Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong growth stocks can be challenging due to associated risks and volatility [1] Company Overview: Mama's Creations, Inc. - Mama's Creations, Inc. (MAMA) is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - The company holds a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2] Earnings Growth - Historical EPS growth for Mama's Creations, Inc. stands at 14.4%, but projected EPS growth is significantly higher at 77.8% for the current year, surpassing the industry average of 6.2% [4] Asset Utilization - The asset utilization ratio (sales-to-total-assets ratio) for Mama's Creations, Inc. is 2.7, indicating that the company generates $2.7 in sales for every dollar in assets, compared to the industry average of 0.9, showcasing superior efficiency [6] Sales Growth - The company's sales are projected to grow by 16.6% this year, which is substantially higher than the industry average growth of 0.5% [7] Earnings Estimate Revisions - The current-year earnings estimates for Mama's Creations, Inc. have been revised upward, with the Zacks Consensus Estimate increasing by 6.7% over the past month, indicating positive momentum [9] Conclusion - Mama's Creations, Inc. has achieved a Zacks Rank of 2 and a Growth Score of A, positioning it well for potential outperformance in the growth stock category [11]

Core Viewpoint - Mama's Creations, Inc. (MAMA) shares have increased by 11% recently, with a mean price target of $11.25 suggesting a potential upside of 42.4% from the current price of $7.90 [1] Price Targets and Analyst Estimates - The mean estimate consists of four short-term price targets with a standard deviation of $1.89, indicating variability among analysts [2] - The lowest price target of $10.00 suggests a 26.6% increase, while the highest target of $14.00 indicates a potential surge of 77.2% [2] - Analysts' price targets should be approached with caution, as their ability to set unbiased targets has been questioned [3][10] Earnings Estimates and Analyst Agreement - Analysts are optimistic about MAMA's earnings prospects, with a consensus indicating better-than-previously estimated earnings [4] - The Zacks Consensus Estimate for the current year has risen by 6.7% over the past month, with no negative revisions [12] - MAMA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Conclusion on Price Movement - While the consensus price target may not be a reliable indicator of MAMA's potential gains, the direction implied by the price movement appears to be a useful guide [14]

Investor Presentation June 2025 NASDAQ: MAMA Forward Looking Statements This presentation may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "proj ...

Core Viewpoint - The article highlights Mama's Creations, Inc. as a promising growth stock, supported by strong earnings growth, efficient asset utilization, and positive earnings estimate revisions [2][10]. Earnings Growth - Mama's Creations, Inc. has a historical EPS growth rate of 18.6%, with projected EPS growth of 77.8% this year, significantly outperforming the industry average of 5.7% [5][4]. Asset Utilization Ratio - The company has an asset utilization ratio (sales-to-total-assets ratio) of 2.7, indicating it generates $2.7 in sales for every dollar in assets, compared to the industry average of 0.9, showcasing superior efficiency [6]. Sales Growth - Sales for Mama's Creations, Inc. are expected to grow by 13.4% this year, far exceeding the industry average growth of 0.5% [7]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Mama's Creations, Inc., with the Zacks Consensus Estimate for the current year increasing by 6.7% over the past month [8]. Overall Assessment - Mama's Creations, Inc. has achieved a Growth Score of A and a Zacks Rank of 2, indicating it is a strong candidate for growth investors [10].

Group 1 - Mama's Creations, Inc. (MAMA) closed at $8.36, with a 26.7% gain over the past four weeks, and a mean price target of $11 suggests a 31.6% upside potential [1] - The mean estimate includes four short-term price targets with a standard deviation of $2.16, indicating variability among analysts; the lowest estimate is $9 (7.7% increase), while the highest is $14 (67.5% increase) [2] - Strong agreement among analysts regarding MAMA's earnings prospects, as indicated by positive earnings estimate revisions, supports the potential for stock upside [4][11] Group 2 - The Zacks Consensus Estimate for the current year has increased by 6.7% over the past month, with one estimate rising and no negative revisions [12] - MAMA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for near-term upside [13]

