Financial Data and Key Metrics Changes - Revenue for Q3 fiscal 2026 increased 50% to $47.3 million compared to $31.5 million in the same year-ago quarter, driven by the acquisition of Crown One and robust growth in the legacy business [22] - Gross profit increased 56.6% to $11.1 million, representing 23.6% of total revenues, up from 22.6% in the prior year [22][23] - Net income rose 31.7% to $0.5 million, or $0.01 per diluted share, compared to $0.4 million in the same year-ago quarter [25] - Adjusted EBITDA increased 118% to $3.8 million for Q3 fiscal 2026, compared to $1.7 million in the same year-ago quarter [25] Business Line Data and Key Metrics Changes - The acquisition of the Bayshore facility is expected to enhance production capabilities and operational efficiency, contributing to the company's long-term revenue goals [5][9] - The grocery deli segment is highlighted as a key growth area, with fully cooked meats growing 4.8% over the past year, indicating strong demand for deli-prepared foods [10] Market Data and Key Metrics Changes - The overall retail food service segment has grown to over $52 billion, with consumers increasingly opting for deli-prepared foods over restaurant meals [10] - Industry data shows that the share of shoppers replacing restaurant meals with deli-prepared foods has more than doubled since 2017 [10] Company Strategy and Development Direction - The company is focused on integrating the Bayshore facility and optimizing its operations across three locations to enhance efficiency and reduce costs [27] - The strategic pillars include Cost, Controls, Culture, and Catapult, aimed at driving profitable growth and market share gains [11][16] - The company is actively pursuing additional acquisition opportunities that align with its disciplined framework [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of consumer demand for deli-prepared foods and the company's ability to capitalize on this trend [20][28] - The integration of the Bayshore facility is progressing well, with expectations to enhance gross margins and operational synergies [27][55] Other Important Information - The company has centralized procurement across its facilities, leading to significant cost reductions, particularly in beef and chicken [9][11] - Marketing efforts have resulted in over 24 million impressions in Q3, with a double-digit return on advertising spend [19] Q&A Session Summary Question: Progress on AIC front - Management highlighted ongoing efforts to increase item offerings at existing customers, with new products being introduced at Publix and Fresh Market [30][31] Question: Sell-through and visibility initiatives for Costco - The product is already shipping, and marketing initiatives on platforms like Instacart are driving awareness and sales [33][34] Question: Locking in chicken pricing for 2026 - Management noted that the acquisition has doubled chicken needs, allowing for better pricing negotiations and visibility in the supply chain [36][38] Question: SKU rationalization of Crown products - The team is in the early stages of identifying SKUs for rationalization, focusing on gross margin optimization [40][41] Question: Trade promotion levels moving forward - Management aims to maintain high ROI on trade promotions, with a focus on efficiency rather than just increasing spend [43][44] Question: Breakdown of organic growth between volume and pricing - Approximately 80% of organic growth was volume-driven, with 20% attributed to pricing adjustments [46][47] Question: Transition to a make-to-stock organization - The transition is progressing well, with improved service levels and inventory management [48][49] Question: Crown's gross margin expectations - Management expects Crown's gross margin to improve to the mid-20% range over the next year, with ongoing improvements in the legacy business as well [52][53]

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]