the last year, outperforming GIS [6]

Core Insights - Thompson, Siegel, and Walmsley (TSW) has increased its stake in Conagra Brands, making it the 7th-largest holding in their portfolio, with a total position of 5,269,532 shares valued at $96.48 million as of the end of the third quarter [1][2]. Company Overview - Conagra Brands is a leading North American packaged foods company with a diversified product lineup and strong brand portfolio [6]. - The company reported a trailing twelve months (TTM) revenue of $11.45 billion and a net income of $850.10 million, with a dividend yield of 8.13% [4]. Recent Performance - As of December 1, 2025, Conagra Brands shares were priced at $17.22, reflecting a 33% decline over the prior year and underperforming the S&P 500 by 49 percentage points [3]. - The stock is currently trading at 0.7 times sales, the lowest since 2015, and at 7 times free cash flow, close to its lowest in the last two decades [11]. Investment Rationale - TSW's investment in Conagra aligns with a value investing strategy, as the company is seen as stable despite declining sales growth rates and challenges from GLP-1 medicines impacting food companies [10]. - The company holds $7.5 billion in long-term debt against a market capitalization of $8.2 billion, necessitating continued debt repayment to ensure the safety of its high-yield dividend and overall company longevity [12]. Product Portfolio - Conagra offers a broad portfolio of branded packaged foods, including frozen meals, snacks, and shelf-stable grocery products under well-known brands such as Birds Eye, Duncan Hines, Healthy Choice, and Slim Jim [9]. - The company generates revenue primarily through the manufacturing and distribution of consumer food products across various channels, leveraging scale and brand recognition [9].

Startups are eating big foods lunch. Americans are still spending on packaged snacks, but they're buying less from legacy brands like General Mills and Craft Hinds. Small startups make up less than 2% of the packaged foods market, but they drove more than a third of that whole sector's sales growth in 2024.Take the meatstick, one of the fastest growing products in food. You're probably most familiar with the traditional Slim Gym, but companies like Chomps are taking a bite out of its business. Chomps, which ...

Core Points - Post Holdings, Inc. has announced a new share repurchase authorization of $500 million, effective from November 27, 2025 [1] - As of November 25, 2025, the company had repurchased approximately $275.2 million under its previous $500 million authorization, which was effective from August 29, 2025, and canceled on November 26, 2025 [1] Share Repurchase Details - Repurchases may occur in various forms, including open market transactions, private purchases, and other methods, with repurchased shares held as treasury stock [2] - The new authorization does not obligate the company to acquire a specific number of shares and allows for suspension or termination at the company's discretion [2] Company Overview - Post Holdings, Inc. is a consumer packaged goods holding company based in St. Louis, Missouri, with operations in various food categories [3] - The company's brands include Post Consumer Brands, Weetabix, Michael Foods, and Bob Evans Farms, with a strong presence in ready-to-eat cereals, refrigerated foods, and pet food [3]

As American shoppers buy less packaged foods, Big Food has leaned on a familiar excuse: It’s the economy, stupid. ⁠That explanation misses a crucial shift. Middle- and high-income Americans are still splurging, just not on legacy labels. 🔗 https://t.co/oUW1DPFCe1 https://t.co/IyNILoZJ05 ...

Core Points - Smithfield Foods, in collaboration with the University of Virginia and Virginia Tech, donated 62,000 pounds of protein to support local food banks addressing food insecurity in Virginia [1] - The Commonwealth Clash, a long-standing sports rivalry, has evolved into a community initiative that encourages food drives and donations to combat hunger [2] - The Blue Ridge Area Food Bank serves over 170,000 individuals monthly, while Feeding Southwest Virginia distributes over 21 million pounds of food annually [4][7] - Smithfield's hunger relief program, Helping Hungry Homes, has provided hundreds of millions of servings of protein since 2008, with significant contributions in 2024 alone [9] - Smithfield has donated a total of 350,000 pounds of protein since the inception of its partnership with local food banks in 2021 [8] Company Overview - Smithfield Foods is a leading American food company specializing in packaged meats and fresh pork products, with a commitment to quality and community support [11] - The company emphasizes its role in providing high-quality meat products while also engaging in initiatives to reduce hunger and support local communities [10] Food Bank Operations - The Blue Ridge Area Food Bank is the largest hunger relief organization in Western and Central Virginia, operating through a network of community partners [4][12] - Feeding Southwest Virginia serves 26 counties and nine cities, focusing on nourishing families and individuals facing food insecurity [7][13]

Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund returned 7.46% compared to a 12.60% return for the Russell 2000 Value Index. In the first three quarters of 2025, the Fund returned 13.77%, compared to 9.04% for the index. As the firm’s focus is on a diligent, disciplined, and patient process, it expects the fund to outperform in dow ...

Group 1 - Post Holdings is adopting a nuanced approach to mergers and acquisitions (M&A) to balance opportunities with share buybacks amid declining volumes across its consumer brands, pet food, breakfast cereal, and refrigerated products [1] - The foodservice division of Post Holdings is experiencing growth, contrasting with the overall decline in volumes [1] - CEO Rob Vitale indicated that out-of-home volumes will be supported in fiscal 2026 by the company's highest value products, which are expected to generate significant cash flow for both organic and inorganic growth opportunities [2] Group 2 - In response to a challenging volume landscape in retail products, Post Holdings plans to focus on cost reduction and profitable brand investments while continuing to explore M&A opportunities [3] - Vitale highlighted that the cost of capital has changed dramatically, suggesting a potential inflection point that may increase pressure on the company [4] - The company is shifting its strategy from merely using M&A for growth to a more thoughtful approach that emphasizes quality and innovation rather than just size [5] Group 3 - Vitale disagreed with the notion that Post's portfolio is primarily built around value, asserting that it is centered on choice with a variety of price points [6] - The company aims to innovate towards higher or middle-income consumers, particularly in response to trends affecting lower and middle-income households [6] - Post Holdings plans to capitalize on the rising trend around protein in products like cereals and granola, which are growing faster than other categories [6]