CHEF

The Boston Beer Company, Inc. SAM reported mixed third-quarter 2026 results, with earnings surpassing the Zacks Consensus Estimate but revenues falling short. Adjusted earnings per share (EPS) of $4.37 beat the consensus estimate of $4.30. The figure increased 2.8% from $4.25 in the year-ago quarter. Net revenues declined 3.2% year over year to $520.1 million, missing the consensus estimate of $523 million. Lower shipment volumes weighed on sales, while favorable pricing, product mix and improved brewery efficiencies supported profitability. This Zacks Rank #3 (Hold) company's shares have gained 8.7% over the past three months compared with the industry's 4.1% growth. Image Source: Zacks Investment Research Boston Beer's depletions declined 5% year over year. Shipment volumes decreased 4.9% to approximately 1.8 million barrels, reflecting continued weakness across several established brands. Declines in Twisted Tea, Truly and Samuel Adams were partially offset by growth in Sun Cruiser and Angry Orchard. Sun Cruiser delivered approximately 60% growth in tracked channels during the quarter, while Angry Orchard recorded its sixth consecutive quarter of growth. Distributor inventories averaged approximately four weeks on hand at quarter-end compared with four and a half weeks in the prior-year period. Management considered inventory levels appropriate. Gross margin expanded 90 basis points (bps) year over year to 51.7% compared with 50.8% in the third quarter of 2025. Favorable product mix, pricing actions, procurement savings and improved brewery efficiencies supported the increase. These benefits were partially offset by higher commodity and tariff costs. Shortfall fees and noncash expenses associated with third-party production prepayments totaled $1.6 million, reducing gross margin by approximately 31 bps. Management highlighted continued progress in its supply-chain transformation. The company produced 98% of domestic volumes internally during the quarter compared with 89% a year earlier. The Boston Beer Company, Inc. price-consensus-eps-surprise-chart | The Boston Beer Company, Inc. Quote Advertising, promotional and selling expenses remained nearly flat year over year at $165.2 million. Freight expenses increased $9.5 million as higher transportation rates outweighed benefits from lower shipment volumes. General and administrative expenses decreased $2.1 million to $42.9 million, primarily due to lower salary and benefit costs. Boston Beer ended the quarter with cash and cash equivalents of $308.1 million and no debt. The company also had $150 million available under its revolving credit facility. Net cash provided by operating activities totaled $194.2 million during the first 39 weeks of 2026 compared with $230.2 million in the year-ago period. Capital expenditures amounted to $31.2 million, down from $36.7 million. The company repurchased $79.5 million of Class A common shares from Dec. 28, 2025, through Oct. 16, 2026. Approximately $149 million remained under its board-authorized $1.6 billion share repurchase limit. Management remains focused on improving market share trends and expanding higher-margin product offerings. Sun Cruiser continues to benefit from distribution gains and strong consumer demand, while Angry Orchard maintains positive momentum. Boston Beer is also expanding its innovation portfolio. Rally Dog Vodka Ade and Lytt Electric Coolers are scheduled for national availability in 2027, creating additional opportunities in emerging ready-to-drink beverage categories. Meanwhile, management expects modest shipment growth in the fourth quarter, aided by prior-year inventory adjustments and shipment timing. The company anticipates its most pronounced year-over-year gross margin improvement in the final quarter, supported by lower shortfall fees. Boston Beer revised its 2026 guidance, reflecting continued volume softness alongside improving operational productivity. The company now expects depletions and shipments to decline by mid-single-digit percentages compared with its previous projection of low-to-mid-single-digit declines. Price increases are likely to be 1-2%. The gross margin outlook was raised to 49-50% from 48.5-50%, supported by productivity savings, improved product mix and lower anticipated tariff costs. Expected tariff expenses were reduced to $18-$22 million from $20-$30 million. Advertising, promotion and selling expenses are likely to remain nearly flat year over year. Adjusted EPS is now projected at $9-$10.50 compared with the prior range of $8.50-$10.50. The company also lowered its capital spending outlook to $55-$70 million from $60-$80 million. The Chefs' Warehouse, Inc. CHEF, which is a distributor of specialty food products in the United States, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Chefs' Warehouse's current financial-year sales indicates growth of 10.8% from the prior-year level. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average. Utz Brands, Inc. UTZ, which is a leading manufacturer of a diverse portfolio of salty snacks, currently carries a Zacks Rank #2 (Buy). UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average. The Zacks Consensus Estimate for UTZ's current financial-year sales indicates a rise of 3.7% from the year-ago number. Darling Ingredients Inc. DAR, which produces sustainable natural ingredients derived from edible and inedible bio-nutrients, currently carries a Zacks Rank of 2. The consensus estimate for Darling Ingredients' current financial-year sales is expected to rise 12.2% from the year-ago reported figure. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report Darling Ingredients Inc. (DAR) : Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report Utz Brands, Inc. (UTZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year decline in earnings on higher revenues when Mondelez (MDLZ) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 29. