Hormel Foods Corporation (NYSE:HRL) reported fourth-quarter results that beat Wall Street profit expectations but fell short on revenue on Thursday.The packaged foods maker also issued an upbeat earnings and sales outlook for the coming year, signaling confidence in its turnaround efforts despite ongoing cost pressures.The company reported fourth-quarter adjusted earnings per share of 32 cents, beating the analyst consensus estimate of 30 cents. Quarterly sales of $3.185 billion missed the Street view of $3 ...

Financial Data and Key Metrics Changes - Dingdong reported a GMV of RMB 7.27 billion and revenue of RMB 6.66 billion in Q3 2025, both showing slight year-over-year increases, marking the highest quarterly GMV and revenue in the company's history [6][20] - Non-GAAP net profit was RMB 0.1 billion with a profit margin of 1.5%, while GAAP net profit was RMB 0.08 billion with a margin of 1.2% [6][20] - The gross profit margin was 28.9%, down 0.9 percentage points year-over-year, but the decline narrowed on a quarter-over-quarter basis [24] - The fulfillment cost ratio was 21.5%, up by 0.1 percentage points compared to last year, while the sales and marketing expense ratio decreased by 0.3 percentage points to 1.9% [26][27] Business Line Data and Key Metrics Changes - The B2B business continued to grow steadily, with revenue expanding by 67.4% year-over-year, and its revenue share rose by 1.9 percentage points year-over-year [22][21] - The monthly order conversion rate increased by 1.6 percentage points year-over-year, and the number of monthly ordering users grew by 4.1% [7] Market Data and Key Metrics Changes - GMV in Jiangsu, Zhejiang, and Shanghai increased by 1.4% year-over-year, with Jiangsu and Zhejiang showing strong growth of 3.6% year-over-year [9] - In the region, nine cities delivered growth of over 10%, with Wenzhou performing exceptionally well, exceeding 60% growth [9] Company Strategy and Development Direction - The company is implementing a 4G strategy focusing on good users, good products, good services, and good mindset, alongside a new development framework called One Big One Small One World [10][13] - The strategy emphasizes high-volume, top-selling products while also exploring smaller cities for market expansion, aiming to offer high-quality, reliable, and affordable products [13][15] - The company is also expanding into international markets, leveraging its domestic supply chain to grow overseas [16][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the intensifying competition in the instant retail sector but expressed confidence in maintaining last year's scale and non-GAAP profitability in Q4 2025 [18] - The focus is on long-term efficiency and capability rather than short-term price competition, with a commitment to building a high-quality user base through differentiated products [36][38] Other Important Information - The company maintained a cash balance of RMB 3.03 billion at the end of Q3, marking the ninth consecutive quarter of positive cash flow [19][20] - The average fulfillment time for instant orders was 36.3 minutes, down by 1.4 minutes year-over-year, indicating improved operational efficiency [26] Q&A Session Summary Question: How does Dingdong build a competitive landscape in the instant retail market? - Management highlighted that competition is fierce, particularly in fresh groceries, and emphasized the importance of building differentiation through a focus on quality products and user experience [33][34][36] Question: Can you elaborate on the top-selling product strategy? - The company explained that the strategy involves a shift from a channel distributor mindset to a product manager mindset, focusing on the full lifecycle of products and leveraging digital technologies to enhance supply chain efficiency [39][40][42]

