Barclays sees improving metrics for cold storage operators

Investing.com -- Barclays said Tuesday it expects Americold Realty Trust and Lineage to report stronger operating metrics for the second quarter of 2026 despite ongoing industry challenges.

The firm anticipates guidance increases when the companies report earnings, though concerns remain about longer-term industry issues.

Since May 1, Americold has gained 26.4% and Lineage has risen 17.2%, compared to 5.5% for the RMZ index. The gains came from physical volume growth that exceeded investor expectations and improving balance sheet metrics.

The cold storage industry is benefiting from declining competitive supply. The volume of cubic feet under construction peaked in 2024, and new construction starts have fallen to pre-pandemic levels.

Total commodities in cold storage rose 2.2% year-over-year in May, according to USDA data. This compares to growth of 1.4% in April and 0.2% in March.

The Consumer Price Index for All Urban Consumers increased 3.5% year-over-year in June, down from 4.2% in May. Food prices rose 3.0% in June compared to 3.1% the prior month.

Grand View Research projects the US frozen meat, poultry, and seafood market to grow at a 4.9% compound annual growth rate through 2033, driven by demand for convenient, high-protein, ready-to-cook meal solutions.

US food and beverage volume was flat in the first half of 2026 year-over-year, according to Circana. The number of items sold at grocery stores fell nearly 2% year-over-year in four of the last five months, based on NielsenIQ data.

Conagra Brands CEO John Brase said on April 15, 2026 that the company would implement strategic pricing actions with emphasis on its frozen portfolio, which may pressure volumes in the short term.

The USDA lowered its second quarter 2026 beef export forecast by 10 million pounds to 590 million pounds on July 17, 2026. The agency also reduced its import forecast by 50 million pounds to 1.575 billion pounds.

The World Bank's May update projects average fertilizer prices to rise 31% year-over-year in 2026, which could reduce application rates and increase risks to crop yields and food affordability.

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