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Core Insights - Utz Brands is presenting at CAGNY for the first time, highlighting its robust savory snacking portfolio which includes brands like Boulder Canyon, On The Border, and Zapp's [1][2] - The company has achieved consistent top-line growth in a challenging snacking environment while enhancing productivity across its supply chain [2] - Looking ahead, Utz aims to build on its commercial momentum and drive a significant free cash flow inflection [2] Company Overview - Utz Brands offers a diverse range of savory snacks, contributing to its strong market presence [2] - The leadership team includes CEO Howard Friedman and CFO BK Kelley, who are actively engaging with stakeholders [3]

Summary of Utz Brands Conference Call Company Overview - **Company**: Utz Brands (NYSE:UTZ) - **Industry**: Savory Snacking - **Market Position**: Largest pure-play salty snacking company in the U.S. [7] Key Messages and Strategies 1. **Growth Drivers**: - Multiple top-line growth drivers expected to scale brands nationally with multi-year runways [8] - Focus on integrating and modernizing operations for growth [8] - Anticipated free cash flow inflection as capital-intensive phase concludes [9] 2. **Brand Portfolio**: - Power Four Brands (Utz, On The Border, Boulder Canyon, Zapp's) account for 70% of revenue [11] - Branded salty snacks represent 89% of revenue, with potato chips being the largest category at 46% [11] 3. **Market Performance**: - Achieved 2.4% compounded annual growth over the last three years [14] - Retail dollar share at 3% and volume share at 4.2% in expansion geographies, indicating room for growth [14] 4. **Marketing and Consumer Engagement**: - Marketing support increased at a 40% compounded annual growth rate over the past three years [18] - Household penetration for Utz increased to 50%, with millennials' penetration rising to 48% [19] 5. **Long-term Strategy**: - Aim to outgrow the category by 200-300 basis points profitably [19] - Focus on margin expansion through productivity and mix improvement [19] Financial Performance 1. **Revenue and Profitability**: - Adjusted gross margin improved from 28% in 2022 to 32% in 2025 [16] - Adjusted EBITDA growth at an 8% compounded annual growth rate from 2022 to 2025 [17] 2. **Cash Flow Generation**: - Expected adjusted free cash flow to increase to $60 million-$80 million in 2026 [56] - Targeting a reduction in leverage ratio from 3.4 times at the end of 2025 to 2.5 times long-term [57] Expansion Plans 1. **Geographic Expansion**: - California expansion expected to add approximately $125 million in incremental sales [34] - Expansion geographies represent 45% of retail sales, with significant growth potential [29] 2. **Distribution Strategy**: - Hybrid distribution model with a 50/50 split between direct store delivery and direct to warehouse [13] - DSD network serves 125,000 retail outlets weekly, with plans for optimization [50] Innovation and Product Development 1. **Product Innovations**: - New product lines including protein snacks and on-trend flavors [42] - Boulder Canyon brand projected to reach $500 million in sales long-term [25] 2. **Marketing Initiatives**: - Launch of national marketing campaigns to enhance brand awareness and consumer engagement [27] Conclusion - Utz Brands is positioned for sustained growth through strategic brand management, geographic expansion, and innovation, with a focus on improving profitability and cash flow generation [59]

CAGNY 202 Disclaimer Forward-LookingStatements Certain statements made herein are not historical facts but are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended. The forward-looking statements generally are accompanied by or include, without limitation, statements such as "may," "can," "should," "will," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "target," "go ...

Distribution and Logistics - The Direct-Store-Delivery (DSD) system includes approximately 2,500 routes reaching over 84,700 retail stores by 2025, with a transition from company-owned routes to Independent Operators (IOs) to create a more variable cost structure [65]. - Third-party distributors operated around 400 DSD-style routes, reaching over 12,000 retail stores during fiscal year 2025, enhancing distribution effectiveness [66]. - Direct-to-consumer shipments have significantly grown since 2019, primarily through the company website and select third-party retailer sites, extending reach to virtually every household in America [67]. Financial Performance and Risks - A 1% increase in commodity prices would reduce gross profit by approximately $4.5 million, highlighting the company's exposure to raw material price volatility [284]. - Interest expense would have been $14.5 million higher without interest rate swap agreements, which fixed a portion of the interest rate at a predictable level, resulting in a weighted average interest rate of 5.6% for fiscal year 2025 [285]. - The company experienced no material credit losses during the fiscal years 2025 and 2024 [286]. - Net bad debt expense was $0.1 million for the fiscal year ended December 28, 2025, compared to $0.7 million for the fiscal year ended December 29, 2024 [286]. - The reserve for potential future bad debt remained constant at $3.3 million as of both December 28, 2025, and December 29, 2024 [286]. Workforce and Diversity - As of December 28, 2025, the company employed approximately 3,100 full-time associates and 200 part-time associates, reflecting a reduction in workforce through business transformation initiatives [75]. - Women comprised 34% of senior leadership roles, up from 27% in 2023, and people of color comprised 13%, up from 10%, indicating progress in diversity initiatives [72]. Operational Efficiency and Sustainability - The company has reduced its plant footprint by three plants in fiscal year 2023 and an additional five plants in the first quarter of fiscal year 2024 as part of network optimization initiatives [76]. - The company is committed to food safety and quality, with comprehensive programs including Safe Quality Food (SQF) certifications and Good Manufacturing Practices (GMPs) [68]. - The 2024 ESG report outlines strategic priorities for sustainability, emphasizing the company's commitment to ethical and responsible operations [78].

