Core Insights - Lancaster Colony Corporation (LANC) is acquiring a sauce and dressing production facility in Atlanta, GA, from Winland Foods, Inc. for approximately $75 million, expected to close in Q1 2025 [1][2] Acquisition Details - The facility spans around 300,000 square feet, with 250,000 square feet dedicated to manufacturing operations [2] - This acquisition aims to enhance operational efficiency, increase production capacity, and improve proximity to key customers, thereby strengthening LANC's manufacturing network [3][4] Financial Performance - In Q1 of fiscal 2025, LANC reported a consolidated sales increase of 1.1% to $466.6 million and a gross profit growth of 1.9% to $110.8 million, attributed to higher volumes and cost-saving initiatives [5] - The Foodservice segment experienced a 3.5% increase in net sales, driven by demand from national chain-restaurant customers [8] Product Development and Market Position - LANC's licensing program, particularly with Subway sauces and Texas Roadhouse Dinner Rolls, is a key growth driver for its retail segment [6] - Marzetti, a brand under LANC, saw a 2.4% sales increase and a market share gain of approximately 25 basis points in Q1 [7] Financial Health - As of September 30, 2024, LANC had cash and cash equivalents totaling $135.1 million and no outstanding borrowings, indicating strong financial management [9] - The board of directors recently raised the quarterly dividend by 5 cents to 95 cents per share, marking 62 consecutive years of dividend increases [10] Stock Performance - LANC stock has gained approximately 4.7% in the past month, outperforming the industry decline of 6.1% and the S&P 500's growth of 0.6% [11] - The forward 12-month price-to-earnings ratio for LANC is 25.99X, significantly higher than the industry's ratio of 15.39X, indicating a higher valuation relative to expected earnings growth [12]

Financial Data and Key Metrics Changes - Consolidated net sales increased by 1.1% to a record $467 million for the first quarter [5] - Gross profit rose by 1.9% to a record $111 million, with gross margin improving by 20 basis points compared to the previous year [10][11] - First-quarter diluted earnings per share increased by $0.03 or 1.9% to $1.62, driven by a lower tax rate and return on invested cash [15] Business Line Data and Key Metrics Changes - Retail segment net sales declined by 1.1%, but excluding exited bakery lines, sales increased by 1.4% and volume grew by 1.9% [6] - Foodservice segment net sales grew by 3.5%, with volume measured in pounds shipped advancing by 3.1% [10] - Sister Schubert's brand sales advanced by 5.3%, and combined with Texas Roadhouse Dinner Rolls, sales were up 17.9% [9] Market Data and Key Metrics Changes - Marzetti brand in the produce dressing category grew sales by 2.4%, with market share increasing by 25 basis points [8] - Chick-fil-A sauces grew by 3.4%, while Buffalo Wild Wing sauces increased by 5% in the shelf-stable sauces and condiments categories [9] - The overall foodservice industry is experiencing slowing traffic trends, but the company is still seeing positive sales growth [10][21] Company Strategy and Development Direction - The company aims to accelerate core business growth, simplify the supply chain to reduce costs, and expand through focused M&A and strategic licensing [19] - New product introductions, such as Subway sauces and Texas Roadhouse Dinner Rolls, are expected to drive retail segment sales [20] - The company is optimistic about the licensing strategy, which has proven to be an incremental source of revenue [56] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer headwinds may continue to exert downward pressure on traffic, but they expect to deliver low single-digit growth based on their book of business and innovation efforts [25][26] - The company anticipates that input costs will be neutral for the remainder of the year, with no significant inflationary pressures expected [21] - Management expressed cautious optimism about the consumer environment, indicating that while there are challenges, they believe consumers will eventually reach a point of equilibrium [28][29] Other Important Information - The company returned funds to shareholders with a quarterly cash dividend of $0.90 per share, representing a 6% increase from the prior year [17] - Capital expenditures for fiscal 2025 are forecasted to be between $70 million and $80 million, focusing on cost-saving projects and manufacturing improvements [16] Q&A Session Summary Question: What is driving the outperformance in foodservice? - Management attributed the outperformance to a mix of national chain customers and strong demand for chicken and sauces, particularly during football season [24][25] Question: What are the prospects for consumer trends in 2025? - Management expressed caution, noting that while wage growth has exceeded inflation, consumers are still making tough trade-offs [28][29] Question: Why is foodservice profitability diverging from retail? - Management explained that foodservice operating income declined due to higher labor and supply chain investments, while retail benefited more from cost-saving initiatives [32] Question: How is the Texas Roadhouse Dinner Rolls launch performing? - Early indications show strong consumer interest and repeat purchases, with plans for further distribution expansion [39][40] Question: What is the outlook for gross margins moving forward? - Management expects to continue improving gross margins through productivity initiatives and cost-saving measures, despite some headwinds from trade spending [44][46] Question: How does the licensing strategy impact potential partnerships? - Management noted that the success of existing partnerships, like Olive Garden, enhances attractiveness for new licensing opportunities [62][64] Question: What is the company's approach to acquisitions? - Management indicated a willingness to pursue both acquisitions and licensing opportunities simultaneously, focusing on value creation for shareholders [54][56]

Lancaster Colony (LANC) came out with quarterly earnings of $1.62 per share, missing the Zacks Consensus Estimate of $1.70 per share. This compares to earnings of $1.70 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.71%. A quarter ago, it was expected that this specialty food maker would post earnings of $1.41 per share when it actually produced earnings of $1.35, delivering a surprise of -4.26%.Over the last four quarters ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-04065 | --- | --- | --- | |-------------------------------------------------------------------------------|------------------ ...

