(MENAFN- Baystreet.ca)
Maple Leaf Foods (TSX:MFI) is a Mississauga-based packaged-meats company. The stock was up 0.70% in early afternoon trading on March 25. Shares have shot up 9.2% in 2019 so far.
The company released its fourth-quarter and full-year results for 2018 on February 28. Maple Leaf reported solid sales growth in the final quarter, but this was offset by a decline in fresh market prices. Food prices are up broadly over the past year, but meats have been one of the few subcategories to post flat growth.
This has been a drag on earnings for Maple Leaf. The company saw $46.2 million in restructuring costs related to the construction of a major London-based poultry facility. This also negatively impacted earnings.
Maple Leaf hopes that a strategic shift will offer up big success going forward. The company reported double-digit growth in its plant-based protein offerings. Maple Leaf will launch the Lightlife Burger to first service and retail in the United States this year, with the Canadian offering to launch in the spring. Many consumers have moved away from meat to alternatives, and Maple Leaf hopes to seize on these trends going forward.
Maple Leaf announced an 11.5% hike in its quarterly dividend to $0.145 per share. This represents a 1.9% yield. I like Maple Leaf going forward, but the stock is pricey in late March. It boasted an RSI of 66 as of this writing, which puts it very close to overbought territory.
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