Dj United Natural Foods Inc, Inst Holders, 4Q 2024 (Unfi)

Medifast, Inc. MED delivered fourth-quarter 2024 results, with the bottom and top lines declining year over year. However, both earnings and net revenues beat the Zacks Consensus Estimate.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

This year was a transformative period for Medifast as the company adapted to the evolving health and wellness market, driven by the growing acceptance of GLP-1 medications. Throughout the year, the team demonstrated resilience and adaptability, ensuring Medifast remains well-positioned as a leader in health and wellness within a GLP-1-driven landscape.

Looking ahead, key priorities include reestablishing growth across essential metrics, enhancing coach productivity through accelerated customer acquisition and increasing the number of active earning coaches. These initiatives are expected to expand reach, restore revenue and profitability growth, and create long-term value for all stakeholders.

MEDIFAST INC Price, Consensus and EPS Surprise

MEDIFAST INC price-consensus-eps-surprise-chart | MEDIFAST INC Quote

Medifast’s Quarterly Performance: Key Insights

MED’s adjusted earnings were 10 cents per share in the fourth quarter, down from $1.09 in the year-ago quarter. The metric beat the Zacks Consensus Estimate of an adjusted loss of 27 cents.

Net revenues of $119 million declined 37.7% year over year due to lesser active earning OPTAVIA Coaches and reduced productivity per Coach. The average revenue per active earning OPTAVIA Coach was $4,391, down 5.5% year over year from $4,648 million due to lower customer acquisition. The total number of active earning OPTAVIA Coaches fell 34.1% to 27,100 from 41,000 in the year-ago quarter. The top line surpassed the Zacks Consensus estimate of $111 million.

MED Stock Past Three-Month Performance

MED’s Margin & Cost Details

Gross profit was $88.2 million, down 37.6% year over year on reduced revenue volume. The gross margin was 74.1%, up 10 basis points year over year. We expected gross profit to be $75.8 million in the fourth quarter.

Adjusted selling, general and administrative expenses (SG&A) fell 30.1% year over year to $87.5 million. This decrease was primarily driven by reductions in OPTA VIA coach compensation, employee compensation and nonrecurring costs associated with launching the company's medically supported weight loss initiative, including collaboration costs with LifeMD. There was a reduction in expenses for coach-related events. However, these savings were partially offset by increased spending on company-led marketing efforts.

As a percentage of revenues, adjusted SG&A expenses increased 800 basis points (bps) to 73.5%, attributed to higher company-led marketing expenditure and reduced leverage on fixed expenses. These factors were partially offset by the absence of nonrecurring costs from the previous year’s weight loss initiative and lower expenses for coach-related events.

The adjusted income from operations declined 95.6% to $0.7 million. We note that the adjusted operating margin decreased 790 bps year over year to 0.6%.

Medifast’s Financial Health Snapshot

MED concluded the quarter with cash, cash equivalents and investments of $162.3 million, no interest-bearing debt (as of Dec. 31, 2024), and total shareholders’ equity of $210.1 million.

Sneak Peek Into MED’s 2025 Outlook

The company expects first-quarter 2025 revenues between $100 million and $120 million, with earnings per share (EPS) ranging from a loss of 50 cents per share to break-even. This EPS range excludes any gains or losses resulting from changes in the market price of the company's LifeMD common stock investment.

The Zacks Rank #3 (Hold) company’s shares have lost 11.2% in the past three months compared with the industry’s 5.9% decline.

Some Better-Ranked Staple Bets

Here, we have highlighted three better-ranked stocks, namely United Natural Foods, Inc. UNFI, Freshpet Inc. FRPT and US Foods Holding Corp. USFD.

United Natural Foods is the leading distributor of natural, organic and specialty food and non-food products in the United States and Canada. It presently 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 UNFI's current fiscal-year earnings and sales indicates growth of 442.9% and 0.3%, respectively, from the year-ago reported figures. UNFI delivered a trailing four-quarter average earnings surprise of 553.1%.

Freshpet is a pet food company. It has a Zacks Rank #2 (Buy) at present.

The Zacks Consensus Estimate for Freshpet’s current financial-year earnings and sales indicates declines of 227.1% and 27.2%, respectively, from the year-ago reported figures. FRPT delivered a trailing four-quarter average earnings surprise of 144.5%.

US Foods is a food-service distributor. The company currently carries a Zacks Rank of 2.

USFD delivered a trailing four-quarter earnings surprise of 2.4%, on average. The Zacks Consensus Estimate for US Foods’ current financial-year earnings and sales indicates growth of 21% and 5.3%, respectively, from the year-ago reported figures.

Zacks Investment Research

United Natural Foods to Release Fiscal 2025 Second Quarter Results on March 11, 2025

PROVIDENCE, R.I.--(BUSINESS WIRE)--February 18, 2025--

United Natural Foods, Inc. will release financial results for its 13-week fiscal 2025 second quarter, ended February 1, 2025, the morning of Tuesday, March 11, 2025. Management will host a conference call that morning at 8:30 a.m. ET to discuss results.

