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BGS posts Q1 EPS in line with estimates as base business sales rise 2.8% year over year.
Spices & Flavor Solutions sales jump 9.1%, driven by volume growth and pricing gains.
B&G Foods raises fiscal 2026 sales, EBITDA and adjusted EPS guidance after Q1 results.
B&G Foods, Inc. (BGS - Free Report) posted first-quarter fiscal 2026 results, wherein the bottom line came in line with the Zacks Consensus Estimate, but declined year over year. The top line was pressured by recent divestitures, partially offset by modest growth in the base business.
BGS’ Q1 Performance: Key Metrics and Insights
B&G Foods reported adjusted earnings of 8 cents per share, up 100% from 4 cents in the year-ago quarter. The metric came in line with the Zacks Consensus Estimate.
Net sales declined 3.9% year over year to $408.9 million in the first quarter of 2026 from $425.4 million in the prior-year period. The decrease was mainly due to the divestitures of the Green Giant U.S. frozen, Le Sueur U.S. and Don Pepino businesses. This was partially offset by growth in base business net sales, contributions from the co-manufacturing agreement and partial-month sales from the College Inn and Kitchen Basics brands.
The company’s base business net sales rose 2.8% year over year to $365.1 million from $355.2 million, reflecting gains in volume, pricing and mix. The base business gain provided a clearer read on underlying demand. Base business net sales growth was driven by a 1.9% lift from higher volume, a 0.5% benefit from net pricing and product mix and a 0.5% positive impact from foreign currency.
B&G Foods' Margin & Cost Performance
On an adjusted basis, gross profit was $84.6 million, down 6.6% from $90.6 million in the prior-year period. Adjusted gross margin was 20.7% compared with 21.3% in the prior-year quarter.
Selling, general and administrative expenses increased 2.2% year over year to $50.2 million from $49.1 million and represented 12.3% of net sales, up 70 basis points year over year from 11.6% in the prior-year period, as acquisition/divestiture-related and other non-recurring expenses rose meaningfully.
Adjusted EBITDA declined 2.5% year over year to $57.6 million from $59.1 million in the prior-year period. However, adjusted EBITDA margin improved slightly to 14.1% of net sales compared with 13.9% in the prior-year period.
B&G Foods' Segmental Performance
Specialty: Net sales declined 2.7% year over year to $130.8 million from $134.4 million, primarily due to the Don Pepino divestiture. Adjusted EBITDA fell 22.1% year over year to $26.1 million from $33.5 million, impacted by the divestiture, higher raw material costs, increased manufacturing expenses as a percentage of sales and tariff-related pressures.
Meals: Net sales increased 0.9% year over year to $107.1 million from $106.1 million, supported by contributions from the College Inn and Kitchen Basics acquisition, along with favorable pricing and product mix. However, adjusted EBITDA declined 20.1% year over year to $19.9 million from $25 million, due to higher raw material, manufacturing, trade spending and direct marketing costs.
Frozen & Vegetables: Net sales declined 23.7% year over year to $71 million from $93.1 million, primarily due to the Green Giant U.S. frozen and Le Sueur U.S. divestitures. However, Green Giant Canada's net sales increased 16.4%. Adjusted EBITDA surged 411.2% year over year to $4.6 million from a loss of $1.5 million, driven by lower raw material and manufacturing costs, favorable foreign currency impacts and benefits from the new Green Giant U.S. frozen co-manufacturing agreement.
Spices & Flavor Solutions: Net sales increased 9.1% year over year to $100.1 million from $91.7 million, driven by higher volumes, favorable pricing and product mix. Adjusted EBITDA rose 13.1% year over year to $29.7 million from $26.3 million, supported primarily by volume growth and, to a lesser extent, improved pricing, partially offset by higher raw material costs, particularly for garlic and black pepper, along with tariff-related impacts.
B&G Foods’ Financial Position
BGS ended the quarter with cash and cash equivalents of $64.5 million. Long-term debt, net of current portion, stood at $2,000 million. Net cash provided by operating activities was $23.6 million in the first quarter.