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This maker of Oreo cookies, Cadbury chocolate and Trident gum is expected to post quarterly earnings of $0.72 per share in its upcoming report, which represents a year-over-year change of -1.4%. Revenues are expected to be $9.98 billion, up 2.4% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.77% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Mondelez, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.71%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Mondelez will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Mondelez would post earnings of $0.67 per share when it actually produced earnings of $0.73, delivering a surprise of +8.96%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Mondelez doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Food - Miscellaneous industry, Chefs' Warehouse (CHEF), is soon expected to post earnings of $0.59 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +18%. This quarter's revenue is expected to be $1.13 billion, up 10.4% from the year-ago quarter. The consensus EPS estimate for Chefs' Warehouse has been revised 0.6% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -1.70%. When combined with a Zacks Rank of #2 (Buy), this Earnings ESP makes it difficult to conclusively predict that Chefs' Warehouse will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Chefs' Warehouse (CHEF) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 28, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This distributor of specialty food products is expected to post quarterly earnings of $0.59 per share in its upcoming report, which represents a year-over-year change of +18%. Revenues are expected to be $1.13 billion, up 10.4% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.64% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Chefs' Warehouse, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.70%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that Chefs' Warehouse will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Chefs' Warehouse would post earnings of $0.64 per share when it actually produced earnings of $0.78, delivering a surprise of +21.88%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Chefs' Warehouse doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Philip Morris International Inc. PM reported third-quarter 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year. PM posted quarterly adjusted earnings of $2.36 per share, which increased 5.4% year over year. Excluding currency effects, the adjusted earnings jumped 5.8% year over year. The bottom line beat the Zacks Consensus Estimate of $2.30. Philip Morris International Inc. price-consensus-eps-surprise-chart | Philip Morris International Inc. Quote Net revenues of $11,438 million increased 5.5% on a reported basis and 7.1% organically year over year. Revenues beat the Zacks Consensus Estimate of $11,409 million. Growth was driven by favorable combustible pricing and smoke-free product demand. Total shipment volumes increased 0.6% to 206.2 billion units. Adjusted gross profit increased 6.7% (up 8.3% organically) to $7,860 million. Adjusted gross profit margin expanded 80 basis points to 68.7%, supported by favorable combustible pricing, scale benefits and the smoke-free product mix. Adjusted operating income rose 9.6% to $5,117 million, while adjusted operating margin expanded 160 basis points to 44.7%. Net revenues in the International Smoke-Free segment increased 0.7% (up 3.4% organically) to $3,867 million, reflecting favorable volume/mix from higher heated tobacco unit ("HTU") and e-vapor volumes, alongside favorable HTU pricing. Adjusted gross profit increased 0.8% (up 3.3% organically) to $2,705 million. Shipment volumes grew 2.7% to 44.5 billion units, supported by growth in Taiwan, Global Travel Retail, Greece, Germany and Bulgaria. HTU shipments increased 1.5% to 41.5 billion units, while HTU adjusted in-market sales rose 7.1%. VEEV e-vapor shipments surged 61.6%, reflecting continued geographic expansion. Net revenues in the International Combustibles segment increased 6.5% (up 7.8% organically) to $6,725 million. Growth reflected favorable pricing and the restructuring of distribution terms in certain markets, partly offset by an unfavorable geographic mix. Adjusted gross profit increased 8.6% (up 9.8% organically) to $4,610 million. Cigarette shipment volumes remained broadly flat at 158 billion units. Higher shipments in Turkey, Indonesia and Egypt offset declines in Russia, Poland and Japan. The segment benefited from 8.9% pricing growth, while elevated energy-related input costs remained a headwind. Marlboro's cigarette category share increased 50 basis points to a record 11.4%. Net revenues in the U.S. segment jumped 22.7% to $845 million, driven by higher ZYN shipments, favorable pricing comparisons against prior-year promotions and contributions from the Wellness and cigar businesses. Adjusted gross profit increased 23.9% to $544 million, with organic growth of 23.8%. Total segment shipment volumes increased 2.3% to 3.7 billion equivalent units. ZYN shipments grew 4.2% to 3.2 billion pouches. Adjusted operating companies income increased 1.5% organically to $171 million, reflecting higher marketing investments. Management plans additional investments in the fourth quarter to support ZYN portfolio expansion and the transition to 20-pouch cans. The company ended the quarter with cash and cash equivalents of $6,683 million, long-term debt of $41,709 million and a total shareholder deficit of $5,945 million. Philip Morris also raised its quarterly dividend 8.8% to $1.60 per share. For 2026, Philip Morris now expects adjusted earnings of $8.29-$8.44 per share, indicating growth of 9.9-11.9%. Earlier, the metric was expected in the $8.26-$8.41 per share range, implying 9.5-11.5% growth. Excluding currency, adjusted earnings are projected at $8.11-$8.26 per share, implying an increase of 7.5-9.5%. Reported earnings per share are expected in the $7.11-$7.26 range. Earlier, the metric was expected in the $7.19-$7.34 per share range. For 2026, PM still expects net revenues to increase 5-7% on an organic basis. The operating income on an organic basis is likely to rise 7-9%. Management now expects total cigarette and smoke-free product shipment volumes to