Financial Data and Key Metrics Changes - The company expects about 40-50 basis points of EBITDA margin expansion at the midpoint of their guidance, accounting for planned investments in California [12][13] - The leverage ratio is projected to be in the range of 3.0-3.2 times, with a goal to deleverage by 0.3-0.4 times per year [51] Business Line Data and Key Metrics Changes - The company anticipates continued distribution gains and plans to invest in marketing and innovation to support growth [10][15] - The company has seen strong productivity performance, which is crucial for managing inflation impacts on costs [26] Market Data and Key Metrics Changes - The company noted that their core markets, particularly in Maryland, Virginia, and Washington, D.C., were disproportionately impacted by disruptions, affecting about 20% of overall core sales [32] - The company expects positive distribution gains in both expansion and core markets, driven by innovation and marketing support [42] Company Strategy and Development Direction - The company is focused on geographic expansion and innovation, with a strong belief in their commercial plans for 2026 [10][15] - The company aims to maintain a rational promotional environment while investing in marketing to drive consumer engagement [56] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the category's performance, noting a flat category outlook for 2026 while acknowledging the potential for positive consumer response [44][80] - The company is prepared for a dynamic environment and aims to maintain flexibility in their operations to adapt to various outcomes [80] Other Important Information - The company has been investing in revenue management capabilities to better understand pricing dynamics across their portfolio [23] - Management highlighted the importance of affordability and value in their pricing strategy, emphasizing their historical commitment to these principles [54] Q&A Session Summary Question: Expectations regarding competitive dynamics and investment needs for 2026 - Management feels confident in their commercial plan and anticipates a flat category, guiding for 200-300 basis points of growth [10] Question: Clarification on EBITDA margin guidance - The company expects 40-50 basis points of margin expansion, reflecting a dynamic environment and the need for flexibility [13] Question: Insights on pricing and reinvestment strategies - Management is focused on maintaining affordability while navigating inflation and reinvestment needs [26] Question: Impact of SNAP disruption on core geographies - The company noted that their core markets were more affected due to demographic factors, impacting sales [32] Question: Distribution and innovation rollout timeline - Management expects distribution gains to begin in Q1, with innovations rolling out in Q2 [34] Question: Commentary on category growth and consumer behavior - Management remains cautiously optimistic about the category, noting a positive inflection in the fourth quarter [44] Question: Long-term portfolio strategy and emerging growth areas - The company is focused on protein and fiber trends, with plans to expand their product offerings accordingly [96] Question: Competitive programming and marketing strategies - Management believes their marketing strategies are effective and will continue to focus on key seasonal opportunities [106]

Financial Data and Key Metrics Changes - The company expects EBITDA margin expansion of 40-50 basis points for the year, accounting for planned investments in California [12][13] - The leverage ratio is projected to be in the range of 3.0-3.2 times, with a goal to deleverage by 0.3-0.4 times per year [51] Business Line Data and Key Metrics Changes - The company anticipates continued distribution gains and plans to invest in marketing and innovation to support growth [10][15] - The California expansion is expected to contribute to top-line sales and incremental households, with a current market share of 1.9% [66] Market Data and Key Metrics Changes - The company views the category as flat for the upcoming year, reflecting a cautious optimism based on recent trends [44][80] - The company has seen positive category improvement in the fourth quarter, with expectations for continued growth despite a dynamic environment [43][80] Company Strategy and Development Direction - The company is focused on geographic expansion, distribution gains, and maintaining a rational promotional environment [10][11] - The management emphasizes the importance of innovation and marketing support to drive consumer engagement and growth [94][96] Management's Comments on Operating Environment and Future Outlook - The management expresses confidence in the commercial plan for 2026, highlighting the importance of flexibility to adapt to market changes [10][11] - The company acknowledges the challenges faced by consumers but believes its diverse product offerings will help maintain engagement [94][95] Other Important Information - The company has invested in revenue management capabilities to better understand pricing dynamics across its portfolio [22] - The management is optimistic about the supply of alternative oils and ingredients for new product offerings, ensuring no anticipated supply issues [70] Q&A Session Summary Question: Expectations regarding competitive pricing and investment needs - The management feels confident in their commercial plan and anticipates a flat category, allowing for flexibility in investment [10][11] Question: Clarification on EBITDA margin guidance - The management expects 40-50 basis points of margin expansion, factoring in planned investments [12][13] Question: Insights on distribution and shelf space - The management expects positive distribution gains in both expansion and core markets, driven by innovation and marketing support [42][81] Question: Consumer environment and portfolio strategy - The management acknowledges a dynamic consumer environment but believes their growth drivers will help overcome challenges [94][95] Question: Impact of new product offerings on margins - The management anticipates that new product launches will be margin accretive, leveraging premium ingredients [70]

