As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the perishable food industry, including Vital Farms (NASDAQ: VITL) and its peers.
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 slower Q1. As a group, revenues beat analysts’ consensus estimates by 3.4%.
In light of this news, share prices of the companies have held steady as they are up 1.5% on average since the latest earnings results.
Vital Farms (NASDAQ: VITL)
With an emphasis on ethically produced products, Vital Farms (NASDAQ: VITL) specializes in pasture-raised eggs and butter.
Vital Farms reported revenues of $162.2 million, up 9.6% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
“We delivered first quarter results that were in-line with our overall expectations and made good progress on our key 2025 strategic initiatives, said Russell Diez-Canseco, Vital Farms’ President and Chief Executive Officer. “We demonstrated solid execution, ongoing business momentum, and our continued focus on bringing ethical food to the table.
Vital Farms scored the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 2.8% since reporting and currently trades at $37.
Best Q1: Mission Produce (NASDAQ: AVO)
Founded in 1983 in California, Mission Produce (NASDAQ: AVO) grows, packages, and distributes avocados.
Mission Produce reported revenues of $380.3 million, up 27.8% year on year, outperforming analysts’ expectations by 28.4%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Mission Produce scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 14.3% since reporting. It currently trades at $12.05.
Is now the time to buy Mission Produce? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $68.73 million, down 9.1% year on year, falling short of analysts’ expectations by 8.3%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Beyond Meat delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 43.1% since the results and currently trades at $3.65.
Read our full analysis of Beyond Meat’s results here.
Pilgrim's Pride (NASDAQ: PPC)
Offering everything from pre-marinated to frozen chicken, Pilgrim’s Pride (NASDAQ: PPC) produces, processes, and distributes chicken products to retailers and food service customers.
Pilgrim's Pride reported revenues of $4.46 billion, up 2.3% year on year. This result came in 1.6% below analysts' expectations. Overall, it was a softer quarter as it also recorded a miss of analysts’ EBITDA estimates and a miss of analysts’ gross margin estimates.
The stock is down 12.2% since reporting and currently trades at $47.90.
Read our full, actionable report on Pilgrim's Pride here, it’s free.
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 $1.10 billion, up 72.2% year on year. This print topped analysts’ expectations by 21.3%. It was a very strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ adjusted operating income estimates.
Cal-Maine delivered the fastest revenue growth among its peers. The stock is flat since reporting and currently trades at $105.20.
Read our full, actionable report on Cal-Maine here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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