Market Trends - The Santa Claus Rally is anticipated as a familiar market trend, historically resulting in stock increases 80% of the time during this period since 1972 [1] - This year's rally is expected to be accompanied by volatility due to factors such as AI speculation, a weakening labor market, and record-low consumer sentiment [2] Labor Market and Layoffs - October saw over 150,000 layoffs, the highest figure in 20 years, impacting companies including Amazon, which laid off 14,000 corporate employees [2] Stock Market Performance - The tech-heavy Nasdaq Index fell 5% recently, indicating cracks in the bull market, with Amazon shares dropping 6% [3] Investment Opportunities - Utz Brands Inc. (UTZ) is highlighted as an attractive investment, trading at 13 times forward earnings, significantly lower than its long-term average, with a profit outlook of 5% growth this year and 15% next year [12] - Greenwich LifeSciences Inc. (GLSI) is noted for its potential in cancer immunotherapy, with recent insider buying and FDA Fast Track designation, despite a 33% decline in shares due to short selling [15][19] - Matador Resources Co. (MTDR) is recognized for its strong insider buying activity and attractive cost structure, trading at a low valuation compared to peers, with a 4% dividend yield [22][25][26] Insider Buying as a Bullish Signal - Insider buying is considered a strong bullish signal, with examples of significant gains following such activity in companies like Longeveron Inc. and Nuvation Bio Inc. [14][27] Upcoming Events - A Profit Surge Event is scheduled, where insights on market volatility and trading opportunities will be shared [7][28]

Core Insights - Utz Brands is acquiring logistics infrastructure assets to enhance its presence in California, the largest market for salty snacks in the U.S. [1][2] - The acquisition includes direct store delivery routes from Insignia International, positioning California as a key growth area for Utz, which currently holds a 2% market share in the state [2][5]. Group 1: Acquisition Details - The acquisition involves direct store delivery routes across California and additional assets in the Midwest, although the purchase amount remains undisclosed [2][3]. - California's retail sales of salty snacks amount to $4.1 billion, representing approximately 10% of the U.S. market [2]. Group 2: Market Position and Growth Potential - Utz's CEO, Howard Friedman, expressed optimism about the company's growth momentum and plans to accelerate its market presence in California by 2026 [3]. - The company aims to leverage its expanded scale to compete more effectively against larger snack manufacturers like Hershey and PepsiCo's Frito-Lay [5]. Group 3: Financial Performance - In the third quarter, Utz reported a 3.4% increase in net sales, reaching $377.8 million, and has seen consistent growth in volume share for nine consecutive quarters [6]. - Utz's retail sales grew by 3%, outperforming the overall salty snack market, which experienced a 1.2% decline [6].

Core Insights - Oppenheimer Asset Management Inc. increased its stake in Utz Brands by 23.7% during Q2, owning 36,797 shares valued at $462,000 [2] - Institutional investors and hedge funds collectively own 95.97% of Utz Brands' stock, indicating strong institutional interest [3] Institutional Activity - Janney Montgomery Scott LLC acquired a new position valued at approximately $196,000 in Q1 [3] - Vanguard Group Inc. raised its holdings by 7.2%, now owning 7,439,869 shares worth $104,753,000 after acquiring an additional 501,374 shares [3] - Ameriprise Financial Inc. increased its holdings by 38.0%, owning 5,671,757 shares valued at $79,858,000 after acquiring 1,560,884 shares [3] - GW&K Investment Management LLC raised its holdings by 19.7%, now owning 1,531,986 shares worth $21,570,000 [3] Analyst Ratings - UBS Group lowered its price target from $13.50 to $11.50, maintaining a "neutral" rating [4] - Barclays reiterated an "overweight" rating with a price target of $14.00 [4] - TD Cowen reduced its price target from $14.00 to $12.00, setting a "hold" rating [4] - The consensus rating for Utz Brands is "Moderate Buy" with a target price of $16.07 [4] Stock Performance - Utz Brands stock opened at $10.52, with a market cap of $1.49 billion [5] - The company has a PE ratio of 150.34 and a price-to-earnings-growth ratio of 1.41 [5] - The stock has a 12-month low of $10.19 and a high of $18.29 [5] Financial Results - For the latest quarter, Utz Brands reported an EPS of $0.23, meeting consensus estimates [6] - Revenue for the quarter was $377.80 million, up 3.4% year-over-year, exceeding the consensus estimate of $374.25 million [6] - The company has set FY 2025 EPS guidance at 0.824-0.847 [6] Dividend Information - Utz Brands announced a quarterly dividend of $0.061, representing an annualized yield of 2.3% [7] - The dividend payout ratio is currently 342.86% [7] Insider