B&G Foods Cuts Dividend Sharply, Shares Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 14 hours ago
0mins
Should l Buy BGS?
Source: seekingalpha
- Earnings Beat: B&G Foods reported first-quarter revenue of $409 million, down 4% year-over-year but $9 million above expectations, indicating resilience in market competitiveness despite divestitures of businesses like Green Giant.
- Dividend Cut: The company slashed its quarterly dividend nearly in half to $0.09 per share, aiming to save $30 million to reduce leverage and better position itself for upcoming debt maturities, reflecting a cautious approach to financial management.
- Upgraded Profit Outlook: B&G Foods raised its fiscal 2026 net sales guidance to a range of $1.735 billion to $1.775 billion, exceeding the $1.73 billion market estimate, showcasing confidence in future growth despite geopolitical and inflation risks.
- Adjusted Earnings Performance: Although the company reported a net loss of $0.41 per share due to asset sales, its adjusted earnings per share of $0.08 doubled from last year and beat expectations by 2 cents, indicating ongoing profitability in core operations.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy BGS?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on BGS
Wall Street analysts forecast BGS stock price to fall
5 Analyst Rating
0 Buy
4 Hold
1 Sell
Hold
Current: 5.070
Low
3.00
Averages
4.10
High
5.00
Current: 5.070
Low
3.00
Averages
4.10
High
5.00
About BGS
B&G Foods, Inc. manufactures, sells and distributes branded shelf-stable and frozen foods across the United States, Canada, and Puerto Rico. Its products include frozen and canned vegetables, canola and other cooking oils, cooking sprays, oatmeal and other hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, wine vinegar, maple syrup, molasses, salad dressings, dry soups, tomato-based products, crackers, baking powder, baking soda, corn starch, nut clusters and other specialty products. It operates in four segments: Specialty, Meals, Frozen and Vegetables, and Spices and Flavor Solutions. Its products are marketed under various brands, including B&G, B&M, Bear Creek, Cream of Wheat, Crisco, Dash, Baker's Joy, Regina, TrueNorth, Static Guard, SugarTwin, Brer Rabbit Green Giant, Las Palmas, Mama Mary’s, Maple Grove Farms, New York Style, Ortega, Polaner, Spice Islands, Victoria, Mama Mary's, Spring Tree, Victoria and now, College Inn and Kitchen Basics, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
B&G Foods Reports Mixed Q1 Results Amid Strategic Changes
- Divestiture Impact: B&G Foods completed the divestiture of its U.S. Frozen business, which is expected to enhance focus and synergies, thereby improving margins, although it faces challenges with a decline in net sales in the short term.
- Acquisition Outlook: The acquisition of the Collagen and Kitchen Basics brands is anticipated to strengthen the company's shelf-stable portfolio and contribute positively to EBITDA, further driving profit growth.
- Sales Growth and Challenges: The Spices and Flavor Solutions business unit saw a 9.1% increase in net sales, driven by demand for fresh foods and proteins, but overall net sales decreased by 3.9% year-over-year, highlighting the short-term impact of divestitures.
- Financial Management Progress: The company reduced its net leverage ratio to nearly six times, indicating progress in financial management and debt reduction, despite reporting a net loss of $32.5 million in Q1, reflecting the impact of non-cash asset sale losses.
See More
B&G Foods Cuts Dividend Sharply, Shares Decline
- Earnings Beat: B&G Foods reported first-quarter revenue of $409 million, down 4% year-over-year but $9 million above expectations, indicating resilience in market competitiveness despite divestitures of businesses like Green Giant.
- Dividend Cut: The company slashed its quarterly dividend nearly in half to $0.09 per share, aiming to save $30 million to reduce leverage and better position itself for upcoming debt maturities, reflecting a cautious approach to financial management.
- Upgraded Profit Outlook: B&G Foods raised its fiscal 2026 net sales guidance to a range of $1.735 billion to $1.775 billion, exceeding the $1.73 billion market estimate, showcasing confidence in future growth despite geopolitical and inflation risks.
- Adjusted Earnings Performance: Although the company reported a net loss of $0.41 per share due to asset sales, its adjusted earnings per share of $0.08 doubled from last year and beat expectations by 2 cents, indicating ongoing profitability in core operations.
See More
B&G Foods Q1 2026 Earnings Call Insights
- Portfolio Restructuring: B&G Foods completed the divestiture of the Green Giant U.S. frozen business and acquired the College Inn and Kitchen Basics broth and stock businesses, aiming to enhance EBITDA and margins by replacing low-margin operations, which helped reduce the pro forma net leverage ratio to nearly 6x in Q1.
