Weekly Update Monday, March 13, 2017

Strong February 2017 Jobs Couldn’t Continue Weekly Gains. Mary Burke Partner Despite news of a solid jobs report for February 2017, the major U.S. stock 312.348.7081 [email protected] benchmarks snapped their multi-week gains streak. Oil prices also experienced a downturn with the price concluding below $50 a barrel for William Whipple WTI crude. Partner 312.348.7076 The Dow Jones Industrial Average decreased 0.5% on the week, [email protected] finishing at 20,903. Philip Zoloto The S&P 500 fell 0.4% on the week, closing at 2,373. Partner 312.348.7077 The NASDAQ Composite declined 0.2% on the week, finishing at [email protected] 5,862.

Lakeshore Food Advisors, LLC Yield on the 10-year Treasury rose 9 basis points on the week, ending at 20 North Wacker Drive 2.58%. Suite 1701 Chicago, IL 60606 Crude oil declined 8.1% on the week, ending at $49.03 per barrel.

Corn futures fell 4.3% on the week, ending at $3.64 per bushel.

NASDAQ Highs: Central Garden & Pet Company, National Beverage Corp., Panera Bread Company Lows: Calavo Growers, Inc., Inventure Foods, Inc.

NYSE Highs: None Lows: Natural Grocers by Vitamin Cottage, Inc., SUPERVALU, Inc.

Featured Stocks of the Week: Dean Foods Co. (NYSE: DF) 10-year History Flowers Foods, Inc. (NYSE: FLO) 10-year History

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The Lakeshore Food Chain Price Price as Compared to Enterprise Value to Total Debt Price Compared to 52-Week Range YE: Forward LTM: to LTM Company Name 3/10/17 3/3/17 High Low 2016 2015 P/E Revenue EBITDA EBITDA Dow Jones Industrial Average 20,903 (0.5%) 21,116 17,140 5.8% 20.0% 19.8x S&P 500 2,373 (0.4%) 2,396 2,001 6.0% 16.1% 18.3 NASDAQ Composite Index 5,862 (0.2%) 5,904 4,594 8.9% 17.1% 25.3 Sector Average: 6.9% 17.7%

AGRICULTURAL LAND HOLDINGS Farmland Partners Inc. $10.61 (3.5%) $11.98 $10.00 (4.9%) (3.3%) 31.4x 25.07x 39.8x 15.8x Gladstone Land Corporation 11.00 (10.1%) 12.89 8.80 (2.1%) 27.2% 110.0 21.51 30.2 19.1 Limoneira Company 17.88 (1.9%) 21.78 13.18 (16.9%) 19.7% 44.0 3.21 23.6 6.3 Sector Average: (8.0%) 14.5% 37.7x 16.59x 31.2x 13.7x 20902.98 INPUTS * Agrium Inc. $131.17 2.8% $146.99 $104.70 (2.8%) 6.1% 18.1x 1.32x 11.1x 3.3x American Vanguard Corporation 15.05 (6.2%) 20.00 12.60 (21.4%) 7.4% 24.2 1.52 11.4 1.0 CF Industries Holdings, Inc. 29.42 (4.9%) 37.17 20.77 (6.5%) (27.9%) 77.3 3.97 13.4 4.7 DuPont 80.86 1.6% 80.99 61.12 10.2% 21.4% 21.9 2.96 14.1 1.7 FMC Corporation 60.05 1.3% 62.84 36.72 6.2% 53.5% 17.7 3.02 13.9 2.7 Intrepid Potash, Inc. 1.65 (13.2%) 3.04 0.85 (20.7%) (44.1%) NM 1.59 NM NM Monsanto Company 114.06 (0.8%) 116.04 84.79 8.4% 15.8% 23.9 4.05 14.1 2.1 The Mosaic Company 29.19 (3.4%) 34.36 22.77 (0.5%) 5.8% 29.6 1.87 11.3 3.2 * Potash Corporation of Saskatchewan Inc. 23.49 2.6% 26.62 19.93 (3.3%) (0.9%) 31.8 4.91 14.4 3.7 S&W Seed Company 4.40 0.0% 5.35 4.06 (4.3%) 4.3% 50.3 1.16 18.4 NM The Scotts Miracle-Gro Company 91.83 0.4% 98.82 65.80 (3.9%) 42.4% 22.6 2.47 14.6 NM * Syngenta AG 442.20 0.3% 444.60 360.50 9.9% 12.7% NA 3.29 16.0 1.4 Zoetis Inc. 53.34 (0.1%) 56.50 39.52 (0.4%) 11.3% 23.1 6.13 17.7 2.6 Sector Average: (2.2%) 8.3% 30.9x 2.94x 14.2x 2.6x

AGRICULTURAL EQUIPMENT * Ag Growth International Inc. $52.11 (1.5%) $57.69 $24.68 (0.8%) 56.7% 18.5x 2.09x 15.2x 4.8x AGCO Corporation 59.51 (3.1%) 64.90 44.68 2.9% 31.1% 23.8 0.82 9.7 3.0 Art's-Way Manufacturing Co., Inc. 3.75 (7.4%) 4.70 2.50 10.3% 21.0% NA 0.97 73.0 22.7 * Buhler Industries Inc. 4.55 (2.2%) 6.00 4.40 2.5% (16.4%) NA 0.50 NM NM CNH Industrial N.V. 9.64 1.3% 9.75 6.03 10.9% 40.9% 24.1 1.43 13.9 10.6 Deere & Company 109.92 (0.8%) 112.18 74.91 6.7% 44.1% 21.9 2.52 17.2 8.9 Lindsay Corporation 80.05 (0.8%) 89.98 65.78 7.3% 10.6% 33.3 1.72 20.6 2.8 Titan Machinery Inc. 13.51 (6.2%) 15.93 8.68 (7.3%) 23.6% NM 0.60 33.7 23.0 Sector Average: 4.1% 26.5% 24.3x 1.33x 18.4x 8.9x

