Nomad Foods’ stock plummets 60% despite frozen food dominance in Europe
Nomad Foods, Europe’s largest frozen food manufacturer, is facing a sharp decline in its stock market value. Despite recent growth, the company’s valuation has hit near-decade lows, with shares dropping over 60% in recent months. Yet, executives remain confident, and the business continues to dominate markets across the continent.
The company’s troubles began with a mix of inflation pressures, supply chain disruptions, and unfavourable weather conditions. A leadership change also weighed on investor sentiment, as Dominic Brisby took over as CEO from Stéfan Descheemaeker at the start of 2026. These challenges have pushed the stock price down, making it appear undervalued by historical standards.
Nomad Foods still holds a strong position in Europe, leading in 13 of the 15 countries it operates in and ranking second in the remaining two. Around two-thirds of its revenue comes from protein and vegetable foods, reinforcing its role as a key player in the frozen food sector. The company has also maintained a stable financial record, with consistent net income and free cash flow over the past decade.
To counter the stock’s decline, Nomad has been buying back its own shares, reducing the total number of shares outstanding by 4% each year since 2021. Co-founder Martin Franklin and CFO Ruben Baldew have further signalled confidence by purchasing additional shares themselves. The dividend yield has now climbed to 5.8%, though payouts remain sustainable, using only 46% of net income.
Looking ahead, the company plans to cut costs by $200 million between 2026 and 2028. This will involve streamlining operations and reducing capital spending, aiming to improve efficiency without compromising its market leadership.
Nomad Foods remains a dominant force in frozen foods, despite its stock market struggles. The company’s cost-cutting measures and share buybacks suggest efforts to stabilise its position. With steady dividends and a strong market presence, its next steps will be closely watched by investors.
