Financial Data and Key Metrics Changes - First quarter net sales increased by $5 million, including a $24 million favorable impact from foreign currency translation, but declined 1% on a constant currency basis [15] - Volume increased by 6%, driven by customer wins and retention, primarily in North America and Asia [15] - Adjusted EBITDA was essentially flat at $302 million, with the favorable impact from currency translation offset by higher local currency expenses [21] Business Line Data and Key Metrics Changes - North America net sales declined 2% compared to the prior year, primarily due to lower net selling prices, with price/mix declining 7% and volume increasing 5% [17] - International segment net sales increased 4%, including a favorable $24 million impact from foreign currency translation, with volume growing 6% and price/mix declining 6% [17] - Adjusted EBITDA in North America declined 6% to $260 million, while international segment adjusted EBITDA increased by $6 million to $57 million [22] Market Data and Key Metrics Changes - Restaurant traffic in the U.S. was flat, with QSR hamburger traffic down low single digits, while QSR chicken traffic was up [16][78] - Internationally, traffic was mixed, with the U.K. down 4% but other markets like France and Germany showing slight increases [78] Company Strategy and Development Direction - The company is executing its new strategic plan, "Focus to Win," aiming for profitable growth through category-leading innovation and customer-centric actions [4][5] - The company is prioritizing specific markets and products where it has a sustainable competitive advantage [7] - New innovative products are set to launch in the fall, including flavor-forward offerings and artisanal fries [11] Management's Comments on Operating Environment and Future Outlook - Management noted positive customer momentum and strong volume growth, with expectations for continued growth in both segments [4][26] - The company anticipates challenges in price/mix due to strong crop yields and competitive actions, particularly in Latin America [18][26] - Management reaffirmed its fiscal 2026 outlook, expecting revenue in the range of $6.35 billion to $6.55 billion [25][26] Other Important Information - The company ended the quarter with approximately $1.4 billion of liquidity and generated $352 million of cash from operations [23] - Capital expenditures for the quarter declined to $79 million, with expectations of approximately $500 million for fiscal 2026 [24] Q&A Session Summary Question: Restarting a curtailed production line and industry capacity - Management indicated the restart was necessary to meet demand signals and maintain customer fill rates, noting that some announced industry capacity may be delayed or canceled [36][37] Question: Price/mix expectations for the first half of the fiscal year - Management expects a mid to high single-digit decrease in price/mix for the first half, moderating in the back half of the year [39] Question: Gross margin commentary and seasonal increases - Management confirmed that the North America segment will see a seasonal increase, but input cost inflation will also impact margins [45] Question: Tariff exposure and guidance - Most tariff exposure relates to imports of palm oil, with an expected annualized impact of about $25 million [47] Question: Customer wins and profitability - Management refrained from discussing specific profitability on new customers but emphasized that pricing aligns with expectations [100] Question: Capital expenditures outlook - Management indicated that the $500 million capital expenditure plan is in line with expectations for maintenance and environmental projects [101]

