DAR

The Campbell's Company CPB closed fiscal 2026 with continued operating pressure as elevated inflation and Snacks’ weakness outweighed momentum in Meals & Beverages.Adjusted earnings for the fiscal fourth quarter were 39 cents per share, down 37% year over year and lagging the Zacks Consensus Estimate of 40 cents. Net sales declined 8% to $2,137 million and missed the consensus mark of $2,152 million. Organic sales fell 1%, primarily due to lower volume/mix. The Campbell's Company price-consensus-eps-surprise-chart | The Campbell's Company Quote Adjusted gross profit declined 14% to $611 million. Adjusted gross margin contracted 190 basis points to 28.6%, mainly due to cost inflation and other supply-chain costs, including tariffs. Supply-chain productivity improvements partially offset these pressures.Adjusted marketing and selling expenses decreased 6% to $186 million, while adjusted administrative expenses fell 3% to $153 million. Adjusted EBIT declined 25% to $242 million, with adjusted EBIT margin falling to 11.3% from 13.8% a year earlier. The additional week in the prior-year quarter had an estimated 8% impact on adjusted EBIT. Meals & Beverages net sales decreased 4% to $1,187 million, while organic net sales increased 3% on 3% favorable volume/mix. Organic growth included an estimated two-point benefit tied to the prior-year Sovos Brands ERP implementation. Segment operating earnings declined 12% to $181 million, primarily due to inflation and other supply-chain costs.Snacks’ net sales fell 12% to $950 million, with organic net sales declining 6% as an unfavorable volume/mix of 6% outweighed a 1% favorable net price realization. Segment operating earnings dropped 34% to $101 million. Salty snacks retail sales declined 7.8%, while core Goldfish consumption returned to growth. Rao's remained a bright spot in Meals & Beverages, with total consumption up 9.6% in the quarter. Campbell's is launching an enterprise-wide program targeting $500 million in cost reductions by fiscal 2030. The company generated about $25 million in savings during the fiscal fourth quarter, bringing cumulative savings under its prior program to approximately $225 million.Several measures are already underway, including plant closures and workforce reductions that lowered the salaried workforce by approximately 13%. For fiscal 2027, management expects more than $100 million in savings and productivity above 4% of the cost of products sold. CPB also plans targeted pricing actions to help offset persistent input-cost pressure. Fiscal 2026 operating cash flow totaled $1,039 million compared with $1,131 million in the prior year. Capital expenditures were $361 million, while the company returned $496 million to its shareholders, primarily through dividends.Campbell's ended fiscal 2026 with $394 million in cash and cash equivalents. Short-term borrowings were $977 million and long-term debt totaled $6,160 million. Net leverage reached 4.3 times. To accelerate debt reduction, the board reduced the quarterly dividend to 25 cents per share from 39 cents, which is expected to lower annual cash outflows by approximately $170 million. For fiscal 2027, Campbell's expects net sales and organic net sales to decline 2-4%. Adjusted EBIT is projected to decrease 7-12%, while adjusted earnings are expected in the range of $1.65-$1.80 per share, representing a decline of 17-24%. The La Regina acquisition is expected to contribute modestly to sales and be broadly neutral to adjusted earnings.The outlook assumes raw-material and packaging inflation of 5-6%, double-digit logistics inflation and a low-single-digit benefit from net pricing. Total operating expenses are expected to decline slightly on a dollar basis, including an approximately $50 million impact from resetting incentive compensation levels Management expects first-quarter fiscal 2027 organic net sales and profit declines to fall below the lower end of the full-year ranges, reflecting continued Snacks weakness and heavier investment behind innovation and holiday activity in Meals & Beverages. Fiscal first-quarter adjusted EBIT margin is projected at approximately 10%.Performance is expected to improve after the first quarter as productivity, savings and pricing contributions build through the year. Adjusted net interest expense is projected at $345-$350 million, while capital expenditures are expected to be approximately $300 million.Shares of the Zacks Rank #4 (Sell) company have tumbled 27.2% over the past year compared with the industry’s decline of 16.3%. The Chefs' Warehouse, Inc. CHEF is a distributor of specialty food and center-of-the-plate products across the United States, Canada and the Middle East. CHEF 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 The Chefs' Warehouse’s current fiscal-year sales and earnings per share (EPS) implies growth of 10.6% and 33.7%, respectively, from the year-ago figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.The Vita Coco Company, Inc. COCO, a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently sports a Zacks Rank #1. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and EPS calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures.Darling Ingredients Inc. DAR, a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients, currently carries a Zacks Rank of 2 (Buy). The Zacks Consensus Estimate for Darling’s current fiscal-year sales suggests an 11.5% jump from the prior-year levels. The consensus estimate for current fiscal-year EPS stands at $6.98, which implies a substantial improvement from the year-ago period. 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 Campbell's Company (CPB) : Free Stock Analysis Report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report Darling Ingredients Inc. (DAR) : 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

Ollie’s Bargain Outlet Holdings, Inc. OLLI reported second-quarter fiscal 2026 adjusted earnings of $1.42 per share, which improved 43.4% year over year and beat the Zacks Consensus Estimate of $1.14 by 24.6%. Net sales rose 9.1% to $741.3 million but missed the consensus mark of $753 million by 1.5%.Earnings benefited from IEEPA tariff refunds and lower tariff rates, while the sales increase reflected new-store growth. Comparable-store sales declined 1.8% as average basket size fell, with less favorable weather, consumer pressure and a heightened promotional environment weighing on demand. OLLI opened 15 stores and closed one storm-damaged location during the quarter, ending with 686 stores across 36 states. The store base increased 11.9% from a year earlier and remained the main driver of top-line growth. The company opened 42 stores in the first half of fiscal 2026.Comparable-store transactions were flat, while the average basket declined. Toys, general merchandise, summer furniture, candy and seasonal decor were the strongest categories. Lawn and garden plus room air represented more than 100 basis points of year-over-year comp pressure, with management indicating that the broader drag was more meaningful because those categories also drive store traffic. Ollie's