Management announced that, beginning with the dividend payment declared on May 11, 2026, and payable on July 30, 2026, the intended annual dividend rate for its common stock will be reduced from 76 cents per share to 38 cents per share. Based on the revised dividend rate and the current share count, aggregate dividend payments are expected to total approximately $46 million in fiscal 2026 and $30.8 million in fiscal 2027.
B&G Foods Raises 2026 Guidance
This Zacks Rank #3 (Hold) company revised its fiscal 2026 outlook upward following the quarter and recent transactions. Management now expects net sales of $1.735 billion to $1.775 billion from the previous guided range of $1.655 billion to $1.695 billion, and adjusted EBITDA is expected to be in the range of $275 million to $290 million from the previous guided range of $265 million to $275 million.
The company also lifted its adjusted earnings per share view to a range of 57.5 cents to 67.5 cents from the previously guided range of 55 cents to 65 cents. The updated guidance incorporates the impact of one fewer reporting week in fiscal 2026 compared with fiscal 2025, reflects completed divestitures and the College Inn and Kitchen Basics acquisition, and excludes the pending Green Giant Canada divestiture.
The company’s shares have lost 3% in the past three months compared with the industry’s decline of 15.2%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
The Chef’s Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. CHEF 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 CHEF’s current fiscal-year sales and earnings indicates growth of 8.3 and 24.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
Armanino Foods of Distinction, Inc. (AMNF - Free Report) produces and markets frozen food products in the United States. AMNF currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for AMNF's current fiscal-year sales and earnings indicates growth of 7.1% and of 1.7%, respectively, from the year-ago actuals. AMNF delivered a trailing four-quarter earnings surprise of 23.1%, on average.
Darling Ingredients Inc. (DAR - Free Report) develops, produces, and sells sustainable natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America, and internationally. DAR currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for DAR’s current fiscal-year sales and earnings implies growth of 10.3% and 567.7%, respectively, from the year-ago actuals. DAR delivered a trailing four-quarter negative earnings surprise of 16.1%, on average.
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B&G Foods Q1 Earnings Meet Estimates, Fiscal 2026 View Raised
Key Takeaways
B&G Foods, Inc. (BGS - Free Report) posted first-quarter fiscal 2026 results, wherein the bottom line came in line with the Zacks Consensus Estimate, but declined year over year. The top line was pressured by recent divestitures, partially offset by modest growth in the base business.
BGS’ Q1 Performance: Key Metrics and Insights
B&G Foods reported adjusted earnings of 8 cents per share, up 100% from 4 cents in the year-ago quarter. The metric came in line with the Zacks Consensus Estimate.
B&G Foods, Inc. Price, Consensus and EPS Surprise
B&G Foods, Inc. price-consensus-eps-surprise-chart | B&G Foods, Inc. Quote
Net sales declined 3.9% year over year to $408.9 million in the first quarter of 2026 from $425.4 million in the prior-year period. The decrease was mainly due to the divestitures of the Green Giant U.S. frozen, Le Sueur U.S. and Don Pepino businesses. This was partially offset by growth in base business net sales, contributions from the co-manufacturing agreement and partial-month sales from the College Inn and Kitchen Basics brands.
The company’s base business net sales rose 2.8% year over year to $365.1 million from $355.2 million, reflecting gains in volume, pricing and mix. The base business gain provided a clearer read on underlying demand. Base business net sales growth was driven by a 1.9% lift from higher volume, a 0.5% benefit from net pricing and product mix and a 0.5% positive impact from foreign currency.
B&G Foods' Margin & Cost Performance
On an adjusted basis, gross profit was $84.6 million, down 6.6% from $90.6 million in the prior-year period. Adjusted gross margin was 20.7% compared with 21.3% in the prior-year quarter.
Selling, general and administrative expenses increased 2.2% year over year to $50.2 million from $49.1 million and represented 12.3% of net sales, up 70 basis points year over year from 11.6% in the prior-year period, as acquisition/divestiture-related and other non-recurring expenses rose meaningfully.
