The Marzetti Company manufactures and markets specialty food products for retail and foodservice channels in the United States. It operates in two segments: Retail and Foodservice. The Retail segment offers frozen garlic bread under the New York Bakery brand; frozen Parkerhouse-style yeast and dinner rolls under the Sister Schubert's brand; salad dressings under the Marzetti, Cardini's, Marzetti Simply, and Girard's brands; vegetable and fruit dips under the Marzetti brand; Japanese barbecue sauces and dips under the Bachan's brand; and croutons and toppings under the New York Bakery, Chatham Village, and Marzetti brands. The Foodservice segment sells custom-formulated sauces, salad dressings, frozen breads, yeast rolls, and frozen pasta under the Marzetti, Sister Schubert's, and Marzetti Frozen Pasta brands, as well as private labels for chain restaurants. The company sells through sales personnel, food brokers, and distributors to retailers and restaurants. Formerly known as Lancaster Colony Corporation, it changed its name to The Marzetti Company in June 2025. Founded in 1896, it is based in Westerville, Ohio.
Marzetti's Record Streak Hits a Wall With Outbreak and Guidance Cut
The Marzetti Company reported record fiscal 2026 results, but a Cyclospora outbreak and a guidance cut threaten to interrupt its streak. Fourth-quarter sales slipped 2.2% to $465.0 million due to a planned supply agreement expiration, while adjusted sales grew. Gross margin expanded 220 basis points to 24.5%, marking the twelfth consecutive quarter of improvement, and adjusted operating income rose 17.5% to $52.2 million. The company expects the outbreak to cut first-quarter net sales by roughly 250 basis points in both retail and foodservice, with operating income down about 15%. CFO Tom Pigott said the company does not expect to grow margins in the first quarter. Marzetti also faces higher SG&A costs from the Bachan's acquisition, a tax rate jump to 23% in fiscal 2027, and 5% commodity inflation. Despite record cash flow of $283.8 million and a 63rd straight dividend increase, hedge funds trimmed positions and short interest stands at 27.07% of the float.
Marzetti Reports Record FY26 Results, Adjusted EPS Up $0.12 to $1.46
Marzetti Company reported record net sales, gross profit, and operating income for fiscal year 26, with fourth-quarter adjusted diluted earnings per share increasing $0.12 to $1.46. The company's fourth-quarter reported net sales decreased 2.2% to $465 million, but excluding noncore temporary supply agreement sales, adjusted net sales improved 40 basis points. Gross margin expanded for the 12th consecutive quarter, and adjusted operating income grew 17.5%. The company completed the sale of its Milpitas, California facility for over $20 million, recording an $18.5 million gain. For fiscal 27, Marzetti expects mid-single-digit revenue growth, driven by the Bachan's acquisition, and anticipates a 100-basis-point gross margin expansion, despite a 250-basis-point sales headwind from the Cyclospora outbreak in the first quarter.
The Marzetti Co reported a record fiscal year 2026, with record net sales, gross profit, and operating income, despite a 2.2% decline in fourth-quarter net sales to $465 million. Adjusted net sales improved 40 basis points excluding noncore temporary supply agreement sales, and the retail segment grew 0.9% including $15.4 million from Bachan's. Gross profit rose 7.4% to $114 million, with margins expanding 220 basis points reported and 160 basis points adjusted. Operating income grew 48.2% reported and 17.5% adjusted, while diluted EPS increased 49.2% to $1.76. The company generated record operating cash flow of $283.8 million, up 8.5%, and raised its quarterly dividend 5% to $1 per share. However, a Cyclospora outbreak is expected to cause a 250 basis point net sales headwind in fiscal first quarter 2027, with flattish sales and a 15% decline in operating income. Management expects mid-single-digit revenue growth for fiscal 2027, driven by Bachan's and foodservice, with gross margin expansion of 100 basis points.
MZTI · Capital · Positive Record year with higher EPS, margins, and dividend raise, though Q4 sales dipped and Cyclospora outbreak poses near-term headwinds.
Lancaster Colony reported fourth quarter non-GAAP earnings per share of $1.46, beating estimates by $0.06, while revenue of $465 million missed expectations by $11.03 million. Consolidated net sales declined 2.2% year-over-year to $465.0 million, but excluding $12.2 million in non-core sales from a temporary supply agreement with Winland Foods that ended in the prior-year quarter, net sales increased 0.4%.
Three Consumer Goods Dividend Stocks to Watch for the Second Half of 2026
The Motley Fool highlights three consumer goods dividend payers for the second half of 2026. The Marzetti Company, formerly Lancaster Colony, has raised its dividend for 63 straight years and grows by licensing restaurant brands like Texas Roadhouse and Chick-fil-A for retail. Reynolds Consumer Products offers a forward dividend yield above 4%, supported by habitual purchases of Reynolds Wrap and Hefty bags, though aluminum costs and flat revenue pose risks. Energizer Holdings yields over 5%, backed by its battery and auto-care businesses, but carries significant debt and faces input cost pressures; its largest outside shareholder, Aqua Capital, recently added 40,000 shares. The article frames the three as a risk ladder, with Marzetti the safest, Reynolds in the middle, and Energizer the highest risk.
Shelf-Stable Food Stocks Post Mixed Q1 as Marzetti Misses Estimates
The shelf-stable food industry reported mixed first-quarter results, with The Marzetti Company falling short of expectations. Marzetti posted flat revenues of $451.8 million, missing analyst estimates by 2.6%, and also fell short on earnings per share and EBITDA. Among the 17 tracked companies, aggregate revenues met consensus, but next-quarter guidance came in 11.6% below expectations. Hershey was the top performer with revenue up 10.6% to $3.10 billion, while BellRing Brands was the weakest, with shares tumbling 32.6% after missing estimates and issuing disappointing full-year EBITDA guidance. Simply Good Foods also lagged, with revenue down 9.4% and a significant guidance miss, while Utz met revenue expectations and beat on EBITDA and operating income.
StockStory Highlights Three Consumer Stocks to Avoid
StockStory identifies three consumer stocks that investors should pass on due to weak fundamentals. Church & Dwight, with a market cap of $23 billion, posted 4.1% annual revenue growth over three years and faces flat projected sales. The Marzetti Company, valued at $3.00 billion, saw only 1.8% annual revenue growth and a gross margin of 23.5%. Edgewell Personal Care, with a market cap of $997.7 million, experienced no organic revenue growth and a 7.3 percentage point drop in operating margin.
Hershey, Marzetti, and Simply Good Foods fall as Fed signals rate hike
Shares of packaged food companies Hershey, The Marzetti Company, and Simply Good Foods declined in afternoon trading after the Federal Reserve held its benchmark rate at 3.5% to 3.75% and released a dot plot pointing toward a potential hike. Hershey fell 5%, Marzetti dropped 3.4%, and Simply Good Foods lost 3.6% as the 2-year Treasury yield jumped 11 basis points to 4.161%, narrowing the yield advantage that had made dividend stocks more attractive. The sector, which includes debt-laden names like Kraft Heinz and Conagra, faces higher refinancing costs if rates rise further. Hershey is now trading 25.7% below its 52-week high of $236.28 from February 2026.
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