Bargain Outlet Holdings, Inc. price-consensus-eps-surprise-chart | Ollie's Bargain Outlet Holdings, Inc. Quote Ollie’s Bargain said lower-income customers continued to prioritize needs over wants, shop closer to need and make fewer trips. Management defined that cohort at a household income of $65,000 or below. Higher-income customers, defined around $100,000 and above, continued to trade down in search of value.Ollie’s Army loyalty membership increased 12.7% to 18.1 million. New customer acquisition also increased, while management highlighted continued momentum among shoppers ages 35 to 55, with particular strength in the 35-45 range. Closeout deal flow remained strong, giving the retailer flexibility to adjust category mix and value. Gross margin expanded 360 basis points to 43.5%. IEEPA tariff refunds contributed 380 basis points, while merchandise margin declined primarily because of price investments. Lower tariff rates more than offset elevated transportation costs. Excluding the refund and related price investment, management said gross margin would have been about 40.3%-40.4%.SG&A expenses increased 80 basis points as a share of sales to 26.6%, reflecting fixed-cost deleverage from the negative comp and higher marketing costs tied to one additional merchandise flyer. Pre-opening expenses fell 42% to $5.2 million on fewer store openings and lower dark-rent expense. Adjusted net income increased 40.3% to $85.4 million. Operating income rose 40.9% to $108.5 million, while adjusted EBITDA climbed 35.5% to $127.1 million. Adjusted EBITDA margin widened 330 basis points to 17.1%.Beyond the tariff benefit, management cited favorable shrink trends and supply-chain efficiencies as additional support to earnings. The Texas distribution-center expansion was completed during the quarter, and operations have normalized. The Illinois facility expansion is expected to begin in the coming months. Total cash and investments reached $507.1 million, up 10.2% year over year, while inventories increased 10.5% to $704.4 million, primarily to support new-store growth. Capital expenditures totaled $43.3 million, with spending focused on new stores, existing-store improvements and the Texas distribution-center expansion.OLLI repurchased about $84 million of stock in the quarter and $137.3 million in the first half. The company had $121.5 million remaining under its authorization at quarter-end and continued to carry no meaningful long-term debt. Ollie’s Bargain lowered its fiscal 2026 net sales outlook to $2.928-$2.941 billion from $2.980-$3.000 billion. Comparable-store sales are now expected to range from flat to up 0.5%, down from the prior view of about 2% growth. The 75-store opening target was maintained, while planned share repurchases increased to about $175 million from $125 million.The company raised its adjusted earnings outlook to $4.57-$4.65 per share from $4.45-$4.55 and lifted the gross-margin view to about 41.3% from 40.7%. Operating income is now projected at $345-$350 million. Management expects third-quarter comps near flat and fourth-quarter comps up about 1%, while August trends were running ahead of the plan used to set guidance.Shares of this Zacks Rank #4 (Sell) company have fallen 0.8% over the past three months against the industry’s rise of 7%. The Vita Coco Company, Inc. COCO, a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently sports a Zacks Rank #1 (Strong Buy). COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and EPS calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures.Target Corporation TGT operates as a general merchandise retailer. TGT carries a Zacks Rank #2 (Buy). The consensus estimate for Target’s current fiscal-year sales and earnings implies growth of 4.7% and 37.7%, respectively, from the year-ago reported figures. TGT delivered a trailing four-quarter earnings surprise of 10.5%, on average.Darling Ingredients Inc. DAR, a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients, currently carries a Zacks Rank of 2.The Zacks Consensus Estimate for Darling’s current fiscal-year sales suggests an 11.5% jump from the prior-year levels. The consensus estimate for current fiscal-year EPS stands at $6.98, which implies a substantial improvement from the year-ago period. 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 Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report Darling Ingredients Inc. (DAR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Hormel Foods Corporation HRL reported third-quarter fiscal 2026 adjusted earnings of 37 cents per share, up 5.7% year over year and above the Zacks Consensus Estimate of 36 cents. Net sales fell 2.4% to $2,961.3 million and missed the consensus mark of $3,047 million. Organic net sales decreased 2% in the quarter. Total volume declined 7.4%, while organic volume fell 7.1%. Hormel Foods Corporation price-consensus-eps-surprise-chart | Hormel Foods Corporation Quote Adjusted selling, general and administrative expenses fell 11.6% to $216.9 million from $245.2 million. Advertising investments were $34 million compared with $41 million a year earlier.Adjusted operating income increased 4.7% year over year to $266.2 million. Adjusted operating margin expanded 60 basis points to 9% from 8.4% in the year-ago quarter. Retail net sales declined 4.3% year over year to $1,779.4 million, while organic net sales fell 3.3%. Volume decreased 9.1% as commodity turkey and private-label snack nuts pressured results. Strong performance in value-added turkey offerings, contract manufacturing and Planters snack nuts partly offset the weakness. SPAM products, Applegate natural and organic meats and Hormel chili also delivered growth, while segment profit decreased 3.7% to $118.1 million as lower sales and higher logistics expenses outweighed lower SG&A costs.Foodservice net sales rose 1.6% to $1,003.2 million, with organic net sales up 1.8%. Volume declined 1.5%, but the segment still generated its 12th straight quarter of organic net sales growth. Growth was broad-based and led by premium prepared proteins, branded pepperoni and Jennie-O turkey. Segment profit increased 2.7% to $144.5 million as higher sales and favorable pork input costs more than offset higher logistics and SG&A expenses.International net sales declined 4.7% to $178.7 million, while organic net sales fell 4.4%. Volume dropped 10.8%, and the timing of certain SPAM export sales was hurt by a one-time legal-entity transition. Segment loss was $29.2 million against $18.9 million of profit in the year-ago quarter, largely because of a non-cash impairment charge. Hormel Foods ended the quarter with $839.6 million in cash and cash equivalents, up from $670.7 million at the end of fiscal 2025. Inventories were $1.8 billion, while the company returned $161 million to its shareholders through dividends during the quarter.Cash flow from operations increased 54% year over year to $240.6 million. Capital expenditures totaled $68.2 million, with spending focused on infrastructure enhancements and data and technology investments. Hormel Foods lowered fiscal 2026 net sales guidance to $12.1-$12.2 billion from $12.2-$12.5 billion and narrowed organic net sales growth expectations to 1-2% from 1-4%. The revised view reflects the external environment and the fiscal fourth-quarter impact of the Brazil divestiture. The transaction closed early in the fiscal fourth quarter, and its expected impact is reflected in the updated guidance. The company raised adjusted operating income guidance to $1.08-$1.12 billion from $1.06-$1.12 billion. Adjusted earnings per share guidance was raised and narrowed to $1.45-$1.51 from $1.43-$1.51, implying growth of 6-10%.This Zacks Rank #4 (Sell) stock has tumbled 7.3% over the past month compared with the industry’s decline of 6.9%. 