0001493152-26-009188
SEC filingBridgford Foods Corporation reported a net loss of $843K for Q1 2026, an improvement from a $1.1M loss in Q1 2025. Net sales increased 5.3% to $55.3M, driven by a 7.7% increase in the Snack Food Products segment to $41.0M, partially offset by a 1.2% decrease in the Frozen Food Products segment to $14.4M. Gross margin was $13.4M (24.2% margin), slightly down from 24.5% in the prior year quarter. Operating loss narrowed to $1.2M from $2.0M. The company generated positive operating cash flow of $4.3M, primarily from a $4.5M decrease in inventory and a $1.9M decrease in accounts receivable. Total assets were $144.6M with shareholders' equity of $114.7M. The company had a revolving credit facility balance of $2.0M with $6.5M available as of March 6, 2026.
Bridgford Foods reported a net loss of $843K for Q1 2026, representing an improvement from the $1.1M loss in Q1 2025. Net sales increased 5.3% to $55.3M compared to $52.5M in the prior year quarter. The operating loss narrowed to $1.2M from $2.0M, reflecting improved operational performance. Basic loss per share was $(0.09) compared to $(0.12) in Q1 2025. The company generated positive operating cash flow of $4.3M, a significant improvement from the $(4.6)M used in operations during Q1 2025. Total assets stood at $144.6M with shareholders' equity of $114.7M as of January 23, 2026.
Consolidated net sales increased by $2.8M (5.3%) to $55.3M. The Snack Food Products segment drove growth with a 7.7% increase to $41.0M, primarily due to a 15.3% increase in selling price per pound, partially offset by an 8.3% decrease in unit sales volume. The Frozen Food Products segment declined 1.2% to $14.4M due to a 1.3% decrease in unit sales volume and a 0.6% decrease in selling price per pound. By distribution channel, retail sales accounted for $43.2M (78.1% of total) while foodservice sales were $12.2M (21.9%). Customer concentration remained significant with Walmart representing 32.9% of sales and Dollar General representing 14.0% of sales.
Gross margin was $13.4M (24.2% margin), a slight decrease from 24.5% in Q1 2025. The Frozen Food Products segment gross margin decreased to 25.7% from 27.2% due to higher gross overhead including healthcare expenses and temporary labor costs. The Snack Food Products segment gross margin improved slightly to 23.6% from 23.5% despite higher meat commodity costs that increased by approximately $3.1M. Selling, general and administrative expenses decreased 2.0% to $14.6M, primarily due to a $393K reduction in provision for credit losses, partially offset by a $264K increase in outside consulting costs. The effective tax rate was 22.6% compared to 28.9% in the prior year quarter.
Operating cash flow was positive $4.3M, driven by a $4.5M decrease in inventory and a $1.9M decrease in accounts receivable, partially offset by a $1.6M increase in prepaid expenses. Investing activities provided $270K primarily from $256K in disposals of property, plant, and equipment. Financing activities used $602K for lease payments and equipment note repayments. Cash and cash equivalents increased to $4.8M from $876K at the beginning of the period. Total current assets were $62.5M with current liabilities of $20.5M, resulting in working capital of $42.0M. Total debt was $3.5M including a $2.0M revolving credit facility balance and $1.5M in equipment notes payable.
The company is focused on restoring profitability through price increases, cost reductions, and production of private-label products. Management plans to reorganize the direct-store-delivery route system to reduce costs while maintaining service levels. The company had $6.5M available under its revolving credit facility as of March 6, 2026, and believes it has sufficient liquidity for the next twelve months. Key risks include commodity cost volatility, customer acceptance of price increases, inflation of input costs, and potential covenant violations under credit agreements. The company was in violation of the net income covenant as of January 23, 2026, which was waived by Wells Fargo on March 2, 2026.