Transactions - Director Christina Choi sold 5,703 shares at an average price of $13.63, resulting in a 14.47% decrease in her position [8] - Insiders currently own 16.32% of the stock [8] Company Overview - Utz Brands, Inc. specializes in the manufacture, marketing, and distribution of snack foods, offering a variety of products including potato chips, pretzels, and popcorn under various brand names [9]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - The company has maintained its expectation for EBITDA margins of around 16% in 2026, with an anticipated 100 basis points of expansion each year [23][28] - The company reported a 1% drag on pricing in the recent quarter, which was in line with expectations [42][46] Business Line Data and Key Metrics Changes - The company is seeing strong growth in its Boulder Canyon brand, which is the number one potato chip brand in the natural channel, with velocities up about 35% [80] - The On the Border brand is experiencing short-term challenges, but management believes these issues are not structural and can be addressed [76][78] Market Data and Key Metrics Changes - The company has a 1.9% market share in California, which represents a significant opportunity as the state accounts for about 10% of the salty snacks category in the U.S. [41] - Expansion markets such as Florida, Illinois, Colorado, and Missouri are averaging about 6% growth, outperforming the average expansion market share [114][115] Company Strategy and Development Direction - The company plans to make incremental investments to support its expansion into California, leveraging a proven playbook from previous market entries [26][27] - The strategy focuses on holding core markets while expanding into new geographies, with a strong emphasis on innovation and communication to drive growth [111][112] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the salty snacks category, noting that consumer participation is increasing and the pricing environment remains rational [120][121] - The company is committed to increasing marketing investments, particularly in retail media, to drive consumer engagement and support brand growth [124][125] Other Important Information - The company is addressing recent challenges related to potato supply quality, which impacted gross margins, but expects these issues to be isolated and resolved [61][66] - The company is focused on productivity improvements and supply chain optimization to enhance operational efficiency and support top-line growth [98][102] Q&A Session Summary Question: Can you elaborate on the California route acquisition and its impact? - Management indicated that the acquired network will allow for product introduction in early 2026, with confidence in driving growth through existing customer relationships [40] Question: What is the outlook for pricing and volume mix? - The company experienced a 1% drag on pricing but expects to manage this through effective revenue management strategies [46][47] Question: How does the competitive landscape affect the company? - Management views competitor innovations as a net positive for the category, as they can drive consumer interest and engagement [88][90] Question: What are the expectations for market share dynamics? - The company is seeing incremental market share gains in core markets, driven by strong relationships with retailers and effective execution [111][112] Question: What is the company's approach to innovation? - Management believes that innovation can drive category growth and is focused on simplifying ingredients and addressing consumer trends [130][133]

Utz Brands, Inc. Third Quarter 2025 Earnings Presentation October 30, 2025 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," " ...

Group 1: Company Overview - UTZ Brands, Inc. (NYSE:UTZ) is a company that markets, manufactures, and distributes a variety of branded snacks, including pretzels, potato chips, veggie snacks, cheese snacks, and pork skins. Its brand portfolio includes Utz, Golden Flake, Zapp's, Good Health, Hawaiian, and Boulder Canyon [4]. Group 2: Analyst Ratings and Price Targets - RBC Capital analyst Nik Modi has reiterated a Buy rating on UTZ Brands, setting a price target of $20 as of October 28 [1]. - Conversely, UBS analyst Peter Grom assigned a Hold rating on October 20, with a price target of $13.50, citing the company's unchanged guidance for fiscal year 2025 and expectations for modest EBITDA margin expansion and organic sales growth [2]. Group 3: Market Performance and Sentiment - Despite exhibiting favorable performance trends that surpass the overall salty snacks domain, concerns about the sustainability of UTZ's top-line growth persist, particularly due to ongoing macroeconomic and category pressures [3]. - These concerns have contributed to a decline in the stock's performance, leading to underperformance compared to the broader market and its peers since early August [3].