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the task of finding cutting-edge growth stocks is made easy w ...

EzumeImages August 22nd was a bad day for shareholders of Lancaster Colony Corporation (NASDAQ:LANC). The company, which produces and sells food products like frozen breads, refrigerated dressings, dips, croutons, and more, saw its share price plummet by 12.3%. This decline came after management reported financial results covering the final quarter of the company's 2024 fiscal year. Investors were clearly unhappy with the fact that revenue, earnings, and adjusted earnings, all fell short of analysts' foreca ...

Financial Data and Key Metrics Changes - For fiscal year 2024, the company achieved record net sales of $1.9 billion, a growth of 2.7%, and gross profit increased by 11.3% to $432.3 million, with a gross profit margin improvement of 180 basis points to 23.1% [4][9] - In Q4, consolidated net sales slightly declined by 40 basis points to $452.8 million, while gross profit grew by 4.8% to $97.6 million, resulting in an operating income increase to $41.7 million [4][7] - The diluted earnings per share for Q4 increased by $0.93 to $1.26, driven by reduced restructuring impairment charges and lower costs related to the ERP initiative [8][9] Business Line Data and Key Metrics Changes - In the Retail segment, net sales decreased by 80 basis points to $234.2 million, but excluding the exited bakery lines, sales increased by 1.4% with a volume increase of 1.2% [4][7] - The Foodservice segment experienced strong volume growth of 4.2%, although this was offset by deflationary pricing impacts [4][7] - The successful licensing program contributed to growth, particularly from new products like Subway sandwich sauces and Texas Roadhouse steak sauces [4][5] Market Data and Key Metrics Changes - The combined sales of Chick-fil-A refrigerated dressings and Marzetti brand refrigerated dressings grew by 11.3% to $39 million, increasing market share by 330 basis points to 27.4% [6] - Sales of New York frozen bakery garlic bread products increased by 2.8% to $94.7 million, achieving a category-leading share of 40.6% [6] - The company noted a cautious outlook for demand in the Foodservice segment, particularly in the back half of the year, while still expecting low single-digit volume growth [11][14] Company Strategy and Development Direction - The company aims to accelerate core business growth, simplify the supply chain to reduce costs, and expand through focused M&A and strategic licensing [10] - Future growth is anticipated from new product introductions, particularly in the Retail segment, and continued sales momentum for New York Bakery frozen garlic bread products [10][11] - The company is also exploring opportunities for inorganic growth as it has a strong balance sheet and cash reserves [30] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about external factors affecting demand in both Retail and Foodservice segments, while contingency plans are in place to respond to various scenarios [11] - The company does not foresee significant impacts from commodity cost inflation or deflation, focusing instead on cost savings programs to drive margin improvements [11][42] - Management highlighted the importance of innovation and maintaining value in products to meet consumer demand for affordable luxury amid economic pressures [39] Other Important Information - The company reported a debt-free balance sheet with $163.4 million in cash at the end of the fiscal year [9] - A quarterly cash dividend of $0.90 per share was paid, representing a 6% increase from the previous year, marking 61 consecutive years of annual dividend increases [8][9] Q&A Session Summary Question: Outlook for Foodservice segment demand - Management acknowledged a slowdown in traffic but expects low single-digit volume growth, potentially improving if overall market conditions enhance [14] Question: Growth cadence for Retail and Foodservice in fiscal '25 - Management projects low single-digit volume growth for both segments, with stronger growth anticipated in the front half for Foodservice [16][17] Question: Pricing dynamics in Foodservice - Management indicated that LTOs typically maintain or exceed average margins, and operators are focused on menu excitement rather than discounting [19][20] Question: Performance of new products from Subway and Texas Roadhouse - Subway contributed approximately $5 million in sales, while Texas Roadhouse added over $1 million, with both brands expected to grow further [34] Question: Impact of private label competition - Management noted that private label competition is being monitored, but the company has maintained strong performance against private label brands in several categories [23][39] Question: Expectations for Marzetti volume growth - Volume growth for Marzetti is driven by innovation and a favorable comparison against softer prior year comps [24] Question: Licensing pipeline and M&A landscape - The licensing pipeline remains strong, with ongoing discussions and successful partnerships, while the company is positioned to pursue acquisitions as it has completed its ERP initiatives [30]

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Lancaster Colony (LANC) , which belongs to the Zacks Food - Miscellaneous industry, could be a great candidate to consider. This specialty food maker has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 8.84%. For the last report ...

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the trad ...

Lancaster Colony (LANC) came out with quarterly earnings of $1.44 per share, beating the Zacks Consensus Estimate of $1.42 per share. This compares to earnings of $0.89 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.41%. A quarter ago, it was expected that this specialty food maker would post earnings of $1.66 per share when it actually produced earnings of $1.93, delivering a surprise of 16.27%.Over the last four quarters, ...