As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at perishable food stocks, starting with Beyond Meat (NASDAQ:BYND).

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 Fed 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 lately, employment measures have bordered on worrisome. The markets will be debating whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.

Luckily, perishable food stocks have performed well with share prices up 11.9% on average since the latest earnings results.

Beyond Meat (NASDAQ:BYND)

A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQ:BYND) is a food company crafting innovative, sustainable, and delicious alternatives to traditional meat products.

Beyond Meat reported revenues of $93.19 million, down 8.8% year on year. This print exceeded analysts’ expectations by 5.4%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ gross margin estimates and full-year revenue guidance exceeding analysts’ expectations.

Beyond Meat President and CEO Ethan Brown commented, “We are pleased to report a strong quarter of progress against our 2024 plan, a pivotal year on our path to sustainable operations and profitability. Key proof points include exceeding our Q2 revenue guidance; continued reduction in operating expenses and cash consumption; and our best quarterly gross margin since Q3 2021.