AGRIBUSINESS AGT Food and Ingredients Inc. $32.39 (3.6%) $42.16 $31.56 (11.6%) (4.7%) 14.3x 0.67x 10.8x 4.4x The Andersons, Inc. 37.85 (2.8%) 44.90 25.78 (15.3%) 19.7% 16.5 0.38 13.2 4.7 Archer-Daniels-Midland Company 45.04 (0.4%) 47.88 34.55 (1.3%) 22.8% 15.7 0.51 11.2 2.7 Bunge Limited 81.12 (0.6%) 82.66 53.50 12.3% 18.8% 13.2 0.37 9.5 2.9 Darling Ingredients Inc. 14.15 (0.8%) 15.93 11.51 9.6% 34.5% 20.8 1.20 8.0 4.0 * Gruma, S.A.B. de C.V. 260.33 (2.6%) 288.99 240.38 (1.1%) 7.7% 18.0 1.83 11.4 1.5 Ingredion Incorporated 120.41 (1.2%) 140.00 104.19 (3.6%) 25.6% 15.8 1.77 9.9 1.9 Landec Corporation 12.60 (1.9%) 15.50 9.65 (8.7%) 6.5% 18.7 0.75 15.2 2.1 * Olam International Limited 1.98 (1.3%) 2.17 1.58 0.3% 8.5% 16.5 0.83 14.4 11.7 Omega Protein Corporation 19.50 1.6% 26.99 15.90 (22.2%) (12.2%) 11.9 1.03 4.2 0.0 Sector Average: (4.2%) 12.7% 16.1x 0.93x 10.8x 3.6x

DIVERSIFIED FOODS B&G Foods, Inc. $42.05 (0.4%) $52.84 $31.81 (4.0%) 20.1% 19.1x 3.23x 14.0x 5.4x Campbell Soup Company 59.19 (0.6%) 67.89 52.59 (2.1%) 12.6% 18.9 2.67 15.5 2.6 Conagra Brands, Inc. 40.91 (0.6%) 48.86 33.61 3.4% (3.0%) 22.6 1.77 10.2 1.9 General Mills, Inc. 60.57 (0.3%) 72.95 58.70 (1.9%) 5.0% 18.7 2.82 12.9 2.8 The Hain Celestial Group, Inc. 35.73 1.0% 56.99 32.87 (8.5%) (11.5%) 17.6 1.55 12.1 2.5 The J. M. Smucker Company 139.49 (0.7%) 157.31 122.05 8.9% 13.1% 17.7 2.86 12.8 3.1 Kellogg Company 74.19 (0.4%) 87.16 70.74 0.7% 2.7% 18.8 2.57 14.9 3.5 The Kraft Heinz Company 91.51 0.0% 97.77 75.86 4.8% 25.8% 24.2 5.28 16.3 3.8 Lancaster Colony Corporation 131.39 (1.4%) 149.30 103.13 (7.1%) 13.8% 26.7 2.93 15.5 0.0 Mondelez International, Inc. 43.85 0.3% 46.40 39.21 (1.1%) (2.2%) 20.9 3.18 18.1 4.1 * Nestlé S.A. 75.45 1.1% 80.05 67.00 3.3% 1.2% 21.4 2.78 13.8 1.4 Pinnacle Foods Inc. 57.85 0.1% 58.62 40.43 8.2% 36.2% 22.4 3.09 15.0 4.9 Post Holdings, Inc. 84.08 (0.9%) 89.00 67.29 4.6% 36.3% 30.1 1.84 10.5 5.4 SunOpta Inc. 9.82 7.2% 10.09 4.14 2.6% 3.8% 84.1 0.93 16.2 5.6 Treehouse Foods, Inc. 85.50 (0.9%) 104.53 62.64 18.4% 9.0% 23.5 1.23 12.3 4.5 * Unilever N.V. 45.88 2.9% 46.04 36.22 17.3% 14.4% 22.3 2.73 16.0 1.9 Sector Average: 3.0% 11.1% 25.6x 2.59x 14.1x 3.5x

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Price Price as Compared to Enterprise Value to Total Debt Price Compared to 52-Week Range YE: Forward LTM: to LTM Company Name 3/10/17 3/3/17 High Low 2016 2015 P/E Revenue EBITDA EBITDA

ETHANOL Green Plains Inc. $23.00 (2.3%) $29.85 $13.88 (17.4%) 0.4% 13.9x 0.53x 10.2x 6.2x Pacific Ethanol, Inc. $7.25 (5.2%) $10.95 $3.67 (23.7%) 51.7% 11.9x 0.29x 8.1x 3.4x Renewable Energy Group, Inc. 9.50 4.4% 10.60 7.90 (2.1%) 2.3% 7.9 0.25 5.3 2.7 Sector Average: (12.9%) 27.0% 9.9x 0.27x 6.7x 3.0x

FRUIT & VEGETABLE Calavo Growers, Inc. $57.10 8.1% $71.48 $48.75 (7.0%) 16.5% 23.0x 1.10x 15.3x 0.9x Fresh Del Monte Produce Inc. 57.74 0.1% 66.86 41.56 (4.8%) 48.5% 14.1 0.80 9.1 0.7 Lamb Weston Holdings, Inc. $41.40 2.5% $41.60 $28.75 9.4% NA 19.6x 2.78x 13.7x 4.6x Seneca Foods Corporation 36.70 (3.9%) 42.65 27.03 (8.4%) 26.6% NA 0.58 9.5 4.9 * Total Produce plc 1.96 1.8% 1.97 1.25 (0.3%) 33.3% 16.2 0.24 8.8 2.4 The WhiteWave Foods Company 54.94 (0.5%) 56.82 38.34 (1.2%) 41.2% 34.9 2.82 21.5 3.8 Sector Average: (2.0%) 33.2% 21.6x 1.39x 13.0x 2.9x