Company Performance - Mama's Creations, Inc. reported quarterly earnings of $0.03 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, and showing an increase from $0.01 per share a year ago, representing an earnings surprise of 50% [1] - The company posted revenues of $35.26 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 8.48%, compared to year-ago revenues of $29.84 million [2] - Over the last four quarters, Mama's Creations has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - Mama's Creations shares have increased approximately 6.8% since the beginning of the year, outperforming the S&P 500's gain of 0.9% [3] - The current consensus EPS estimate for the coming quarter is $0.03 on revenues of $32.4 million, and for the current fiscal year, it is $0.15 on revenues of $139.8 million [7] Industry Outlook - The Zacks Industry Rank for Food - Miscellaneous is currently in the bottom 39% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [8] - General Mills, a competitor in the same industry, is expected to report quarterly earnings of $0.71 per share, reflecting a year-over-year decline of 29.7%, with revenues anticipated to be $4.6 billion, down 2.4% from the previous year [9]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 increased 18% year over year to $35.3 million, driven primarily by volume gains [19][20] - Gross profit rose 23.1% to $9.2 million, with gross margin improving to 26.1% from 25% in the same quarter last year [20] - Net income surged 123% to $1.2 million, translating to $0.03 per diluted share, compared to $0.01 per diluted share in the prior year [22] - Cash and cash equivalents increased to $12 million from $7.2 million, driven by $6 million in cash flow from operations [23] Business Line Data and Key Metrics Changes - The company achieved significant operational efficiency improvements, particularly in chicken operations, with capacity more than doubling year over year [11] - Trade promotion investments increased to a record 6% of gross revenue, up from 2% in the previous quarter, reflecting a strategic focus on brand building [9][15] - The company reported a 71% year-over-year increase in marketing spend, aimed at driving repeatable and profitable brand growth [21] Market Data and Key Metrics Changes - The company is benefiting from a shift towards deli prepared foods, with more than two-thirds of shoppers purchasing deli prepared meals recently, particularly among millennials and Gen Z consumers [10] - CPI data indicates a nearly two-fold disparity between at-home and away-from-home inflation rates, with grocery store inflation notably lower, positioning the company to capture incremental consumer spending [10] Company Strategy and Development Direction - The company is focused on executing its foundational four Cs strategy: cost, controls, culture, and catapult, which aims to enhance operational efficiency and market presence [11] - Strategic investments in production capabilities and automation are expected to deliver meaningful returns, positioning the company for sustainable growth [24] - The company is actively evaluating potential M&A opportunities to enhance category leadership and expand capabilities [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining double-digit growth rates despite macroeconomic challenges, citing strong demand from retailers [27][28] - The company is optimistic about gross margin improvements, supported by hedging strategies and operational efficiencies [30][31] - Management highlighted the importance of profitable growth and the need to balance trade promotion investments with margin targets [22][36] Other Important Information - The company has refined its acquisition criteria, focusing on targets that enhance category leadership and operational scale [52] - New distribution wins were secured during the quarter, expanding customer accounts and product placements at major national retailers [14] Q&A Session Summary Question: Growth rate expectations for the rest of the year - Management remains confident in achieving double-digit growth, supported by retailer demand and consumer trends [27][28] Question: Gross margin outlook amidst chicken price volatility - Management believes gross margins can improve due to hedging and operational efficiencies, despite ongoing commodity headwinds [30][31][36] Question: In-house chicken trimming capabilities - The company aims to achieve 100% in-house chicken trimming this year, with operational capabilities already in place [42][44] Question: Future CapEx projects - No major CapEx projects are anticipated this year, with a focus on potential acquisitions instead [46][48] Question: M&A criteria refinement - The company has become more focused in its M&A criteria, seeking deli companies with manufacturing capabilities [52] Question: Costco promotions and opportunities - Management confirmed ongoing discussions for additional promotions with Costco and expressed optimism about the club channel [60][61] Question: Pricing strategy and quantification - Management refrained from providing specific quantification on pricing changes, indicating it varies by item and customer [64] Question: Update on Walmart, Kroger, and Target rollouts - Progress is being made with Walmart, Kroger, and Target, with new items being introduced and expanded [71][72]

