LANC

Lancaster Colony Corp

Consumer


Presented:02/22/2019
Price:$158.34
Cap:$4.36B
Current Price:$180.47
Cap:$4.97B

Presented

Date02/22/2019
Price$158.34
Market Cap$4.36B
Ent Value$4.68B
P/E Ratio29.68x
Book Value$25.62
Div Yield1.4%
Shares O/S27.51M
Ave Daily Vol164,227
Short Int5.91%

Current

Price$180.47
Market Cap$4.97B
Lancaster Colony Corp. engages in the manufacture and marketing of specialty food products. It manufactures and markets salad dressings and sauces; fruit glazes, vegetable dips and fruit dips; frozen hearth-baked breads; frozen parkerhouse style yeast dinner rolls and sweet rolls; premium dry egg noodles; and frozen specialty noodles and pastas. It operates through Retail and Foodservice segments. The Retail and Foodservice segments manufacture and sell under the brand name of New York BRAND Bakery; Sister Schubert's; Marzetti, Simply Dressed, Simply 60; Angelic Bakehouse; Cardini's, and Girard's. The Foodservice segment also sells its product under private label to restaurant. The company was founded in 1961 and is headquartered in Westerville, OH.

Publicly traded companies mentioned herein: Lancaster Colony Corp (LANC)

Highlights

The presenter is short shares of Lancaster Colony (LANC), the manufacturer of frozen garlic bread, dinner rolls, salad dressings, and produce dips for retail and food service markets. LANC operates in commoditized, challenged end markets with little-to-no growth. Including LANC’s M&A activity, EBIT has only grown at 4% CAGR over the past five years. Despite the stock benefiting from increased investor demand for defensive stocks, he views shares as overpriced at ~$160 and is modeling ~30% downside without significant upside risk.

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Idea Discussion

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