Marzetti Company (NASDAQ:MZTI) Reports Mixed Q4 Results with Record Revenue but Earnings Miss

The Marzetti Company (NASDAQ:MZTI) reported fiscal fourth-quarter results that presented a mixed financial picture, with revenue exceeding analyst expectations while earnings per share fell short of consensus estimates. The specialty food manufacturer posted quarterly sales of $475.4 million, representing a 5% year-over-year increase and surpassing the $466.2 million analysts had projected. This performance marks a fourth-quarter sales record for the company, driven by growth in both retail and foodservice segments.

However, the company's bottom-line results disappointed investors, with GAAP earnings of $1.18 per diluted share coming in below the $1.27 consensus estimate. This represents an 11.4% miss compared to analyst expectations. The earnings shortfall was primarily attributed to increased restructuring charges and higher SG&A expenses, including significant investments in marketing to support retail brand growth and costs associated with the recent acquisition of a sauce and dressing production facility in Atlanta.

Key Financial Highlights:

• Consolidated net sales increased 5.0% to $475.4 million, exceeding analyst estimates
• Retail segment sales grew 3.1% to $241.6 million, driven by expanded distribution of Texas Roadhouse dinner rolls and new club channel sales for Chick-fil-A sauce
• Foodservice segment sales increased 7.0% to $233.9 million, though excluding non-core temporary supply agreement sales, growth was a more modest 1.4%
• Gross profit margin improved 70 basis points to 22.3%, benefiting from cost savings programs and favorable product mix
• Restructuring and impairment charges of $5.1 million related to facility closures impacted quarterly results

The market reaction appears to reflect this mixed performance, with the stock showing modest pre-market gains of approximately 0.7% following the earnings release. This suggests investors may be balancing the positive revenue surprise against the earnings miss and ongoing restructuring costs. Over the past month, the stock has declined about 2.8%, indicating some investor caution heading into the earnings announcement.

Looking ahead, CEO David Ciesinski provided a cautiously optimistic outlook for fiscal 2026, anticipating continued retail segment growth from both licensing programs and core brands including Marzetti, New York Bakery, and Sister Schubert's. The company expects modest inflation in input costs but plans to offset this through contractual pricing and cost savings programs. This outlook generally aligns with analyst expectations for the coming year, though the company did not provide specific quantitative guidance.

For investors seeking more detailed earnings analysis and future estimates, additional information is available through the company's earnings and estimates portal.

This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.