This article first appeared on GuruFocus .
Shares of Grupo Herdez ( GUZOF ) surged as much as 12% on Thursday, putting the Mexican food producer on track for its strongest intraday performance in six months and bringing the stock close to a record high. The move followed fourth-quarter results that came in ahead of expectations, with sales and profit growth that helped offset the drag from a strengthening Mexican peso. Banco Ve Por Mas analyst Ariel Mendez Velazquez said the quarter reflected resilience in the core business, and management projected consolidated net sales growth of between 7% and 9% for fiscal 2026, pointing to a possible rebound in consumer confidence in both the US and Mexico.
The contrast with Gruma was notable. Shares of the tortilla maker fell as much as 8% after reporting an earnings miss, as investors weighed weaker US performance and increased pressure on profitability at its corn flour brand tied to higher raw material costs, according to Valmex analysts. On its earnings call, Gruma executives acknowledged low consumer sentiment in the US as a challenge, though they added there have been recent signs of improvement that could support a gradual recovery.
Herdez's momentum follows strategic portfolio actions taken last year, including the sale of a stake in McCormick de Mexico and the spin-off of Grupo Nutrisa. At the time of the separation, Nutrisa was positioned to focus on beverages, ice cream and snacks, while Herdez concentrated on groceries and frozen foods. Chief Executive Officer Hector Hernandez-Pons Torres said those moves strengthened the company's capital structure and allowed it to close the year with a more focused operation, potentially positioning the group to capture new growth opportunities.