Adjusted EBITDA declined 2.5% year over year to $57.6 million from $59.1 million in the prior-year period. However, adjusted EBITDA margin improved slightly to 14.1% of net sales compared with 13.9% in the prior-year period.
B&G Foods' Segmental Performance
Specialty: Net sales declined 2.7% year over year to $130.8 million from $134.4 million, primarily due to the Don Pepino divestiture. Adjusted EBITDA fell 22.1% year over year to $26.1 million from $33.5 million, impacted by the divestiture, higher raw material costs, increased manufacturing expenses as a percentage of sales and tariff-related pressures.
Meals: Net sales increased 0.9% year over year to $107.1 million from $106.1 million, supported by contributions from the College Inn and Kitchen Basics acquisition, along with favorable pricing and product mix. However, adjusted EBITDA declined 20.1% year over year to $19.9 million from $25 million, due to higher raw material, manufacturing, trade spending and direct marketing costs.
Frozen & Vegetables: Net sales declined 23.7% year over year to $71 million from $93.1 million, primarily due to the Green Giant U.S. frozen and Le Sueur U.S. divestitures. However, Green Giant Canada's net sales increased 16.4%. Adjusted EBITDA surged 411.2% year over year to $4.6 million from a loss of $1.5 million, driven by lower raw material and manufacturing costs, favorable foreign currency impacts and benefits from the new Green Giant U.S. frozen co-manufacturing agreement.
Spices & Flavor Solutions: Net sales increased 9.1% year over year to $100.1 million from $91.7 million, driven by higher volumes, favorable pricing and product mix. Adjusted EBITDA rose 13.1% year over year to $29.7 million from $26.3 million, supported primarily by volume growth and, to a lesser extent, improved pricing, partially offset by higher raw material costs, particularly for garlic and black pepper, along with tariff-related impacts.
B&G Foods’ Financial Position
BGS ended the quarter with cash and cash equivalents of $64.5 million. Long-term debt, net of current portion, stood at $2,000 million. Net cash provided by operating activities was $23.6 million in the first quarter.
Management announced that, beginning with the dividend payment declared on May 11, 2026, and payable on July 30, 2026, the intended annual dividend rate for its common stock will be reduced from 76 cents per share to 38 cents per share. Based on the revised dividend rate and the current share count, aggregate dividend payments are expected to total approximately $46 million in fiscal 2026 and $30.8 million in fiscal 2027.
B&G Foods Raises 2026 Guidance
This Zacks Rank #3 (Hold) company revised its fiscal 2026 outlook upward following the quarter and recent transactions. Management now expects net sales of $1.735 billion to $1.775 billion from the previous guided range of $1.655 billion to $1.695 billion, and adjusted EBITDA is expected to be in the range of $275 million to $290 million from the previous guided range of $265 million to $275 million.
The company also lifted its adjusted earnings per share view to a range of 57.5 cents to 67.5 cents from the previously guided range of 55 cents to 65 cents. The updated guidance incorporates the impact of one fewer reporting week in fiscal 2026 compared with fiscal 2025, reflects completed divestitures and the College Inn and Kitchen Basics acquisition, and excludes the pending Green Giant Canada divestiture.
The company’s shares have lost 3% in the past three months compared with the industry’s decline of 15.2%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
The Chef’s Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. CHEF 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 CHEF’s current fiscal-year sales and earnings indicates growth of 8.3 and 24.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
Armanino Foods of Distinction, Inc. (AMNF - Free Report) produces and markets frozen food products in the United States. AMNF currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for AMNF's current fiscal-year sales and earnings indicates growth of 7.1% and of 1.7%, respectively, from the year-ago actuals. AMNF delivered a trailing four-quarter earnings surprise of 23.1%, on average.
Darling Ingredients Inc. (DAR - Free Report) develops, produces, and sells sustainable natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America, and internationally. DAR currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for DAR’s current fiscal-year sales and earnings implies growth of 10.3% and 567.7%, respectively, from the year-ago actuals. DAR delivered a trailing four-quarter negative earnings surprise of 16.1%, on average.