Bridgford Foods (NASDAQ: BRID ) just reported results for the third quarter of 2024. Bridgford Foods reported earnings per share of -20 cents.
Bridgford Foods receives a buy rating due to its market price trading below its tangible book value and potential for growth when market headwinds subside. The company is going through inflationary pressures that have persisted over the past 2 years materially damaging margins. I believe there is hidden value on the balance sheet due to GAAP accounting rules.
Bridgford Foods Corporation is undervalued and has a solid balance sheet, making it a good investment despite macro headwinds. The company is focused on expanding its distribution network, which will lead to compounding growth and improved cash flows. Bridgford must restructure its strategy to stimulate growth and recover from recent declines in earnings and revenues.
Bridgford Foods Corporation has made massive progress over the years, and thanks to the company's hidden value in real estate, fiscal 2022 was the firm's best year in its nearly 100-year history. In 2000, Bridgford Foods initiated a large 2 million share buyback due to perceived undervaluation, with only 120,000 shares currently remaining for repurchase. Due to the 2022 sale of a meat processing plant in downtown Chicago, purchased in 1975 for $500,000 and sold for $60,000,000, shareholders' equity increased by 68%, long-term debt fell from $36 million to $3.89 million, and cash increased from zero to $16 million.