Fresh Del Monte Produce, Inc. (FDP)
NYSEConsumer StaplesAgricultural Farm ProductsSnapshot 2026-09-04
$28.34-1.36%
Close 2026-07-23 · 1-day change
NYSEConsumer StaplesAgricultural Farm ProductsSnapshot 2026-09-04
Broken: Primary pillar broken — Improve operating income above $20.1 million: metric not reported.
Fresh Del Monte is growing sales from its Del Monte Foods acquisition, with $1.04 billion net sales in Q1 2026. It keeps paying a steady $0.30 quarterly dividend. The company aims to improve operating income despite recent challenges. These moves show progress in fixing the business.
Operating income fell sharply to $20.1 million in Q1 2026 from $53.9 million a year ago. Revenue declined 4.9% year-over-year in the same quarter. Analysts have cut EPS estimates recently, signaling weak outlook. The recent 30% share price drop reflects these risks.
The stock trades about 37% below our fair value near $46. Analysts expect roughly 12% revenue growth. Our view aligns with the market on moderate growth but sees risks in profit recovery.
Breaks if: EPS falls below $3.68 in FY 2026
Breaks if: operating income falls below $20.1 million in any quarter
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround play in the Consumer Staples sector. The current thesis state reflects a medium confidence level as the company works to integrate its recent acquisition while facing headwinds in the market.
The market appears to have priced in a neutral valuation, with FDP seen as cheap compared to its peers. There is an expectations gap indicating that the market may not fully anticipate the challenges ahead, particularly if guidance is cut.
FDP's fundamentals are likely to show mixed results in the near term. While management is focused on improving operating income and maintaining dividends, the company is still loss-making and faces a moderate risk of missing earnings expectations.
The long-term thesis hinges on several factors, including the company's ability to successfully integrate the Del Monte Foods acquisition and the overall performance of the Consumer Staples sector. Additionally, inflation trends and the performance of sector leaders will be crucial for future momentum.
The most important moves since the prior daily snapshot.
Confidence changed from 'high' to 'medium'.
Yes, our read has strengthened. The latest earnings beat supports this improved outlook. There are no new threats impacting the thesis at this time.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Drive operational improvements to increase operating income across business segments.
Stated as a priority in 3 quarters including 2025-Q4 through 2026-Q2. Operating income showed improvement from $20.1 million in 2026-Q1 to $33.5 million in 2026-Q2 despite some asset impairments. Management's focus on margin discipline and operational execution is reflected in this improving trajectory.
“Operating income was $33.5 million, reflecting ongoing focus on margin performance.”
“Operating income was $20.1 million, impacted by asset impairments but supported by portfolio discipline.”
“Operating income was $46.0 million, driven by higher gross profit and operational efficiencies.”
Breaks if: dividend falls below $0.30 per share in any quarter
Breaks if: net sales fall below $1.04 billion in any quarter after 2026-Q1
Complete integration and scaling of the acquired Del Monte Foods prepared and packaged foods business to strengthen market position and brand consistency.
Stated as a priority in 2 quarters including 2026-Q1. The acquisition of Del Monte Foods contributed $82.5 million in prepared foods net sales in 2026-Q1. Long-term debt rose from $176.2 million in 2025-Q4 to $438.0 million in 2026-Q1 reflecting acquisition financing. Management is delivering on portfolio expansion and integration as planned.
“The quarter included the initial contribution following the closing of the Del Monte Foods acquisition, expanding our portfolio and strengthening our position.”
“Fresh Del Monte Completes Acquisition of Select Del Monte Foods Assets... Transaction reunites the Del Monte brand and expands Fresh Del Monte’s prepared and packaged foods platform.”
In the next 1 to 3 years, FDP's performance will depend on its execution of strategic priorities and market conditions. Not investment advice.