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Yahoo
a day ago
- Business
- Yahoo
How The J. M. Smucker Company (SJM) Fits into the Food Dividend Stock Portfolio
The J. M. Smucker Company (NYSE:SJM) is included among the 10 Best Food Stocks with Dividends. A wholesaler distributing peanut butter, fruit spreads and specialty spreads to a retailer. The J. M. Smucker Company (NYSE:SJM) is recognized as a strong value in the food sector, with several successful brands under its belt. Notable performers include pet food lines like Meow Mix and Milk-Bone, as well as the well-liked Uncrustables sandwich products. The company paid a premium when it acquired Hostess Brands in November 2023. To refocus its efforts, the company recently sold off some brands from its Sweet Baked Snack segment, including Voortman, to concentrate more on the Hostess portfolio. Although the transition has been challenging, The J. M. Smucker Company (NYSE:SJM) appears to be moving in the right direction. It anticipates full-year fiscal 2026 sales to grow by 2% to 4%, despite the effects of divesting certain Sweet Baked Snack value brands. The company is also expected to deliver strong earnings and free cash flow. In fiscal Q4 2025, The J. M. Smucker Company (NYSE:SJM) reported operating cash flow of $393.9 million, and its free cash flow was $298.9 million. During the quarter, the company returned $114.5 million to shareholders through dividends, reinforcing its commitment to investor return. This cash position enables the company to consistently raise its dividends. The J. M. Smucker Company (NYSE:SJM) declared a 1.9% hike in its quarterly dividend on July 16. This marked the company's 24th consecutive year of dividend growth, which makes it one of the best food stocks with dividends. The company now offers a quarterly dividend of $1.10 per share and has a dividend yield of 4.04%, as of July 27. While we acknowledge the potential of SJM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: READ NEXT: and Disclosure: None.
Yahoo
28-06-2025
- Business
- Yahoo
Jim Cramer Calls J. M. Smucker's Recent Quarterly Report 'Horrendous'
The J. M. Smucker Company (NYSE:SJM) is one of the 13 stocks Jim Cramer recently shed light on. During the episode, Cramer discussed the impact of the company's acquisition of Hostess Brands. He said: 'Meanwhile, usually strong stocks like Colgate or Procter & Gamble, they can't get traction at all. Hey, two weeks ago, we got this quarterly report from J.M. Smucker. With a name like Smucker, it was horrendous, hurt by its ill-fated decision to buy Hostess Brands, the parent of Twinkies, right on the eve of the GLP-1. I am told that people who take GLP-1 are repulsed… by HoHos. They hate HoHos.' A wholesaler distributing peanut butter, fruit spreads and specialty spreads to a retailer. J. M. Smucker (NYSE:SJM) produces a wide variety of branded food, beverage, and pet products, including coffee, spreads, baked goods, snacks, and pet food. The company's offerings are sold under well-known names like Folgers, Café Bustelo, Dunkin', Jif, Smucker's, and Smucker's Uncrustables, among others, through retail, online, and foodservice channels. Additionally, Cramer discussed the company on June 10 and said: 'But let's look at the other way. Let's talk about what old folks were interested in. There's a company called J.M. Smucker. It makes coffee jams and pet food, Uncrustables, Twinkies. It's covered by 15 different firms… It's real. We've all bought their stuff. Two years ago, right at the time that the GLP-1 drugs came of age and we went nuts for the weight loss shots, J.M. Smucker didn't seem to notice. They ran into the fire, they bought Hostess, that's right, Hostess, maker of Twinkies, for $5.6 billion in November of 2023. Today, they took a $980 million impairment charge for that transaction. I doubt that'll be the last one, as Twinkies and Ho Hos may not turn very well. Let's just say they're going nowhere. They also took a big hit from tariffs and higher coffee costs. Smucker's talking about a 20% boost in coffee prices. That's not going to help demand. In the wake of the news, the stock plunged more than 15%. Nearly every analyst who covers it had tough things to say about the business, all major firms.' While we acknowledge the potential of SJM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-06-2025
- Business
- Yahoo
Why J.M. Smucker Stock Plummeted This Week
