Post (POST, Financial) detracted in the quarter, as the company’s prepared-egg business—which historically has primarily served fast-food customers such as McDonalds—has been hurt in the near term by the pandemic. The company has temporarily shifted some of its egg production to retail supermarkets given the strong demand and is also seeing very solid demand for much of the remainder of its food portfolio, including cereals, frozen meals and shelf-stable protein shakes. We continue to believe the shares of Post are undervalued based on our estimate of their intrinsic value.
From First Eagle Investment (Trades, Portfolio)'s Fund of America first-quarter 2020 shareholder commentary.
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