Financial Data and Key Metrics Changes - The company expects EBITDA margin expansion of 40-50 basis points for 2026, which accounts for a planned investment of $4 million-$6 million for California expansion [11][12] - The leverage ratio is projected to be between 3.0-3.2 times, with a goal to reduce it to 2.5-3 over time [50][51] Business Line Data and Key Metrics Changes - The company anticipates positive distribution gains in 2026, driven by innovation and expansion into California, which is currently an untapped market [41][64] - The company has seen strong performance in productivity, mitigating inflation impacts, and expects to maintain a positive contribution from both volume and price across its portfolio [22][25] Market Data and Key Metrics Changes - The company noted that its core markets, particularly in Maryland, Virginia, and Washington, D.C., were disproportionately impacted by disruptions in November, affecting overall sales [30][31] - The overall category is expected to remain flat, with cautious optimism for a positive response from consumers due to better brands and innovation [43][44] Company Strategy and Development Direction - The company is focused on geographic expansion, distribution gains, and investing in marketing and innovation to drive growth [9][10] - The management emphasized the importance of maintaining a flexible approach to navigate a dynamic market environment while preparing for various outcomes [78][79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the commercial plan for 2026, highlighting the importance of a rational promotional environment and continued investment in marketing [9][10] - The management acknowledged the challenges posed by inflation and consumer dynamics but remains optimistic about the company's ability to grow through strategic initiatives [92][93] Other Important Information - The company is launching new products, including protein pretzels and Boulder Canyon offerings, with expected distribution gains starting in Q2 [33][34] - The management is committed to maintaining affordability and value for consumers, which is crucial for driving volume growth [52][56] Q&A Session Summary Question: Expectations regarding competitive pricing and investment for 2026 - Management feels confident in their commercial plan and anticipates a flat category, guiding for 200-300 basis points of growth [9][10] Question: Clarification on EBITDA margin guidance - The company expects 40-50 basis points of margin expansion, accounting for planned investments and a dynamic environment [11][12] Question: Impact of SNAP disruption on sales - The core markets were more affected due to their demographic characteristics, which contributed to the overall sales impact [30][31] Question: Distribution and innovation timeline - Distribution gains are expected to start in Q1, with innovations rolling out in Q2 [33][34] Question: Consumer dynamics and affordability - Management noted that affordability remains a key focus, with a balanced approach to pricing and innovation [52][56] Question: Long-term portfolio strategy - The company is focused on expanding its portfolio to include more protein and fiber options, aligning with consumer trends [95][96]

分组1 - Utz Brands reported quarterly earnings of $0.26 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.22 per share a year ago, resulting in an earnings surprise of +1.29% [1] - The company posted revenues of $342.2 million for the quarter ended December 2025, which was a slight miss of 0.13% compared to the Zacks Consensus Estimate, and a marginal increase from $341.05 million year-over-year [2] - Over the last four quarters, Utz Brands has surpassed consensus EPS estimates only once, while it has topped consensus revenue estimates two times [2] 分组2 - The stock has gained approximately 7.2% since the beginning of the year, outperforming the S&P 500, which has gained 1.4% [3] - The future performance of Utz Brands' stock will largely depend on management's commentary during the earnings call and the outlook for earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $360.9 million, and for the current fiscal year, it is $0.87 on revenues of $1.48 billion [7] 分组3 - The Zacks Industry Rank for Food - Miscellaneous, which includes Utz Brands, is currently in the bottom 22% of over 250 Zacks industries, indicating potential challenges ahead [8] - The estimate revisions trend for Utz Brands was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell), suggesting expected underperformance in the near future [6]

Utz Brands, Inc. Fourth Quarter and Full-Year 2025 Earnings Presentation February 12, 2026 Disclaimer Forward-Looking Statements Certain statements made herein are not historical facts but are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended. The forward-looking statements generally are accompanied by or include, without limitation, statements such as "may," "can," "should," "will," "estimate," "plan," "projec ...