Which Food Stocks Had The Recipe For Revenue Growth In December?

Stephens analyzed the sales, volume, and pricing trends in the food industry for December, to find monthly trends for the major food categories and manufacturers.

The report is based on market share data from Information Resources Inc., which now also includes data on convenience stores as well as grocery, drug, and mass outlets across the U.S. Food service sales fall outside the purview of the study, according to Stephens. 

Analyst Farha Aslam reviewed four-week market share trends for the following companies:

Hostess Brands

Hostess Brands, Inc. TWNK saw 9-percent year-over-year sales growth in December, helped by a 10-11 percent increase at Bakery Snacks and 4-percent growth in pastry doughnut sales.

Flowers Foods

Total dollar sales of Flowers Foods, Inc. FLO climbed 2 percent, as a 3-percent increase in fresh bread sales offset declines in bakery snacks and pastry/doughnuts.

Hormel Foods

Hormel Foods Corp HRL's total dollar sales were flat to 1 percent higher in December, as breakfast meats sales were 9 percent higher and shelf-stable meat sales ticked 1 percent higher, On the other hand, shelf-stable dinner sales and nut butter sales were down year-over-year.

See also: Mmm, Mmm Mergers: M&A In The Food Sector

J.M. Smucker

J M Smucker Co SJM's total dollar sales flattened in December, with sales of coffee, pet food and nut butter up 1 percent, 9 percent and 4 percent, respectively.

Pinnacle Foods

Total sales for Pinnacle Foods Inc PF fell 1 percent year-over-year, dragged by a 3-4 percent drop in frozen vegetable sales and a 3-percent decline in frozen dinners. On the other hand, pickles sales rose 1 percent.

B&G Foods

B&G Foods, Inc. BGS saw a 2-percent drop in total dollar sales, as a 10-percent drop in spices and seasonings and a 16-percent plunge in shelf-stable vegetables were offset to some extent by a 10-percent increase in frozen prepared vegetable sales.

Tyson Foods

Total sales at Tyson Foods, Inc. TSN were down 2 percent, as frozen/refrigerated processed poultry sales fell 1 percent. The drop was cushioned to some extent by a 4-percent increase in breakfast meat sales and a 9-percent climb in frozen breakfast food sales.

Overweighted Food Stocks

Stephens rates B&G Foods, Hormel Foods, Pinnacle Foods, Tyson Foods and Hostess Brands with an Overweight. 

Related Link:

Zacks Analyst: Take A Look At Food Stocks