Financial Data and Key Metrics Changes - The company reported a net sales growth of 3.4%, with branded salty snacks organic net sales growth of 5.8% [6][19] - Adjusted EBITDA increased by 11.7%, and adjusted earnings per share rose by 9.5% [20] - Adjusted gross profit margin expanded by 20 basis points, with adjusted EBITDA margin expanding by 120 basis points to 16% [20][21] Business Line Data and Key Metrics Changes - Branded salty snacks now represent 89% of total net sales, marking the seventh consecutive quarter of growth in this category [6][19] - The Power4 brands achieved a retail sales increase of 7.1%, driven by 4.4% volume gains [7] - Non-branded and non-salty snacks experienced a decline in organic net sales of 13.1% due to a strategic decision to right-size the partner brand portfolio [19] Market Data and Key Metrics Changes - California, the largest salty snack market in the U.S., has a retail sales figure of $4.1 billion, with the company currently holding a 1.9% market share [5] - Expansion markets saw a total company retail sales growth of 9.2%, significantly outpacing the salty snack category decline of 0.3% [9] - The average market share in expansion markets is 3%, compared to 6.6% in core markets, indicating substantial growth opportunities [10] Company Strategy and Development Direction - The acquisition of Insignia International's direct store delivery assets is a key part of the company's westward expansion strategy, particularly in California [4][5] - The company is focused on enhancing its branded salty snacks business and expanding its geographic footprint [34] - Continued investment in marketing and productivity initiatives is expected to drive long-term growth and margin expansion [20][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform the category over the medium and long term, supported by strong brand performance and market share gains [17][34] - The company updated its 2025 outlook, now expecting organic net sales growth of approximately 3%, up from a previous expectation of 2.5% [27] - Management highlighted the importance of free cash flow generation and plans to optimize capital expenditures in 2026 [30][31] Other Important Information - The company plans to eliminate all artificial colors from its product portfolio by 2027, aligning with consumer preferences for cleaner ingredients [16] - Cash provided by operations for the year-to-date period was $47.3 million, with capital expenditures of $89.2 million [25][26] - The net leverage ratio at the end of the third quarter was 3.9 times trailing twelve months normalized adjusted EBITDA [26] Q&A Session Summary Question: What are the expectations for organic net sales growth in 2025? - The company now expects organic net sales growth of approximately 3%, reflecting year-to-date outperformance [27] Question: How is the company addressing supply chain challenges? - Management noted that supply chain inflation has largely normalized and that productivity initiatives are in place to offset costs [21][22] Question: What are the plans for capital expenditures in 2026? - Capital expenditures are expected to decrease significantly from $100 million in 2025 to a preliminary range of $60 to $70 million in 2026 [30][31]

Financial Performance - Net Sales increased by 3.4% to $377.8 million compared to $365.5 million in the prior year period[5] - Organic Net Sales growth was 3.4%, with Branded Salty Snacks Organic Net Sales growth at 5.8%[5] - Adjusted Net Income increased by 13.2% to $33.5 million, while Net Income decreased to $(20.2) million[8] - Adjusted EBITDA increased by 11.7% to $60.3 million, representing 16.0% of Net Sales[9] - Gross Profit Margin declined by 220bps to 33.6%, but Adjusted Gross Profit Margin expanded by 210bps to 41.1%[6] - Net sales for the thirteen weeks ended September 28, 2025, were $377.8 million, an increase from $365.5 million for the same period in 2024, representing a growth of approximately 6.3%[43] - Gross profit for the thirteen weeks ended September 28, 2025, was $126.9 million, down from $131.0 million in the prior year, indicating a decrease of about 3.1%[43] - The company reported a net loss of $20.2 million for