Financial Data and Key Metrics Changes - Revenue for the first quarter of fiscal 2026 increased 18% year over year to $35.3 million, driven primarily by volume gains and new customer expansions [20][21] - Gross profit rose 23.1% to $9.2 million, with gross margin improving to 26.1% from 25% in the same quarter last year [21][22] - Net income increased 123% to $1.2 million, or $0.03 per diluted share, compared to $0.6 million, or $0.01 per diluted share, in the prior year [22][23] - Cash and cash equivalents grew to $12 million from $7.2 million, driven by $6 million in cash flow from operations [23][24] Business Line Data and Key Metrics Changes - The company achieved significant operational efficiency improvements, particularly in chicken operations, with capacity more than doubling year over year [11][12] - Trade promotion investments increased to a record 6% of gross revenue, up from 2% in the previous quarter, reflecting a strategic focus on brand building [15][20] - The company reported that in-house trimming processes are running 35% ahead of plan, contributing to margin enhancements [12][14] Market Data and Key Metrics Changes - The company is benefiting from a shift towards deli prepared foods as consumers opt for supermarket prepared meals due to rising restaurant prices [9][10] - Recent data indicates that over two-thirds of shoppers have purchased deli prepared meals recently, with millennials and Gen Z driving growth [10] Company Strategy and Development Direction - The company is focused on its foundational four Cs strategy: cost, controls, culture, and catapult, aiming for operational excellence and market share gains [10][11] - Strategic investments in production capabilities and automation are expected to deliver meaningful returns and support sustainable growth [25] - The company is actively evaluating potential M&A opportunities to enhance category leadership and expand capabilities [19][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining double-digit growth rates despite macroeconomic challenges, citing strong demand from retailers [28][30] - The company is optimistic about gross margin improvements, supported by hedging strategies and operational efficiencies [32][34] - Management highlighted the importance of profitable growth and the need to balance trade promotion investments with margin targets [30][38] Other Important Information - The company has refined its acquisition criteria, focusing on targets that enhance capabilities and scale operations [54][56] - The company is seeing increased inbound interest for potential acquisitions, indicating a strong pipeline of opportunities [54][56] Q&A Session Summary Question: Growth rate expectations for the rest of the year - Management remains confident in achieving double-digit growth rates, supported by strong retailer demand and consumer trends [28][30] Question: Gross margin outlook amidst chicken price volatility - Management believes that operational efficiencies and hedging strategies will help maintain gross margins despite commodity volatility [32][34] Question: In-house chicken trimming capabilities - Management confirmed that achieving 100% in-house trimming is feasible within the year, with operational capabilities already in place [42][45] Question: Future capital expenditures - Management indicated that while there are no major capital projects planned, smaller investments will continue to support operational needs [46][48] Question: M&A criteria changes - Management clarified that the focus remains on acquiring deli companies with manufacturing capabilities, with a strong pipeline of opportunities [54][56] Question: Costco promotions and opportunities - Management confirmed ongoing discussions for additional promotions with Costco and expressed optimism about the club channel's growth potential [60][62] Question: Pricing strategy and implementation - Management refrained from providing specific quantification on pricing changes but emphasized collaborative efforts with customers to maintain margins [66][68] Question: Update on Walmart, Kroger, and Target rollouts - Management reported positive progress with Walmart and ongoing discussions with Kroger and Target, highlighting the importance of diversifying customer relationships [74][76]

