In fact, the Smucker family remains heavily involved and invested in the company. Four members of Smucker’s board of directors harbor the Smucker name. Two of those The J.M. Smucker Company (NYSE:SJM)’s, Timothy Smucker and Richard Smucker still own roughly 2% of the company a piece, according to its latest proxy. You always want to invest in a company where the management and employees share in the risks and rewards of the business. They will take pride and better care of the company under their watch.
Over the past five years The J.M. Smucker Company (NYSE:SJM)’s revenue and free cash flow grew 157% and 111% respectively. Smucker’s shareholders experienced a 107% return for its shareholders versus 15% for the S&P 500, not including dividends, over the past five years according to its investor relations website.
Smucker’s international segment experienced the most growth this year growing 35%. Its U.S. consumer foods division increased 6% year to date due to price increases, increased volume in certain products such as Jif peanut butter, and wider distribution in product lines such as Smucker’s Uncrustables. International expansion and product innovation will continue to drive this company forward.
Continuing on your journey through the cupboard, you may find Hunt’s ketchup, Orville Redenbacher’s popcorn, and Pam cooking spray all representing iconic brands made by food manufacturer ConAgra Foods, Inc. (NYSE:CAG). In addition, ConAgra makes Peter Pan peanut butter and Parkay margarine.
Over the past five years, ConAgra Foods, Inc. (NYSE:CAG) grew its revenue and free cash flow 10% each over the past five years. The company provided its shareholders with a market beating return of 50% versus an S&P 500 return of 15%, not including dividends, according to its website.
ConAgra Foods, Inc. (NYSE:CAG) operates in two segments: Consumer and Commercial foods. The Consumer and Commercial foods segments increased 7% and 1% respectively in the most recent quarter, perhaps as a result of the cash strapped consumer eating out less and cooking in more. In addition, the soft Asian economy contributed to its weakness in the commercial arena. ConAgra Foods, Inc. (NYSE:CAG)’s strong portfolio of brands will contribute to future shareholder prosperity.
On the whole, these companies operate in a needed industry backed by iconic brands and high barriers to entry. These companies should provide excellent research ideas and deserve a place on your Motley Fool Watch List. Happy researching!
The article Building a Watch List From Your Kitchen originally appeared on Fool.com and is written by William Bias.
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