PROTEIN AdvancePierre Foods Holdings, Inc. $30.35 3.5% $30.44 $22.99 1.9% NA 22.5x 2.13x 13.6x 4.4x Cal-Maine Foods, Inc. $38.80 3.7% $55.16 $35.65 (12.2%) (16.3%) 28.6x 1.37x 37.6x 0.5x Hormel Foods Corporation 35.07 (0.8%) 44.73 33.18 0.7% (11.3%) 21.0 1.91 12.5 0.2 Industrias Bachoco, S.A.B. de C.V. 50.55 1.9% 56.10 45.32 3.1% 2.7% 14.6 0.78 7.2 0.7 * JBS S.A. 11.37 (1.9%) 12.95 8.20 (0.3%) (7.9%) 6.0 0.46 7.5 5.2 Nathan's Famous, Inc. 59.60 (3.7%) 66.80 40.04 (8.2%) 15.6% NA 3.36 11.8 4.8 Pilgrim's Pride Corporation 21.52 2.7% 27.79 17.15 13.3% (2.6%) 10.3 0.79 7.0 NM Sanderson Farms, Inc. 93.93 (0.5%) 99.40 74.07 (0.3%) 21.2% 10.7 0.66 4.8 0.0 Seaboard Corporation 3,868.76 (0.4%) 4,545.00 2,590.00 (2.1%) 33.6% NA 0.71 9.1 1.9 Tyson Foods, Inc. 63.55 (0.1%) 77.05 55.72 3.0% 19.2% 13.6 0.79 7.7 1.6 Sector Average: (0.3%) 6.0% 15.9x 1.30x 11.9x 2.1x

BAKING & INGREDIENTS * ARYZTA AG $33.07 1.1% $49.15 $26.14 (26.3%) (35.2%) 11.2x 1.15x 8.7x 5.0x Balchem Corporation 84.26 (2.8%) 89.50 56.60 0.4% 38.6% 32.0 5.28 21.4 2.1 Flowers Foods, Inc. 19.17 (0.2%) 21.00 14.35 (4.0%) (10.8%) 21.5 1.27 11.2 2.2 * Grupo Bimbo, S.A.B. de C.V. 46.52 (0.9%) 60.86 43.90 (1.0%) 1.2% 23.7 1.20 11.3 3.2 J&J Snack Foods Corp. 133.63 (0.2%) 135.05 97.73 0.1% 14.5% 30.2 2.35 15.2 0.0 * Kerry Group plc 74.70 0.2% 84.65 61.03 10.0% (2.1%) 21.5 2.38 17.0 2.4 McCormick & Company, Incorporated 100.32 0.9% 107.84 88.64 7.5% 17.3% 24.6 3.15 17.6 1.9 * Tate & Lyle plc 7.63 1.1% 8.50 5.42 7.8% 27.4% 16.0 1.57 10.8 2.1 Sector Average: (0.7%) 6.4% 22.6x 2.29x 14.2x 2.4x

CANDY, NUTS, & SNACKS Amplify Snack Brands, Inc. $8.38 (14.9%) $17.53 $8.25 (4.9%) (27.3%) 18.4x 4.42x 18.3x 9.0x The Hershey Company 108.93 0.2% 117.79 87.92 5.3% 22.0% 22.8 3.48 15.9 1.8 Inventure Foods, Inc. 4.92 (7.3%) 10.15 4.75 (50.1%) (30.7%) 40.4 0.77 28.2 15.5 John B. Sanfilippo & Son, Inc. 64.48 3.4% 72.84 40.75 (8.4%) 19.3% 19.1 0.84 11.1 0.7 Rocky Mountain Chocolate Factory, Inc. 11.34 1.8% 12.17 9.50 11.3% 5.5% NA 1.69 8.9 0.6 Snyder's-Lance, Inc. 39.94 0.3% 40.28 28.92 4.2% 16.4% 28.8 2.43 18.6 4.7 Tootsie Roll Industries, Inc. 38.00 (0.1%) 40.44 31.94 (1.5%) 27.6% NA 4.34 19.6 0.1 Sector Average: (6.3%) 10.0% 25.9x 2.57x 17.2x 4.6x

PET FOOD AND PRODUCTS Blue Buffalo Pet Products, Inc. $24.59 (2.0%) $28.80 $15.19 2.3% 31.4% 26.8x 4.28x 18.6x 1.4x Central Garden & Pet Company 36.77 7.0% 36.85 14.28 11.1% 172.0% 26.2 1.16 11.7 2.1 Freshpet, Inc. 11.00 8.9% 12.00 6.90 8.4% 29.6% NM 2.82 48.9 0.9 Sector Average: 7.3% 30.5% 26.5x 2.75x 26.4x 1.5x

WINE & BEVERAGE The Boston Beer Company, Inc. $146.60 (9.1%) $195.35 $145.30 (13.7%) (27.4%) 26.9x 1.87x 9.1x 0.0x Brown-Forman Corporation 46.40 (5.2%) 51.55 43.72 3.3% (6.5%) 25.6 6.61 18.3 2.0 The Coca-Cola Company 42.29 (0.4%) 47.13 39.88 2.0% (1.6%) 22.7 4.90 16.6 4.0 Constellation Brands, Inc. 157.56 (0.8%) 173.55 140.58 2.8% 10.6% 21.6 5.42 16.1 3.6 * Cott Corporation 16.52 14.2% 22.66 13.42 8.7% 8.4% 75.4 1.17 10.7 6.2 Craft Brew Alliance, Inc. 13.55 (8.4%) 22.40 7.50 (19.8%) 61.9% 30.7 1.42 23.0 2.5 Crimson Wine Group, Ltd. 9.25 1.1% 9.93 8.05 (1.3%) 5.1% NA 3.15 14.4 1.1 Dr Pepper Snapple Group, Inc. 94.73 (0.2%) 98.80 81.05 4.5% 1.6% 20.7 3.11 12.2 2.7 Monster Beverage Corporation 46.82 (2.5%) 55.50 40.30 5.6% (5.7%) 31.6 8.50 21.4 0.0 Jones Soda Co. 0.50 (3.6%) 0.74 0.33 10.3% 29.8% NA 1.34 NM NM National Beverage Corp. 71.37 17.8% 71.68 38.77 39.7% 57.1% 27.1 4.05 20.4 0.0 Pepsico, Inc. 109.59 (0.9%) 110.94 98.50 4.7% 9.7% 21.4 2.82 14.6 3.1 Starbucks Corporation 54.53 (4.5%) 61.64 50.84 (1.8%) (9.2%) 24.7 3.71 15.2 0.6 Willamette Valley Vineyards, Inc. 7.86 0.6% 9.00 6.84 (1.9%) 11.0% NA 2.46 9.2 1.0 Sector Average: 3.1% 10.3% 29.8x 3.61x 15.5x 2.1x3