- Sales Growth Performance: The base business net sales increased by 2.8% year-over-year to $365.1 million in Q1, driven by volume increases, net pricing improvements, and product mix enhancements, indicating the company's stability and growth potential in the market.
- Financial Outlook Adjustment: The company raised its fiscal year 2026 net sales guidance to $1.735 billion to $1.775 billion and adjusted EBITDA expectations to $275 million to $290 million, reflecting contributions from the newly acquired brands, although trends for the remaining quarters are expected to be flat to slightly down.
- Cost Control Measures: Management indicated ongoing efforts to reduce direct costs associated with the Green Giant business and plans to use 50% of the savings from the dividend cut for debt repayment, addressing cost pressures from oil and soybean oil price volatility.
See More
B&G Foods Q1 Earnings Exceed Expectations
- Earnings Beat: B&G Foods reported a Q1 non-GAAP EPS of $0.08, beating expectations by $0.02, indicating the company's ability to maintain profitability in a competitive market.
- Slight Revenue Decline: The Q1 revenue of $408.9 million, down 3.9% year-over-year, still surpassed market expectations by $9.07 million, demonstrating the company's resilience amid challenges.
- Revised Full-Year Guidance: The company adjusted its fiscal 2026 net sales guidance to a range of $1.735 billion to $1.775 billion, reflecting cautious optimism about future market conditions and management's confidence in business growth.
- EBITDA and EPS Projections: Adjusted EBITDA is revised to a range of $275 million to $290 million, while adjusted diluted EPS is projected between $0.575 and $0.675, showcasing ongoing efforts in cost control and profitability enhancement.
See More
B&G Foods to Announce Q1 Earnings on May 12
- Earnings Announcement: B&G Foods is set to release its Q1 2023 earnings on May 12 after market close, with a consensus EPS estimate of $0.06, reflecting a 50% year-over-year increase, indicating significant improvement in profitability.
- Revenue Expectations: Despite the optimistic EPS outlook, the revenue estimate stands at $399.83 million, representing a 6% year-over-year decline, suggesting challenges in sales growth that could impact market performance.
- Historical Performance Review: Over the past two years, B&G Foods has only beaten EPS estimates 25% of the time and revenue estimates 50% of the time, indicating instability in performance forecasts that may affect investor confidence.
- Estimate Revision Dynamics: In the last three months, there has been one upward revision for EPS estimates with no downward adjustments, while revenue estimates experienced one downward revision with no upward changes, potentially signaling market caution regarding future revenue growth.
See More
B&G Foods' High Dividend Yield Comes with Risks
- Dividend Yield Analysis: B&G Foods boasts a 13% dividend yield, significantly higher than the S&P 500's 1.1% and the consumer staples sector's 2.1%, yet this high yield conceals substantial financial risks.
- Impact of Dividend Cut: The company slashed its dividend by 60% in 2022 and has not reinstated it in the following two years, indicating slow progress in improving its balance sheet, which has negatively affected investor confidence.
- High Leverage Risk: As of 2025, B&G Foods' debt-to-equity ratio stands at 4.4x, markedly higher than General Mills' 1.4x and Kraft Heinz's 0.5x, highlighting its financial leverage risk significantly above industry averages.
- Industry Challenges Intensify: The consumer staples sector is grappling with tightening consumer budgets and high energy prices, and while B&G Foods is taking steps to ensure survival, investors should approach this high-risk, high-yield stock with caution until leverage improves.
See More
B&G Foods Reports Mixed Q1 Results Amid Strategic Changes
- Divestiture Impact: B&G Foods completed the divestiture of its U.S. Frozen business, which is expected to enhance focus and synergies, thereby improving margins, although it faces challenges with a decline in net sales in the short term.
- Acquisition Outlook: The acquisition of the Collagen and Kitchen Basics brands is anticipated to strengthen the company's shelf-stable portfolio and contribute positively to EBITDA, further driving profit growth.
- Sales Growth and Challenges: The Spices and Flavor Solutions business unit saw a 9.1% increase in net sales, driven by demand for fresh foods and proteins, but overall net sales decreased by 3.9% year-over-year, highlighting the short-term impact of divestitures.
- Financial Management Progress: The company reduced its net leverage ratio to nearly six times, indicating progress in financial management and debt reduction, despite reporting a net loss of $32.5 million in Q1, reflecting the impact of non-cash asset sale losses.
See More
B&G Foods Cuts Dividend Sharply, Shares Decline
- Earnings Beat: B&G Foods reported first-quarter revenue of $409 million, down 4% year-over-year but $9 million above expectations, indicating resilience in market competitiveness despite divestitures of businesses like Green Giant.
