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Private-label dinner sides are expanding, supporting growth and capacity utilization.
A 90-day pass-through pricing model helps reduce egg-price volatility going forward.
Post Holdings, Inc. (POST - Free Report) manages its Refrigerated Retail pricing and volume balance through seasonal timing, private label expansion and a pass-through pricing model. At its first-quarter fiscal 2026 earnings call, management stated that the first quarter is typically the strongest quarter for Refrigerated Retail because of holiday-related demand. This was reflected in performance, as the segment delivered net sales of $266.6 million, flat year over year, with 2.5% growth in side dish volumes offset by declines in egg and sausage products. Following this peak, the business usually steps down sequentially due to seasonality. However, with Easter falling in early April this year, the full benefit shifts into the second quarter, helping to partially offset the expected slowdown.
Post Holdings is leveraging its new private-label business, which is performing as expected, currently limited to two customers and two offerings – mashed potatoes and mac and cheese. The business is seeing a solid pipeline of expansion opportunities. The private label business is contributing to growth within dinner sides while supporting price point diversification, similar to Post Consumer Brand trends. Offering an alternative in this category is expected to drive long-term benefits while also helping utilize excess capacity across the network, creating additional operational leverage.
Additionally, Post Holdings is focusing on incorporating protein into its offerings, including enhancing existing dinner side dishes. These efforts reflect a growing emphasis on protein-driven innovation to meet shifting consumer demands. The company is seeing early success within the club channel. It is also exploring opportunities to incorporate protein into select dinner side dishes, signaling a focus on product enhancement and gradual expansion.
On pricing, inventory levels have now been rebalanced, and supply is matched with demand. As a result, Post Holdings stated that it is effectively agnostic to egg prices because the business has returned to a pass-through model. That mechanism works with roughly a 90-day lag, and it historically has not created significant volatility over the course of the year. Profitability trends also reflect these dynamics.
Refrigerated Retail segment adjusted EBITDA increased 20.4% to $50.1 million in the quarter, driven by pricing actions and more favorable commodity conditions. Overall, while volume remains mixed across categories, the combination of private-label growth in side dishes and a more predictable egg pricing framework is helping support stability in the Refrigerated Retail segment.
The Zacks Rundown for POST
Shares of this Zacks Rank #3 (Hold) company have gained 2.6% in the year-to-date period against the industry’s 3.7% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, POST trades at a forward price-to-earnings ratio of 13.84, higher than the industry’s average of 12.82.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for POST’s current fiscal year suggests a marginal rise of 0.1%, while the consensus mark for the next fiscal year earnings implies a year-over-year increase of 14%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
The Zacks Consensus Estimate for MAMA's current fiscal-year sales & earnings implies growth of 39.9% and 44.4%, respectively, from the year-ago actuals. MAMA delivered a trailing four-quarter negative earnings surprise of 133.3%, on average.
US Foods Holding Corporation (USFD - Free Report) , together with its subsidiaries, markets, sells and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for US Foods’ current fiscal-year sales and earnings implies growth of 5.4% and 20.9%, respectively, from the year-ago actuals. USFD delivered a trailing four-quarter earnings surprise of 2.2%, on average.
B&G Foods, Inc. (BGS - Free Report) manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods and household products. BGS currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for B&G Foods’ current fiscal-year earnings implies growth of 5.9% from the year-ago actuals. BGS delivered a trailing four-quarter negative earnings surprise of 19.5%, on average.
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Can Post Holdings' Refrigerated Retail Balance Pricing and Volume?
Key Takeaways
Post Holdings, Inc. (POST - Free Report) manages its Refrigerated Retail pricing and volume balance through seasonal timing, private label expansion and a pass-through pricing model. At its first-quarter fiscal 2026 earnings call, management stated that the first quarter is typically the strongest quarter for Refrigerated Retail because of holiday-related demand. This was reflected in performance, as the segment delivered net sales of $266.6 million, flat year over year, with 2.5% growth in side dish volumes offset by declines in egg and sausage products. Following this peak, the business usually steps down sequentially due to seasonality. However, with Easter falling in early April this year, the full benefit shifts into the second quarter, helping to partially offset the expected slowdown.
Post Holdings is leveraging its new private-label business, which is performing as expected, currently limited to two customers and two offerings – mashed potatoes and mac and cheese. The business is seeing a solid pipeline of expansion opportunities. The private label business is contributing to growth within dinner sides while supporting price point diversification, similar to Post Consumer Brand trends. Offering an alternative in this category is expected to drive long-term benefits while also helping utilize excess capacity across the network, creating additional operational leverage.
Additionally, Post Holdings is focusing on incorporating protein into its offerings, including enhancing existing dinner side dishes. These efforts reflect a growing emphasis on protein-driven innovation to meet shifting consumer demands. The company is seeing early success within the club channel. It is also exploring opportunities to incorporate protein into select dinner side dishes, signaling a focus on product enhancement and gradual expansion.
On pricing, inventory levels have now been rebalanced, and supply is matched with demand. As a result, Post Holdings stated that it is effectively agnostic to egg prices because the business has returned to a pass-through model. That mechanism works with roughly a 90-day lag, and it historically has not created significant volatility over the course of the year. Profitability trends also reflect these dynamics.
Refrigerated Retail segment adjusted EBITDA increased 20.4% to $50.1 million in the quarter, driven by pricing actions and more favorable commodity conditions. Overall, while volume remains mixed across categories, the combination of private-label growth in side dishes and a more predictable egg pricing framework is helping support stability in the Refrigerated Retail segment.
The Zacks Rundown for POST
Shares of this Zacks Rank #3 (Hold) company have gained 2.6% in the year-to-date period against the industry’s 3.7% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, POST trades at a forward price-to-earnings ratio of 13.84, higher than the industry’s average of 12.82.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for POST’s current fiscal year suggests a marginal rise of 0.1%, while the consensus mark for the next fiscal year earnings implies a year-over-year increase of 14%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
Mama’s Creations, Inc. (MAMA - Free Report) , together with its subsidiaries, manufactures and markets fresh deli-prepared foods in the United States. MAMA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MAMA's current fiscal-year sales & earnings implies growth of 39.9% and 44.4%, respectively, from the year-ago actuals. MAMA delivered a trailing four-quarter negative earnings surprise of 133.3%, on average.
US Foods Holding Corporation (USFD - Free Report) , together with its subsidiaries, markets, sells and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for US Foods’ current fiscal-year sales and earnings implies growth of 5.4% and 20.9%, respectively, from the year-ago actuals. USFD delivered a trailing four-quarter earnings surprise of 2.2%, on average.
B&G Foods, Inc. (BGS - Free Report) manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods and household products. BGS currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for B&G Foods’ current fiscal-year earnings implies growth of 5.9% from the year-ago actuals. BGS delivered a trailing four-quarter negative earnings surprise of 19.5%, on average.