Financial Data and Key Metrics Changes - First quarter net sales increased by $5 million, including a $24 million favorable impact from foreign currency translation, but declined 1% on a constant currency basis [15] - Volume increased by 6%, driven by customer wins and retention, primarily in North America and Asia [15] - Adjusted EBITDA was essentially flat at $302 million, with the favorable impact from currency translation offset by higher local currency expenses [21] Business Line Data and Key Metrics Changes - North America net sales declined 2% compared to the prior year, primarily due to lower net selling prices, with price/mix declining 7% and volume increasing 5% [17] - International segment net sales increased 4%, including a favorable $24 million impact from foreign currency translation, with volume growing 6% and price/mix declining 6% [17] Market Data and Key Metrics Changes - Restaurant traffic in the U.S. was flat, with QSR hamburger traffic down low single digits, while QSR chicken traffic was up [16][78] - Internationally, traffic was mixed, with the U.K. down 4% but other markets like France and Germany showing slight increases [78] Company Strategy and Development Direction - The company is executing its new strategic plan, "Focus to Win," aiming for profitable growth through category-leading innovation and customer-centric actions [4][5] - The company is prioritizing specific markets and products where it has a sustainable competitive advantage [7] Management's Comments on Operating Environment and Future Outlook - Management noted that the industry is rational regarding capacity, with some announced capacity not moving forward as planned [36] - The company expects continued pressure on price/mix due to a strong crop and competitive actions, particularly in Latin America [18] Other Important Information - The company is on track to achieve at least $250 million of annual run-rate savings by fiscal year-end 2028 [5] - Capital expenditures for the quarter declined to $79 million, with expectations of approximately $500 million for fiscal 2026 [24] Q&A Session Summary Question: Restarting a curtailed production line and supply-demand imbalance - Management indicated the restart was necessary to meet demand signals and maintain customer fill rates, noting that not all new capacity announcements will proceed as planned [36][37] Question: Price/mix expectations for the first fiscal half - Management expects a mid to high single-digit decrease in price/mix for the first half, moderating to low to mid in the back half of the year [39] Question: Gross margin commentary for North America - Management confirmed a seasonal increase in North America, with input cost inflation expected to rise in Q2 but benefits from lower potato prices also anticipated [45] Question: Tariff exposure - Most tariff exposure relates to imports of palm oil and other ingredients, with an annualized expectation of about $25 million [47] Question: New customer wins and profitability - Management refrained from discussing specific profitability on new customers but emphasized that pricing aligns with the P&L moving forward [100] Question: Capital expenditures outlook - Management indicated that the $500 million capital expenditure for the year is in line with expectations for maintenance and environmental projects [101]

Financial Data and Key Metrics Changes - First quarter net sales increased by $5 million, including a $24 million favorable impact from foreign currency translation, but declined 1% on a constant currency basis [13] - Volume increased by 6%, driven by customer wins and retention, primarily in North America and Asia [13] - Adjusted EBITDA was essentially flat at $302 million, with the favorable impact from currency translation offset by higher local currency expenses [19] Business Line Data and Key Metrics Changes - North America net sales declined 2% compared to the prior year, primarily due to lower net selling prices, with price/mix declining 7% and volume increasing 5% [16] - International segment net sales increased 4%, including a favorable $24 million impact from foreign currency translation, with volume growing 6% and price/mix declining 6% [16][20] - Adjusted EBITDA in North America declined 6% to $260 million, while the international segment's adjusted EBITDA increased by $6 million to $57 million [20] Market Data and Key Metrics Changes - Restaurant traffic in the U.S. was flat, with QSR hamburger traffic down low single digits, while QSR chicken traffic was up [14][72] - Internationally, traffic was mixed, with the U.K. down 4% but other markets like France and Germany showing slight increases [15][72] Company Strategy and Development Direction - The company is executing its new strategic plan, "Focus to Win," aimed at driving profitable growth and enhancing customer partnerships [4][7] - The company is prioritizing specific markets and products where it believes it has a sustainable competitive advantage [5] - New innovative products are set to launch in the fall, aligning with customer trends [10] Management's Comments on Operating Environment and Future Outlook - Management noted that while the first quarter results exceeded expectations, the outlook remains cautious due to potential pressures from soft restaurant market demand and increased competition [25][29] - The company expects unfavorable price/mix to continue in the first half of the year, moderating in the second half [25][27] - Management reaffirmed the fiscal 2026 revenue outlook, expecting a range of $6.35 billion to $6.55 billion [24] Other Important Information - The company ended the quarter with approximately $1.4 billion of liquidity and generated $352 million of cash from operations [22] - Capital expenditures for the quarter declined to $79 million, with expectations of approximately $500 million for fiscal 2026 [23] Q&A Session Summary Question: Restarting a curtailed production line and industry capacity - Management indicated the restart was necessary to meet demand signals and maintain customer fill rates, noting that some announced industry capacity may be delayed or canceled [34] Question: Price/mix expectations for the first half of the year - Management expects a mid to high single-digit decrease in price/mix for the first half, moderating in the back half of the year [36] Question: Gross margin commentary for North America - Management confirmed that the increase in gross margin is expected to be seasonal, with input cost inflation anticipated in the second quarter [42] Question: Tariff exposure and guidance - Most tariff exposure relates to imports of palm oil and is expected to be about $25 million annually, with full amounts included in guidance [44] Question: Customer win growth in North America - Management noted that new customer wins have materialized quicker than anticipated, contributing to volume growth [55] Question: Impact of restarting the curtailed line - Management stated that restarting the line would not incur significant costs and is expected to maintain production based on demand signals [63] Question: Phasing of cost savings in fiscal 2026 - Management confirmed that they are on track to deliver the $100 million target for fiscal 2026, with two-thirds of the benefits expected in the back half of the year [67] Question: Drivers of business wins with QSR customers - Management emphasized a renewed focus on service quality and consistency, alongside joint business planning with customers [70]