To access the conference call, please dial (888) 660 - 6768 (U.S. toll-free) and reference conference ID number 1099581. An audio webcast of the conference call, and materials that will be referenced during the call, will be available via the Investors section of the Company's website www.unfi.com. An online archive of the webcast will be available for 120 days.

About United Natural Foods, Inc.

UNFI is North America's premier grocery wholesaler delivering the widest variety of fresh, branded, and owned brand products to more than 30,000 locations throughout North America, including natural product superstores, independent retailers, conventional supermarket chains, ecommerce providers, and food service customers. UNFI also provides a broad range of value-added services and segmented marketing expertise, including proprietary technology, data, market insights, and shelf management to help customers and suppliers build their businesses and brands. As the largest full-service grocery partner in North America, UNFI is committed to building a food system that is better for all and is uniquely positioned to deliver great food, more choices, and fresh thinking to customers. To learn more about how UNFI is delivering value for its stakeholders, visit www.unfi.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250218494965/en/

CONTACT: Investor Contacts

Kristyn Farahmand

612-439-6625

kristyn.farahmand@unfi.com

- or -

Steve Bloomquist

952-828-4144

steve.j.bloomquist@unfi.com

Media Contact

Kristen Jimenez

404-906-8425

kristen.jimenez@unfi.com

TreeHouse Foods, Inc. THS reported mixed fourth-quarter fiscal 2024 results. The bottom line improved year over year but missed the Zacks Consensus Estimate, while the top line declined and beat the same. Despite a slower macroeconomic environment and two significant supply-chain disruptions, the company made steady progress in executing supply-chain initiatives amid a difficult consumer landscape across food and beverage categories.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

TreeHouse Foods is focused on driving profitability through strategic margin management, efficiency improvements and reduced capital expenditures. These initiatives aim to enhance profitability and cash flow while positioning the business for future growth.

TreeHouse Foods, Inc. Price, Consensus and EPS Surprise

TreeHouse Foods, Inc. price-consensus-eps-surprise-chart | TreeHouse Foods, Inc. Quote

TreeHouse Foods’ Quarterly Performance: Key Insights

TreeHouse Foods posted adjusted earnings of 95 cents per share, which lagged the Zacks Consensus Estimate of 97 cents. The bottom line increased from 77 cents per share in the year-ago quarter.

Net sales of $905.7 million dropped 0.6% year over year and beat the consensus estimate of $905 million. Net sales remained relatively stable, with strong performance in multiple categories such as pretzels, in-store bakery and cookies, boosting volume/mix.

However, this growth was offset by lost volume resulting from the griddle product facility restoration following the related recall. Moreover, pricing adjustments in select categories, driven by commodity costs, contributed to the decline. Adjusted net sales of $911.4 million increased 0.2% year over year.

In the fourth quarter, volume/mix increased 3.8%, while the impact of facilities restoration led to a 2.8% decline. Product recall returns contributed to a 0.8% decrease, pricing adjustments lowered sales by 0.7% and foreign currency effects resulted in a 0.1% reduction. All these factors resulted in a total net sales decline.

THS’ Margin & Cost Details

The gross margin of 19.5% rose 2.8 percentage points compared with the same quarter last year, primarily driven by the effective execution of supply-chain savings initiatives, a $10 million insurance recovery from the broth recall and reduced commodity costs. However, this improvement was partially offset by volume losses resulting from the griddle facility restoration following the frozen griddle product recall. Also, the adjusted gross margin improved 0.6 percentage points year over year to 19.3%.

Total operating expenses were $96.4 million, down from $109.7 million in the year-ago quarter. This reduction was primarily due to lower employee incentive compensation, the absence of a non-recurring impairment charge from the prior year, reduced severance costs and lower freight expenses. However, the decrease was partially offset by a $6.5 million reduction in TSA income due to the discontinuation of certain TSA services.

Adjusted EBITDA from continuing operations totaled $118.3 million, up from $108.4 million in the fourth quarter of 2023. This increase was driven by supply-chain savings initiatives.

TreeHouse Foods’ Financial Health Snapshot

TreeHouse Foods concluded the quarter with cash and cash equivalents of $289.6 million, long-term debt of $1.40 billion and total shareholders’ equity of $1.55 billion. In the 12 months ended Dec. 31, 2024, the company’s net cash provided by operating activities from continuing operations was $265.8 million.

THS Stock Past Three-Month Performance

Sneak Peek Into THS’ 2025 Outlook

TreeHouse Foods provided its outlook and guidance for fiscal year 2025, expecting adjusted net sales to range between $3.34 billion and $3.40 billion, reflecting a year-over-year change between a 1% decline and 1% growth.

This projection is influenced by an anticipated 1% decline in volume/mix, due to organic volume declines, the Harris Tea volume benefit being offset by the previously announced exit from the Ready-to-Drink business, other margin management actions and the one-time impact of the frozen griddle product recall. Pricing is expected to contribute approximately a 1% increase.

