A month has gone by since the last earnings report for B&G Foods (BGS Quick QuoteBGS - Free Report) . Shares have lost about 8.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is B&G Foods due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

B&G Foods Q1 Earnings Meet Estimates, Fiscal 2026 View Raised

B&G Foods 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.

BGS' Spices Business Led Segment Growth

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 12, 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

The 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.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

Currently, B&G Foods has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock has a grade of A on the value side, putting it in the top 20% for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

B&G Foods has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

B&G Foods is part of the Zacks Food - Miscellaneous industry. Over the past month, Kraft Heinz (KHC Quick QuoteKHC - Free Report) , a stock from the same industry, has gained 3.8%. The company reported its results for the quarter ended March 2026 more than a month ago.

Kraft Heinz reported revenues of $6.05 billion in the last reported quarter, representing a year-over-year change of +0.8%. EPS of $0.58 for the same period compares with $0.62 a year ago.

For the current quarter, Kraft Heinz is expected to post earnings of $0.53 per share, indicating a change of -23.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.6% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Kraft Heinz. Also, the stock has a VGM Score of B.