the thirteen weeks ended September 28, 2025, compared to a net income of $0.8 million in the same period of 2024[43] - The company reported a net loss of $4.4 million for the thirty-nine weeks ended September 28, 2025, compared to a net income of $28.6 million for the same period in 2024[46] - The comprehensive loss for the thirteen weeks ended September 28, 2025, was $22.7 million, compared to a comprehensive loss of $14.7 million in the prior year[43] Expenses and Costs - Selling, Distribution, and Administrative Expenses increased to $123.1 million, or 32.6% of Net Sales[7] - Total selling, distribution, and administrative expenses increased to $123.1 million from $110.0 million, reflecting a rise of approximately 11.9%[43] - The company experienced a significant increase in depreciation and amortization expenses, rising to $60.4 million from $53.4 million year-over-year[49] - Adjusted Selling, Distribution, and Administrative Expense for the 13 weeks ended September 28, 2025, was $93.8 million, or 24.8% of Net Sales, compared to $88.7 million and 24.3% in 2024[54] - Business transformation initiatives resulted in costs of $20.1 million for the thirteen weeks ended September 28, 2025, compared to $8.1 million for the same period in 2024[61] - The company incurred $34.6 million in business transformation costs for the thirty-nine weeks ended September 28, 2025, compared to $18.4 million in the prior year[61] Liquidity and Debt - Total liquidity as of September 28, 2025, was $197.7 million, with net debt of $807.9 million and a Net Leverage Ratio of 3.9x[13] - Total current assets increased to $333.4 million as of September 28, 2025, up from $317.3 million as of December 29, 2024[48] - Total liabilities rose to $1,414.5 million as of September 28, 2025, compared to $1,340.7 million as of December 29, 2024[48] - Cash and cash equivalents at the end of the period were $57.7 million, a slight increase from $56.1 million at the beginning of the period[49] - Total net debt as of September 28, 2025, was $807.9 million, with a net leverage ratio of 3.9x based on trailing twelve months Normalized Adjusted EBITDA[63] - Gross debt amounted to $865.6 million, which includes term loans, real estate loans, and equipment loans[63] Future Outlook - The company raised its 2025 Organic Net Sales growth outlook to approximately 3% from a prior expectation of 2.5%[16] - The company expects Adjusted EBITDA growth of 7% to 10% and Adjusted Earnings Per Share growth of 7% to 10% for fiscal year 2025[20] Shareholder Information - The weighted-average shares of Class A Common stock outstanding increased to 86,958,867 from 82,445,064 year-over-year[43] - The weighted-average shares of Class A Common stock outstanding increased to 86,266,184 from 81,763,848[46] - Adjusted Earnings Per Share for the 13 weeks ended September 28, 2025, was $0.23, reflecting a 9.5% increase from $0.21 in 2024[55] Adjustments and Impairments - The adjustment related to purchase commitments and other adjustments was an expense of $2.7 million for the thirteen weeks ended September 28, 2025, compared to $1.5 million for the same period in 2024[61] - Acquisitions and divestitures incurred expenses of $10.0 million for the thirteen weeks ended September 28, 2025, up from $2.8 million in the prior year[61] - The company recorded an impairment charge of $0.6 million during the 39 weeks ended September 28, 2025[60] Performance Metrics - Adjusted EBITDA is a key performance indicator used to evaluate operating performance, and it is calculated by excluding certain non-cash adjustments and other cash adjustment items[37] - Normalized Adjusted EBITDA for FY 2025 was $207.2 million, slightly up from $200.2 million in FY 2024[62] - EBITDA for the 13 weeks ended September 28, 2025, was $23.8 million, a decrease of 22.0% from $30.5 million in 2024[58] - Adjusted EBITDA for the 13 weeks ended September 28, 2025, was $60.3 million, an increase of 11.7% from $54.0 million in 2024[58]

