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Showing posts with label Snyder's-Lance. Show all posts
Showing posts with label Snyder's-Lance. Show all posts
Friday, April 27, 2012
Investopedia: Kellogg Looking Pretty Stale For Now
Cereal and snack food giant Kellogg (NYSE:K)
has taken a very sharp turn from one of the best (and most reliable)
food company stocks out there to a "what the heck is wrong here?" story.
With European sales down double-digits and share losses in the core
cereal group, to say nothing of the challenges of integrating and
building up Pringles, Kellogg has a lot to prove before it becomes a
dependable food stock again.
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Continue reading here:
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Friday, September 23, 2011
Investopedia: ConAgra Chooses To Move On
There is little doubt that ConAgra (NYSE:CAG) needs to change quite a few things about how it operates - the company has long been a mediocre collection of me-too brands in the packaged food space. Nevertheless, management deserves credit for walking away from a Ralcorp (NYSE:RAH) deal that was likely to get too expensive. What remains to be seen now is whether management can find new value-additive strategies to improve the business or whether less imaginative steps like debt reduction and share buybacks will be the order the day.
First Quarter Financials Still Problematic
ConAgra reported sales growth nearly 10% to open this fiscal year, but overall performance was still not so great. Consumer sales were up more than 4% on a reported basis and the company reported that volumes were flat despite ongoing price increases. That's a solid improvement for ConAgra; the bear thesis on the stock has been that its lack of brand strength puts it in a more vulnerable position vis-à-vis Kraft (NYSE:KFT), Heinz (NYSE:HNZ), General Mills (NYSE:GIS) and the like when it comes to pushing price increases.
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First Quarter Financials Still Problematic
ConAgra reported sales growth nearly 10% to open this fiscal year, but overall performance was still not so great. Consumer sales were up more than 4% on a reported basis and the company reported that volumes were flat despite ongoing price increases. That's a solid improvement for ConAgra; the bear thesis on the stock has been that its lack of brand strength puts it in a more vulnerable position vis-à-vis Kraft (NYSE:KFT), Heinz (NYSE:HNZ), General Mills (NYSE:GIS) and the like when it comes to pushing price increases.
Read the full piece at Investopedia:
http://stocks.investopedia.
Tuesday, August 9, 2011
Investopedia: Kraft Hopes Two Is Better Than One
As food companies go, Kraft Foods (NYSE:KFT) has done alright over the past couple of years. Despite the controversy over the company's aggressive move to bring Cadbury into the fold, Kraft has basically matched the market, done better than rival Kellogg (NYSE:K), and kept pace with the likes of ConAgra (NYSE:CAG) and Unilever (NYSE:UL). The question now is whether a dramatic restructuring of the business is going to significantly improve growth and shareholder value, or whether it's simply a distraction to buy time for a management team that doesn't appear to earn its cost of capital.
Q2 Not as Strong as It Seems
Wall Street seemed oddly pleased with Kraft's second quarter earnings. True, the company did beat the average estimate by a healthy margin and surpassed even the high end of the range. What's more, reported growth of over 13% and organic growth of over 7% is quite good for a huge food company (Kraft is second-largest in the world behind Nestle (Nasdaq:NSRGY). Still, volume growth was less than 2% and the better-than 5% boost to price and mix was helped by a calendar artifact.
To read the full piece, please click below:
http://stocks.investopedia.
Q2 Not as Strong as It Seems
Wall Street seemed oddly pleased with Kraft's second quarter earnings. True, the company did beat the average estimate by a healthy margin and surpassed even the high end of the range. What's more, reported growth of over 13% and organic growth of over 7% is quite good for a huge food company (Kraft is second-largest in the world behind Nestle (Nasdaq:NSRGY). Still, volume growth was less than 2% and the better-than 5% boost to price and mix was helped by a calendar artifact.
To read the full piece, please click below:
http://stocks.investopedia.
Tuesday, July 19, 2011
Investopedia: Ralcorp Adds Both Clarity And Confusion
There is no doubt that Ralcorp (NYSE:RAH) is getting creative in its efforts to get value for its assets. Still not willing to agree to ConAgra's (NYSE:CAG) bid, Ralcorp apparently believes that separating the company may be its best chance at guaranteeing greater value for its shareholder base.
First, a Warning
Ralcorp led off its Thursday night announcements with a warning on fiscal third quarter results. Citing weak volumes in cereal and some difficulty in getting better pricing through, Ralcorp lowered its guidance for the third quarter to a range of $1.13 to $1.18 - well below the $1.37 average estimate. Just as a point of reference, investors should also note that the lowest published estimate was $1.28, so this was indeed a meaningful miss.
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First, a Warning
Ralcorp led off its Thursday night announcements with a warning on fiscal third quarter results. Citing weak volumes in cereal and some difficulty in getting better pricing through, Ralcorp lowered its guidance for the third quarter to a range of $1.13 to $1.18 - well below the $1.37 average estimate. Just as a point of reference, investors should also note that the lowest published estimate was $1.28, so this was indeed a meaningful miss.
Continue reading below:
http://stocks.investopedia.
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