Wrapping up Q2 earnings, we look at the numbers and key takeaways for the perishable food stocks, including Tyson Foods (NYSE:TSN) and its peers.

The perishable food industry is diverse, encompassing large-scale producers and distributors to specialty and artisanal brands. These companies sell produce, dairy products, meats, and baked goods and have become integral to serving modern American consumers who prioritize freshness, quality, and nutritional value. Investing in perishable food stocks presents both opportunities and challenges. While the perishable nature of products can introduce risks related to supply chain management and shelf life, it also creates a constant demand driven by the necessity for fresh food. Companies that can efficiently manage inventory, distribution, and quality control are well-positioned to thrive in this competitive market. Navigating the perishable food industry requires adherence to strict food safety standards, regulations, and labeling requirements.

The 11 perishable food stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.4%.

Inflation progressed towards the Fed's 2% goal recently, leading the central bank to reduce its policy rate by 50bps (half a percent or 0.5%) in September 2024. This is the first cut in four years. While CPI (inflation) readings have been supportive as of late, employment measures bordered on worrisome. The markets will be assessing whether this rate cut (and more potential ones in 2024 and 2025) are ideal timing to support the economy or a bit too late for a macro that has already cooled too much.

Tyson Foods (NYSE:TSN)

Started as a simple trucking business, Tyson Foods (NYSE:TSN) today is one of the world’s largest producers of chicken, beef, and pork.

Tyson Foods reported revenues of $13.35 billion, up 1.6% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ earnings estimates but a miss of analysts’ gross margin estimates.

"Our disciplined actions and focus on the fundamentals have resulted in a positive turnaround of our business," stated Donnie King, President & CEO of Tyson Foods.

Interestingly, the stock is up 1.3% since reporting and currently trades at $62.

Is now the time to buy Tyson Foods? Access our full analysis of the earnings results here, it’s free.

Best Q2: Mission Produce (NASDAQ:AVO)

Founded in 1983 in California, Mission Produce (NASDAQ:AVO) grows, packages, and distributes avocados.