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Hain Celestial ( HAIN ) investors seem to be eating up positive signs of its turnaround strategy, but much work remains to be done for the snacks and wellness company.

On Tuesday, the Terra chips maker beat Wall Street's low expectations for its fiscal Q4 results. Adjusted earnings per share came in at $0.13, $0.05 higher than estimates. Revenue for the quarter clocked in at $418.80 million, barely beating the $418.67 million expected.

CEO Wendy Davidson, who's leading a multiyear transformation for the company, told Yahoo Finance that current trends are playing in the company's favor.

"The consumer is looking for better-for-you, healthier options, so the trends are in our favor; we also see the economy is beginning to stabilize and so people are making those choices," she said to Yahoo Finance.

As shoppers seek out deals and different pack sizes, she said the team is focused on "making sure that it's [offering] value for price," including a focus on quality and convenience.

Competition in the space is heating up, like Walmart's ( WMT ) premium private label Bettergoods . Davidson said the company plans to boost promotional activity in fiscal Q3 and increase distribution to stand out.

"Our goal is that our marketing message makes it first to mind and our available assortments in distribution will make it first to find," she said.

Distribution points like convenience stores can give the company a leg up as consumers seek out healthier options on the go.

"We know that the convenience consumer, [whether it's] that meal occasion or that convenience occasion, they're looking for options that are also better for you," she said.

Mizuho Securities managing director John Baumgartner told Yahoo Finance that Walmart isn't the only one knocking on Hain's door, nor is it the only player eyeing gas station aisles.

"If you think about the competition in the space, you have UTZ brand ... Boulder Canyon [is] getting very aggressive on distribution, obviously Fritos is in there, you've got SmartFood, Stacy, there's other brands in the category that are going to be looking to play in the natural organic space," he said.

In fiscal year 2024, revenue for Hain's away-from-home products, like snacks and teas, grew low double digits. It increased the amount of convenience stores it's in by 42% during the year.

Davidson, a former executive at meat producer Tyson Foods ( TSN ), spice company McCormick ( MKC ), and Kellogg’s, now known as Kellanova ( K ) and WK Kellogg ( KLG ), outlined a plan last fall to drive long-term growth and shareholder returns.

Davidson, who took the top job at Hain’s in January 2023, aims to deliver sustained revenue and profit growth by fiscal 2027. The company aims to remake its supply chain, modernize its digital infrastructure, and create a performance-driven culture.

As part of its turnaround plan, Hain plans to create $130 to $150 million in annualized savings by 2027 through restructuring. In this first year since the plan was introduced, the company generated $65 million in savings, ahead of its $61 million goal.

The company is projecting net sales growth to be flat or better in fiscal 2025, with adjusted earnings growth of mid-single digits and free cash flow of $60 million. Its shares soared 19% on Tuesday.

However, skeptics on Wall Street remain after years of underperformance. Hain's shares are down 28% year to date.

CFRA analyst Arun Sundaram said it is "pleased with the recent results" and is "hopeful" that it "can hit its fiscal year 2027 targets" in a note to clients, but is still on the sidelines with a Hold rating.

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BrookeDiPalma