We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
B&G Foods Q2 Earnings Rise on Portfolio Reshaping and Margin Gains
Read MoreHide Full Article
Key Takeaways
B&G Foods posted higher Q2 adjusted earnings as divestitures and acquisitions reshaped its sales mix.
BGS expanded adjusted EBITDA margin to 15.8% with higher-margin brands and lower SG&A expenses.
B&G Foods reaffirmed fiscal 2026 sales, EBITDA and adjusted earnings outlook after Q2 results.
B&G Foods, Inc. (BGS - Free Report) continued to reshape its portfolio in the second quarter of fiscal 2026, with recent divestitures and acquisitions materially changing its sales mix. While revenues declined, improved margins, lower selling, general and administrative expenses and contributions from higher-margin businesses supported profitability.
Adjusted earnings were 6 cents per share, up 50% from the year-ago quarter figure. Net sales fell 9.7% year over year to $383.3 million. Adjusted EBITDA increased 4.2% to $60.4 million, while adjusted EBITDA margin expanded to 15.8% from 13.7%.
BGS’ second-quarter sales comparison reflected the Green Giant U.S. frozen, Le Sueur U.S. and Don Pepino divestitures. These businesses contributed about $68 million to net sales in the prior-year quarter and were not part of second-quarter fiscal 2026 results.
Partially offsetting this impact were $23.9 million in sales from the Green Giant U.S. frozen co-manufacturing agreement and $13.2 million from the acquired College Inn and Kitchen Basics brands. Management stated the portfolio reshaping is aimed at improving growth stability, margins and cash generation.
B&G Foods’ base business net sales declined 2.9% year over year to $346.3 million from $356.5 million. Volume reduced sales by 4.3%, while net pricing and product mix provided a 1.4% benefit. Foreign currency added nearly 0.1%. Management noted that the timing of the Fourth of July holiday reduced the quarter by about 1.5 shipping days, affecting net sales by roughly $5 million to $7 million.
BGS’ Adjusted Margin Expands
Adjusted gross profit was $83.7 million in the second quarter compared with $89.1 million a year ago. However, adjusted gross margin expanded to 21.8% from 21.0%, aided by the higher-margin College Inn and Kitchen Basics acquisition, the divestiture of the lower-margin Green Giant U.S. frozen business and tariff refunds.
Selling, general and administrative expenses decreased 14% to $40.6 million from $47.2 million. Lower warehousing, general and administrative, consumer marketing and selling expenses more than offset higher acquisition, divestiture-related and non-recurring expenses. SG&A represented 10.6% of sales compared with 11.1% a year ago.
B&G Foods’ Segments Deliver Mixed Results
Specialty segment net sales declined 4.4% to $128.9 million, while adjusted EBITDA fell 27.3% to $23.7 million. Results were pressured by lower volumes, higher Crisco oil input costs and the Don Pepino divestiture.
Meals sales increased 6.2% to $110.5 million, helped by College Inn and Kitchen Basics, pricing and mix. Adjusted EBITDA edged up 0.3% to $25.8 million. Frozen & Vegetables sales fell 47% to $47.2 million because of divestitures, while its adjusted EBITDA loss narrowed to $1.2 million from $2.7 million.
Spices & Flavor Solutions sales increased 0.1% to $96.6 million. Adjusted EBITDA climbed 29% to $31.1 million, supported by pricing, tariff refunds and lower spice input costs. Growth in foodservice and private-label channels helped offset weakness in retail.
B&G Foods’ Financial Status
B&G Foods ended the quarter with cash and cash equivalents of $591.6 million, long-term debt (net of current portion) of $2,008.5 million and total stockholders’ equity of $395.1 million.
For the first two quarters of 2026, BGS’ net cash from operating activities amounted to about $58 million.
B&G Foods Reaffirms Fiscal 2026 View
This Zacks Rank #3 (Hold) company reaffirmed its fiscal 2026 net sales guidance of $1,735 million to $1,775 million. Adjusted EBITDA is still projected at $275 million to $290 million, while adjusted earnings are expected in the range of 57.5-67.5 cents per share.
The outlook incorporates completed divestitures, the Green Giant U.S. frozen co-manufacturing agreement and the College Inn and Kitchen Basics acquisition. It excludes the pending Green Giant Canada divestiture, which management expects to close during the third quarter of fiscal 2026.
Shares of BGS have tumbled 22.3% over the past three months, against the industry’s growth of 8.6%.
Better-Ranked Stocks to Consider
Darling Ingredients Inc. (DAR - Free Report) , a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients, currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for Darling’s current fiscal-year sales calls for 12.8% growth from the prior-year levels. The consensus estimate for current fiscal-year earnings per share (EPS) stands at $6.98, which implies substantial growth from the year-ago period. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.
The Vita Coco Company, Inc. (COCO - Free Report) , a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently sports a Zacks Rank #1. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.
The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and earnings calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures.
US Foods Holding Corp. (USFD - Free Report) engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank #2 (Buy). US Foods Holding delivered a trailing four-quarter earnings surprise of 1.5%, on average.