Core Viewpoint - Generating cash is crucial for businesses, but effective allocation of cash flow is essential for long-term success. Some companies may produce significant cash but fail to utilize it effectively, leading to missed opportunities. StockStory identifies companies that reinvest wisely and highlights one strong investment opportunity alongside two companies facing challenges. Group 1: Companies to Sell - Kraft Heinz (KHC) has a trailing 12-month free cash flow margin of 14.4% and is currently trading at $23.90 per share, with a forward P/E ratio of 9.7x [2][4] - Donaldson (DCI) has a trailing 12-month free cash flow margin of 9.3% and is priced at $85.90, reflecting a forward P/E ratio of 21.5x [5][7] Group 2: Concerns for Kraft Heinz (KHC) - The company has struggled with falling unit sales over the past two years, relying on price increases [9] - Operating expenses have increased relative to revenue, resulting in a 34.6 percentage point decline in operating margin [9] - A return on capital of only 1.2% indicates management's challenges in finding profitable growth opportunities [9] Group 3: Concerns for Donaldson (DCI) - The absence of organic revenue growth over the past two years suggests a reliance on acquisitions for expansion [10] - Estimated sales growth of 3.2% for the next 12 months indicates weaker demand [10] - A decline of 2.8 percentage points in free cash flow margin over the last five years reflects increased investments to maintain market position [10] Group 4: Company to Buy - Construction Partners (ROAD) has a trailing 12-month free cash flow margin of 6.9% and is positioned for growth [8] - Projected revenue growth of 33.2% over the next 12 months suggests an acceleration in demand [11] - The company has demonstrated strong profitability with an annual earnings per share growth of 70.6%, outpacing revenue gains [11] - Free cash flow margin has increased by 5.1 percentage points over the last five years, providing more resources for investment [11]

Core Viewpoint - General Mills, Inc. is recognized for its strong dividend history, which provides a buffer for investors amid current earnings challenges and market pressures [2][4]. Group 1: Company Overview - General Mills is a global leader in packaged foods, operating over 100 brands in more than 100 countries [2]. - The company has maintained a consistent dividend payment for 127 consecutive years without any cuts, highlighting its financial stability [4]. Group 2: Recent Developments - On June 30, 2025, General Mills completed the sale of its North American yogurt division for $2.1 billion, which represented about 8% of total sales last year [2]. - The proceeds from the sale are intended for share buybacks, although this divestment is expected to reduce fiscal 2026 earnings per share by approximately 3% due to the segment's low profit margins [2]. Group 3: Financial Performance and Outlook - The company is currently facing a challenging environment with declining at-home food demand post-pandemic and ongoing cost inflation [3]. - Management has projected flat organic sales and a 10%–15% decline in earnings per share for fiscal 2026 due to these pressures and significant investments in the pet segment [3]. Group 4: Dividend Strength - General Mills offers a quarterly dividend of $0.61 per share, resulting in a dividend yield of 4.95% as of October 12 [4].

Group 1: Market Overview - Five large-cap companies listed on the New York Stock Exchange are underperforming compared to the S&P 500 and Nasdaq 100, primarily due to consumer inflation expectations affecting their sectors [2][3] - The impact of tariffs is leading to increased prices for goods, resulting in more sellers than buyers for these stocks, which have reached new lows [3] Group 2: Company Summaries - **Colgate-Palmolive**: Market cap of $64.78 billion, earnings up 2.13% this year and 11.19% over three years, with a price-earnings ratio of 22.53 and a high debt-to-equity ratio of 12.48. Offers a 2.61% dividend [4] - **International Flavors & Fragrances**: Market cap of $15.99 billion, earnings down 1.37% this year and 4.88% over three years, with a price-earnings ratio of 22.62. Pays a 2.62% dividend [5] - **Kellanova**: Formerly Kellogg's, with a market cap of $26.78 billion, earnings down 7.04% this year and 3.64% over three years, price-earnings ratio of 20 and a debt-to-equity ratio of 1.58 [7] - **McCormick & Co.**: Specializes in herbs, spices, and seasonings, affected by tariffs, with a price chart indicating a new low [8] - **U-Haul Holding Company**: Market cap of $10.29 billion, earnings down 32% this year and 69% over three years, with a price-earnings ratio of 40.58 and a debt-to-equity ratio of 0.95 [9]

