We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Pilgrim's Pride (PPC) Thrives on Operational & Foodservice Growth
Read MoreHide Full Article
Pilgrim's Pride Corporation‘s (PPC - Free Report) portfolio diversification strategies, including its focus on branded offerings and strategic key customer partnerships, play a crucial role in driving growth. The company is capitalizing on momentum in the foodservice sector and is benefiting from significant investments in expansion and operational efficiencies.
Let’s delve deeper.
Growth Factors in Place
PPC’s portfolio diversification strategies, including its focus on branded offerings and strategic key customer partnerships, play a crucial role in driving growth. Its focus on key customers is a pathway for refining its portfolio and creating competitive advantages over its peers. The company's strategic investments in its U.S. and Mexican operations, including new facilities and expanded capacities, support growth and operational excellence. Enhanced operational efficiencies and a favorable market environment for private brands are supporting overall performance.
These factors boosted its second-quarter 2024 results, with the top and the bottom line increasing from the year-ago quarter’s levels. Also, quarterly earnings surpassed the Zacks Consensus Estimate. The company posted net sales of $4,559.3 million, which increased 5.8%. Quarterly adjusted earnings of $1.67 per share increased significantly from 44 cents reported in the year-ago quarter.
Foodservice Recovery
The foodservice distribution channel for Pilgrim's Pride continued its trend of higher volume and revenues in commercial and non-commercial foodservice distribution subchannels in second-quarter 2024. The commercial distribution sub-channel benefited from significant dollar growth as rising fresh wholesale prices were successfully passed through to operators. The quick-service restaurant (QSR) category, in particular, drove most of volume growth, reflecting consumers' preference for affordable meal options. The non-commercial distribution sub-channel showed steady growth due to increased business and industry activity. This expansion underscores the company’s effective strategies and robust market positioning in the foodservice segment.
Strategic Growth Initiatives
Pilgrim’s Pride is enhancing its growth through significant investments in expansion and operational efficiencies. It is ramping up production at new facilities, such as the Douglas facility in South Georgia and expanding protein conversion at the Sumter location to meet rising demand. It is also focusing on cost-cutting measures, optimizing processes and reducing grain input costs to improve margins and profitability. PPC is also strengthening key customer partnerships with targeted marketing and innovative products. At the same time, its diversified portfolio, including value-added and prepared foods, aligns with evolving consumer preferences to drive growth.
Other Food Stocks
McCormick & Company’s (MKC - Free Report) commitment to achieving long-term objectives is evident from its proven track record, wide-reaching and competitive global portfolio, focus on high-growth, profitable areas, alignment with evolving consumer preferences and a distinctive heat platform. MKC prioritizes investments in key areas and growth drivers, like brand promotion, product and packaging innovation, category management and proprietary technology. McCormick’s cost-saving programs position it well to support investments and drive operating margin growth.
Lamb Weston Holdings, Inc. (LW - Free Report) has been leveraging favorable pricing trends driven by inflation-related pricing adjustments. LW’s sturdy balance sheet and capacity to generate cash keep it well-placed to boost production capacity and fuel long-term growth. Lamb Weston’s efforts to boost offerings and expand capacity enable the company to meet rising demand conditions for snacks and fries effectively.
The J. M. Smucker Company (SJM - Free Report) is focused on its key strategic priorities, which include growing volume and net sales, integrating the Hostess Brands business and achieving cost discipline and cash generation aspirations. SJM has been benefiting from favorable net price realization. The J. M. Smucker is dedicated to investing in its brands and capabilities to sustain its growth trajectory.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Pilgrim's Pride (PPC) Thrives on Operational & Foodservice Growth
Pilgrim's Pride Corporation‘s (PPC - Free Report) portfolio diversification strategies, including its focus on branded offerings and strategic key customer partnerships, play a crucial role in driving growth. The company is capitalizing on momentum in the foodservice sector and is benefiting from significant investments in expansion and operational efficiencies.
Let’s delve deeper.
Growth Factors in Place
PPC’s portfolio diversification strategies, including its focus on branded offerings and strategic key customer partnerships, play a crucial role in driving growth. Its focus on key customers is a pathway for refining its portfolio and creating competitive advantages over its peers. The company's strategic investments in its U.S. and Mexican operations, including new facilities and expanded capacities, support growth and operational excellence. Enhanced operational efficiencies and a favorable market environment for private brands are supporting overall performance.
These factors boosted its second-quarter 2024 results, with the top and the bottom line increasing from the year-ago quarter’s levels. Also, quarterly earnings surpassed the Zacks Consensus Estimate. The company posted net sales of $4,559.3 million, which increased 5.8%. Quarterly adjusted earnings of $1.67 per share increased significantly from 44 cents reported in the year-ago quarter.
Foodservice Recovery
The foodservice distribution channel for Pilgrim's Pride continued its trend of higher volume and revenues in commercial and non-commercial foodservice distribution subchannels in second-quarter 2024. The commercial distribution sub-channel benefited from significant dollar growth as rising fresh wholesale prices were successfully passed through to operators. The quick-service restaurant (QSR) category, in particular, drove most of volume growth, reflecting consumers' preference for affordable meal options. The non-commercial distribution sub-channel showed steady growth due to increased business and industry activity. This expansion underscores the company’s effective strategies and robust market positioning in the foodservice segment.
Strategic Growth Initiatives
Pilgrim’s Pride is enhancing its growth through significant investments in expansion and operational efficiencies. It is ramping up production at new facilities, such as the Douglas facility in South Georgia and expanding protein conversion at the Sumter location to meet rising demand. It is also focusing on cost-cutting measures, optimizing processes and reducing grain input costs to improve margins and profitability. PPC is also strengthening key customer partnerships with targeted marketing and innovative products. At the same time, its diversified portfolio, including value-added and prepared foods, aligns with evolving consumer preferences to drive growth.
Other Food Stocks
McCormick & Company’s (MKC - Free Report) commitment to achieving long-term objectives is evident from its proven track record, wide-reaching and competitive global portfolio, focus on high-growth, profitable areas, alignment with evolving consumer preferences and a distinctive heat platform. MKC prioritizes investments in key areas and growth drivers, like brand promotion, product and packaging innovation, category management and proprietary technology. McCormick’s cost-saving programs position it well to support investments and drive operating margin growth.
Lamb Weston Holdings, Inc. (LW - Free Report) has been leveraging favorable pricing trends driven by inflation-related pricing adjustments. LW’s sturdy balance sheet and capacity to generate cash keep it well-placed to boost production capacity and fuel long-term growth. Lamb Weston’s efforts to boost offerings and expand capacity enable the company to meet rising demand conditions for snacks and fries effectively.
The J. M. Smucker Company (SJM - Free Report) is focused on its key strategic priorities, which include growing volume and net sales, integrating the Hostess Brands business and achieving cost discipline and cash generation aspirations. SJM has been benefiting from favorable net price realization. The J. M. Smucker is dedicated to investing in its brands and capabilities to sustain its growth trajectory.