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Post Holdings Foodservice Volumes Rise 4.5%: Sign of More Upside Ahead
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Key Takeaways
POST's Foodservice sales rose 18.6% to $698.5M in Q3, with volumes up 4.5% excluding acquisitions.
Distribution growth in eggs and potatoes played a key role in driving Foodservice momentum.
Management sees a normalized $115M quarterly EBITDA run rate after avian influenza pricing subsides.
Post Holdings, Inc.’s ((POST - Free Report) ) Foodservice division has quietly become one of its most durable engines. In the third quarter of 2025, segment net sales rose 18.6% to $698.5 million, with volumes climbing 4.5% even excluding the Potato Products of Idaho (“PPI”) acquisition, which contributed $7 million to sales. The gains reflected not only temporary avian influenza related pricing but also solid distribution growth in eggs and potatoes alongside steady contributions from protein shakes. Segment’s adjusted EBITDA surged 32% to $159 million, highlighting the strong momentum and its role as a key driver of overall company performance.
Looking ahead, management expects temporary avian Influenza pricing to wind down by the end of the fourth quarter, with egg supply fully recovered as the company enters fiscal 2026. Beyond these pricing effects, Foodservice gained from stronger breakfast traffic and better egg availability, which supported sustained momentum in both egg and potato products.
At that point, Foodservice is expected to operate at a normalized adjusted EBITDA run rate of roughly $115 million per quarter. This baseline indicates a resilient, cash-generating platform with room to expand.
In conclusion, Post Holdings' Foodservice segment has notable operating resilience, evidenced by significant volume and distribution gains in key product areas like eggs and potatoes. The successful integration of strategic acquisitions, such as PPI, has further solidified its market position and diversified offerings. This, combined with sustained momentum from stronger breakfast traffic, positions the segment as a durable, cash-generating platform built for continued growth and resilience in a dynamic market environment.
Post Holdings’ Zacks Rank & Share Price Performance
Shares of this Zacks Rank #1 (Strong Buy) company have gained 1.3% in the past month against the broader Consumer Staples sector’s 0.8% decline. POST has underperformed the industry and the S&P 500 index’s growth of 2% and 2.3%, respectively, during the same period.
POST Stock's Past Month Performance
Image Source: Zacks Investment Research
Is POST a Value Play Stock?
Post Holdings currently trades at a forward 12-month P/E ratio of 13.31, which is down from the industry average of 15.92 and notably below the sector average of 17.04. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings indicates growth of 6.6% and 19.1%, respectively, from the prior-year levels. CHEF delivered a trailing four-quarter earnings surprise of 11.3%, on average.
Smithfield Foods, Inc. ((SFD - Free Report) ) produces packaged meats and fresh pork in the United States and internationally. It holds a Zacks Rank #2 (Buy) at present. SFD delivered a trailing four-quarter earnings surprise of 6.6%, on average.
The Zacks Consensus Estimate for Smithfield Foods’ current fiscal-year sales and earnings indicates growth of 7.1% and 29.3%, respectively, from the prior-year levels.
Laird Superfood, Inc. ((LSF - Free Report) ) manufactures and markets plant-based, natural and functional food in the United States. It has a Zacks Rank # 2 at present. LSF delivered a trailing four-quarter earnings surprise of 11.3%, on average.
The Zacks Consensus Estimate for Laird Superfood’s current fiscal-year sales and earnings indicates growth of 21% and 23.8%, respectively, from the prior-year levels.
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Post Holdings Foodservice Volumes Rise 4.5%: Sign of More Upside Ahead
Key Takeaways
Post Holdings, Inc.’s ((POST - Free Report) ) Foodservice division has quietly become one of its most durable engines. In the third quarter of 2025, segment net sales rose 18.6% to $698.5 million, with volumes climbing 4.5% even excluding the Potato Products of Idaho (“PPI”) acquisition, which contributed $7 million to sales. The gains reflected not only temporary avian influenza related pricing but also solid distribution growth in eggs and potatoes alongside steady contributions from protein shakes. Segment’s adjusted EBITDA surged 32% to $159 million, highlighting the strong momentum and its role as a key driver of overall company performance.
Looking ahead, management expects temporary avian Influenza pricing to wind down by the end of the fourth quarter, with egg supply fully recovered as the company enters fiscal 2026. Beyond these pricing effects, Foodservice gained from stronger breakfast traffic and better egg availability, which supported sustained momentum in both egg and potato products.
At that point, Foodservice is expected to operate at a normalized adjusted EBITDA run rate of roughly $115 million per quarter. This baseline indicates a resilient, cash-generating platform with room to expand.
In conclusion, Post Holdings' Foodservice segment has notable operating resilience, evidenced by significant volume and distribution gains in key product areas like eggs and potatoes. The successful integration of strategic acquisitions, such as PPI, has further solidified its market position and diversified offerings. This, combined with sustained momentum from stronger breakfast traffic, positions the segment as a durable, cash-generating platform built for continued growth and resilience in a dynamic market environment.
Post Holdings’ Zacks Rank & Share Price Performance
Shares of this Zacks Rank #1 (Strong Buy) company have gained 1.3% in the past month against the broader Consumer Staples sector’s 0.8% decline. POST has underperformed the industry and the S&P 500 index’s growth of 2% and 2.3%, respectively, during the same period.
POST Stock's Past Month Performance
Image Source: Zacks Investment Research
Is POST a Value Play Stock?
Post Holdings currently trades at a forward 12-month P/E ratio of 13.31, which is down from the industry average of 15.92 and notably below the sector average of 17.04. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
POST P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Other Stocks to Consider
The Chefs' Warehouse, Inc. ((CHEF - Free Report) ) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. It currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings indicates growth of 6.6% and 19.1%, respectively, from the prior-year levels. CHEF delivered a trailing four-quarter earnings surprise of 11.3%, on average.
Smithfield Foods, Inc. ((SFD - Free Report) ) produces packaged meats and fresh pork in the United States and internationally. It holds a Zacks Rank #2 (Buy) at present. SFD delivered a trailing four-quarter earnings surprise of 6.6%, on average.
The Zacks Consensus Estimate for Smithfield Foods’ current fiscal-year sales and earnings indicates growth of 7.1% and 29.3%, respectively, from the prior-year levels.
Laird Superfood, Inc. ((LSF - Free Report) ) manufactures and markets plant-based, natural and functional food in the United States. It has a Zacks Rank # 2 at present. LSF delivered a trailing four-quarter earnings surprise of 11.3%, on average.
The Zacks Consensus Estimate for Laird Superfood’s current fiscal-year sales and earnings indicates growth of 21% and 23.8%, respectively, from the prior-year levels.