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.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 #1. 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 64.7%, respectively, from the year-ago reported numbers. Darling Ingredients Inc. DAR develops, produces and sells sustainable natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America and internationally. At present, Darling Ingredients holds a Zacks Rank of 2 (Buy). DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average. The consensus estimate for Darling Ingredients’ current fiscal-year sales and earnings implies growth of 11.5% and 926.5%, 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 Hormel Foods Corporation (HRL) : Free Stock Analysis Report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report Darling Ingredients Inc. (DAR) : 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 J.M. Smucker Co. SJM delivered a strong start to fiscal 2027, supported by improved profitability, pricing actions and momentum across key brands. The company reported adjusted earnings per share of $3.24, up 71% year over year, beating the Zacks Consensus Estimate of $2.21. Net sales increased 5% year over year to $2,219.3 million, topping the consensus estimate of $2,105 million. Growth was driven by higher net price realization, favorable volume/mix and tariff refunds received during the quarter. The J. M. Smucker Company price-consensus-eps-surprise-chart | The J. M. Smucker Company Quote SJM’s first-quarter adjusted gross profit increased 28% year over year to $950.2 million. Adjusted gross margin expanded to 42.8% from 35.2% in the prior-year quarter, driven by tariff refunds, higher net price realization and favorable volume/mix. Excluding the $115 million benefit from tariff refunds, adjusted gross margin still improved 240 basis points, reflecting underlying progress in profitability.Adjusted operating income increased 46% year over year to $540.7 million, with adjusted operating margin improving to 24.4% from 17.5%. The rise reflected higher adjusted gross profit, partially offset by increased selling, distribution and administrative expenses, including higher marketing and administrative investments. Smucker continued to invest in its largest growth platforms during the quarter. Uncrustables delivered 12% net sales growth at the total company level, driven by double-digit volume/mix growth, record quarterly volume and increased household penetration.Cafe Bustelo also posted strong momentum, with total company net sales increasing 23%. Management noted that the brand continues to expand household penetration and remains focused on increasing its presence in the at-home coffee category. SJM’s U.S. Retail Coffee segment generated net sales of $807.8 million, up 13% year over year. Higher pricing contributed 10 percentage points of growth, while volume/mix increased 2 percentage points, driven by Dunkin’ and Café Bustelo. Segment profit rose 124% to $300 million, aided by tariff refunds and pricing actions.The U.S. Retail Frozen Handheld and Spreads segment posted net sales of $499.3 million, up 3% year over year. Growth was supported by Uncrustables, while peanut butter and fruit spreads faced pressure. Segment profit increased 13% to $129.7 million.The U.S. Retail Pet Foods segment recorded net sales of $371.7 million, up 1% year over year, supported by cat food growth. Segment profit declined 2% to $98.9 million due to higher costs and increased marketing spending. Sweet Baked Snacks sales plunged 7% to $236.5 million, pressured by lower volume/mix in snack cakes and breakfast products.Away From Home sales rose 3% to $203.7 million, supported by Uncrustables and fruit spreads. Segment profit increased 19% to $61.2 million, reflecting tariff refunds and favorable volume/mix. Smucker raised its fiscal 2027 outlook following the better-than-expected first-quarter performance. The company now expects net sales to decline 1% to 2% compared with its previous outlook for a 3% to 4% drop.Adjusted earnings per share guidance was increased to $10.50-$11.00 from $9.75-$10.25. The updated outlook reflects stronger momentum, improved sales expectations and a net benefit of approximately $60 million related to tariff refunds after planned investments in selling, distribution and administrative expenses.The company also raised its free cash flow outlook to approximately $1,100 million from $1,000 million. Management expects adjusted gross profit margin of approximately 38.75% and capital expenditures of $325 million for fiscal 2027. SJM generated operating cash flow of $425.7 million in the quarter compared with cash used for operating activities of $10.6 million in the prior-year period. Free cash flow improved to $337.3 million from negative $94.9 million, reflecting higher earnings and lower working capital requirements.The company reduced debt by approximately $230 million during the quarter and reached its leverage target of at or below 3.0X net debt to adjusted EBITDA earlier than expected. Management remains focused on debt reduction while maintaining investments in growth initiatives, dividends and potential share repurchases. Image Source: Zacks Investment Research Shares of this Zacks Rank #3 (Hold) company have rallied 22.6% over the past three months compared with the industry’s growth of 12.6%. The Chefs' Warehouse, Inc. CHEF is a distributor of specialty food and center-of-the-plate products across the United States, Canada and the Middle East. CHEF 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 The Chefs' Warehouse’s current fiscal-year sales and earnings per share (EPS) implies growth of 10.6% and 33.7%, respectively, from the year-ago figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.The Vita Coco Company, Inc. COCO, a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently sports a Zacks Rank #1. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and EPS calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures.Darling Ingredients Inc. DAR, a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients, currently carries a Zacks Rank of 2 (Buy). The Zacks Consensus Estimate for Darling’s current fiscal-year sales suggests 11.5% growth from the prior-year levels. The consensus estimate for current fiscal-year EPS stands at $6.98, which implies a substantial improvement from the year-ago period. 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 J. M. Smucker Company (SJM) : Free Stock Analysis Report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report Darling Ingredients Inc. (DAR) : 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