Price Price as Compared to Enterprise Value to Total Debt Price Compared to 52-Week Range YE: Forward LTM: to LTM Company Name 3/10/17 3/3/17 High Low 2016 2015 P/E Revenue EBITDA EBITDA

DAIRY * Danone $62.84 0.5% $70.53 $57.66 4.4% 0.9% 18.1x 2.14x 12.4x 0.0x Dean Foods Company 18.54 0.6% 22.31 15.69 (14.9%) 8.1% 13.3 0.33 5.5 1.9 Lifeway Foods, Inc. 10.37 (4.2%) 18.48 8.68 (9.9%) (6.6%) 32.4 1.34 18.7 0.8 * Saputo Inc. 45.47 (1.7%) 48.98 36.40 (4.3%) 37.4% 22.0 1.68 14.3 1.2 The WhiteWave Foods Company 54.94 (0.5%) 56.82 38.34 (1.2%) 41.2% 34.9 2.82 21.5 3.8 Sector Average: (5.2%) 16.2% 24.1x 1.66x 14.5x 1.6x

WHOLESALE, FOOD SERVICE, & DISTRIBUTION The Chefs' Warehouse, Inc. $14.30 (1.7%) $20.79 $10.31 (9.5%) (14.3%) 38.3x 0.57x 12.4x 6.1x Core-Mark Holding Company, Inc. 31.49 0.7% 50.00 30.17 (26.9%) (23.1%) 21.2 0.16 13.6 2.9 Performance Food Group Company 23.40 (0.8%) 28.13 18.82 (2.5%) 1.1% 21.3 0.23 12.2 4.4 Sysco Corporation 52.16 (0.1%) 57.07 45.19 (5.8%) 27.2% 20.0 0.67 11.9 2.8 United Natural Foods, Inc. 41.77 (4.0%) 52.18 33.16 (12.5%) 6.1% 16.2 0.30 8.5 1.8 Sector Average: (11.4%) (0.6%) 23.4x 0.39x 11.7x 3.6x

MASS MERCHANDISE & CLUB STORES Costco Wholesale Corporation $165.37 (2.9%) $178.71 $138.57 3.3% 2.4% 27.5x 0.59x 14.3x 1.0x Wal-Mart Stores, Inc. 70.10 0.1% 75.19 62.72 1.4% 14.4% 16.2 0.53 7.8 1.4 Sector Average: 2.4% 8.4% 21.8x 0.56x 11.0x 1.2x

DOLLAR STORES Dollar General Corporation $72.89 (0.3%) $96.88 $66.50 (1.6%) 1.4% 15.8x 1.09x 9.7x 1.3x Dollar Tree, Inc. 75.06 (2.7%) 99.93 72.55 (2.7%) (2.8%) 16.7 1.12 9.9 2.7 Fred's, Inc. 15.16 (7.0%) 21.77 7.89 (18.3%) (7.4%) NM 0.30 NM NM Sector Average: (7.6%) (2.9%) 16.3x 0.84x 9.8x 2.0x

TRADITIONAL RETAIL * Ahold Delhaize $20.57 0.3% $23.03 $17.89 2.7% (0.6%) 15.4x 0.59x 9.3x 2.4x Ingles Markets, Incorporated 43.30 (6.2%) 52.40 32.91 (10.0%) (1.8%) 15.7 0.46 7.4 3.8 The Kroger Co. 28.82 (2.7%) 39.22 28.71 (16.5%) (31.1%) 13.1 0.35 7.0 2.4 SpartanNash Company 31.54 (6.2%) 40.38 25.29 (20.2%) 45.7% 13.6 0.21 7.0 1.9 SUPERVALU Inc. 3.31 (9.6%) 6.17 3.31 (29.1%) (51.2%) 8.6 0.20 4.5 3.4 Village Super Market, Inc. 26.86 (5.0%) 36.42 23.30 (13.1%) 1.9% NA 0.21 5.2 0.7 Weis Markets, Inc. 58.92 (2.0%) 68.88 41.41 (11.8%) 33.0% NA 0.49 8.7 0.2 Sector Average: (14.0%) (0.6%) 13.3x 0.36x 7.0x 2.4x

SPECIALTY RETAIL Natural Grocers by Vitamin Cottage, Inc. 10.34 (14.2%) 22.20 10.33 (13.0%) (49.2%) 20.9 0.39 6.4 1.3 Sprouts Farmers Market, Inc. 17.85 (1.4%) 30.00 17.38 (5.7%) (32.9%) 20.3 0.69 9.6 1.3 Whole Foods Market, Inc. 29.19 (1.7%) 35.58 27.67 (5.1%) (12.9%) 22.0 0.61 7.0 0.8 Sector Average: (7.9%) (31.7%) 21.1x 0.51x 5.7x 1.1x

TRADITIONAL RESTAURANTS Bob Evans Farms, Inc. $58.66 3.2% $60.95 $35.63 10.2% 51.0% 25.4x 1.10x 10.5x 2.3x Brinker International, Inc. 41.40 (0.2%) 55.84 41.05 (16.4%) (13.7%) 12.9 1.05 7.3 3.0 The Cheesecake Factory Incorporated 61.94 1.3% 64.41 46.93 3.4% 34.3% 20.4 1.27 10.0 0.3 Darden Restaurants, Inc. 74.16 (1.3%) 79.43 59.50 2.0% 16.5% 18.1 1.36 10.2 0.5 DineEquity, Inc. 55.38 3.5% 95.25 52.02 (28.1%) (34.6%) 11.1 3.56 8.9 5.6 Jack in the Box Inc. 97.16 1.7% 113.30 61.78 (13.0%) 26.7% 20.6 2.54 11.8 3.0 McDonald's Corporation 127.98 0.1% 131.96 110.33 5.1% 8.3% 20.9 5.26 13.8 2.8 The Wendy's Company 13.25 (2.3%) 14.47 9.15 (2.0%) 23.0% 28.8 3.89 14.4 6.6 Yum! Brands, Inc. 64.31 (1.1%) 91.99 59.57 1.5% (12.0%) 23.6 4.90 15.9 4.6 Sector Average: (4.1%) 11.1% 20.2x 2.77x 11.4x 3.2x

