Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Flowers Foods (NYSE: FLO) and the best and worst performers in the perishable food industry.

The perishable food industry is diverse, encompassing large-scale producers and distributors to specialty and artisanal brands. These companies sell produce, dairy products, meats, and baked goods and have become integral to serving modern American consumers who prioritize freshness, quality, and nutritional value. Investing in perishable food stocks presents both opportunities and challenges. While the perishable nature of products can introduce risks related to supply chain management and shelf life, it also creates a constant demand driven by the necessity for fresh food. Companies that can efficiently manage inventory, distribution, and quality control are well-positioned to thrive in this competitive market. Navigating the perishable food industry requires adherence to strict food safety standards, regulations, and labeling requirements.

The 11 perishable food stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 2.5% above.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 14.4% since the latest earnings results.

Flowers Foods (NYSE: FLO)

With Wonder Bread as its premier brand, Flower Foods (NYSE: FLO) is a packaged foods company that focuses on bakery products such as breads, buns, and cakes.

Flowers Foods reported revenues of $1.24 billion, up 1.5% year on year. This print fell short of analysts’ expectations by 2%. Overall, it was a slower quarter for the company with a miss of analysts’ EBITDA and organic revenue estimates.

Flowers Foods achieved the highest full-year guidance raise of the whole group. Still, the market seems discontent with the results. The stock is down 8.9% since reporting and currently trades at $12.92.

Read our full report on Flowers Foods here, it’s free for active Edge members.

Best Q2: Mission Produce (NASDAQ: AVO)

Founded in 1983 in California, Mission Produce (NASDAQ: AVO) grows, packages, and distributes avocados.

Mission Produce reported revenues of $357.7 million, up 10.4% year on year, outperforming analysts’ expectations by 11.7%. The business had an incredible quarter with a beat of analysts’ EPS and gross margin estimates.

Mission Produce achieved the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8.9% since reporting. It currently trades at $11.73.

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

Weakest Q2: Cal-Maine (NASDAQ: CALM)

Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ: CALM) produces, packages, and distributes eggs.

Cal-Maine reported revenues of $922.6 million, up 17.4% year on year, falling short of analysts’ expectations by 3.9%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

The stock is flat since the results and currently trades at $93.50.

Read our full analysis of Cal-Maine’s results here.

Dole (NYSE: DOLE)

Known for its delicious pineapples and Hawaiian roots, Dole (NYSE: DOLE) is a global agricultural company specializing in fresh fruits and vegetables.

Dole reported revenues of $2.43 billion, up 14.3% year on year. This print beat analysts’ expectations by 11.2%. Overall, it was a strong quarter as it also put up a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

The stock is down 10.6% since reporting and currently trades at $13.09.

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

Beyond Meat (NASDAQ: BYND)

A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQ: BYND) is a food company specializing in alternatives to traditional meat products.

Beyond Meat reported revenues of $74.96 million, down 19.6% year on year. This result came in 8.6% below analysts' expectations. Overall, it was a disappointing quarter as it also logged revenue guidance for next quarter missing analysts’ expectations.

Beyond Meat had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 71.3% since reporting and currently trades at $0.84.

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

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.