Post Holdings, Inc. POST topped third-quarter fiscal 2026 earnings expectations even as sales declined, with Foodservice delivering better-than-anticipated performance. Attention now shifts to fiscal 2027. Management has set a comparable adjusted EBITDA starting point of about $1.48 billion and expects Foodservice growth, pricing and productivity to offset inflation and lingering volume pressure enough to keep adjusted EBITDA generally flat. Post Holdings reported adjusted earnings of $1.78 per share, beating the Zacks Consensus Estimate of $1.63. Net sales fell 1.8% year over year to $1,948.0 million and missed the $2,019 million consensus mark. Post Holdings, Inc. price-consensus-eps-surprise-chart | Post Holdings, Inc. Quote Foodservice was the key upside driver. Segment volumes increased 4.3% as customer service levels and protein-based shake production improved. Adjusted EBITDA still fell 11.4% to $140.8 million because the year-ago quarter benefited from elevated avian-influenza pricing. Management narrowed fiscal 2026 adjusted EBITDA guidance to $1,560-$1,570 million from $1,550-$1,580 million. The midpoint remained $1,565 million. Post Holdings also expects fiscal 2026 capital expenditures of $370-$390 million. The spending plan includes investments intended to expand Foodservice capacity as management provides early context for the next fiscal year. Post Holdings' fiscal 2026 outlook includes approximately $60 million of Foodservice earnings above the segment’s $500 million normalized annual run rate and approximately $20 million from fiscal 2026 divestitures. Excluding those items produces a comparable adjusted EBITDA base of approximately $1.48 billion. Management’s preliminary fiscal 2027 view is for adjusted EBITDA to remain generally flat against that base. The comparison removes the above-normal Foodservice earnings and divestiture contributions embedded in fiscal 2026 guidance. Foodservice growth off the $500 million run rate, pricing actions and productivity initiatives are expected to largely offset inflation and continued volume softness. Post Holdings is also spending $80-$90 million in fiscal 2026 on cage-free egg expansion and the Norwalk, IA, precooked egg facility expansion. The Chefs’ Warehouse, Inc. CHEF provides a foodservice demand read-through because it distributes specialty food products to restaurants, hotels, caterers and other hospitality customers. Its customer mix makes CHEF relevant when assessing demand conditions across the broader foodservice channel. Darling Ingredients Inc. DAR provides another food-industry reference point through its processing of materials from the animal agriculture and food industries into feed and food ingredients. Its exposure to animal-based inputs and food-industry supply chains offers context for commodity and ingredient conditions that can affect food producers. The bottom line is that Foodservice is the main operating offset Post expects against inflation and softer volumes in fiscal 2027. Pricing and productivity also matter, but later pricing increases the importance of execution as the year progresses. Valuation provides additional context. POST trades at 11.74X forward 12-month EPS, below its five-year median of 17.74X. The multiple is also closer to the five-year low of 9.18X, placing the stock toward the lower end of its historical valuation range. Image Source: Zacks Investment Research POST currently carries a Zacks Rank #3 (Hold), along with a VGM Score of B, a Value Score of A, a Growth Score of D and a Momentum Score of C. The scores indicate a more favorable value profile than growth or momentum, while the Hold rank supports a measured near-term view. The Style Scores complement the Zacks Rank rather than override it, leaving investors to watch whether Foodservice growth can offset broader operating pressure. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 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 Post Holdings, Inc. (POST) : Free Stock Analysis Report Darling Ingredients Inc. (DAR) : 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

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. After a strong 1 year run, Darling Ingredients now looks closer to fairly priced on market multiples, even though its valuation checks still lean supportive of the current share price. Darling Ingredients has returned 88.8% over the past year, which means anyone looking at the stock today is assessing it after a major move rather than at the start of one. The agreed sale of about US$150 million in production tax credits may support cash generation and capital flexibility. At the same time, investors still need to weigh the risk that future margins and cash flows from the underlying business do not keep up with expectations baked into the current price. The stock scores well on valuation, with 5 out of 6 checks pointing to attractive pricing. This suggests the broader set of measures leans on the cheap side rather than expensive. The issue now is whether Darling Ingredients offers enough value after this rally to justify taking on the risks around its future cash flows and execution. Darling Ingredients delivered 88.8% returns over the last year. See how this stacks up to the rest of the Food industry. The P/E ratio is a useful cross check for Darling Ingredients because the company is currently profitable and has analyst coverage on earnings. Darling Ingredients trades on a P/E of about 17.3x, which is slightly below the Food industry average of 17.6x and well below the broader peer group average of 24.6x. That places the stock toward the lower half of the pack on this basic earnings measure. A tailored fair P/E multiple for Darling Ingredients, which reflects its sector, size and risk profile, sits at roughly 18.7x. The current 17.3x level is close to that mark, which points to a market view that looks neither especially pessimistic nor overly optimistic about future earnings. Despite the recent agreement to sell about US$150 million of production tax credits, the P/E still suggests the stock is priced at around a reasonable level relative to its expected earnings power. Overall, Darling Ingredients appears roughly fairly valued on its current P/E multiple. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Darling Ingredients pick up where the valuation checks leave off. They spell out which combinations of future growth, margins and earnings would need to hold for Darling Ingredients' stock to be worth materially more or less than it is today, and each one ties a fair value estimate to a clear story about potential catalysts and risks so you can see over time which version of events is taking shape. Community views on Darling Ingredients are pulled in very different directions, with one side leaning into policy and product upside while the other worries about leverage and regulation. Bull case: 16% undervalued Read the full Bull Case to see why Darling Ingredients could be undervalued Bear case: roughly fairly valued Read the full Bear Case to see why Darling Ingredients could be overvalued Do you think there's more to the story for Darling Ingredients? Head over to our Community to see what others are saying! For Darling Ingredients, the valuation on earnings now looks about right rather than clearly cheap. The current P/E sits close to the tailored fair multiple, which suggests the market already prices in a reasonable view of the company’s earnings power and risks. The stronger overall valuation checks leave less of a cushion if margins or cash generation fall short of what the market expects. The key question from here is whether Darling Ingredients can deliver on execution and profitability so that today’s multiple proves a starting point for further value, rather than the upper edge of what the business can justify. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DAR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the ingredients, flavors & fragrances stocks, including Darling Ingredients (NYSE:DAR) and its peers. Ingredients, flavors, and fragrances companies supply essential components to food, beverage, personal care, and household product manufacturers. These firms develop proprietary formulations that enhance taste, scent, and texture, creating customer stickiness through specialized expertise and regulatory-approved ingredient portfolios. Tailwinds include growing consumer demand for natural and clean-label products, expansion in emerging markets, and innovation in plant-based and functional ingredients. However, headwinds persist from volatile raw material costs, particularly for agricultural and petrochemical inputs. Regulatory scrutiny over synthetic additives and fragrance allergens poses compliance challenges, while consolidation among major customers increases pricing pressure and negotiating leverage against suppliers. The 5 ingredients, flavors & fragrances stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 2.4%. In light of this news, share prices of the companies have held steady as they are up 4.9% on average since the latest earnings results. Turning what others consider waste into valuable resources, Darling Ingredients (NYSE:DAR) collects and transforms animal by-products, used cooking oil, and other bio-nutrients into valuable ingredients for food, feed, fuel, and industrial applications. Darling Ingredients reported revenues of $1.72 billion, up 16.4% year on year. This print exceeded analysts’ expectations by 0.5%. Despite the top-line beat, it was still a mixed quarter for the company with a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates. Interestingly, the stock is up 14.6% since reporting and currently trades at $67.17. Is now the time to buy Darling Ingredients? Access our full analysis of the earnings results here, it’s free. Transforming crops from the world's most productive agricultural regions into everyday essentials, Archer-Daniels-Midland (NYSE:ADM) processes and transports agricultural commodities like grains and oilseeds while manufacturing ingredients for food, beverages, feed, and industrial applications. Archer-Daniels-Midland reported revenues of $22.68 billion, up 7.2% year on year, outperforming analysts’ expectations by 2.2%. The business had a very strong quarter with a beat of analysts’ EPS and gross margin estimates. The market seems content with the results as the stock is up 3.1% since reporting. It currently trades at $80.48. Is now the time to buy Archer-Daniels-Midland? Access our full analysis of the earnings results here, it’s free. Responsible for the scents in your favorite perfumes and the flavors in your daily snacks, International Flavors & Fragrances (NYSE:IFF) creates and manufactures ingredients for food, beverages, personal care products, and pharmaceuticals used in countless consumer goods. International Flavors & Fragrances reported revenues of $1.95 billion, down 29.3% year on year, falling short of analysts’ expectations by 25%. It was a softer quarter as it posted full-year revenue and EBITDA guidance missing analysts’ expectations significantly. International Flavors & Fragrances delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 3% since the results and currently trades at $83.31. Read our full analysis of International Flavors & Fragrances’s results here. Known for its ability to turn ordinary corn into thousands of different food ingredients, Ingredion (NYSE:INGR) transforms grains, fruits, vegetables and other plant-based materials into specialty starches, sweeteners and other ingredients for food, beverage and industrial markets. Ingredion reported revenues of $1.85 billion, flat year on year. This number topped analysts’ expectations by 0.9%. Zooming out, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but a significant miss of analysts’ gross margin estimates. The stock is up 6.7% since reporting and currently trades at $107.17. Read our full, actionable report on Ingredion here, it’s free. With origins dating back to 1818 and operations spanning both hemispheres to balance seasonal harvests, Bunge Global (NYSE:BG) is an agribusiness and food company that processes oilseeds, grains, and other agricultural commodities into vegetable oils, protein meals, flours, and specialty ingredients. Bunge Global reported revenues of $24.04 billion, up 88.3% year on year. This result surpassed analysts’ expectations by 9.3%. It was a strong quarter as it also logged a solid beat of analysts’ gross margin estimates and a beat of analysts’ EPS estimates. Bunge Global achieved the biggest analyst estimate beat and fastest revenue growth in the group. The stock is down 2.9% since reporting and currently trades at $114.02. Read our full, actionable report on Bunge Global here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

The finalized 2026-2027 Renewable Volume Obligation gives Darling Ingredients Inc. DAR a supportive policy backdrop for Diamond Green Diesel ("DGD"). The mandate is intended to increase domestic feedstock demand and renewable-fuel production, conditions that have coincided with much stronger DGD economics. The question is whether that support can carry through 2027. Recent results were unusually strong, but DGD still depends on Renewable Identification Number values, diesel pricing, feedstock costs and other market inputs. Darling Ingredients Inc. price-consensus-eps-surprise-chart | Darling Ingredients Inc. Quote Darling's share of DGD adjusted EBITDA reached $389.2 million in the second quarter of 2026, up from $42.6 million a year earlier. Production increased to 355.9 million gallons, while EBITDA per gallon sold climbed to $2.23 from 34 cents. The improvement gives DGD a much larger role in Darling's earnings profile. Valero Energy Corporation VLO, Darling's 50/50 DGD partner, reports the venture within its Renewable Diesel segment and says DGD has about 1.2 billion gallons of annual production capacity. Management expects continued tightness in Renewable Identification Numbers (RINs) to remain supportive of renewable-fuel