grow in 2026, compared with its previous forecast of broadly stable to slightly growing volumes. Smoke-free shipments are expected to increase at a high-single-digit rate, while cigarette volumes are projected to decline at a rate similar to the year-to-date trend. Management still expects an operating cash flow of around $13.5 billion in 2026. Capital expenditures are likely to be in the band of $1.4 billion to $1.6 billion, primarily implying investments to support the smoke-free business. Shares of this Zacks Rank #3 (Hold) company have gained 2.9% in the past three months compared with the industry's growth of 1.2%. Image Source: Zacks Investment Research The Chefs' Warehouse, Inc. CHEF distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. At present, CHEF carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The consensus estimate for Chefs' Warehouse's current fiscal-year sales and earnings implies growth of 10.8% and 34.2%, respectively, from the year-ago reported figures. Chefs' Warehouse delivered a trailing four-quarter earnings surprise of 30.4%, on average. Mama's Creations, Inc. MAMA manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA holds a Zacks Rank of 2. Mama's Creations delivered a trailing four-quarter earnings surprise of 121.7%, on average. The consensus estimate for Mama's Creations' current fiscal-year sales and earnings implies growth of 30.3% and 66.7%, respectively, from the year-ago figures. Lamb Weston Holdings, Inc. LW engages in the production, distribution and marketing of frozen potato products in the United States, Canada, Mexico and internationally. LW presently carries a Zacks Rank of 2. Lamb Weston delivered a trailing four-quarter earnings surprise of 22.1%, on average. The Zacks Consensus Estimate for Lamb Weston's current fiscal-year earnings indicates growth of 7.6% from the year-ago numbers. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Philip Morris International Inc. (PM) : Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report Lamb Weston (LW) : Free Stock Analysis Report Mama's Creations, Inc. (MAMA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Lamb Weston Holdings, Inc. LW shares have rallied 12.6% since the company reported first-quarter fiscal 2027 results on Oct. 6, 2026. The stock's impressive run follows a better-than-expected quarterly performance and an upward revision to the company's full-year financial outlook. Stronger sales volumes in North America, improved operating execution and ongoing cost-saving efforts were among the key highlights of the quarter, providing important context for the recent share-price momentum. Lamb Weston reported first-quarter net sales of $1.67 billion, up 1% year over year, supported by a 2% increase in sales volumes that was partly offset by unfavorable price/mix. Adjusted earnings per share (EPS) improved to 75 cents from 74 cents in the year-ago quarter. Adjusted EBITDA declined 5% to $286 million but exceeded the company's expectations. North America remained a key bright spot, with segment net sales increasing 5% and sales volumes rising 7%, marking the seventh consecutive quarter of volume growth. Segment adjusted EBITDA grew 11% to $287 million, supported by higher volumes, cost savings, tariff refunds and improved equity-method investment earnings. Price/mix declined 1.7%, an improvement from the 2.4% decrease recorded in the preceding quarter. Following the encouraging start, Lamb Weston raised its fiscal 2027 net sales outlook to low-single-digit growth from the earlier projection of flat to 1% growth. The adjusted EBITDA forecast was increased to $1.125-$1.215 billion from $1.10-$1.20 billion, while adjusted EPS guidance was lifted to $3.05-$3.35 from $2.95-$3.25. Following its nearly 13% post-earnings rally, Lamb Weston's focus remains on delivering against its raised fiscal 2027 outlook. Sustained volume growth in North America, improving price/mix trends and continued cost savings are important elements of its operating performance. For the second quarter, Lamb Weston expects low-single-digit sales growth and high-single-digit to low-double-digit adjusted EBITDA growth. However, persistent input-cost inflation and weaker international performance remain challenges. The company's ability to sustain operating improvements, strengthen profitability and navigate ongoing cost pressures will remain central to assessing the momentum behind LW's recent stock rally. Shares of this Zacks Rank #1 (Strong Buy) company have gained 7.9% over the past three months against the industry's decline of 3.4%. You can see the complete list of today's Zacks #1 Rank stocks here. Image Source: Zacks Investment Research From a valuation standpoint, Lamb Weston trades at a forward price-to-earnings ratio of 15.12, above the industry's average of 13.79. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Lamb Weston's current and next fiscal-year earnings per share implies year-over-year growth of 6.3% and 10.4%, respectively. The Chefs' Warehouse, Inc. CHEF, a premier distributor of specialty food products, currently carries a Zacks Rank #2 (Buy). CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average. The Zacks Consensus Estimate for The Chefs' Warehouse's current fiscal-year sales and EPS implies growth of 10.8% and 33.7%, respectively, from the year-ago figures. Mama's Creations, Inc. MAMA, a prepared-foods company focused on fresh, ready-to-eat and deli products, currently carries a Zacks Rank of 2. MAMA delivered a trailing four-quarter surprise of 121.7%, on average. The Zacks Consensus Estimate for Mama's Creations' current fiscal-year sales and EPS indicates respective increases of 30.3% and 66.7% from the year-ago period. Laird Superfood, Inc. LSF, a consumer product company that develops, manufactures and markets plant-based, natural and functional food and beverage products, currently carries a Zacks Rank #2. LSF delivered an earnings surprise of 100% in the last reported quarter. The Zacks Consensus Estimate for Laird Superfood's current fiscal-year sales and EPS implies growth of 188.2% and 104%, respectively, from the year-ago figures. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lamb Weston (LW) : Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report Laird Superfood, Inc. (LSF) : Free Stock Analysis Report Mama's Creations, Inc. (MAMA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Constellation Brands, Inc. STZ reported second-quarter fiscal 2027 comparable earnings of $3.74 per share, up 3% year over year and above the Zacks Consensus Estimate of $3.62. The bottom line delivered a 3.3% earnings surprise. Net sales increased 6% year over year to $2.63 billion, surpassing the consensus estimate of $2.57 billion by 2.5%. Growth across both operating businesses supported the top line. Beer shipment volumes rose 5.5%, while the wine and spirits' business' volume increased 15.4%. Despite robust quarterly results, Constellation Brands' shares have lost more than 4% in after-hours trading yesterday. In the past three months, the stock has fallen 10.6% compared with the industry's 1.9% drop. Image Source: Zacks Investment Research Beer net sales increased 5% year over year to $2.5 billion, driven by a 5.5% increase in shipment volumes. Depletions, which measure distributor shipments to retail customers, dipped 0.6%. Beer sales have outpaced the Zacks Consensus Estimate of $2.4 billion. Modelo Especial depletions fell about 2%, while Corona Extra declined roughly 5%. These decreases were partially offset by growth of roughly 19% for Pacifico, 15% for Victoria and 5% for the Modelo Chelada brands. The Beer business was the top dollar and volume share gainer across Circana U.S. tracked channels. Wine and spirits net sales advanced 17% year over year to $159.4 million, reflecting a 15.4% increase in shipment volumes. The business also delivered depletion growth of 10.2%. Wine and spirits' net sales have surpassed the Zacks Consensus Estimate of $136 million. Kim Crawford and Mi CAMPO depletions increased roughly 11% and 51%, respectively. The portfolio outperformed the broader wine and spirits category in both dollars and volumes across Circana U.S. tracked channels, while the company's wine portfolio ranked as the #3 dollar share gainer in the overall wine category. Constellation Brands Inc price-consensus-eps-surprise-chart | Constellation Brands Inc Quote Comparable operating income rose 1% year over year to $896.6 million. Comparable operating margin contracted 160 basis points from the prior-year quarter to 34.1%. Beer operating income increased 1% to $964.2 million, but its operating margin fell 160 basis points year over year to 39%. Lower tariff expenses and fixed-cost absorption were more than offset by higher marketing investment and other selling, general and administrative spending. Wine and spirits generated operating income of $6.1 million against a loss of $19.8 million a year earlier, lifting its margin to 3.8%. For the first six months of fiscal 2027, operating cash flow totaled $1.5 billion. Free cash flow increased to $1.1 billion, while capital expenditures were $354.1 million. As of Aug. 31, 2026, cash and cash equivalents were $98.5 million. Long-term debt, excluding current maturities, totaled $9.1 billion. The company repurchased $530 million of shares year to date through September and returned more than $800 million to shareholders through repurchases and dividends during the first half. On Oct. 6, 2026, the company's board declared a quarterly cash dividend of $1.03 per share of Class A common stock payable Nov. 13, 2026, to stockholders of record as of Oct. 30, 2026. Subsequent to the quarter, the company acquired SpikedAde, a spirit-based ready-to-drink brand competing in the emerging sports drink-inspired "Ade" segment. Constellation Brands paid $75 million at closing for full ownership, with up to $278 million of additional contingent consideration payable over five years based on future performance. SpikedAde will be integrated into Constellation's Beer unit, with the company assuming production oversight, marketing and distribution. Constellation Brands reaffirmed its fiscal 2027 comparable earnings guidance of $11.20-$11.90 per share compared with $11.82 in fiscal 2026. It raised its reported earnings outlook to $11.85-$12.55 from the prior range of $11.50-$12.20. Management continues to expect enterprise organic net sales to range from a 1% decline to 1% growth. Beer net sales and organic wine and spirits net sales are also projected to range from a 1% decline to 1% growth. Comparable enterprise operating margin is expected to be between 32% and 33%, with beer margin of 37-38% and wine and spirits margin of 5-6%. Management expects operating cash flow of $2.4-$2.5 billion, capital expenditures of $800 million and free cash flow of $1.6-$1.7 billion for fiscal 2027. The Chefs' Warehouse, Inc. CHEF, which is a distributor of specialty food products in the United States, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Chefs' Warehouse's current financial-year sales indicates growth of 10.8% from the prior-year level. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average. Utz Brands, Inc. UTZ, which is a leading manufacturer of a diverse portfolio of salty snacks, currently carries a Zacks Rank #2 (Buy). UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average. The Zacks Consensus Estimate for UTZ's current financial-year sales indicates a jump of 3.7% from the year-ago number. Darling Ingredients Inc. DAR, which produces sustainable natural ingredients derived from edible and inedible bio-nutrients, currently carries a Zacks Rank of 2. The consensus estimate for Darling Ingredients' current financial-year sales is expected to rise 11.5% from the year-ago reported figure. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Constellation Brands Inc (STZ) : Free Stock Analysis Report Darling Ingredients Inc. (DAR) : Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report Utz Brands, Inc. (UTZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Lamb Weston Holdings, Inc. LW reported solid first-quarter fiscal 2027 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year. LW's adjusted earnings were 75 cents per share, up 1.4% year over year. The bottom line beat the Zacks Consensus Estimate of 59 cents. Lamb Weston price-consensus-eps-surprise-chart | Lamb Weston Quote Net sales amounted to $1,670.3 million, beating the Zacks Consensus Estimate of $1,654 million. The top line increased 0.7% year over year, driven by a 2% increase in sales volume and an immaterial favorable currency impact partially offset by a 2% decline in price/mix. Our model suggested a volume increase of 3.2% in the quarter. Adjusted gross profit fell 6.5% year over year to $316.8 million from $338.9 million. The adjusted gross margin decreased 140 basis points (bps) to 19%. Our model projected adjusted gross margin contraction of about 200 basis points to 18.4%. Adjusted selling, general and administrative expenses rose 5.1% to $139.2 million. As a percentage of sales, the same increased 30 bps to 8.3%. Adjusted EBITDA fell 5.5% year over year to $285.6 million, while adjusted EBITDA margin contracted 110 bps to 17.1%. North America segment sales increased 5.2% year over year to $1,141.4 million. Volume grew 6.7%, marking the seventh consecutive quarter of volume growth, driven by stronger demand from existing customers and customer wins. Price/mix declined 1.7%, reflecting pricing and trade support as well as a mix shift toward faster-growing chain customers and private-label products. Segment adjusted EBITDA increased 11% to $287.3 million, aided by higher volume, cost savings and $5 million of tariff refunds. International segment sales declined 8% to $528.9 million. Volume decreased 6.4%, while price/mix fell 2%, as weaker performance in Europe continued to weigh on the business. International segment adjusted EBITDA plunged 54% to $26.5 million. Lower sales, higher manufacturing costs per pound, prior-year potato cost carry-in, factory underutilization and inflation pressured results. The company ended the quarter with cash and cash equivalents of $166.3 million, long-term debt and financing obligations (excluding the current portion) of $3,578.5 million and total shareholders' equity of $1,806.7 million. LW generated $234.8 million as net cash from operating activities for the 13 weeks ending Aug. 30, 2026, wherein capital expenditures amounted to $91 million. The company returned $52 million to shareholders through dividends during the quarter and had about $245 million remaining under its share-repurchase authorization. Management declared a quarterly dividend of 38 cents per share, payable on Dec. 4, to its shareholders of record as of Nov. 6, 2026. For fiscal 2027, Lamb Weston now expects net sales to increase a low-single-digit percentage from the adjusted fiscal 2026 base of $6.5 billion, compared with prior forecast of flat to 1% growth. Adjusted EBITDA guidance increased to $1.125-$1.215 billion from $1.10-$1.20 billion. Adjusted earnings are now projected between $3.05 and $3.35 per share, up from the previous $2.95-$3.25 range. Capital spending guidance was maintained at $380-$410 million. Shares of this Zacks Rank #3 (Hold) company have gained 2.6% in the past three months against the industry's 7.1% decline. Image Source: Zacks Investment Research The Chefs' Warehouse, Inc. CHEF distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. At present, CHEF flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The consensus estimate for Chefs' Warehouse's current fiscal-year sales and earnings implies growth of 10.8% and 33.7%, respectively, from the year-ago reported figures. Chefs' Warehouse delivered a trailing four-quarter earnings surprise of 30.4%, on average. Mama's Creations, Inc. MAMA manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA holds a Zacks Rank of 2 (Buy). Mama's Creations delivered a trailing four-quarter earnings surprise of 121.7%, on average. The consensus estimate for Mama's Creations' current fiscal-year sales and earnings implies growth of 30.3% and 66.7%, respectively, from the year-ago figures. Utz Brands UTZ engages in the manufacture, marketing and distribution of snack foods in the United States. It presently carries a Zacks Rank of 2. UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average. The Zacks Consensus Estimate for Utz Brands' current financial-year sales indicates growth of 3.7% from the year-ago numbers. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lamb Weston (LW) : Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report Utz Brands, Inc. (UTZ) : Free Stock Analysis Report Mama's Creations, Inc. (MAMA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Conagra Brands, Inc. CAG reported first-quarter fiscal 2027 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. While net sales decreased, earnings increased from the year-ago period's actuals. Conagra Brands' adjusted earnings per share (EPS) for the quarter were 41 cents, beating the Zacks Consensus Estimate of 31 cents. The bottom line increased 5.1% year over year. Conagra Brands price-consensus-eps-surprise-chart | Conagra Brands Quote Net sales fell 1.4% to $2,595.9 million, slightly exceeding the Zacks Consensus Estimate of $2,595 million. Reported sales included a 0.2% favorable foreign-exchange impact and a 0.5% drag from M&A. Organic net sales declined 1.1%, as a 2.1% volume drop more than offset a 1% price/mix benefit. The company gained dollar share in frozen vegetables, pudding, chili, frozen breakfast, hot dogs and frozen desserts. We anticipated volumes to fall 2.4% while expecting a 1.2% pricing gain. Adjusted gross profit decreased 3.9% to $618.6 million, while adjusted gross margin contracted 62 basis points to 23.8%. Higher productivity and about $4 million of tariff refunds were more than offset by cost-of-goods-sold inflation, lower organic sales and unfavorable operating leverage. Our model projected adjusted gross margin contraction of about 100 basis points to 23.4%. Adjusted SG&A declined 3.7% to $320.7 million, including a $10 million benefit tied to fiscal 2026 incentive compensation. Advertising and promotional spending increased 15.1% to $60.9 million. Adjusted EBITDA increased 2.4% to $451.4 million. Grocery & Snacks: Net sales declined 2.6% to $1,051.1 million, while organic sales fell 2%. A 3.4% increase in price/mix was outweighed by a 5.4% volume decline. Adjusted operating profit decreased 7.2% to $204.9 million. Refrigerated & Frozen: Net sales fell 2.1% to $1,053.8 million, with organic sales down 1.6%. Price/mix declined 1.5% and volume slipped 0.1%. Adjusted operating profit dropped 13% to $99.6 million as inflation, operating leverage and higher advertising investment offset productivity gains. International: Sales increased 2.7% to $218.1 million, helped by foreign exchange, while organic sales rose 0.9%. Price/mix advanced 1.6%, partly offset by a 0.7% volume decline. Adjusted operating profit fell 8.6% to $34.4 million. Foodservice: Net sales grew 3.2% to $272.9 million, while organic sales increased 3.3%. Volume rose 2.5%, including an approximately 150-basis-point benefit from customer-order timing, and price/mix gained 0.8%. Adjusted operating profit increased 11.4% to $30.9 million. Net cash used in operating activities was $4.2 million. Capital expenditures totaled $123.7 million, resulting in negative free cash flow of $127.9 million. CAG ended the quarter with net debt of $7,388.5 million, down 2.5% year over year. The net leverage ratio was 3.99X. The company also paid $167.5 million in dividends during the quarter. Management reaffirmed its fiscal 2027 outlook for an organic net sales decline of 1-3%, an adjusted operating margin of 10-10.5% and adjusted earnings of $1.40-$1.50 per share. The guidance continues to assume equity earnings of about $140 million and free cash flow conversion above 90%. This Zacks Rank #4 (Sell) stock has fallen 1.2% in the past three months compared with the industry's decline of 3.9%. Image Source: Zacks Investment Research The Chefs' Warehouse, Inc. CHEF distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. At present, CHEF flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The consensus estimate for Chefs' Warehouse's current fiscal-year sales and earnings implies growth of 10.8% and 33.7%, respectively, from the year-ago reported figures. Chefs' Warehouse delivered a trailing four-quarter earnings surprise of 30.4%, on average. Luckin Coffee Inc. LKNCY offers retail services of freshly brewed drinks and pre-made food and beverage items in the People's Republic of China. The company currently sports a Zacks Rank of 1. LKNCY delivered a trailing four-quarter earnings surprise of 6.6%, on average. The Zacks Consensus Estimate for Luckin Coffee's current financial-year sales and earnings indicates growth of 33.3% and 40.8%, respectively, from the prior-year reported levels. Lamb Weston Holdings, Inc. LW engages in the production, distribution and marketing of frozen potato products in the United States, Canada, Mexico and internationally, and presently carries a Zacks Rank of 2. LW delivered a trailing four-quarter earnings surprise of 24.6%, on average. The Zacks Consensus Estimate for Lamb Weston's current fiscal-year earnings indicates growth of 1.7% from the year-ago numbers. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Conagra Brands (CAG) : Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report Lamb Weston (LW) : Free Stock Analysis Report Luckin Coffee Inc. Sponsored ADR (LKNCY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

General Mills, Inc. GIS reported first-quarter fiscal 2027 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. However, both metrics declined year over year. The company posted adjusted earnings of 75 cents per share, down 13% year over year in constant currency but above the Zacks Consensus Estimate of 72 cents. Quarterly profitability was pressured by higher input costs and lower volume, partly offset by favorable net price realization and mix. General Mills, Inc. price-consensus-eps-surprise-chart | General Mills, Inc. Quote Net sales declined 3% year over year to $4,389.5 million, but topped the consensus estimate of $4,344 million. Organic net sales were essentially flat from the prior-year period. Adjusted gross margin contracted 90 basis points to 33.3% of net sales. Higher input costs drove the decline, while favorable net price realization and mix provided a partial offset. We expected an adjusted gross margin of 33.8%.Adjusted operating profit fell 11% in constant currency to $634 million, and adjusted operating margin declined 130 basis points to 14.4%. We expected an adjusted operating margin of 14.3% for the quarter. North America Retail sales declined 7% year over year to $2,451.8 million, including a 4-point headwind from the U.S. yogurt divestiture. Sales fell at a double-digit rate in Big G Cereal & Canada, including the divestiture impact, declined at a mid-single-digit rate in U.S. Snacks and were flat in U.S. Meals & Baking Solutions. Organic net sales decreased 3% and trailed Nielsen-measured retail sales by about 1 point due to changes in retailer inventory. Retail sales growth improved sequentially by 2 points, while dollar-share trends strengthened across most priority categories.Segment operating profit fell 15% to $478.6 million, both as reported and in constant currency. Lower volume and higher input costs weighed on profitability, partly offset by favorable net price realization and mix, as well as lower SG&A expenses.North America Pet sales were essentially flat at $612.8 million. Cat food sales increased at a double-digit rate and pet treats grew at a low-single-digit rate, while dog food sales declined at a high-single-digit rate. Organic net sales were flat and exceeded all-channel retail sales growth by about 1 point, aided by an extra month of Whitebridge Pet Brands results following the alignment of its calendar with General Mills' August fiscal quarter end.Retailer inventory changes remained a modest headwind. General Mills continues to expect retailer inventory, including changes in customer mix, to create a low-single-digit drag on full-year organic net sales for the Pet segment. Operating profit declined 12% to $99.5 million, reflecting higher input costs, lower volume and increased SG&A expenses, partly offset by favorable pricing and mix.North