An important metric of performance for food processing companies is its operating profitability – profit after the COGS and operating expenses have been subtracted out from revenues. The companies on our list today display the highest industry profitability margins, yet are trading at relatively lower valuation multiples when compared with other names in the same industry.
Mondelez International Inc. (NASDAQ: MDLZ) – $43.32
Food Processing
Mondelez International, Inc. is a snack food and beverage company. It manufactures and markets snack food and beverage products for consumers in approximately 165 countries around the world. The Company offers its brands in five product categories: biscuits (including cookies, crackers and salted snacks); chocolate; gum and candy; beverages (including coffee and powdered beverages), and cheese and grocery. It has a portfolio of around 58 brands, which include nine billion dollar brands: LU, Nabisco and Oreo biscuits; Cadbury, Cadbury Dairy Milk and Milka chocolates; Trident gum, and Jacobs coffee and Tang powdered beverages.
- Market Cap: $67,905,126,591
- Total Revenue (LTM): $31,102,000,000
- Operating Profit Margin (LTM): 32%
- EV/Operating Profit (LTM): 8.2x
Mead Johnson Nutrition Co (NYSE: MJN) – $77.40
Food Processing
Mead Johnson Nutrition Company (Mead Johnson) is a global pediatric nutrition company. The Company manufactures, distributes and sells infant formulas, children’s nutrition and other nutritional products. Its product portfolio includes routine and specialty infant formulas, children’s milks and milk modifiers, dietary supplements for pregnant and breastfeeding mothers, pediatric vitamins, and products for pediatric metabolic disorders.
- Market Cap: $15,279,779,218
- Total Revenue (LTM): $4,198,500,000
- Operating Profit Margin (LTM): 23%
- EV/Operating Profit (LTM): 16.6x
Keurig Green Mountain Inc. (NASDAQ: GMCR) – $89.27
Food Processing
Keurig Green Mountain, Inc. is a personal beverage system company. The Company is engaged in producing specialty coffee, coffeemakers, teas and other beverages in the United States and Canada. It operates through two segments: Domestic and Canada.
- Market Cap: $13,248,458,739
- Total Revenue (LTM): $4,520,031,000
- Operating Profit Margin (LTM): 17%
- EV/Operating Profit (LTM): 17.8x
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Pilgrim’s Pride Corp. (NASDAQ: PPC) – $21.16
Food Processing
Pilgrim’s Pride Corporation (Pilgrim’s) is a producer of chicken products with operations in the United States, Mexico and Puerto Rico. The Company is engaged in the production, processing, marketing and distribution of fresh, frozen and value-added chicken products to retailers, distributors and foodservice operators. Its fresh chicken products include refrigerated (non-frozen) whole chickens, whole cut-up chickens and selected chicken parts that are either marinated or non-marinated. Its prepared chicken products include fully cooked, ready-to-cook and individually frozen chicken parts, strips, nuggets and patties.
- Market Cap: $5,483,070,262
- Total Revenue (LTM): $8,329,760,000
- Operating Profit Margin (LTM): 15%
- EV/Operating Profit (LTM): 4.8x
Hershey Co (NYSE: HSY) – $89.91
Food Processing
The Hershey Company (Hershey) is a provider of chocolate and sugar confectionery. The Company’s principal confectionery offerings include chocolate and sugar confectionery products; pantry items, such as baking ingredients, toppings and beverages; snack items, such as spreads, and gum and mint refreshment products. The Company operates through two segments: North America and International and Other.
- Market Cap: $13,654,249,717
- Total Revenue (LTM): $7,487,431,000
- Operating Profit Margin (LTM): 14%
- EV/Operating Profit (LTM): 15.8x