production and DGD margins. Higher RIN values, diesel prices and production tax credits all contributed to the second-quarter improvement. Darling also believes the current Renewable Volume Obligation is appropriately sized when production increases, imports, small-refinery exemptions and normal deficit carryforwards are considered. Still, the company has said RINs need to remain supportive to keep incentivizing production and fulfill the mandate. DGD is expected to produce about 335 million gallons in the third quarter. Management views margins through 2027 as attractive under the current mandate, so maintaining high utilization remains an important part of the earnings opportunity. Phillips 66 PSX offers another renewable-fuels reference point. Its Rodeo Renewable Energy Complex has capacity of about 800 million gallons per year, and the company's second-quarter 2026 Renewable Fuels results benefited partly from higher regulatory credit pricing and renewable-fuels production. The second quarter included about $50.5 million of favorable International Emergency Economic Powers Act tariff recovery at the DGD entity level. That benefit means the quarter should not be treated as a clean recurring run rate even though the underlying market environment improved substantially. DGD profitability also remains exposed to renewable-fuel pricing, feedstock costs and broader market conditions. A softer RIN market, weaker diesel values or higher feedstock costs could narrow margins even if the policy framework continues supporting industry production. Image Source: Zacks Investment Research Policy support strengthens the DGD earnings case, but sustaining the second-quarter pace will require more than the Renewable Volume Obligation. RIN support, diesel values and feedstock economics need to remain favorable, while the tariff recovery makes the latest quarter an imperfect benchmark for future profitability. DAR currently carries a Zacks Rank #1 (Strong Buy), along with a Growth Score of A, VGM Score of A and Value Score of B. Its Momentum Score of D is the weaker signal. The mix favors the earnings-growth and broader style case, but the momentum reading supports a measured view of near-term price timing. You can see the complete list of today’s Zacks #1 Rank stocks here. 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 Valero Energy Corporation (VLO) : Free Stock Analysis Report Phillips 66 (PSX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Darling Ingredients Inc. DAR has a stronger earnings profile entering the second half of 2026. Second-quarter earnings rose to $2.41 per share from 8 cents a year earlier, while the Zacks Consensus Estimate for 2026 earnings has increased 55.1% in the past four weeks. The investment case still requires balance. A discounted valuation, stronger core profitability and favorable renewable-fuel economics support the upside case, but higher costs, flat Feed throughput and rendering-capacity constraints raise the execution bar. DAR trades at 10.04X forward 12-month EPS, below the Zacks sub-industry's 15.03X and its own five-year median of 11.85X. The discount leaves room for revaluation if recent earnings improvement proves durable. Image Source: Zacks Investment Research The stock has already gained 117.3% in the past year, so valuation alone is not enough to remove risk. Continued upside would likely require core margins and renewable-fuel economics to remain supportive as investors reassess the sustainability of 2026 earnings. Core ingredients adjusted EBITDA reached $352.5 million in the second quarter, up from $206.9 million a year earlier. Contract management, commercial optimization, price-risk management and operating efficiency helped lift earnings from the existing asset base. Management expects core ingredients adjusted EBITDA of $325-$340 million in the third quarter. Excluding the second-quarter Food tariff recovery, that range implies underlying performance generally consistent with the elevated second-quarter level, which supports a more durable earnings case beyond one unusually strong period. Diamond Green Diesel ("DGD") produced 355.9 million gallons in the second quarter, while Darling's share of DGD adjusted EBITDA rose to $389.2 million from $42.6 million a year earlier. Management expects about 335 million gallons of third-quarter production and views margins through 2027 as attractive under the current renewable-fuel mandate. Valero Energy Corporation VLO is Darling's partner in DGD, giving it direct exposure to the same renewable-diesel venture. Bunge Global SA BG, meanwhile, is expanding its role in renewable-fuels feedstocks through supply agreements and oilseed-processing investments, making it relevant to the broader feedstock and policy backdrop supporting renewable fuels. Selling, general and administrative expenses increased to $151 million in the second quarter from $138.1 million a year earlier. Acquisition and integration costs also rose to $13.2 million from $3.4 million, creating more pressure if commodity prices or DGD margins weaken. Feed raw material processed remained at 3.1 million metric tons, unchanged from both the year-earlier quarter and the first quarter. Darling is out of rendering capacity in Brazil, while faster U.S. poultry line speeds could pressure its network, leaving future Feed growth more dependent on pricing, mix and execution. Image Source: Zacks Investment Research For investors weighing whether to buy, hold or wait, DAR's setup remains constructive but not one-sided. The valuation discount, core earnings improvement and DGD contribution support the case, while rising expenses and constrained throughput make continued execution important. DAR currently carries a Zacks Rank #1 (Strong Buy). It also has a Growth Score of A, VGM Score of A, and Value Score of B, which are favorable when paired with a top Zacks Rank. The Momentum Score of D is the weaker signal, suggesting the stock's current support is stronger on growth, value and blended characteristics than on near-term momentum. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 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 Valero Energy Corporation (VLO) : Free Stock Analysis Report Bunge Global SA (BG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Shares of Darling Ingredients Inc. DAR have gained 12.8% in the past week, putting the durability of the move in focus. The rally is backed by a sharp improvement in core ingredients profitability and much stronger renewable-fuel economics. Estimate revisions have also moved decisively higher. The question now is whether Darling can sustain those earnings drivers as capacity constraints, higher costs and a weaker momentum signal create offsets. Darling Ingredients Inc. price-consensus-eps-surprise-chart | Darling Ingredients Inc. Quote Core ingredients adjusted EBITDA climbed to $352.5 million in the second quarter of 2026 from $206.9 million a year earlier. Contract management, commercial optimization, price-risk management and operating efficiencies are helping Darling extract more earnings from its existing asset base. Management expects third-quarter core ingredients adjusted EBITDA of $325-$340 million. Excluding the second-quarter tariff recovery in Food, that outlook implies underlying earnings generally consistent with the elevated second-quarter level, supporting the case for a more durable core earnings base. Darling's share of Diamond Green Diesel adjusted EBITDA surged to $389.2 million from $42.6 million a year earlier. EBITDA per gallon sold rose to $2.23 from 34 cents, helped by higher Renewable Identification Number values, diesel prices, production tax credits and about $50.5 million of tariff recovery at the DGD entity level. Valero Energy Corporation VLO, Darling's partner in Diamond Green Diesel, also has direct exposure to the venture's renewable-diesel economics. Bunge Global SA BG is relevant on the feedstock side, with its renewable-fuels partnerships and oilseed processing network positioning it in the same policy-driven demand chain. The Zacks Consensus Estimate for 2026 earnings has risen 55.1% in the past four weeks and 53.6% over the past 12 weeks. That magnitude of upward revision gives the recent stock-price advance a clearer earnings foundation. Darling reported second-quarter earnings of $2.41 per share, compared with 8 cents a year earlier, and topped the consensus mark of $1.45. Continued estimate support will depend on core-margin execution and renewable-fuel economics holding up through the balance of the year. Feed raw material processed remained at 3.1 million metric tons in the second quarter, unchanged from both a year earlier and the first quarter. Darling is out of rendering capacity in Brazil, while faster U.S. poultry line speeds could put additional pressure on its processing network. Selling, general and administrative expenses rose to $151 million from $138.1 million a year earlier, while acquisition and integration costs increased to $13.2 million from $3.4 million. If commodity prices or DGD margins retreat, those costs could limit operating leverage and cash conversion. Image Source: Zacks Investment Research DAR's 12.8% weekly rally has a solid earnings foundation, but continuation is not assured. Stronger core earnings, favorable DGD economics and sharply higher estimates are constructive, while throughput constraints and a higher expense base leave less room for weaker pricing or renewable-fuel margins. DAR currently carries a Zacks Rank #1 (Strong Buy). It also has a VGM Score of A, Growth Score of A and Value Score of B, while its Momentum Score of D is the weaker signal. The favorable Rank and broader Style Score mix support the earnings case, but the Momentum Score argues for a measured view after the rapid weekly advance. You can see the complete list of today’s Zacks #1 Rank stocks here. 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 Valero Energy Corporation (VLO) : Free Stock Analysis Report Bunge Global SA (BG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Performance Food Group Company PFGC reported fourth-quarter fiscal 2026 results, wherein both the top and bottom lines increased year over year. However, both metrics missed the Zacks Consensus Estimate. The company posted adjusted earnings of $1.59 per share, up 2.6% from $1.55 in the prior-year quarter. The figure missed the Zacks Consensus Estimate of $1.62. Higher fuel expenses and costs associated with the Cheney Brothers facility transition weighed on operating performance. Performance Food Group Company price-consensus-eps-surprise-chart | Performance Food Group Company Quote Net sales increased 6.4% year over year to $18,028.9 million from $16,938.9 million but missed the Zacks Consensus Estimate of $18,214 million. Organic independent Foodservice case volume increased 5.8% year over year, reflecting continued gains with independent customers. Gross profit increased 8.3% year over year to $2,168.8 million from $2,002.2 million. Growth reflected favorable case mix, including greater independent-channel business, recent acquisitions and vendor rebates and promotional incentives. Operating expenses increased 6.4% to $1,845 million from $1,734.4 million a year ago. The increase stemmed from recent acquisitions, higher fuel prices and miles driven, increased wages and commissions and greater depreciation and amortization expense. Operating profit climbed 20.9% to $323.8 million from $267.8 million. Adjusted EBITDA rose 7.4% to $587.5 million from $546.9 million in the year-ago quarter. Foodservice net sales increased 6.8% to $9,815.6 million from $9,191.5 million in the prior-year quarter, missing the Zacks Consensus Estimate of $9,856 million. Growth was driven primarily by recent acquisitions, higher selling prices and organic case-volume growth. Independent customers remained an important contributor, with organic independent case volume rising 5.8%. Foodservice adjusted EBITDA increased 2.2% year over year to $395.5 million from $386.9 million. Gross-profit growth was partly offset by higher personnel, acquisition-related, fuel and insurance expenses. Convenience net sales rose 5.7% to $6,805.8 million from $6,436.3 million in the year-ago period. The metric missed the Zacks Consensus Estimate of $6,887 million. Growth primarily reflected higher case volume from new chain customers and inflation in selling prices, partly offset by a shift from cigarettes toward alternative nicotine products. Convenience adjusted EBITDA increased 10.4% to $132.5 million from $120 million. The improvement reflected higher gross profit from vendor rebates and promotional incentives, case growth and manufacturer distribution income, partly offset by higher operating expenses. Specialty net sales increased 6.6% to $1,336.7 million from $1,253.5 million, surpassing the Zacks Consensus Estimate of $1,300 million. Higher selling prices, increased cases sold and favorable channel mix supported sales. Specialty adjusted EBITDA slipped 0.5% to $92.7 million from $93.2 million as higher operating expenses more than offset gross-profit growth. Corporate & All Other net sales increased 7.8% to $276.9 million from $256.9 million in the prior-year quarter, surpassing the Zacks Consensus Estimate of $271 million. Corporate & All Other adjusted EBITDA was a loss of $33.2 million compared with $53.2 million a year earlier. For fiscal 2026, operating cash flow increased to $1,413.7 million from $1,210.1 million in fiscal 2025. Capital expenditures decreased to $384.1 million from $506 million in fiscal 2025, helping free cash flow rise to $1,029.6 million from $704.1 million. Cash increased to $92.4 million from $78.5 million, while long-term debt declined to $5,006.8 million from $5,388.8 million. For the fiscal first quarter of 2027, the company expects net sales in the range of $17.9 billion to $18.1 billion and adjusted EBITDA of $510 million to $530 million. EBITDA growth is expected to accelerate through the fiscal year, supported by new business wins, procurement efficiency initiatives and continued progress on cost synergies from M&A activities. For fiscal 2027, the company targets sales of $72.5 billion to $73 billion and adjusted