Financial Data and Key Metrics Changes - The gross asset value as of June is approximately $5.6 billion, with three of the four core holdings being billion-dollar companies [4] - Recurring profit reached a record high of over $375 million, reflecting an 11% increase [7] - Turnover saw a slight increase, while contribution from operations rose by 8% to over $400 million [6] - Interest expenses decreased by 10% to $35 million due to declining interest rates [7] - Recurring EPS increased by 10% [8] Business Line Data and Key Metrics Changes - Indofood reported record high revenues, with sales continuing to hit successive record highs since 2014 [12] - Indofood's EBIT decreased by 1%, while core profit increased by 2% [13] - Metro Pacific's contribution rose by 18%, driven by power and water businesses, with the water business benefiting from tariff increases [17] - PLDT's revenues and EBITDA reached record highs, although core profit faced slight declines due to competitive pressures [19] Market Data and Key Metrics Changes - The Philippines and Indonesia are identified as the fastest-growing regions, with GDP expected to double over the next twelve years [39] - Foreign exchange rates have shown a historical decline, impacting profit reporting in US dollars [40] Company Strategy and Development Direction - The company is confident in continuing earnings growth in the medium term, supported by essential services in defensive industries [8] - PLDT is focusing on leveraging its strong market position to enhance customer experience and drive growth despite increased competition [33] - Indofood aims to maintain market share and profitability while addressing input price pressures [13] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook for Indofood despite current consumer confidence challenges in Indonesia [39] - The company anticipates a stable dividend income stream for the full year, supported by expected growth in profitability from NPIC and PLDT [48] - The competitive landscape in the telecommunications sector is expected to remain challenging, but PLDT's established network provides a strong foundation for growth [33] Other Important Information - The company has a strong focus on maintaining investment-grade credit ratings, with stable outlooks from both S&P and Moody's [12] - The upcoming IPO for a subsidiary has been delayed due to internal decision-making processes among cornerstone investors [80] Q&A Session Summary Question: What is the impact of the new telco bill on PLDT? - Management indicated that while the new bill opens the market, PLDT's established network and brand position will allow it to leverage growth opportunities despite increased competition [32][33] Question: Which companies are benefiting from AI spending? - Companies involved in data centers and power generation are expected to benefit indirectly from increased AI-related power demand [34][36] Question: What is the outlook for Indofood given weak consumer confidence in Indonesia? - Despite low consumer confidence, the overall economic growth forecast for Indonesia remains positive, supporting Indofood's outlook [39] Question: What is the status of the holding company cash flow and dividend income? - The decline in dividend income was attributed to timing differences, with expectations for recovery in the full year [46][48] Question: What is the expected CapEx for the new power project? - The total project cost for the new 670 MW CCGT plant is estimated at around $900 million, with equity requirements spread over several years [62]

Core Viewpoint - Costco's stock is currently overvalued despite its strong business performance, making Coca-Cola and PepsiCo more attractive investment options for income and value-focused investors [4][14]. Group 1: Costco - Costco operates on a membership model, providing a reliable revenue stream with a high member renewal rate of approximately 90% [2]. - The company is experiencing growth through new store openings and increased customer spending, but its stock valuation is high with P/S, P/E, and P/B ratios above five-year averages [4]. - The dividend yield for Costco is low at around 0.6%, which is disappointing for income-focused investors [5][4]. Group 2: Coca-Cola - Coca-Cola has shown strong performance with a 5% growth in organic revenues in the second quarter, appealing to consumers despite inflation concerns [6][7]. - The stock is reasonably priced with P/S, P/E, and P/B ratios at or slightly below five-year averages, and a dividend yield of 3% [8]. - Coca-Cola is considered a better value than Costco due to its strong business performance and reasonable stock valuation [8][14]. Group 3: PepsiCo - PepsiCo's stock is undervalued with P/S, P/E, and P/B ratios significantly below five-year averages, and a dividend yield of approximately 4% [10]. - The company reported a lower organic sales growth of 2.1% in the second quarter compared to Coca-Cola, indicating underperformance [11]. - PepsiCo is a diversified business with a history of dividend growth, and recent acquisitions may help it regain momentum [12][13].