HIGH-GROWTH RESTAURANTS Bojangles', Inc. $18.70 (9.4%) $21.85 $14.55 0.3% 17.8% 20.1x 1.62x 10.3x 2.3x Chipotle Mexican Grill, Inc. 407.75 (2.0%) 521.51 352.96 8.1% (15.0%) 49.5 3.20 61.0 0.0 El Pollo Loco Holdings, Inc. 11.05 (9.4%) 14.98 10.08 (10.2%) (12.5%) 16.7 1.39 8.6 1.7 The Habit Restaurants, Inc. 15.00 (1.6%) 20.44 13.20 (13.0%) (35.0%) 52.2 1.02 9.9 0.2 Noodles & Company 3.55 (4.1%) 13.38 3.16 (13.4%) (63.4%) 114.1 0.37 13.4 6.2 Panera Bread Company 234.91 2.6% 238.24 185.69 14.5% 20.6% 30.5 2.05 14.1 1.1 Papa Murphy's Holdings, Inc. 3.96 (4.3%) 12.96 3.56 (6.2%) (64.8%) 69.8 1.43 8.2 5.1 Potbelly Corporation 12.95 0.4% 14.99 11.58 0.4% 10.6% 27.7 0.74 7.3 0.0 Shake Shack Inc. 31.42 (4.7%) 42.94 30.90 (12.2%) (20.7%) 61.8 2.82 18.3 0.0 Wingstop Inc. 25.88 (0.4%) 33.42 21.82 (12.5%) 13.5% 40.4 9.79 27.8 4.7 Zoe's Kitchen, Inc. 17.26 1.5% 41.76 16.70 (28.1%) (38.3%) NM 1.31 15.8 1.3 Sector Average: (6.6%) (20.5%) 48.3x 2.34x 17.7x 2.1x Notes: * Denotes local currency. Source: Capital IQ. Summary multiples adjusted for extraordinary and non-recurring items; outliers excluded from mean calculation.

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Major Indices (1-year & 12-year History)

S&P 500 Dow Jones Industrial Average 2,600 23,000 2,400 21,000 2,200 19,000 2,000 17,000 1,800 15,000 1,600 13,000 1,400 11,000 1,200 1,000 9,000 800 7,000 600 5,000

Months/Years Months/Years

1-year 12-year 1-year 12-year

10-year Treasury CBOE Market Volatility Index – VIX 6.0 80

70 5.0 60 4.0 50

3.0 40

30 2.0 20 1.0 10

0.0 0

Months/Years Months/Years

1-year 12-year 1-year 12-year

Lakeshore Sector Indices vs. S&P 500 (1-year Only)

130

120

110

100

90

80

70 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Jan-17 Mar-17

S&P 500 Inputs & Agribusiness Diversified Foods Protein Baking & Ingredients Grocery

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Food For Thought…

Partner Column Bird Flu in Broilers. On March 3, a strain of H7 avian Written By Philip A. Zoloto influenza was detected at a poultry farm in southern Tennessee. Since then, nearly 74,000 birds have been Is the Organic Movement Making the U.S. Less Healthy? euthanized and removed from the operation. The farm is now With all of the talk about chemicals used in produce under quarantine, as are 30 other poultry farms within a 6.2- production, the question on many shoppers’ minds is, “Should mile radius. On March 9, another farm, in Giles County, Tenn., I buy organic?” According to the annual ranking produced by reported a lesser strain of the virus in 17,000 of its birds. The the Environmental Working Group, a reportedly nonpartisan USDA and Tennessee Department of Agriculture are testing organization, it depends. They have ranked produce items the flocks. The broiler industry mostly escaped the last based on the tested pesticide content. The results below are outbreak of avian flu in the U.S. in 2014 and 2015 that crippled what they call the “Clean 15” and the “Dirty Dozen”. many egg and turkey producers. In general, the broiler industry is less susceptible to the disease given the quick turn Clean Fifteen Dirty Dozen of its barns (45 to 60 days) and lower concentrations of birds per barn. We will be watching the industry in the coming Sweet Corn Strawberries months. Avocados Spinach Pineapples Nectarines Restaurant Woes. According to a recent report by Black Box Cabbage Apples Intelligence, a source of private and public restaurant company Onions Peaches data, February was a tough month for foodservice operators. A Sweet Peas Frozen Pears few of the lowlights include: Papayas Cherries - Same store sales fell by 3.7% while traffic declined 5%; Asparagus Grapes - Guest checks grew by 1.2%, the lowest rate in 4 years. Mangos Celery Slow growth is a result of conservative pricing, Eggplant Tomatoes customer trade downs, and discounts; Honeydew Sweet Bell Peppers Kiwi Potatoes - Despite a growing stock market, wages are not keeping Cantaloupe up with rising inflation. This puts pressure on the restaurant industry as sales are discretionary; and Cauliflower Grapefruit - Labor policies remain a concern for operators. 25% of restaurant workers in the U.S. are born outside of the Source: Environmental Working Group country.

But just because there are pesticides found in certain produce Is this data a blip on the radar or the start of a negative trend? items, does that make them dangerous? Also, how should With food away from home approaching half of U.S. consumers process the above information at the same time we consumption, it’s worthy of consideration. are being told to eat more produce? One could argue that promoting the benefits of organic products and the flaws of Have a Good Week! conventional produce could lead certain consumers to shy away from produce in general. Let’s face it; much of the U.S. cannot afford organic offerings in the produce section. If the Dirty Dozen list makes this portion of the population less likely to buy produce, that’s bad for everyone involved.