Revenue and Sales Performance - Revenue for Q1 FY2026 increased 18.2% to a record $35.3 million, compared to $29.8 million in Q1 FY2025[7] - Net sales for the three months ended April 30, 2025, increased to $35,255,000, a 18.1% rise from $29,838,000 in the same period of 2024[24] Profitability - Gross profit rose 23.1% to $9.2 million, representing 26.1% of total revenues, up from 25.0% in the same year-ago quarter[8] - Gross profit for the same period was $9,184,000, representing a 23.1% increase compared to $7,463,000 in 2024[24] - Net income surged 123.7% to $1.2 million, or $0.03 per diluted share, compared to $0.6 million, or $0.01 per diluted share, in Q1 FY2025[10] - Net income for the three months ended April 30, 2025, was $1,237,000, up 123.5% from $553,000 in the prior year[24] Cash Flow and Liquidity - Cash and cash equivalents grew to $12.0 million as of April 30, 2025, up from $7.2 million as of January 31, 2025[11] - Cash and cash equivalents increased to $12,011,000 as of April 30, 2025, from $7,150,000 at the beginning of the period, marking a 68.5% increase[26] - The company generated $6.0 million of cash flow from operations during the quarter, while total debt was reduced to $4.6 million[6] - Net cash provided by operating activities for the three months ended April 30, 2025, was $6,005,000, a 64.7% increase from $3,641,000 in 2024[26] Operating Expenses - Operating expenses totaled $7.6 million, with a decrease in operating expenses as a percentage of sales to 21.6% from 22.4%[9] - Operating expenses for the three months ended April 30, 2025, totaled $7,606,000, a 13.7% increase from $6,690,000 in 2024[24] - Research and development expenses decreased to $73,000 from $104,000 in the same period last year, a decline of 29.8%[24] Strategic Initiatives - The company achieved record trade promotion investment at 6% of gross revenue, up from 2% in the previous quarter[3] - New customer acquisitions included Lidl, Amazon Fresh, and Sheetz, contributing to a balanced geographic distribution[4] - The company plans to utilize its cash reserves for prospective acquisitions, further innovation, and margin expansion in the upcoming quarters[6] Balance Sheet Highlights - Total assets rose to $52,725,000 as of April 30, 2025, compared to $47,062,000 as of January 31, 2025, reflecting a 12.5% growth[22] - Total liabilities increased to $26,287,000 as of April 30, 2025, from $22,166,000 as of January 31, 2025, indicating an 18.5% rise[22] Shareholder Information - The weighted average common shares outstanding for basic earnings per share increased to 37,597,000 from 37,259,000 in the prior year[24] Adjusted Metrics - Adjusted EBITDA increased 12.2% to $2.8 million for Q1 FY2026, compared to $2.5 million in the same year-ago quarter[10]

Financial Performance - Net sales increased by approximately 18% to $35.3 million for the three months ended April 30, 2025, compared to $29.8 million for the same period in 2024[108] - Gross profit margin improved to 26% for the three months ended April 30, 2025, up from 25% in the same period of 2024[110] - Net income for the three months ended April 30, 2025, was approximately $1.2 million, compared to $0.6 million for the same period in 2024[107] Operating Expenses - Operating expenses rose by approximately $916 thousand, primarily due to increased payroll, commissions, and advertising expenses[110] Working Capital and Cash Flow - Working capital increased to approximately $5.5 million as of April 30, 2025, from approximately $4.9 million as of January 31, 2025[113] - Net cash provided by operating activities was approximately $6.0 million for the three months ended April 30, 2025, compared to $3.6 million for the same period in 2024[115] - The company had no borrowings outstanding under its Credit Agreement and approximately $2.4 million outstanding under its Term Loan Agreement as of April 30, 2025[114] Market and Growth Outlook - The increase in net sales was primarily driven by volume gains from new products and successful trade and marketing promotions[108] - The company anticipates that its cash resources will be sufficient to meet its cash requirements through at least the next twelve months, but may require additional funding for growth[120] Commodity Price Impact - A 1% increase in commodity prices would negatively impact costs of sales by approximately $193 thousand on an annualized basis[125]