BY Momei Qu:

Contributor, Stock Traders Daily

Real Time Trading Reports:  Included are detailed trading reports designed to help investors realize opportunities in these companies as earnings are released.  The reports are linked to the stock symbols in the article below. Performance - Click Here

(La Jolla, CA) We are now a few weeks into earnings season, and have seen companies from various industries report favorable news in the midst of an economic recovery. This week we take a look at three food service companies whose stocks took a hit earlier in the year but are expected to turn around this quarter with positive earnings. 

Kraft Foods (NYSE: KFT), one of the largest manufacturers of packaged food products, is set to report earnings Tuesday. Analysts are expecting earnings per share of $0.48 from improved operating margins from discontinuing less profitable SKUs and falling commodity costs such as diary and wheat. On the other hand, EPS could take a hit from increased marketing costs and R&D investments this quarter. Kraft’s bid for Cadbury will likely not affect third quarter earnings as formal decisions don’t have to be made until November 9. KFT closed at $27.52 Friday, on the high end of its 52 week range of $20.81 to $30.53. To learn more about how to trade this less volatile stock, download our free KFT trading report.

Whole Foods (Nasdaq: WFMI), operator of the largest chain of natural and organic food stores, is scheduled to report fiscal 4Q earnings Wednesday. WFMI closed at $32.29 Friday after making a long comeback from its 52 week low of $7.04. Whole Foods is expected earn $0.16 per share as it continues its turnaround efforts. Sales are expected to increase slightly but most improvement will come from cutting costs (i.e. eliminating non profitable SKUs), efficiently managing labor and inventory, and effectively controlling distribution with better processes and technology. To find out more about whether or not these value added items will contribute to its underlying stock value or if WFMI is starting to peak right before its 52 week high of $33.46, read our free WFMI trading report.

On Thursday, packaged foods and bakery manufacturer Sara Lee (NYSE: SLE) is expected to report fiscal Q1 2010 results. Analysts are expecting the company to earn $0.18 per share. Earnings per share received a boost after the announcement from Sara Lee that it plans to sell its personal care and European laundry care business. As with Kraft, lower commodity prices will also contribute positively to EPS through cost savings. However, weak macroeconomic factors and increased competition for bread can limit the company’s upside. SLE closed at $11.29 Friday after rebounding from its 52 week low of $6.80 and approaching its 52 week high of $12.00. To learn whether or not you should invest in SLE to take advantage of this upward trend, take a look at our free SLE trading report.