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Food For Thought…

Strong Finish in 2016 for AdvancePierre Foods A leading Amplify CFO Brian Goldberg remains optimistic, saying, “In national food and snack producer and distributor, terms of an outlook for 2017 and at a high level, we expect AdvancePierre Foods Holdings Inc. (NYSE: APFH) reported continued robust net sales growth across all of our brands. We strong growth across their three core business segments (Retail, expect to maintain strong relative consolidated gross margins Foodservice, and Convenience), reaching a fourth-quarter net even after the impact of blending in the lower margin income of $33.1 million, or 42 cents per share. The international segment and also increased and ongoing manufacturer and distributor of pre-portioned, ready-to-eat investment in marketing and overhead to support long-term foods delivered quarterly revenue of $409.4 million, a 6% year- growth potential.” For 2017, the popcorn and tortilla chip over-year increase. The rise in revenue is attributed to organic company expects net sales of $404 million to $420 million and growth of 5.7% within core segments and the acquisition of adjusted earnings per share of $0.43 to $0.51. Allied Specialty Foods. Adjusted earnings for the fourth quarter of 2016 were 53 cents per share, coming in shy of Amplify Snack Brands Inc. (NYSE: BETR) Since IPO analyst expectations of 54 cents per share. 20

15 For the year, AdvancedPierre reported revenue of $1.57 billion, and net income of $136.3 million, or $1.90 per share. Looking 10 forward, the Ohio-based company expects 2017 adjusted EBITDA in the range of $315 to $325 million, with revenue in 5 the range of $1.64 billion to $1.67 billion. "Our growth 0 trajectory sets us apart from the broader food industry and we are well positioned to continue our momentum driven by execution of our continuous improvement process in 2017 and beyond," AdvancePierre President Chris Sliva said.

On the heels of its AdvancePierre Foods (NYSE: APFH) Since IPO Bob Evans Farms Raises 2017 Guidance restaurant business sale, Bob Evans Farms Inc. (NASDAQ: 35 BOBE) released positive third quarter results and raised its 30 25 outlook for 2017. Within the Bob Evans Food segment, net sales 20 for fiscal 2016 hit $95.3 million, increasing 1.1% year-over-year 15 from $94.2 million. Adjusted operating income for Bob Evans 10 Food also increased, up $2.4 million to $20.6 million compared 5 to $18.2 million last year. By the pound, side dish and retail 0 sausage sales rose 13% and 0.6%, respectively. The packaged food company’s $20 million expansion of its refrigerated side dish facility is expected to commence operations later this year.

Outside of manufacturing, the company is looking for new Amplify Snack Brands’ Stock Price Dips on News of Weak ways to expand its business. The CEO of Bob Evans, Saed Profits The better-for-you snack specialist, Amplify Snack Mohseni, stated, “We see multi-year brand growth opportunity Brands Inc. (NYSE: BETR), reported fourth quarter at Bob Evans Food. For example, we recently signed a five-year consolidated net sales of $88.6 million, or a 91% year-over-year agreement with global [brand] licensing agency that specializes increase. The strong growth reflects full quarter contributions in collaborating with companies to extend brand in to new from Tyrells and robust demand for its anchor brands. For the product categories. We are just beginning work in this area and year, the snack food company reported net sales of $270.8 it’s too early to quantify potential P&L impact or disclose million and adjusted net income of $37.0 million, or 49 cents product categories under consideration. But we believe, Bob per share. The Texas-based company reported fourth quarter Evans planned equity lends itself to presence in other adjusted net income of $6.6 million, or 9 cents per share, areas.”The Ohio-based company raised its fiscal 2017 guidance, lagging Wall Street expectations of 10 cents per share. The and now expects consolidated net sales of $1.28 to $1.33 billion lower-than-expected earnings per share sent the stock and adjusted earnings per share of $2 to $2.15 per share. This tumbling, marking a 23% drop in the stock price for the last guidance does not reflect the potential impact of share twelve months. repurchasing activity.

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Heard on the Street…

US Foods Buys Alabama Meat Processor. US Foods, the Maroon Group LLC Acquires Lincoln Fine Ingredients. Rosemont, Il-based food distributor, has entered into an Maroon Group, one of the fastest growing specialty chemical agreement to acquire SRA Foods. SRA Foods is a family distributors in North America, acquired Lincoln Fine owned, Birmingham, Alabama based meat processor and Ingredients, a national distributor of specialty chemicals based distributor with annual sales of approximately $80 million. As in Lincoln, Rhode Island. In addition to distribution, Lincoln indicated by David Norton, President of US Foods’ Stock Fine Ingredients is also a provider of related value-added Yards, “The Anselmo family has built an incredible reputation services to the Personal Care, Cosmetic, Food & Beverage, for providing only the highest quality meats to more than 1,000 Household / Industrial, and Pharmaceutical industries. This customers throughout the Birmingham area. We are excited to transaction forms another industry relationship for Maroon be able to expand our offering throughout the South region Groups, as its recent strategy focuses on forming partnerships and beyond by bringing SRA Foods into the US Foods family.” with successful entrepreneurs whose experience and market insight will only further Maroon Group’s success. US Foods targeted SRA because of its location as well as its product line as SRA is based in the South with more than 1,000 Mark E. Reichard, President and CEO of Maroon Group, distinct items on its product line. This location and product described the transaction as such: “Jim, Walter and their team availability helps US Foods strengthen its center-of-the-plate have built a great company that shares a similar customer- offerings in the Southern region as a large number of the BBQ centric approach with Maroon Group. We’re delighted to and meat-centric restaurants operate throughout the South. US complete this acquisition and to expand into the industries that Foods will welcome the 100+ employees of SRA Foods as it will Lincoln Fine Ingredient’s has served for over 40 years. We are continue operations at the Birmingham location. Although no pleased with the momentum of our acquisition strategy, transaction details were announced, the transaction is expected having completed six acquisitions in less than three years.” Jim to close late March. The new facility will improve US Foods Noon and Walter Martish III, Lincoln Fine Ingredients’ nearly 25,000 employees at more than 60 locations, generating management team, are expected to continue to actively manage approximately $23 billion in annual revenue. the business upon the completion of the transaction.

