Pinnacle Foods (PF) Continues To Support Long-Term Growth

Pinnacle Foods, Inc. (NYSE:PF) has always been focused on maintaining its long-term growth outlook. Most recently, this food company has decided to relocate EVOL manufacturing operations to an existing Pinnacle facility in Fayetteville, AR, consistent with its growth outlook.

The relocation decision came after the EVOL brand had outgrown its current manufacturing site in Boulder, CO. The company thinks relocation to the Fayetteville site would be the best option as it has appropriate capacity for running the business. However, select products will continue to be made at strategic contract manufacturers with specialized capabilities.

The closure of the existing EVOL plant, expected in the first quarter of 2017, will impact approximately 85 employees. These workers can apply for open positions at other Pinnacle facilities, including at a nearby facility in Denver, CO.

Further, Pinnacle Foods will invest in the Fayetteville facility to upgrade its existing manufacturing capabilities. The state of Arkansas will also support the company in the form of grants and incentives in recognition of the economic benefit of Pinnacle's expansion in Fayetteville. Management also plans to employ approximately 25 new full-time workers to support the added capacity.

PINNACLE FOODS Price and Consensus

PINNACLE FOODS Price and Consensus | PINNACLE FOODS Quote

Parsippany, NJ-based Pinnacle Foods manufactures a wide variety of prepackaged foods under multiple brand names. Its products include Duncan Hines cake mix, Mrs. Butterworth's syrup and Vlasic pickles.

Last month, the company reported mixed second-quarter 2016 results. While earnings beat the Zacks Consensus Estimate, revenues missed the same. Pinnacle Foods has also raised its earnings guidance for 2016, which includes the benefit of the Boulder Brands acquisition.

Overall, the company boasts a strong brand portfolio and intends to continue investing in innovation to further differentiate its brands in the marketplace. It has also been pursuing various acquisitions over the years to enhance distribution network, customer base and boost long-term growth.

Pinnacle Foods also has an operational excellence program to generate annual productivity savings across the supply chain. These productivity savings, along with higher pricing, have been mitigating the impact of input cost inflation to drive gross margins.

Pinnacle Foods carries a Zacks Rank #2 (Buy).

Key Picks from the Sector

Investors interested in the food industry can also consider stocks like Omega Protein Corp. (NYSE:OME) , Ingredion, Inc. (NYSE:INGR) and Sysco Corp. (NYSE:SYY) . All these stocks sport a Zacks Rank #1 (Strong Buy).