Pinnacle Foods To Exit Certain Aunt Jemima Frozen Breakfast Items

By Tonya GarciaMarketsMarketWatch Pulse

Pinnacle Foods Inc. said Monday that it will exit some Aunt Jemima frozen breakfast products, which the company said are "low-margin and non-strategic." The 16 items cut across frozen waffles, French toast and pancakes. The company is also exiting certain frozen breakfast items sold to foodservice customers. The frozen Aunt Jemima products the company will continue to market include mini pancakes and breakfast entrees that are "higher-margin and more differentiated." The Aunt Jemima items Pinnacle Foods sells are under a trademark license agreement with The Quaker Oats Company. Pinnacle anticipates a non-cash charge of about $50 million to $60 million, but reaffirmed its full-year 2017 guidance for adjusted earnings per share in the range of $2.55 to $2.60. The FactSet consensus is for $2.60. Pinnacle Foods shares are unchanged in premarket trading, and up 37.7% for the past year.

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