Shares of The Marzetti Company (NASDAQ:MZTI) declined 3% Thursday after the specialty foods manufacturer reported fourth-quarter results that fell short of analyst earnings expectations, despite posting record revenue.
For the fiscal fourth quarter ended June 30, 2025, the company reported earnings of $1.18 per diluted share, below the anticipated $1.34. Revenue climbed 5% year-over-year to $475.4 million, surpassing the consensus estimate of $457.67 million.
Excluding $12.2 million in non-core sales from a temporary supply arrangement with Winland Foods, net sales rose 2.3% compared to the same quarter last year.
Segment performance was mixed: Retail sales grew 3.1% to $241.6 million, while the Foodservice segment rose 7.0% to $233.9 million.
CEO David A. Ciesinski highlighted the drivers behind retail growth: “Expanding distribution for our popular Texas Roadhouse (NASDAQ:TXRH) dinner rolls and new club channel sales for Chick-fil-A sauce,” adding that their “category-leading New York Bakery frozen garlic bread also achieved strong volume gains in the quarter.”
The earnings shortfall was primarily due to higher SG&A expenses, which increased $8.9 million to $62.1 million as marketing investments supported retail brand expansion. Restructuring and impairment charges of $5.1 million, mainly linked to a planned California facility closure, cut earnings by $0.15 per share.
Gross profit rose $8.5 million to $106.1 million, with margins improving 70 basis points to 22.3%, benefiting from cost-saving initiatives and a favorable volume mix in the Retail segment.
Looking ahead to fiscal 2026, Ciesinski expects ongoing Retail volume growth, while cautioning that Foodservice results may be influenced by U.S. economic trends and consumer behavior.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.