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Conagra Brands (CAG) Fuels Portfolio With Sweetwood Smoke Buyout
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Conagra Brands, Inc. (CAG - Free Report) , a leading snacks, frozen foods and alternative-protein supplier, recently unveiled a deal to acquire Sweetwood Smoke & Co, maker of FATTY Smoked Meat Sticks. This move appears apt, given the growing trend in the snacking industry, as consumers increasingly seek high-protein, on-the-go options.
Inside the Headlines
Conagra Brands' acquisition of Sweetwood Smoke & Co. is a strategic move as part of its portfolio optimization strategy aimed at speeding up growth. This acquisition not only bolsters Conagra's presence in the snacking segment but also reflects its commitment to offering healthier, high-quality snack options that meet evolving consumer preferences.
By focusing on premium, better-for-you snacks, this Chicago-based company has been positioning itself to capitalize on trends that favor health-conscious, protein-rich and convenient food choices. Management views this acquisition as a positive move, as it will help the company expand in the snacking and frozen categories.
On the other hand, Sweetwood Smoke & Co. is known for its FATTY Smoked Meat Sticks, a premium snack made from a blend of pork and beef, slow-smoked with hickory wood to create a rich, savory flavor. These meat sticks align with current consumer trends that favor protein-rich, minimally processed snacks.
Management at Sweetwood Smoke expressed enthusiasm about partnering with Conagra Brands, noting that this collaboration will help bring FATTY products to a broader audience.
What Else to Know?
Conagra Brands has been focused on strengthening its portfolio through acquisitions. Additionally, the company places a strong emphasis on innovation, considering it the primary asset in its strategic approach and essential for enhancing its brands and fostering sustainable growth. By investing in innovation, the company aims to stay ahead of consumer trends and respond to shifting market demands with agility and creativity.
However, this Zacks Rank #4 (Sell) company is currently battling challenging industry trends, including a slowdown in consumption. This was evident in its fourth-quarter fiscal 2024 results, wherein the top and bottom lines declined year over year.
Nonetheless, a robust improvement in free cash flow in fiscal 2024 is a positive indicator of the company's financial health and its ability to generate cash from its operations, which can be reinvested into the business for further growth and innovation. To this end, Conagra Brands' expansion efforts, including the acquisition of Sweetwood Smoke & Co., is a clear reflection of its ongoing strategy to innovate and adapt within the food industry.
Shares of this company have lost 2.6% in the past three months compared to the industry’s decline of 4.5%.
Image Source: Zacks Investment Research
Better-Ranked Food Bets
Here, we have highlighted three better-ranked food stocks, namely, Vital Farms (VITL - Free Report) , Freshpet, Inc. (FRPT - Free Report) , and The Chef's Warehouse (CHEF - Free Report) .
Vital Farms offers a range of produced pasture-raised foods. It currently sports a Zacks Rank #1 (Strong Buy). VITL has a trailing four-quarter average earnings surprise of 82.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vital Farms’ current financial-year earnings suggests growth of 72.9 from the year-ago reported numbers.
Freshpet, Inc., a pet food company, has a trailing four-quarter earnings surprise of 132.9%, on average. FRPT currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Freshpet’s current financial-year sales and earnings indicates growth of 26.1% and 251.4%, respectively, from the prior-year reported level.
The Chef’s Warehouse, which engages in the distribution of specialty food products, currently sports a Zacks Rank #1. CHEF has a trailing four-quarter earnings surprise of 33.7%, on average.
The Zacks Consensus Estimate for The Chef’s Warehouse’s current fiscal year sales and earnings indicates growth of 9.7% and 12.6%, respectively, from the year-ago reported numbers.
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Conagra Brands (CAG) Fuels Portfolio With Sweetwood Smoke Buyout
Conagra Brands, Inc. (CAG - Free Report) , a leading snacks, frozen foods and alternative-protein supplier, recently unveiled a deal to acquire Sweetwood Smoke & Co, maker of FATTY Smoked Meat Sticks. This move appears apt, given the growing trend in the snacking industry, as consumers increasingly seek high-protein, on-the-go options.
Inside the Headlines
Conagra Brands' acquisition of Sweetwood Smoke & Co. is a strategic move as part of its portfolio optimization strategy aimed at speeding up growth. This acquisition not only bolsters Conagra's presence in the snacking segment but also reflects its commitment to offering healthier, high-quality snack options that meet evolving consumer preferences.
By focusing on premium, better-for-you snacks, this Chicago-based company has been positioning itself to capitalize on trends that favor health-conscious, protein-rich and convenient food choices. Management views this acquisition as a positive move, as it will help the company expand in the snacking and frozen categories.
On the other hand, Sweetwood Smoke & Co. is known for its FATTY Smoked Meat Sticks, a premium snack made from a blend of pork and beef, slow-smoked with hickory wood to create a rich, savory flavor. These meat sticks align with current consumer trends that favor protein-rich, minimally processed snacks.
Management at Sweetwood Smoke expressed enthusiasm about partnering with Conagra Brands, noting that this collaboration will help bring FATTY products to a broader audience.
What Else to Know?
Conagra Brands has been focused on strengthening its portfolio through acquisitions. Additionally, the company places a strong emphasis on innovation, considering it the primary asset in its strategic approach and essential for enhancing its brands and fostering sustainable growth. By investing in innovation, the company aims to stay ahead of consumer trends and respond to shifting market demands with agility and creativity.
However, this Zacks Rank #4 (Sell) company is currently battling challenging industry trends, including a slowdown in consumption. This was evident in its fourth-quarter fiscal 2024 results, wherein the top and bottom lines declined year over year.
Nonetheless, a robust improvement in free cash flow in fiscal 2024 is a positive indicator of the company's financial health and its ability to generate cash from its operations, which can be reinvested into the business for further growth and innovation. To this end, Conagra Brands' expansion efforts, including the acquisition of Sweetwood Smoke & Co., is a clear reflection of its ongoing strategy to innovate and adapt within the food industry.
Shares of this company have lost 2.6% in the past three months compared to the industry’s decline of 4.5%.
Image Source: Zacks Investment Research
Better-Ranked Food Bets
Here, we have highlighted three better-ranked food stocks, namely, Vital Farms (VITL - Free Report) , Freshpet, Inc. (FRPT - Free Report) , and The Chef's Warehouse (CHEF - Free Report) .
Vital Farms offers a range of produced pasture-raised foods. It currently sports a Zacks Rank #1 (Strong Buy). VITL has a trailing four-quarter average earnings surprise of 82.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vital Farms’ current financial-year earnings suggests growth of 72.9 from the year-ago reported numbers.
Freshpet, Inc., a pet food company, has a trailing four-quarter earnings surprise of 132.9%, on average. FRPT currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Freshpet’s current financial-year sales and earnings indicates growth of 26.1% and 251.4%, respectively, from the prior-year reported level.
The Chef’s Warehouse, which engages in the distribution of specialty food products, currently sports a Zacks Rank #1. CHEF has a trailing four-quarter earnings surprise of 33.7%, on average.
The Zacks Consensus Estimate for The Chef’s Warehouse’s current fiscal year sales and earnings indicates growth of 9.7% and 12.6%, respectively, from the year-ago reported numbers.