MZTI · The Marzetti Company

The Marzetti Company's fiscal third quarter results reflect a mixed performance. Consolidated net sales declined 1.0% to $453.4 million, driven by a 3.2% drop in Retail segment sales, partially offset by a 1.5% increase in Foodservice. The Retail decline was attributed to category softness and reduced club channel sales, though frozen bread brands performed well. Foodservice growth was led by higher demand from core national chain restaurant accounts. Gross profit rose 1.2% to a record $107.2 million, with gross margin expanding 50 basis points to 23.6%, benefiting from cost savings programs. However, operating income fell $3.3 million to $46.6 million due to a $5.4 million increase in SG&A expenses, which included $3.5 million in acquisition-related costs and higher investments in personnel and IT. Net income decreased to $1.35 per diluted share from $1.49, impacted by acquisition costs. The company completed the acquisition of Bachan's, Inc. on May 1, 2026, which is expected to contribute incremental sales in the fourth quarter. Management highlighted new product introductions and continued Foodservice growth as catalysts for the final quarter. The results underscore margin improvement despite revenue headwinds, with strategic investments and acquisitions positioning for future growth.