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 Lamb Weston (NYSE: LW) and the best and worst performers in the shelf-stable food industry.

As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences. The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.

The 4 shelf-stable food stocks we track reported a slower Q4. As a group, revenues missed analysts’ consensus estimates by 0.7%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.7% since the latest earnings results.

Weakest Q4: Lamb Weston (NYSE: LW)

Best known for its Grown in Idaho brand, Lamb Weston (NYSE: LW) produces and distributes potato products such as frozen french fries and mashed potatoes.

Lamb Weston reported revenues of $1.60 billion, down 7.6% year on year. This print fell short of analysts’ expectations by 4.3%. Overall, it was a disappointing quarter for the company with full-year revenue guidance missing analysts’ expectations.

“Our financial results in the second quarter were below our expectations,” said Tom Werner, President and CEO.

Lamb Weston delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 22.8% since reporting and currently trades at $60.30.

Is now the time to buy Lamb Weston? Access our full analysis of the earnings results here, it’s free.

Best Q4: General Mills (NYSE: GIS)

Best known for its portfolio of powerhouse breakfast cereal brands, General Mills (NYSE: GIS) is a packaged foods company that has also made a mark in cereals, baking products, and snacks.

General Mills reported revenues of $5.24 billion, up 2% year on year, outperforming analysts’ expectations by 1.9%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ gross margin estimates.

General Mills 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 9.2% since reporting. It currently trades at $59.82.

Is now the time to buy General Mills? Access our full analysis of the earnings results here, it’s free.

Conagra (NYSE: CAG)

Founded in 1919 as Nebraska Consolidated Mills in Omaha, Nebraska, Conagra Brands today (NYSE: CAG) boasts a diverse portfolio of packaged foods brands that includes everything from whipped cream to jarred pickles to frozen meals.

Conagra reported revenues of $3.20 billion, flat year on year, exceeding analysts’ expectations by 1.5%. Still, it was a mixed quarter as it posted full-year EPS guidance missing analysts’ expectations.

As expected, the stock is down 5.3% since the results and currently trades at $25.90.

Read our full analysis of Conagra’s results here.

Simply Good Foods (NASDAQ: SMPL)

Best known for its Atkins brand that was inspired by the popular diet of the same name, Simply Good Foods (NASDAQ: SMPL) is a packaged food company whose offerings help customers achieve their healthy eating or weight loss goals.

Simply Good Foods reported revenues of $341.3 million, up 10.6% year on year. This number came in 1.7% below analysts' expectations. All in all, it was a mixed quarter for the company.

Simply Good Foods achieved the fastest revenue growth among its peers. The stock is down 9.6% since reporting and currently trades at $33.25.

Read our full, actionable report on Simply Good Foods here, it’s free.

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

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

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