Key insights
- B&G Foods reported Q1 results exceeding revenue and EPS expectations, although sales declined year-over-year. The company raised full-year revenue and EPS guidance, contributing to a positive market reaction. However, declining operating margins and historical revenue declines temper the bullish outlook. Overall, the impact on the broader US equity market is minimal, but it signals potential strength in the consumer staples sector.
Packaged foods company B&G Foods (NYSE:BGS) reported Q1 CY2026 results exceeding the market’s revenue expectations , but sales fell by 3.9% year on year to $408.9 million. The company’s full-year revenue guidance of $1.76 billion at the midpoint came in 2% above analysts’ estimates. Its non-GAAP profit of $0.08 per share was 43.7% above analysts’ consensus estimates.
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Revenue: $408.9 million vs analyst estimates of $399.4 million (3.9% year-on-year decline, 2.4% beat)
Adjusted EPS: $0.08 vs analyst estimates of $0.06 (43.7% beat)
Adjusted EBITDA: $57.65 million vs analyst estimates of $57.67 million (14.1% margin, in line)
The company lifted its revenue guidance for the full year to $1.76 billion at the midpoint from $1.68 billion, a 4.8% increase
Management raised its full-year Adjusted EPS guidance to $0.63 at the midpoint, a 4.2% increase
EBITDA guidance for the full year is $282.5 million at the midpoint, above analyst estimates of $275.2 million
Operating Margin: -2.7%, down from 8.4% in the same quarter last year
Sales Volumes were up 1.9% year on year
Market Capitalization: $409.3 million
Started as a small grocery store in New York City, B&G Foods (NYSE:BGS) is an American packaged foods company with a diverse portfolio of more than 50 brands.
A company’s long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.
With $1.81 billion in revenue over the past 12 months, B&G Foods is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers.
As you can see below, B&G Foods’s revenue declined by 5.4% per year over the last three years despite consumers buying more of its products. We’ll explore what this means in the "Volume Growth" section.
This quarter, B&G Foods’s revenue fell by 3.9% year on year to $408.9 million but beat Wall Street’s estimates by 2.4%.
Looking ahead, sell-side analysts expect revenue to decline by 5.3% over the next 12 months, similar to its three-year rate. This projection is underwhelming and suggests its newer products will not lead to better top-line performance yet.
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Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
B&G Foods has shown mediocre cash profitability relative to peers over the last two years, giving the company fewer opportunities to return capital to shareholders. Its free cash flow margin averaged 4.5%, below what we’d expect for a consumer staples business.
It was good to see B&G Foods beat analysts’ EPS expectations this quarter. We were also glad its full-year revenue guidance exceeded Wall Street’s estimates. On the other hand, its adjusted operating income missed and its gross margin fell short of Wall Street’s estimates. Overall, this print was mixed but still had some key positives. The stock traded up 7.1% to $5.43 immediately following the results.
Is B&G Foods an attractive investment opportunity right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.