EBITDA of $2.125 billion to $2.225 billion. The outlook includes a 53rd week, expected to benefit results by approximately 2%. At the midpoint, sales and adjusted EBITDA are projected to grow 7.2% and 12.7%, respectively, keeping the company on track toward its fiscal 2028 targets. Shares of this Zacks Rank #3 (Hold) company have risen 9.6% over the past six months compared with the industry’s growth of 17.5%. Image Source: Zacks Investment Research Some better-ranked stocks have been discussed below: Darling Ingredients Inc. DAR develops, produces, and sells sustainable natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America, and internationally. DAR 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 DAR’s current fiscal-year sales and earnings implies growth of 12.8% and 926.5%, respectively, from the year-ago actuals. DAR delivered a trailing four-quarter negative earnings surprise of 38.9%, on average. The Chef’s Warehouse, Inc. CHEF distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. CHEF currently sports a Zacks Rank #1. The Zacks Consensus Estimate for CHEF’s current fiscal-year sales and earnings indicates growth of 10.6% and 24.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average. US Foods Holding Corporation USFD, together with its subsidiaries, markets, sells and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for US Foods’ current fiscal-year sales and earnings implies growth of 5.1% and 16.3%, respectively, from the year-ago actuals. USFD delivered a trailing four-quarter earnings surprise of 1.5%, 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 Performance Food Group Company (PFGC) : Free Stock Analysis Report Darling Ingredients Inc. (DAR) : Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report US Foods Holding Corp. (USFD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

B&G Foods, Inc. BGS continued to reshape its portfolio in the second quarter of fiscal 2026, with recent divestitures and acquisitions materially changing its sales mix. While revenues declined, improved margins, lower selling, general and administrative expenses and contributions from higher-margin businesses supported profitability.Adjusted earnings were 6 cents per share, up 50% from the year-ago quarter figure. Net sales fell 9.7% year over year to $383.3 million. Adjusted EBITDA increased 4.2% to $60.4 million, while adjusted EBITDA margin expanded to 15.8% from 13.7%. B&G Foods, Inc. price-consensus-eps-surprise-chart | B&G Foods, Inc. Quote BGS’ second-quarter sales comparison reflected the Green Giant U.S. frozen, Le Sueur U.S. and Don Pepino divestitures. These businesses contributed about $68 million to net sales in the prior-year quarter and were not part of second-quarter fiscal 2026 results.Partially offsetting this impact were $23.9 million in sales from the Green Giant U.S. frozen co-manufacturing agreement and $13.2 million from the acquired College Inn and Kitchen Basics brands. Management stated the portfolio reshaping is aimed at improving growth stability, margins and cash generation.B&G Foods’ base business net sales declined 2.9% year over year to $346.3 million from $356.5 million. Volume reduced sales by 4.3%, while net pricing and product mix provided a 1.4% benefit. Foreign currency added nearly 0.1%. Management noted that the timing of the Fourth of July holiday reduced the quarter by about 1.5 shipping days, affecting net sales by roughly $5 million to $7 million. Adjusted gross profit was $83.7 million in the second quarter compared with $89.1 million a year ago. However, adjusted gross margin expanded to 21.8% from 21.0%, aided by the higher-margin College Inn and Kitchen Basics acquisition, the divestiture of the lower-margin Green Giant U.S. frozen business and tariff refunds.Selling, general and administrative expenses decreased 14% to $40.6 million from $47.2 million. Lower warehousing, general and administrative, consumer marketing and selling expenses more than offset higher acquisition, divestiture-related and non-recurring expenses. SG&A represented 10.6% of sales compared with 11.1% a year ago. Specialty segment net sales declined 4.4% to $128.9 million, while adjusted EBITDA fell 27.3% to $23.7 million. Results were pressured by lower volumes, higher Crisco oil input costs and the Don Pepino divestiture.Meals sales increased 6.2% to $110.5 million, helped by College Inn and Kitchen Basics, pricing and mix. Adjusted EBITDA edged up 0.3% to $25.8 million. Frozen & Vegetables sales fell 47% to $47.2 million because of divestitures, while its adjusted EBITDA loss narrowed to $1.2 million from $2.7 million.Spices & Flavor Solutions sales increased 0.1% to $96.6 million. Adjusted EBITDA climbed 29% to $31.1 million, supported by pricing, tariff refunds and lower spice input costs. Growth in foodservice and private-label channels helped offset weakness in retail. B&G Foods ended the quarter with cash and cash equivalents of $591.6 million, long-term debt (net of current portion) of $2,008.5 million and total stockholders’ equity of $395.1 million. For the first two quarters of 2026, BGS’ net cash from operating activities amounted to about $58 million. This Zacks Rank #3 (Hold) company reaffirmed its fiscal 2026 net sales guidance of $1,735 million to $1,775 million. Adjusted EBITDA is still projected at $275 million to $290 million, while adjusted earnings are expected in the range of 57.5-67.5 cents per share.The outlook incorporates completed divestitures, the Green Giant U.S. frozen co-manufacturing agreement and the College Inn and Kitchen Basics acquisition. It excludes the pending Green Giant Canada divestiture, which management expects to close during the third quarter of fiscal 2026.Shares of BGS have tumbled 22.3% over the past three months, against the industry’s growth of 8.6%. Darling Ingredients Inc. DAR, a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients, currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks hereThe Zacks Consensus Estimate for Darling’s current fiscal-year sales calls for 12.8% growth from the prior-year levels. The consensus estimate for current fiscal-year earnings per share (EPS) stands at $6.98, which implies substantial growth from the year-ago period. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.The Vita Coco Company, Inc. COCO, a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently sports a Zacks Rank #1. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and earnings calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures.US Foods Holding Corp. USFD engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank #2 (Buy). US Foods Holding delivered a trailing four-quarter earnings surprise of 1.5%, on average.The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.1% and 16.3%, 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 B&G Foods, Inc. (BGS) : Free Stock Analysis Report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report Darling Ingredients Inc. (DAR) : Free Stock Analysis Report US Foods Holding Corp. (USFD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research