Venture Arm of General Mills Invests in Farmhouse Culture. The Andersons Agree to Sell Farm Locations in Florida. The The venture fund of the American multinational manufacturer The Andersons, Inc. (NASDAQ:ANDE), the Maumee, OH and marketer of branded consumer foods has invested in based diversified agriculture company, has signed an Farmhouse Culture, a maker of probiotic-rich foods and agreement with Wedgworth’s Inc. to sell its farm center beverages. 301 Inc., the VC Arm of General Mills, led a $6.5 locations in Florida. Originally, The Andersons obtained the million Series D investment round for Farmhouse Culture. In Florida farm centers with the acquisitions of Douglass Fertilizer addition to 301 Inc., other investments in the food startup have in 2008 and Immokalee Farms Supply, Inc. in 2011. been led by White Road Investments and Renewal Funds. The agreement with Wedgeworth’s includes real estate and Although Farmhouse Culture did not disclose information assets owned by The Andersons at Zellwood, Clewiston, and concerning the previous rounds of fundraising, it presently has Lake Placid as well as the assets and operations located in over 3,000 stores in its points of distribution with the most Immokalee. As part of the distribution agreement, The notable shelf space at Whole Foods and Costco. 301 Inc. was Andersons’ products will continue to be available to customers interested in Farmhouse Culture as it had a “recipe for success” in the region through Wedgworth’s distribution. as indicated by John Haugen, Vice President and General Wedgeworth’s Inc. is based in Belle Glade, Florida. Founded in Manager of General Mills’ 301 Inc.. 1932, Wedgeworth’s is a family owned and operated custom blend fertilizer company. Farmhouse Culture meets market trends with its probiotic-rich products, which is led by a strong team with many years of CEO of The Andersons, Inc., Pat Bowe, explained the experience in the natural foods industry. Overall, with the help transaction as “Over time, it has become clear the Florida farm of General Mills, Farmhouse Culture anticipates more centers are not strategically aligned with out locations in the distribution heft and marketing expertise, ultimately allowing Eastern Corn Belt. We believe Wedgeworth’s will continue to consumers across the U.S. full access to the Farmhouse Culture effectively serve the needs of the growers in this region and product line. make good use of the capable workforce and assets in Florida.”

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M&A

Recent U.S. Food & Agribusiness M&A Activity ($ in millions) Mergers & Acquisitions

Enterprise Enterprise Value / Date Target Acquirer Value Revenue EBITDA Target Description 3/6/2017 SRA Foods, Inc. US Foods, Inc. n/a n/a n/a Family owned meat processor and distributor

3/6/2017 Joe Lasita & Sons, Inc. Creation Gardens, Inc. n/a n/a n/a Family owned and operated fresh produce specialist and food service distributor

3/6/2017 The Andersons, Inc., Farm Center Locations in Wedgworth's Inc. n/a n/a n/a Farm centers throughout Florida Florida 3/2/2017 O Olive Oil, Inc. Landec Corporation (NasdaqGS:LNDC) 10.0 2.78 n/a O Olive Oil, Inc. produces olive oils and wine vinegars

3/2/2017 Nova Microbial Technologies, LLC Lallemand S.A.S. n/a n/a n/a Manufacturers and distributes feed additives

3/2/2017 David Oppenheimer & Company I, L.L.C T&G Global Limited (NZSE:TGG) n/a n/a n/a Food products distribution

3/2/2017 Johnson Industries International Tetra Pak n/a n/a n/a Manufactures cheese processing equipment

3/2/2017 Nova Microbial Technologies Lallemand Animal Nutrition n/a n/a n/a Markets direct-fed microbial

3/1/2017 Rangen, Inc. Idaho Ground Water Appropriators, Inc. n/a n/a n/a Diverse agriculture-based business with specialty operations in aquaculture, general feeds, and commodities 3/1/2017 Chilean cheese companies Parmalat S.p.A. 100.0 1.05 n/a Four cheese production facilities

2/28/2017 Healthy Life Pets, LLC Petlife Pharmaceuticals, Inc. n/a n/a n/a Known for Dr. Geoff's Real Food for Pets, assets include six SKUs of retail-ready products (OTCPK:PTLF) 2/28/2017 Crystal Lake Farms / Free Ranger West Liberty Foods, LLC n/a n/a n/a Combination of breeding stock and processing plant assets

2/27/2017 Atlantic Tractor, LLC McCombie Group, LLC ; SeamLev n/a n/a n/a Atlantic Tractor LLC is a dealer and retailer of new and pre owned tractors and power equipment Investments 2/27/2017 Avure Technologies, Inc. John Bean Technologies Corporation 57.0 1.14 n/a Avure Technologies, Inc. manufactures and installs high pressure processing (HPP) systems for industrial and consumer goods manufacturers 2/25/2017 Trenton Bridge Lobster Pound, Wholesale IAMAW Main Lobstering Union 4.0 n/a n/a Trenton Bridge Lobster Pound, Wholesale Operations comprises the wholesale business of lobsters Operations 2/24/2017 Comfort Foods, Inc. Coffee Holding Co., Inc. 2.3 n/a n/a Manufacturers branded and private label coffee for retail and foodservice (NasdaqCM:JVA) 2/24/2017 Remke Markets Inc. Fresh Encounter, Inc. n/a n/a n/a Chain of American Supermarkets in Cincinnati metropolitan area

2/24/2017 Undone Chocolate LLC Affinity Beverage Group, Inc. n/a n/a n/a Craft chocolate manufacturers (OTCPK:ABVG) 2/24/2017 Fruticola Pan de Azucar Limoneira Chile SPA 6.4 n/a n/a Cultivation and production of lemons and oranges

2/23/2017 Christina Crossing Cedar Realty Trust, Inc. (NYSE:CDR) 29.3 n/a n/a Supermarket chain with brand-name and house-label groceries

2/23/2017 Ready Pac Produce, Inc. Bonduelle SA (ENXTPA:BON) n/a n/a n/a Ready Pac Foods is a producer of salads and fresh-cut produce

2/21/2017 Uncle Wally's Bake Shoppe Give and Go Prepared Foods Corp. n/a n/a n/a Includes Muffin Business of United Baking Co., Inc.; Uncle Wally's LLC, and Vision Enterprises, LLC

2/21/2017 Walden Farms, Inc. PANOS Holdings, Inc. n/a n/a n/a Naturally flavored calorie free coffee creamers