- Dividend Cut: The company slashed its quarterly dividend nearly in half to $0.09 per share, aiming to save $30 million to reduce leverage and better position itself for upcoming debt maturities, reflecting a cautious approach to financial management.
- Upgraded Profit Outlook: B&G Foods raised its fiscal 2026 net sales guidance to a range of $1.735 billion to $1.775 billion, exceeding the $1.73 billion market estimate, showcasing confidence in future growth despite geopolitical and inflation risks.
- Adjusted Earnings Performance: Although the company reported a net loss of $0.41 per share due to asset sales, its adjusted earnings per share of $0.08 doubled from last year and beat expectations by 2 cents, indicating ongoing profitability in core operations.
See More
B&G Foods Q1 2026 Earnings Call Insights
- Portfolio Restructuring: B&G Foods completed the divestiture of the Green Giant U.S. frozen business and acquired the College Inn and Kitchen Basics broth and stock businesses, aiming to enhance EBITDA and margins by replacing low-margin operations, which helped reduce the pro forma net leverage ratio to nearly 6x in Q1.
- Sales Growth Performance: The base business net sales increased by 2.8% year-over-year to $365.1 million in Q1, driven by volume increases, net pricing improvements, and product mix enhancements, indicating the company's stability and growth potential in the market.
- Financial Outlook Adjustment: The company raised its fiscal year 2026 net sales guidance to $1.735 billion to $1.775 billion and adjusted EBITDA expectations to $275 million to $290 million, reflecting contributions from the newly acquired brands, although trends for the remaining quarters are expected to be flat to slightly down.
- Cost Control Measures: Management indicated ongoing efforts to reduce direct costs associated with the Green Giant business and plans to use 50% of the savings from the dividend cut for debt repayment, addressing cost pressures from oil and soybean oil price volatility.
See More
B&G Foods Q1 Earnings Exceed Expectations
- Earnings Beat: B&G Foods reported a Q1 non-GAAP EPS of $0.08, beating expectations by $0.02, indicating the company's ability to maintain profitability in a competitive market.
- Slight Revenue Decline: The Q1 revenue of $408.9 million, down 3.9% year-over-year, still surpassed market expectations by $9.07 million, demonstrating the company's resilience amid challenges.
- Revised Full-Year Guidance: The company adjusted its fiscal 2026 net sales guidance to a range of $1.735 billion to $1.775 billion, reflecting cautious optimism about future market conditions and management's confidence in business growth.
- EBITDA and EPS Projections: Adjusted EBITDA is revised to a range of $275 million to $290 million, while adjusted diluted EPS is projected between $0.575 and $0.675, showcasing ongoing efforts in cost control and profitability enhancement.
See More
B&G Foods to Announce Q1 Earnings on May 12
- Earnings Announcement: B&G Foods is set to release its Q1 2023 earnings on May 12 after market close, with a consensus EPS estimate of $0.06, reflecting a 50% year-over-year increase, indicating significant improvement in profitability.
- Revenue Expectations: Despite the optimistic EPS outlook, the revenue estimate stands at $399.83 million, representing a 6% year-over-year decline, suggesting challenges in sales growth that could impact market performance.
- Historical Performance Review: Over the past two years, B&G Foods has only beaten EPS estimates 25% of the time and revenue estimates 50% of the time, indicating instability in performance forecasts that may affect investor confidence.
- Estimate Revision Dynamics: In the last three months, there has been one upward revision for EPS estimates with no downward adjustments, while revenue estimates experienced one downward revision with no upward changes, potentially signaling market caution regarding future revenue growth.
See More
B&G Foods' High Dividend Yield Comes with Risks
- Dividend Yield Analysis: B&G Foods boasts a 13% dividend yield, significantly higher than the S&P 500's 1.1% and the consumer staples sector's 2.1%, yet this high yield conceals substantial financial risks.
- Impact of Dividend Cut: The company slashed its dividend by 60% in 2022 and has not reinstated it in the following two years, indicating slow progress in improving its balance sheet, which has negatively affected investor confidence.
- High Leverage Risk: As of 2025, B&G Foods' debt-to-equity ratio stands at 4.4x, markedly higher than General Mills' 1.4x and Kraft Heinz's 0.5x, highlighting its financial leverage risk significantly above industry averages.
- Industry Challenges Intensify: The consumer staples sector is grappling with tightening consumer budgets and high energy prices, and while B&G Foods is taking steps to ensure survival, investors should approach this high-risk, high-yield stock with caution until leverage improves.
See More