J.M. Smucker is home to a wide array of instantly recognizable food and beverage brands. However, the company is still reeling from the aftermath of overpaying for its 2023 acquisition of Hostess Brands. Smucker remains a remarkably stable cash generator, but its immense debt load leaves the company at a disadvantage. 10 stocks we like better than J.M. Smucker › Shares of packaged food and beverage giant J.M. Smucker (NYSE: SJM) were down 13% this week as of 2:30 p.m. ET Thursday, according to data provided by S&P Global Market Intelligence. Smucker reported dismal fiscal fourth-quarter earnings, with sales and adjusted earnings per share falling 3% and 13%. Making matters worse, the company took another $980 million impairment charge on its $5.6 billion Hostess Brands acquisition, bringing the total amount written down to $2 billion. While this charge doesn't mean Smucker "lost" that money in Q4, it acts more as an admission that it dramatically overpaid for the Twinkie maker two years ago. When you look at J.M. Smucker's brands, there's a lot to like: Folgers, Cafe Bustelo, and Dunkin MeowMix, Milk Bone, and Pupperoni Uncrustables, Jif, and Smuckers jelly Twinkies, Donettes, and Ho-Hos In fact, thanks to its collection of popular brands, Smucker estimates that roughly 90% of U.S. households already buy its products. However, that widespread adoption is also part of the problem now facing the company -- minimal growth. While Smucker grew sales by 4% annually over the last decade, this figure dipped to 1% since 2020 -- and Q4's results only made things worse. This slowdown undoubtedly contributed to the company's questionable acquisition of Hostess for a precipitous 30 times after-tax earnings. Now, Smucker holds $7.3 billion in debt versus a market capitalization of $10.2 billion, meaning the company will likely focus on paying down debt and streamlining its operations, rather than delivering any significant sales growth. Though Smucker consistently generates positive free cash flow (FCF) -- and its 4.5% dividend yield only uses 56% of its FCF -- investors may want to wait for signs of improvement before jumping in. Before you buy stock in J.M. Smucker, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and J.M. Smucker wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,871!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $875,479!* Now, it's worth noting Stock Advisor's total average return is 998% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends J.M. Smucker. The Motley Fool has a disclosure policy. Why J.M. Smucker Stock Plummeted This Week was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-06-2025
- Business
- Yahoo
JM Smucker outlines snacks strategy after fresh impairments
JM Smucker is "narrowing our priorities" for its sweet snacks division after the Twinkies maker booked another set of impairments against the business. The US manufacturer yesterday (10 June) recorded impairment charges of $980m made up of $867.3m linked to goodwill in its sweet baked snacks unit and a $112.7m impairment tied to the Hostess brand. The company, which acquired US snacks maker Hostess Brands in a $5.6bn deal two years ago, recorded over $1bn in impairment charges for the same units in March. After announcing JM Smucker's annual results yesterday, CEO and chair Mark Smucker, acknowledged the performance of the sweet baked snacks business had fallen short of 'expectations'. The chief pointed to inflation-driven shifts in consumer behaviour, noting reduced discretionary income led to more 'selective' spending. He also conceded the company had been unable to 'perform with excellence from a distribution, merchandising, and competitive standpoint'. The company, Mr Smucker said, is refocusing its efforts around 'three key drivers' in a bid to speed up the 'stabilisation and eventual growth' of the Hostess brand. He explained JM Smucker would review its snacks product ranges and "improve competitiveness through key price points". The company plans to "streamline commercial processes and redeploy resources", he added, moves that will include setting up a "dedicated" sales team for sweet snacks. JM Smucker is now forecasting sales from its sweet baked snacks business will rise 3% a year over the "long term", down from an earlier projection of 4% growth. The impairment charges resulted in a fourth-quarter operating loss of $599.1m, contrasting with a $406m operating profit in the corresponding period of the previous year. The company posted a net loss of $729m in the fourth quarter, versus a $245.1m profit a year earlier. Fourth-quarter net sales decreased by 3% to $2.14bn. Adjusted operating income was $422.4m, an 8% decline, with adjusted EPS at $2.31, down from $2.66 in Q4 FY2024. For the full year, JM Smucker reported a net loss of $1.23bn, compared to a $744m profit in its 2024/2025 fiscal year. Net sales rose 7% to $8.72bn, but the company recorded a $673.9m operating loss, a drop from $1.31bn in operating income in the previous fiscal year. Adjusted operating income increased by 12% to $1.82bn, with adjusted EPS rising to $10.12 from $9.94. Looking ahead, JM Smucker expects company-wide net sales to grow 2-4% in fiscal 2026 and anticipates adjusted EPS between $8.50 and $9.50. Announcing the results, Mr Smucker said: 'As we look ahead to fiscal year 2026, we remain focused on delivering the business through the strength of our key growth platforms and advancing our strategic priorities. We are confident in our strategy, and