2/21/2017 Kerfam Inc., Former Dean Foods Fairmont Hi-Tech Pharmaceuticals, Inc. n/a n/a n/a Dairy processor serving mid-Atlantic region Products Facility in Belleville 2/21/2017 408-Acre Farm in Bonifay, Holmes County, PHI Group Inc. (OTCPK:PHIL) 1.5 n/a n/a 408-Acre Farm in Bonifay, Holmes County, Florida comprises a farm. The asset is located in the United Florida States 2/21/2017 Lightlife Foods, Inc. Maple Leaf Foods, Inc. 140.0 3.50 n/a Lightlife Foods, Inc. produces vegetarian food. Its meatless products include tempeh, sausages, hot dogs, deli products, breakfast items, vegan ground beef, and burgers 2/21/2017 Popeye's Louisiana Kitchen, Inc. Restaurant Brands International, Inc. 1,800.0 6.74 20.8 Popeye's Louisiana Kitchen, Inc. develops, operates, and franchises quick-service restaurants under the trade names of Popeye's Louisiana Kitchen and Popeye's Chicken & Biscuits 2/19/2017 Ekone Oyster Company Taylor Shellfish Farms, Inc. n/a n/a n/a Oyster harvesting company

2/17/2017 De Jong Greenhouses Inc. Dan & Jerry's Greenhouses, Inc. n/a n/a n/a Greenhouse based in Iowa known for quality potted floral products

2/16/2017 Connie's Naturals LLC, Frozen Pizza Brand Palermo Villa, Inc. n/a n/a n/a Frozen pizza product line, based on Chicago restaurant

2/16/2017 Open Road Snacks, Inc. Fresca Brands Innovation Group n/a n/a n/a Specialty snack foods business

2/16/2017 The Yorkshire Provender, Ltd. The Hain Celestial Group n/a n/a n/a The Yorkshire Provender Ltd. is a producer of premium branded soup in the United Kingdom

2/14/2017 All American Foods, Inc. US Foods Holding Corp. (NYSE:USFD) n/a n/a n/a Manufactures over 100 dairy and non-dairy food ingredients

2/14/2017 All American Foods, Inc. US Foods Holding Corp. n/a n/a n/a All American Foods, Inc. provides food products to foodservice establishments and SKUs

2/10/2017 Mead Johnson Nutrition Company (NYSE:MJN) Reckitt Benckiser Group plc (LSE:RB.) 35,744.48 9.55x 35.4x Mead Johnson Nutrition Company manufactures, distributes, and sells infant formula, children’s nutrition, and other nutritional products 2/10/2017 VG's Fresh Market in Brighton Busch's, Inc. n/a n/a n/a Grocery store located in Michigan

2/10/2017 Mead Johnson Nutrition Company Reckitt Benckiser Group, plc 17,875.30 4.78x 19.5x Mead Johnson Nutrition Company manufactures, distributes, and sells infant formulas, children’s nutrition, and other nutritional products 2/9/2017 Kepler Weber S.A. AGCO Corporation 559.86 1.02x 167.1x Kepler Weber S.A., through its subsidiaries, manufactures and sells equipment for grain storage, cleaning, and conveyance applications in Brazil and internationally 2/9/2017 Happy Hen Egg Farms, Inc. Cal-Maine Foods n/a n/a n/a Happy Hen Egg Farms has a capacity of up to 1.2 million laying hens

2/8/2017 Carolina Pride Foods, Inc. Gordon Brothers Group, LLC n/a n/a n/a Pork producer based in South Carolina

2/8/2017 Mindful Meats, Inc. Marin Sun Farms, Inc. n/a n/a n/a Organic, non-GMO, pasture raised beef company

2/8/2017 Old Dominion Brush Company, Inc. Alamo Group, Inc. 20.00 0.72x n/a ODB manufactures and sells replacement brooms for street sweepers and leaf vacuum units primarily sold to municipalities, contractors and commercial landscape markets 2/7/2017 Murray's Cheese LLC The Kroger Co. (NYSE:KR) n/a n/a n/a Specialty cheese distributor

2/7/2017 Snead Ag Ag-Pro Companies n/a n/a n/a 9 John Deere dealerships

2/7/2017 West Coast Coffee Company, Inc. Farmer Brothers Co. 14.50 2.10x n/a West Coast Coffee is a coffee roaster and distributor headquartered in Hillsboro, Oregon with a focus on the convenience store, grocery and foodservice channels 2/2/2017 DNE World Fruit LLC & DNE International Wonderful Citrus LLC n/a n/a n/a Grows, packs, and markets fresh fruit LLC Source: Capital IQ.

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Commodities Overview (1-year & 12-year History)

Soybeans Sugar $20.00 $0.40 18.00 16.00 0.30 14.00 12.00 0.20 10.00 8.00

0.10 Dollars perPound Dollars perBushel 6.00 4.00 2.00 0.00

Months/Years Months/Years

1-year 12-year 1-year 12-year

Live Cattle Milk 1.90 $0.30

1.70 0.25 1.50

1.30 0.20

1.10 0.15

0.90 Dollars perPound Dollars Dollars perPound 0.10 0.70

0.50 0.05

Months/Years Months/Years

1-year 12-year 1-year 12-year

Cotton Oil $2.50 $160

2.00 130

1.50 100

1.00 70 Dollars Dollars perPound 0.50 Dollars perBarrel 40

0.00 10

Months/Years Months/Years

1-year 12-year 1-year 12-year

Broiler price based off spot closing price. All other commodity prices are based off the closing price of their respective nearby futures contract.

Sources: Thomson Financial Data Securities, Capital IQ, Reuters, Edgar Online, Wall Street Journal, Barron’s, New York Times, Bloomberg, Chicago Tribune, Denver Post, MarketWatch, USDA, The Economist, BusinessWeek, Food Institute, Food Business News, Supermarket News, LPC, Company Press Releases. The information contained in this publication is compiled using publicly available news/media sources and industry-specific sources that Lakeshore Food Advisors, LLC (“LFA”) believes to be reliable, but the accuracy and completeness of which LFA cannot guarantee.

Please send your feedback and comments to Rachel Huser at 312.348.6387 or [email protected].

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