Group 1: Hormel Foods Corporation Overview - Hormel Foods Corporation is focusing on the multi-year Transform and Modernize (T&M) initiative to enhance long-term profitability, with approximately 90 projects contributing to measurable bottom-line results in the fiscal third quarter [1][8] - The T&M initiative includes modernizing the supply chain and brand renovations, such as the update of Hormel pepperoni to align with consumer tastes [2][8] - Financially, T&M is projected to deliver $100-$150 million in incremental benefits in fiscal 2025, helping to mitigate the impact of rising pork and beef costs [3][8] Group 2: Industry Comparisons - Pilgrim's Pride Corporation reported a 4.3% increase in net sales to $4.76 billion in Q2 2025, driven by strong consumer demand and operational efficiencies [5] - Tyson Foods, Inc. achieved a 4% revenue increase to $13.9 billion in Q3 2025, with notable performance in the Chicken segment, which generated $4.22 billion in sales [6] - Smithfield Foods, Inc. recorded a 20% year-over-year increase in adjusted operating profit to $298 million in Q2 2025, supported by strong demand in Packaged Meats and improved profitability in Fresh Pork and Hog Production [7]

Lamb Weston Holdings Inc. jumped after reporting sales and profit that beat expectations, in part due to improved restaurant foot traffic https://t.co/kFMW8rpiog ...

Financial Performance - Net sales were $1659 million, flat compared to Q1 F25, but down 1% at constant currency[14, 26] - Adjusted diluted EPS was $074, a decrease of 5% compared to Q1 F25[14] - Adjusted EBITDA increased by 1% to $302 million[14, 15] - Free cash flow was $273 million[14] Volume and Pricing - Overall volume increased by 6%[15] - Price/mix decreased by 7% in constant currency[15] - North America volume increased by 5%, while price/mix decreased by 7%[28] - International volume increased by 6%, while price/mix decreased by 6% in constant currency[28] Strategic Initiatives and Outlook - The company is implementing "Focus to Win" program, including a Cost Savings Program[11] - Capital expenditures for FY26 are forecasted to be approximately $500 million[40] - The company reaffirms its fiscal 2026 outlook, with net sales projected between $635 billion and $655 billion, and adjusted EBITDA between $10 billion and $12 billion[11, 47] Cash Flow and Capital Allocation - The company has approximately $99 million in cash and equivalents and $13 billion available under its revolving credit facility[39] - Net debt is approximately $39 billion, with a net debt to adjusted EBITDA leverage ratio of 31x[39] - The company returned $62 million to shareholders, including $52 million in dividends and $10 million in share repurchases[40]

Romanian food business Cris-Tim plans to launch an initial public offering (IPO) on the Bucharest Stock Exchange. The company, which produces cold cut meats and ready meals, said in a statement yesterday (29 September) that the offer will comprise a sale of shares by the majority shareholder alongside newly issued stock. Full terms will be disclosed in a prospectus once approved by the Romanian Financial Supervisory Authority, the group added. Cris-Tim is 99.97% owned by Rangeglow, a Cyprus-based holdin ...