America Foodservice sales increased 1% to $523.1 million despite a 2-point headwind from the U.S. yogurt divestiture. Organic net sales advanced 4%, led by growth in cereal and frozen meals. The segment held or gained market share across all of its priority businesses.Foodservice operating profit rose 12% to $79.4 million, supported by favorable net price realization and mix, partially offset by higher input costs.International sales grew 4% to $794.3 million, including a 1-point benefit from foreign currency exchange. Organic net sales also increased 4%, driven by growth in distributor markets, India and China.International operating profit increased 14% to $75.2 million, or 15% in constant currency. Higher volume and lower input costs supported the improvement, partly offset by unfavorable pricing and mix and a double-digit increase in media investment. The company ended the quarter with $433.1 million in cash and cash equivalents, $12,367.2 million in long-term debt and $7,450.4 million in stockholders' equity.Cash provided by operating activities totaled $297.8 million, down from $397 million a year earlier. Capital investments were $90.5 million, compared with $109.5 million in the prior-year quarter.General Mills paid $330.5 million in dividends and did not repurchase shares. General Mills reaffirmed fiscal 2027 organic net sales growth of down 1.5% to up 0.5%. Adjusted operating profit is expected to be down 8-13% in constant currency, while adjusted earnings are projected at $3-$3.20 per share. Free cash flow conversion is expected to be approximately 95% of adjusted after-tax earnings.The company continues to target at least $750 million of savings from Holistic Margin Management, its global transformation initiative and other cost actions. It also expects roughly 9 points of operating-profit headwind and 11 points of earnings-per-share headwind from lapping the 53rd week, normalizing incentive expense and fiscal 2026 divestitures. The net impact of divestitures, foreign exchange and the 53rd week is expected to reduce reported sales growth by about 4%.This Zacks Rank #3 (Hold) company’s shares have gained 1.8% in the past three months compared with the industry’s growth of 0.9%. Image Source: Zacks Investment Research The Chefs' Warehouse, Inc. CHEF distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. At present, CHEF flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for Chefs' Warehouse’s current fiscal-year sales and earnings implies growth of 10.6% and 33.7%, respectively, from the year-ago reported figures. Chefs' Warehouse delivered a trailing four-quarter earnings surprise of 30.4%, on average.Luckin Coffee Inc. LKNCY offers retail services of freshly brewed drinks and pre-made food and beverage items in the People's Republic of China. The company currently sports a Zacks Rank of 1. LKNCY delivered a trailing four-quarter earnings surprise of 6.6%, on average.The Zacks Consensus Estimate for Luckin Coffee’s current financial-year sales and earnings indicates growth of 33.3% and 40.8%, respectively, from the prior-year reported levels. Utz Brands UTZ engages in the manufacture, marketing and distribution of snack foods in the United States and presently carries a Zacks Rank of 2 (Buy). UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average.The Zacks Consensus Estimate for Utz Brands’ current financial-year sales indicates growth of 3.7% from the year-ago numbers. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report General Mills, Inc. (GIS) : Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report Luckin Coffee Inc. Sponsored ADR (LKNCY) : Free Stock Analysis Report Utz Brands, Inc. (UTZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Darling Ingredients Inc. DAR is building more of its Food segment around collagen, where the economics are materially different from traditional gelatin. The company’s second-quarter 2026 materials point to growing collagen demand across the United States, Europe and Asia, along with broader applications in food, nutrition and health products. Collagen sales improved year over year, while higher whey prices are creating an additional use case, with collagen being used as a protein complement or replacement in certain whey applications. The margin profile highlights why this shift is important. In the current market environment, collagen generates roughly 2.5 to 3 times the margin of gelatin, while targeted ingredients can generate 7 to 11 times the margin of gelatin. Rousselot, which represents the majority of the Food segment, can produce these higher-margin products using its existing factories and infrastructure. This provides scope to improve EBITDA and implied net cash through product-mix optimization using the existing asset base. The shift toward higher-value products is already visible in the mix. Collagen represented about 20% of Food-segment volume in 2020 and 30% in 2025, with its share estimated at 33% by 2030. Its contribution to adjusted EBITDA increased from 35% in 2020 to 48% in 2025 and is estimated at 50% by 2030. Targeted ingredients are estimated to account for 15% of Food-segment adjusted EBITDA by 2030. With collagen demand expanding in Asia and Darling Ingredients producing about 30% of the world’s collagen, including gelatin and hydrolyzed collagen, it has a sizable global operating base as the product mix shifts toward higher-value offerings. Shares of this Zacks Rank #2 (Buy) company have gained 20.5% in the past three months compared with the broader Consumer Staples sector and the industry’s growth of 0.8% and 3.6%, respectively. EL has also outperformed the S&P 500 index’s growth of 0.8% during the same period. Image Source: Zacks Investment Research Darling Ingredients currently trades at a forward 12-month P/E ratio of 10.07, which is down from the industry average of 14.56 and notably below the sector average of 17.06. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector. Image Source: Zacks Investment Research The Chefs' Warehouse, Inc. CHEF distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. At present, CHEF flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for Chefs' Warehouse’s current fiscal-year sales and earnings implies growth of 10.6% and 33.7%, respectively, from the year-ago reported figures. Chefs' Warehouse delivered a trailing four-quarter earnings surprise of 30.4%, on average.The Vita Coco Company, Inc. COCO develops, manufactures, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO currently sports a Zacks Rank #2. The company delivered a trailing four-quarter earnings surprise of 21.9%, on average.The Zacks Consensus Estimate for Vita Coco’s current fiscal-year sales and earnings indicates growth of 31.6% and 63.9%, respectively, from the year-ago reported numbers. Utz Brands UTZ engages in the manufacture, marketing and distribution of snack foods in the United States and presently carries a Zacks Rank of 2. UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average.The Zacks Consensus Estimate for Utz Brands’ current financial-year sales indicates growth of 3.7% from the year-ago numbers. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Darling Ingredients Inc. (DAR) : Free Stock Analysis Report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report Utz Brands, Inc. (UTZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for Kraft Heinz (KHC). Shares have added about 1.8% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Kraft Heinz due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. The Kraft Heinz Company posted second-quarter 2026 results. The company posted adjusted earnings of 56 cents per share, beating the Zacks Consensus Estimate of 53 cents. Quarterly adjusted earnings fell 18.8% year over year, mainly due to lower adjusted operating income, partially offset by reduced tax expenses.The company generated net sales of $6,262 million, down 1.4% year over year. However, the metric beat the Zacks Consensus Estimate of $6,162 million. The decrease included a 0.6 percentage-point drag from divestitures partially offset by a favorable 0.5 percentage-point impact from foreign currency. Organic net sales fell 1.3%. Our model expected a 3.8% dip in organic sales. Price contributed 1.3 percentage points of growth, with increases across all segments, primarily reflecting pricing actions in select categories to offset higher input costs, particularly in coffee and ready-to-drink beverages. Volume/mix declined 2.6 percentage points, driven by lower volumes in the North America and International Developed Markets segments, partly offset by growth in the Emerging Markets segment. The volume/mix decline was primarily attributable to weaker performance in meats and spoonables, along with the timing shift of Easter, which reduced growth approximately 100 basis points. These headwinds were partially offset by an approximately 80-basis-point benefit from inventory pull-forward in the quarter.The adjusted gross profit of $2,136 million decreased from the $2,168 million reported in the year-ago quarter. Adjusted gross profit margin was flat year over year at 34.1%. Adjusted operating income declined 18.4% year over year to $1,041 million. The drop was primarily caused by higher advertising expenses, unfavorable volume/mix, inflationary pressures in manufacturing and logistics and higher variable compensation expense. These headwinds more than offset the benefits from higher pricing and efficiency initiatives. North America net sales declined 2.7% to $4,626 million. Organic sales also fell 2.7%, as a 1.1-percentage-point pricing contribution was outweighed by a 3.8-percentage-point volume/mix decline. We expected a 5.3% decline in segment organic sales.International Developed Markets sales decreased 3.5% to $865 million, while organic sales slipped 0.7% as a 0.7-percentage-point pricing contribution was outweighed by a 1.4-percentage-point volume/mix decline. We expected a 1.4% decrease in segment organic sales. Emerging Markets sales rose 10.4% to $771 million, and organic sales advanced 8.5%, driven by 4.5-percentage-point pricing and 4-percentage-point volume/mix contributions. We expected 3.6% growth in segment organic sales. Kraft Heinz ended the quarter with cash and cash equivalents of $2,419 million, long-term debt of $17,619 million and total shareholders’ equity (excluding noncontrolling interest) of $36,006 million. Net cash provided by operating activities was $2,088 million for the six months ended June 27, 2026, and free cash flow was $1,659 million. The company returned $949 million to its shareholders through cash dividends in the first half. Kraft Heinz did not repurchase any shares under its existing buyback program. For 2026, Kraft Heinz now expects organic net sales to decline 0.5-2%, compared with its previous forecast for a 1.5-3.5% drop. The outlook continues to include an estimated 100-basis-point headwind from lower SNAP benefits.Constant-currency adjusted operating income is now projected to fall 16-18%, compared with the prior range of 14-18% decrease. Adjusted earnings are expected between $2.03 and $2.09 per share, compared with the previous range of $1.98-$2.10. Since the earnings release, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -8.25% due to these changes. Currently, Kraft Heinz has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Kraft Heinz has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Kraft Heinz is part of the Zacks Food - Miscellaneous industry. Over the past month, Chefs' Warehouse (CHEF), a stock from the same industry, has gained 4.7%. The company reported its results for the quarter ended June 2026 more than a month ago. Chefs' Warehouse reported revenues of $1.17 billion in the last reported quarter, representing a year-over-year change of +12.9%. EPS of $0.78 for the same period compares with $0.52 a year ago. For the current quarter, Chefs' Warehouse is expected to post earnings of $0.61 per share, indicating a change of +22% from the year-ago quarter. The Zacks Consensus Estimate has changed +11.7% over the last 30 days. Chefs' Warehouse has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kraft Heinz Company (KHC) : Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research