Adjusted EBITDA from continuing operations is forecasted to be between $345 million and $375 million. Capital expenditures are expected to be approximately $125 million, while free cash flow is anticipated to be at least $130 million.

What to Expect From THS in Q1?

TreeHouse Foods anticipates adjusted net sales to range between $785 million and $800 million, representing a year-over-year decline of approximately 3.5% at the midpoint. This decline is primarily due to an expected 3% decrease in volume/mix, with organic volume/mix projected to remain roughly flat. Moreover, while the Harris Tea volume benefit will provide some support, the benefits will be more than offset by the one-time impact of the frozen griddle product recall.

Adjusted EBITDA from continuing operations is expected to be between $38 million and $46 million.

This Zacks Rank #2 (Buy) stock has gained 1% in the past three months against the industry’s 4.5% decline.

Other Key Picks

Here, we have highlighted three other top-ranked stocks, namely United Natural Foods, Inc. UNFI, Freshpet Inc. FRPT and US Foods Holding Corp. USFD.

United Natural Foods is the leading distributor of natural, organic and specialty food and non-food products in the United States and Canada. It presently 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 UNFI's current fiscal-year earnings and sales indicates growth of 442.9% and 0.3%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter average earnings surprise of 553.1%.

Freshpet is a pet food company. It has a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for Freshpet’s current financial-year earnings and sales indicates declines of 227.1% and 27.2%, respectively, from the year-ago figures. FRPT delivered a trailing four-quarter average earnings surprise of 144.5%.

US Foods is a food-service distributor. The company currently carries a Zacks Rank of 2.

USFD delivered a trailing four-quarter earnings surprise of 2.4%, on average. The Zacks Consensus Estimate for US Foods’ current financial-year earnings and sales indicates growth of 21% and 5.3%, respectively, from the year-ago figures.

Zacks Investment Research

US Foods Holding Corp. USFD reported solid fourth-quarter fiscal 2024 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year.

Management highlighted that the current momentum gives confidence in achieving a 5% sales CAGR, 10% adjusted EBITDA CAGR and 20% adjusted EPS CAGR through 2027. The company remains focused on long-term value creation and margin expansion through strategic initiatives.

USFD’s Quarterly Performance: Key Metrics and Insights

US Foods adjusted quarterly earnings of 84 cents per share beat the Zacks Consensus Estimate of 80 cents. The metric also increased 31.3% from 64 cents in the prior-year period.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

US Foods Holding Corp. Price, Consensus and EPS Surprise

US Foods Holding Corp. price-consensus-eps-surprise-chart | US Foods Holding Corp. Quote

The company reported consolidated net sales of $9,491 million, which beat the Zacks Consensus Estimate of $9,474 million. The metric increased 6.2% from $8,936 million posted in the year-ago period. This year-over-year growth was driven by case volume growth and 2.9% food-cost inflation.

Total case volume grew 3.5% year over year, driven by a 3.2% increase in independent restaurant volume, 4.7% growth in healthcare, 2.4% growth in hospitality and a 2.6% rise in chain volume. Organic case volume increased 1.4%, including 1.8% growth in organic independent restaurant volume.

US Foods’ adjusted gross profit increased 7.2% year over year to $1,659 million. The adjusted gross margin expanded 20 basis points (bps) to 17.5% compared with 17.3% in the fourth quarter of fiscal 2023.

Adjusted operating expenses rose 4.8% year over year to $1,217 million in the quarter. However, as a percentage of net sales, adjusted operating expenses decreased 20 bps year over year to 12.8%.

Adjusted EBITDA increased 13.7% year over year to $441 million, driven by profitable volume growth, gross profit gains and improved operating expense productivity. Adjusted EBITDA margin was 4.6%, an increase of 30 bps compared with the prior year.

USFD’s Financial Health Snapshot

US Foods exited the quarter with cash and cash equivalents of $59 million, long-term debt of $4,819 million and total shareholders’ equity of $4,528 million.

For the year ended Dec. 28, 2024, cash flow provided by operating activities was $1,174 million. Capital expenditures totaled $341 million allocated to investments in information technology, property and equipment, and distribution facility maintenance.

In the fourth quarter of fiscal 2024, the company repurchased 5 million shares of common stock for a total of $323 million.

What to Expect From USFD in 2025

For 2025, management expects net sales growth of 4% to 6%, driven by total case growth of 2% to 4%, with independent restaurant case growth anticipated at 4% to 7%. USFD anticipates adjusted EBITDA growth of 8% to 12%. The company anticipates adjusted earnings growth of 17% to 23%, driven by profitable volume growth, margin expansion and adjusted gross profit per case outpacing adjusted operating expense growth.

This Zacks Rank #2 (Buy) stock has rallied 9% in the past three months against the industry’s decline of 4.5%.