Key Takeaways POST raised FY25 EBITDA outlook to $1.43B-$1.47B, up from $1.42B-$1.46B on cost recovery progress. The Foodservice unit expects to recoup $30M in avian flu-related costs by fiscal year-end. Volume remains soft across key categories, but pricing and supply actions support margin stability.Post Holdings, Inc. (POST) modestly raised its full-year fiscal 2025 adjusted EBITDA guidance during the most recent earnings call, projecting the metric to be in the range of $1.43 billion to $1.47 billion, ...

Core Insights - Pilgrim's Pride Corporation (PPC) reported a strong first-quarter 2025 performance with an adjusted EBITDA margin of 12%, an increase of 350 basis points from the previous year, primarily driven by the U.S. business where the margin rose to 14.3% from 9.4% [1][8] - The margin improvement was supported by strong performance in Prepared Foods and Case Ready segments, as well as favorable market pricing for Big Bird [1][8] Financial Performance - The adjusted EBITDA margin of 12% reflects significant operational execution aligned with favorable market conditions [4] - The U.S. business's adjusted EBITDA margin increased to 14.3%, indicating robust performance in key product areas [1][8] - Mexico's operations faced $8.5 million in foreign exchange headwinds, contributing to quarterly volatility [3][8] Market Conditions - The sustainability of the margin increase is questioned due to potential challenges such as live production volatility, hatchability concerns, and overall foodservice softness [2][4] - Quick service restaurant volumes remain strong, but foodservice traffic is under pressure across the industry [2] Regional Performance - Europe achieved an 8.1% margin, indicating progress from ongoing structural reorganization efforts, including support function integration and manufacturing optimization [3][8] - Key initiatives in Europe have enhanced performance, supported by continued product innovation [3] Valuation Metrics - Pilgrim's Pride currently trades at a forward 12-month P/E ratio of 8.78, which is below the industry average of 12.11 and the sector average of 17.31, positioning the stock at a modest discount [9]

Key Takeaways HSY may face up to $100M in unmitigated costs each in Q3 and Q4 from cocoa and Canadian tariffs. HSY is pivoting to lower cocoa items and using price pack architecture to preserve consumer demand. Innovation pipelines and reduced reliance on cocoa inputs are key to HSY's cost-mitigation efforts.The Hershey Company (HSY) is facing mounting pressure from soaring cocoa prices and tariff-related impacts, with up to $100 million in potential unmitigated costs per quarter in the second half of 202 ...

Key Takeaways BUD is investing $17M in its Houston brewery to upgrade brewing and transportation operations. This is part of a $300M Brewing Futures program focused on U.S. facility enhancements in 2025. BUD aims to support job growth and innovation while staying agile in a shifting market.As part of its strategic transformation, Anheuser-Busch InBev SA/NV (BUD) , alias AB InBev, recently announced a new $17 million investment in its Houston, TX, brewery, reinforcing its long-standing commitment to Americ ...

Core Insights - The Campbell's Company (CPB) reported third-quarter fiscal 2025 results, with earnings and net sales exceeding Zacks Consensus Estimates, although quarterly earnings declined year over year while net sales increased [1][3] Financial Performance - Adjusted earnings were 73 cents, down 3% year over year, but beat the Zacks Consensus Estimate of 65 cents [3] - Net sales reached $2,475 million, a 4% increase year over year, surpassing the Zacks Consensus Estimate of $2,437.3 million, driven by the Sovos Brands acquisition [3] - Organic net sales rose 1%, primarily due to a 2% positive volume/mix impact, offset by planned lower net pricing [3] Profitability Metrics - Adjusted gross profit increased to $745 million from $740 million, while the adjusted gross profit margin declined by 110 basis points to 30.1% due to cost inflation and supply-chain expenses [4] - Adjusted marketing and selling expenses rose 5% to $207 million, while adjusted administrative expenses declined 4% to $150 million [5] - Adjusted EBIT increased 2% to $362 million [5] Segment Performance - Meals & Beverages segment net sales reached $1,463 million, up 15% year over year, with organic net sales growing 6% [6] - Snacks segment net sales totaled $1,012 million, down 8% year over year, with organic net sales down 5% primarily due to decreased sales of various snack products [7] Guidance and Outlook - Campbell's reaffirmed its full-year fiscal 2025 guidance, projecting net sales growth of 6-8% and adjusted EBIT growth of 3-5% [2][13] - Adjusted EPS is expected to decline 4-1%, ranging from $2.95 to $3.05 compared to $3.08 reported in fiscal 2024 [13] - The company estimates an additional headwind of three to five cents per share to its fiscal 2025 adjusted EPS due to current tariff actions [14]

Core Insights - Hormel Foods Corporation reported second-quarter fiscal 2025 results with adjusted earnings of 35 cents per share, matching the Zacks Consensus Estimate, but down from 38 cents in the prior year [1] - Net sales increased by 0.4% year over year to $2,898.8 million, although it missed the consensus estimate of $2,905 million, with volumes declining by 5.7% [1] Financial Performance - Gross profit decreased to $484.4 million from $503.8 million in the year-ago quarter [2] - Adjusted operating income fell to $264.9 million from $275.9 million, with an adjusted operating margin of 9.1%, down from 9.6% [2] Segment Performance - Retail unit net sales decreased by 0.3% year over year to $1,783.8 million, with volumes down 6.6%, primarily due to lower commodity shipments [3] - Foodservice segment net sales increased by 0.5% to $936.4 million, with organic net sales rising by 4%, despite a volume decline of 7.3% [5] - International unit net sales grew by 7% to $178.5 million, with volumes up by 8.9%, driven by strong export performance, particularly in refrigerated products [7] Profitability by Segment - Segment profit for the Retail unit increased by 3.6% due to operational efficiencies and lower expenses [4] - Foodservice segment profit declined by 5.8% due to margin pressures, despite increased net sales [6] - International segment profit decreased by 20.7% due to an unfavorable export customer mix and softness in Brazil [8] Financial Health - Hormel Foods ended the quarter with cash and cash equivalents of $669.7 million and total long-term debt of $2,850.7 million [9] - The company returned nearly $159 million to shareholders via dividends [10] Future Outlook - Hormel Foods expects fiscal 2025 net sales to be between $12 billion and $12.2 billion, with organic net sales growth projected at 2% to 3% [12] - Operating income is anticipated to be between $1,118 million and $1,185 million, while adjusted operating income is expected to range from $1,175 million to $1,248 million [13] - Full-year diluted EPS is projected to be between $1.49 and $1.59, with adjusted EPS expected between $1.58 and $1.68 [14] Stock Performance - HRL stock has risen by 5.9% in the past three months, contrasting with a 1.8% decline in the industry [15]