Sales Performance - As of September 28, 2025, approximately 50% of U.S. households have Utz's products, with retail sales for salty snacks decreasing by 0.2% while Utz's retail sales increased by 4.8% for the thirteen weeks ended September 28, 2025[82][86]. - The company experienced retail volume and retail sales growth of 3.0% and 4.8%, respectively, in Expansion Geographies for the thirteen weeks ended September 28, 2025[84]. - Net sales for the thirteen weeks ended September 28, 2025, were $377.8 million, representing a 3.4% increase from $365.5 million in the same period of 2024[104]. - For the thirty-nine weeks ended September 28, 2025, net sales were $1,096.6 million, a 2.7% increase from $1,068.2 million in the same period of 2024[112]. - Branded Salty Snacks accounted for 89% of net sales for the thirteen weeks ended September 28, 2025, with a 5.8% increase in sales, while Non-Branded & Non-Salty Snacks saw a 13.1% decrease[105]. Financial Performance - The company reported a net loss of $20.2 million for the thirteen weeks ended September 28, 2025, compared to a net income of $0.8 million in the prior year[103]. - Income tax expense for the thirteen weeks ended September 28, 2025, was $13.4 million, significantly higher than $0.2 million in the same period of 2024[111]. - The company experienced a decrease in other loss, net, to $10.1 million for the thirteen weeks ended September 28, 2025, down from $18.5 million in the prior year[110]. - Adjusted EBITDA for the thirty-nine weeks ended September 28, 2025, was $154.1 million, representing an increase from $147.1 million in the prior year[123]. - The gross profit margin for the thirty-nine weeks ended September 28, 2025, was 33.9%, down from 35.1% in the prior year, attributed to increased investments for capacity expansion[114]. Cost Management - The company utilizes buying-forward strategies to manage commodity costs, locking in prices for key materials between three and 18 months in advance[98]. - Selling, distribution, and administrative expenses increased by 11.9% to $123.1 million for the thirteen weeks ended September 28, 2025, primarily due to higher costs associated with growth and geographic expansion[108]. - The company incurred $4.6 million in share-based compensation expense for the thirteen weeks ended September 28, 2025, slightly down from $4.7 million in the same period of 2024[124]. Manufacturing and Expansion - The company plans to consolidate its manufacturing footprint from eight to seven facilities, closing the Grand Rapids, Michigan facility, to generate cost savings and enhance efficiency[82][94]. - The company acquired Insignia International's DSD distribution assets in October 2025, accelerating its expansion in California, which has a $4.1 billion retail sales market for salty snacks[96]. - Boulder Canyon brand saw a growth of 199.0% for the thirty-nine weeks ended September 28, 2025, driven by new product innovations[97]. Debt and Financing - As of September 28, 2025, the company had $708.7 million in variable rate indebtedness, with a weighted average interest rate of 4.9%, down from 5.7% in the prior year[89]. - The company recorded a loss on debt extinguishment of $0.5 million related to the refinancing of its Term Loan B for the thirty-nine weeks ended September 28, 2025[132]. - As of September 28, 2025, $20.7 million was outstanding under the asset-based lending facility, with $140.0 million available for borrowing[134]. - Net cash provided by financing activities was $49.5 million for the thirty-nine weeks ended September 28, 2025, contrasting with a net cash outflow of $155.2 million in the prior year[141]. Market and Regulatory Environment - The U.S. salty snack category is valued at $41 billion, within the broader $147 billion U.S. snack food market as of September 28, 2025[85]. - The company recorded a charge to deferred taxes due to the One Big Beautiful Bill Act, impacting its consolidated financial statements[90]. - The company plans to remove Food, Drug & Cosmetic colors from its product portfolio by the end of 2027, which may affect net sales and market share[97]. - The company's market risk exposures have not changed materially since the filing of the Annual Report on Form 10-K for the year ended December 29, 2024[145]. - Quantitative and qualitative disclosures about market risk can be found in Item 7A of the Annual Report on Form 10-K[145].