The Marzetti Company (NASDAQ:MZTI) shares are trading lower on Thursday after the company reported fourth-quarter adjusted earnings per share of $1.34, in line with the analyst consensus estimate.
Quarterly sales of $475.427 million (+5% year over year) outpaced the Street view of $457.054 million.
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“In the Retail segment, sales growth of 3.1% was led by expanding distribution for our popular Texas RoadhouseTM dinner rolls and new club channel sales for Chick-fil-A sauce,” CEO David A. Ciesinski commented.
“Our category-leading New York BakeryTM frozen garlic bread also achieved strong volume gains in the quarter, including contributions from our recently introduced gluten-free Texas Toast,” Ciesinski added.
Consolidated gross profit rose $8.5 million to a fourth-quarter record of $106.1 million, with gross margin expanding 70 basis points to 22.3%, driven by ongoing cost-savings initiatives and a more favorable Retail segment volume/mix.
Consolidated operating income decreased $2.8 million to $38.9 million, primarily reflecting higher SG&A expenses and a $2.4 million rise in restructuring and impairment charges. These impacts were partially offset by improved gross profit.
The company exited the quarter with cash and equivalents worth $161.476 million.
Outlook
“Looking ahead to fiscal 2026, we anticipate Retail segment sales will continue to benefit from volume growth, with contributions from both our licensing program and our Marzetti, New York Bakery, and Sister Schubert’s brands,” Ciesinski stated.
The company noted that Foodservice sales are expected to be supported by specific quick-service restaurant customers, though U.S. economic conditions and consumer behavior could influence overall demand.
It added that modest input cost inflation is anticipated in fiscal 2026, which it plans to offset through contractual pricing and cost-savings initiatives, with a continued focus on margin improvement.
Price Action: MZTI shares were trading 0.91% lower at $176.70 as of the last check on Thursday.
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