we are well-positioned to deliver long-term growth and increase shareholder value.' In a note, Bernstein analyst Alexia Howard said JM Smucker's outlook is 'below consensus on the bottom line, although sales guidance is better than expected due to price hikes,' particularly in coffee, where another increase is planned for August. Looking ahead to the company's 2026 fiscal year, Howard expressed concern that 'pressures on the Hostess brand will continue to play out, particularly once pill versions of GLP-1 drugs are launched in calendar year 2026'. She also flagged potential pressure on sales from state-level reductions in Supplemental Nutrition Assistance Program funding and ongoing media scrutiny of highly processed foods. Overall, Howard described the performance across JM Smucker's business units, including retail pet foods, coffee, frozen handhelds, and spreads, as a 'very mixed bag at present'. "JM Smucker outlines snacks strategy after fresh impairments " was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Miami Herald
01-06-2025
- Business
- Miami Herald
Popular regional food brand files for Chapter 11 bankruptcy
Consumers face the risk of losing some of their favorite products whenever a food manufacturer files for bankruptcy. Commercial bakeries produce some of the most beloved products, and Hostess Brands is one of the most popular bakery brands, offering Wonder Bread, Twinkies, Ho Hos, Ding Dongs, and their fruit pies for decades. Don't miss the move: Subscribe to TheStreet's free daily newsletter Hostess broke a lot of hearts after it filed for bankruptcy in January 2012, shut down operations, and liquidated its products. Luckily for its fans, J.M. Smucker in September 2012 purchased the company for about $5.6 billion and restarted the business. Related: Another popular pizza dining chain files Chapter 11 bankruptcy Another food manufacturer, Hearthside Food Solutions, which made various snack and food products for distributors such as Mondelez Global, Kraft Heinz Foods, and Pepsico, on Nov. 22, 2024, filed for Chapter 11 bankruptcy protection with a restructuring support agreement to hand 100% ownership of the company to its first-lien lenders. Hearthside, known as H-Food Holdings, restructured its debt, reorganized, and emerged from bankruptcy on March 31, 2025, as a new company, Maker's Pride LLC. Through the restructuring process, H-Food eliminated about $2 billion in funded debt. The company emerged with about $600 million in liquidity, including $200 million in new money through an equity rights offering and another $190 million of additional capital from a new asset-backed loan facility, according to a Maker's Pride statement at the time. "The swift completion of our financial restructuring process marks a pivotal moment for our company and is a testament to the dedication of our valued team members and committed support of our customers and financial partners," Darlene Nicosia, chief executive officer of Maker's Pride, said in a statement. The Downers Grove, Ill., company manufactures and produces convenience foods, including baked, refrigerated, and frozen foods, sweet and salty snacks, and nutrition bars, as a full-service provider of food packaging services for many of the world's premier brands through a network of 27 facilities and is the largest private bakery in the industry. And now, another popular commercial bakery has declared bankruptcy, as the parent company of Phoenix-based artisan bakery Noble Bread has filed a Chapter 11 petition to reorganize its business. The bakery and restaurant owner's parent Noble Goodness LLC and three affiliates filed their Subchapter V petition in the U.S. Bankruptcy Court for the District of Arizona on May 29, listing $1 million to $10 million in assets and $1 million to $10 million in liabilities. Related: Major logistics and trucking company files Chapter 11 bankruptcy The debtor did not indicate a reason for filing for bankruptcy in its petition. Nobel Bread operates a bakery facility that produces 30 different types of bread, as well as a modern wood-fired deli restaurant, Noble Eats, located in the Biltmore District in Phoenix. More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy The bakery says that it uses old-world techniques, "only using organic GMO-free flours, water, sea salt, and organic levain starter, which is a culture of wild yeasts used slowly to leaven the bread," according to Noble Bread's website. The company claims that it takes 36 hours to make one loaf of bread. "Utilizing whole grains, and ancient grains makes the bread far more complex and biologically active than just plain white bread," Noble Breads said on its website. The artisan bakery's products are available at Noble Eats, 11 AJ's Fine Foods gourmet markets throughout Arizona, and at a dozen farmers' markets throughout the Grand Canyon State. Related: Another major internet company files for Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