Core Viewpoint - Lamb Weston Holdings, Inc. reaffirms its net sales guidance for fiscal year 2026, projecting net sales between $6.35 billion and $6.55 billion at constant currency, with analysts expecting an average of $6.49 billion [1] Group 1: Financial Guidance - The guidance includes the anticipated impact of enacted tariffs by the U.S. and other governments but excludes potential effects of evolving trade policies, including future changes in tariffs or retaliatory measures [2] - The company is on track to deliver at least $100 million in expected savings and an additional $60 million in working capital improvements by the end of fiscal year 2026, as part of a Cost Savings Program expected to yield at least $250 million in annualized run rate savings by the end of fiscal year 2028 [3] Group 2: Dividend Declaration - The Board of Directors declared a quarterly dividend of $0.37 per share, payable on November 28, 2025, to shareholders of record as of the close of business on October 31, 2025 [4]

Core Viewpoint - Beyond Meat announced a major debt restructuring initiative aimed at eliminating over $800 million in debt, which led to a significant drop in its stock price by more than 36% [1][5]. Debt Restructuring Details - The restructuring includes an exchange offer for $1.15 billion convertible notes due 2027 and involves issuing new 7% convertible notes due 2030 along with up to 326 million common shares [1][3]. - Approximately 47% of noteholders have agreed to the exchange, but the deal requires 85% participation, indicating complexity and uncertainty [4]. - The new debt arrangement features a payment-in-kind option, allowing interest payments to be made with additional debt at a 9.5% annual rate instead of cash, raising concerns about cash flow [4]. Market Reaction - Beyond Meat's stock hit an all-time low of $1.23 during the selloff following the restructuring announcement [2]. - The negative market response is primarily attributed to the anticipated massive shareholder dilution resulting from the restructuring [3]. Business Challenges - Beyond Meat faces weak U.S. consumer demand for plant-based meat alternatives, leading to declining revenues and larger-than-expected losses in recent quarters [5]. - The company has withheld full-year guidance, indicating uncertainty about its near-term business prospects [5]. - Rising input costs and supply chain pressures continue to pose challenges for the company [6]. Investment Sentiment - The consensus rating on Beyond Meat stock is currently "Moderate Sell," reflecting the risks associated with buying the dip after the recent price decline [8]. - Despite the attractive valuation post-decline, the investment thesis for Beyond Meat shares remains highly speculative due to ongoing cash burn, weak revenues, and significant shareholder dilution [6][8].

Market Overview - U.S. stock futures declined on Tuesday following gains on Monday, with major indices showing lower futures as a potential government shutdown looms [1][2] - The Dow Jones, S&P 500, Nasdaq 100, and Russell 2000 futures fell by 0.20%, 0.16%, 0.14%, and 0.19% respectively [3] Economic Indicators - The 10-year Treasury bond yielded 4.13%, while the two-year bond was at 3.60%, indicating market expectations for interest rate cuts [2] - U.S. pending home sales surged by 4% in August, marking the largest increase in five months, contrasting with a 0.4% decline in the previous month [6] Sector Performance - Information technology, financial, and consumer discretionary sectors saw the most significant gains on Monday, while energy and communication services sectors closed lower [4] - Nvidia Corp. shares rose by approximately 2%, with other AI-related stocks like AMD and Micron also experiencing gains [5] Company Highlights - Robinhood Markets Inc. surged 12% after announcing over four billion event contracts traded on its platform since launch [5] - Lamb Weston Holdings Inc. is expected to report earnings of 55 cents per share on revenue of $1.62 billion [18] - Paychex Inc. is projected to report earnings of $1.21 per share on revenue of $1.54 billion [18] Analyst Insights - Economist Jeremy Siegel noted that recent inflation data supports the Federal Reserve's potential for further rate cuts, projecting two 25 basis point cuts by year-end [10][13] - Siegel emphasized that the economy is healthy but not overheating, with full-year growth estimates around 2.4%-2.5% [12][13] - Goldman Sachs identified potential risks including a growth shock, rate shock, and a significant dollar devaluation that could impact market stability [15]