Let’s dig into the relative performance of McCormick (NYSE: MKC) and its peers as we unravel the now-completed Q2 shelf-stable food earnings season.
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 21 shelf-stable food stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.7% since the latest earnings results.
McCormick (NYSE: MKC)
The classic red Heinz ketchup bottle’s competitor, McCormick (NYSE: MKC) sells food-flavoring products like condiments, spices, and seasoning mixes.
McCormick reported revenues of $1.66 billion, flat year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ EBITDA estimates but a slight miss of analysts’ gross margin estimates.
Brendan M. Foley, Chairman, President, and CEO, stated, "We are pleased with our strong results for the first half of the year, as we are managing in a dynamic environment. Our continued volume-driven performance and share gains across core categories reflect the success of our prioritized investments in the areas that are driving the greatest value and will sustain our momentum for the remainder of 2025 and beyond.
Unsurprisingly, the stock is down 11.5% since reporting and currently trades at $65.20.
Is now the time to buy McCormick? Access our full analysis of the earnings results here, it’s free.
Best Q2: Hershey (NYSE: HSY)
Best known for its milk chocolate bar and Hershey's Kisses, Hershey (NYSE: HSY) is an iconic company known for its chocolate products.
Hershey reported revenues of $2.61 billion, up 26% year on year, outperforming analysts’ expectations by 3.1%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA and organic revenue estimates.
Hershey achieved the fastest revenue growth among its peers. The market seems content with the results as the stock is up 2.7% since reporting. It currently trades at $191.46.
Is now the time to buy Hershey? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Hain Celestial (NASDAQ: HAIN)
Sold in over 75 countries around the world, Hain Celestial (NASDAQ: HAIN) is a natural and organic food company whose products range from snacks to teas to baby food.
Hain Celestial reported revenues of $363.3 million, down 13.2% year on year, falling short of analysts’ expectations by 2.3%. It was a disappointing quarter as it posted a significant miss of analysts’ organic revenue and adjusted operating income estimates.
Hain Celestial delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 23.6% since the results and currently trades at $1.65.
Read our full analysis of Hain Celestial’s results here.
TreeHouse Foods (NYSE: THS)
Whether it be packaged crackers, broths, or beverages, Treehouse Foods (NYSE: THS) produces a wide range of private-label foods for grocery and food service customers.
TreeHouse Foods reported revenues of $801.4 million, up 1.6% year on year. This result surpassed analysts’ expectations by 1.7%. Overall, it was a strong quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is down 19.3% since reporting and currently trades at $16.59.
Read our full, actionable report on TreeHouse Foods here, it’s free.
J. M. Smucker (NYSE: SJM)
Best known for its fruit jams and spreads, J.M Smucker (NYSE: SJM) is a packaged foods company whose products span from peanut butter and coffee to pet food.
J. M. Smucker reported revenues of $2.11 billion, flat year on year. This print met analysts’ expectations. Aside from that, it was a mixed quarter as it also recorded a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ gross margin estimates.
The stock is flat since reporting and currently trades at $110.32.
Read our full, actionable report on J. M. Smucker here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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