The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.1% and 16.3%, respectively, from the year-ago figures.
View the Zacks #1 Rank List
Image: Shutterstock
B&G Foods Q2 Earnings Rise on Portfolio Reshaping and Margin Gains
Key Takeaways
B&G Foods, Inc. (BGS - Free Report) continued to reshape its portfolio in the second quarter of fiscal 2026, with recent divestitures and acquisitions materially changing its sales mix. While revenues declined, improved margins, lower selling, general and administrative expenses and contributions from higher-margin businesses supported profitability.
Adjusted earnings were 6 cents per share, up 50% from the year-ago quarter figure. Net sales fell 9.7% year over year to $383.3 million. Adjusted EBITDA increased 4.2% to $60.4 million, while adjusted EBITDA margin expanded to 15.8% from 13.7%.
B&G Foods, Inc. Price, Consensus and EPS Surprise
B&G Foods, Inc. price-consensus-eps-surprise-chart | B&G Foods, Inc. Quote
BGS’ Portfolio Reshaping Drives Sales Mix
BGS’ second-quarter sales comparison reflected the Green Giant U.S. frozen, Le Sueur U.S. and Don Pepino divestitures. These businesses contributed about $68 million to net sales in the prior-year quarter and were not part of second-quarter fiscal 2026 results.
Partially offsetting this impact were $23.9 million in sales from the Green Giant U.S. frozen co-manufacturing agreement and $13.2 million from the acquired College Inn and Kitchen Basics brands. Management stated the portfolio reshaping is aimed at improving growth stability, margins and cash generation.
B&G Foods’ base business net sales declined 2.9% year over year to $346.3 million from $356.5 million. Volume reduced sales by 4.3%, while net pricing and product mix provided a 1.4% benefit. Foreign currency added nearly 0.1%. Management noted that the timing of the Fourth of July holiday reduced the quarter by about 1.5 shipping days, affecting net sales by roughly $5 million to $7 million.
BGS’ Adjusted Margin Expands
Adjusted gross profit was $83.7 million in the second quarter compared with $89.1 million a year ago. However, adjusted gross margin expanded to 21.8% from 21.0%, aided by the higher-margin College Inn and Kitchen Basics acquisition, the divestiture of the lower-margin Green Giant U.S. frozen business and tariff refunds.
Selling, general and administrative expenses decreased 14% to $40.6 million from $47.2 million. Lower warehousing, general and administrative, consumer marketing and selling expenses more than offset higher acquisition, divestiture-related and non-recurring expenses. SG&A represented 10.6% of sales compared with 11.1% a year ago.
B&G Foods’ Segments Deliver Mixed Results
Specialty segment net sales declined 4.4% to $128.9 million, while adjusted EBITDA fell 27.3% to $23.7 million. Results were pressured by lower volumes, higher Crisco oil input costs and the Don Pepino divestiture.
Meals sales increased 6.2% to $110.5 million, helped by College Inn and Kitchen Basics, pricing and mix. Adjusted EBITDA edged up 0.3% to $25.8 million. Frozen & Vegetables sales fell 47% to $47.2 million because of divestitures, while its adjusted EBITDA loss narrowed to $1.2 million from $2.7 million.
Spices & Flavor Solutions sales increased 0.1% to $96.6 million. Adjusted EBITDA climbed 29% to $31.1 million, supported by pricing, tariff refunds and lower spice input costs. Growth in foodservice and private-label channels helped offset weakness in retail.
B&G Foods’ Financial Status
B&G Foods ended the quarter with cash and cash equivalents of $591.6 million, long-term debt (net of current portion) of $2,008.5 million and total stockholders’ equity of $395.1 million.
For the first two quarters of 2026, BGS’ net cash from operating activities amounted to about $58 million.
B&G Foods Reaffirms Fiscal 2026 View
This Zacks Rank #3 (Hold) company reaffirmed its fiscal 2026 net sales guidance of $1,735 million to $1,775 million. Adjusted EBITDA is still projected at $275 million to $290 million, while adjusted earnings are expected in the range of 57.5-67.5 cents per share.
The outlook incorporates completed divestitures, the Green Giant U.S. frozen co-manufacturing agreement and the College Inn and Kitchen Basics acquisition. It excludes the pending Green Giant Canada divestiture, which management expects to close during the third quarter of fiscal 2026.
Shares of BGS have tumbled 22.3% over the past three months, against the industry’s growth of 8.6%.
Better-Ranked Stocks to Consider
Darling Ingredients Inc. (DAR - Free Report) , a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients, currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for Darling’s current fiscal-year sales calls for 12.8% growth from the prior-year levels. The consensus estimate for current fiscal-year earnings per share (EPS) stands at $6.98, which implies substantial growth from the year-ago period. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.
The Vita Coco Company, Inc. (COCO - Free Report) , a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently sports a Zacks Rank #1. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.
The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and earnings calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures.
US Foods Holding Corp. (USFD - Free Report) engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank #2 (Buy). US Foods Holding delivered a trailing four-quarter earnings surprise of 1.5%, on average.
The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.1% and 16.3%, respectively, from the year-ago figures.