Core Insights - The snack food industry, dominated by companies like Pepsico, Nestle, and Mondelez International, is experiencing a decline in sales, with Pepsico reporting a 0.2% revenue decrease in Q4 2024 and a 3% drop in Frito-Lay sales volume [2][3] Group 1: Pepsico and Frito-Lay - Pepsico's Frito-Lay brand has seen a significant decline in sales, attributed to inflation, higher borrowing costs, and a consumer shift towards health and wellness [2] - Pepsico announced the closure of its Frito-Lay distribution facility in Rancho Cucamonga, California, to align production with decreasing demand, resulting in the layoff of 248 employees [8][9] - Frito-Lay is also closing several warehouse and distribution facilities across the nation as part of its operational downsizing [6][7] Group 2: Other Companies in the Snack Industry - J.M. Smucker Co. has reported declining sales in its Sweet Baked Snacks business, with third-quarter results falling below expectations [3] - The CEO of J.M. Smucker indicated that the stabilization of sweet snack sales is taking longer than anticipated [4] - CandyWarehouse.com Inc. filed for Chapter 11 bankruptcy in October 2025 due to a significant revenue drop, highlighting distress in the sweet snacks sector [5]

®® HANOVER, Pa.--(BUSINESS WIRE)--Utz Brands, Inc., a leading U.S. manufacturer of branded salty snack foods will showcase new innovative products from Boulder Canyon and Utz at Booth 1117 in Hall A at the 2026 Natural Products Expo West, held March 4-6 at the Anaheim Convention Center in Anaheim, CA. 1 2 At the show, Boulder Canyon, America's fastest growing salty snack brandand the No. 1 salty brand in the natural channel, will showcase its full lineup of products including classic kettle style chips, ass ...

Group 1 - Utz Brands has acquired additional distribution routes in California, enhancing its market presence in the region [1] - The company already sells various snack products, including Boulder Canyon potato chips and On the Border chips and salsa, in California [1] - The expansion indicates Utz Brands' strategy to increase its distribution capabilities and reach more consumers in the growing snack market [1]

Mondelez International, Inc. (NASDAQ:MDLZ) is one of the best sugar stocks to buy according to hedge funds. Mondelez International, Inc. (NASDAQ:MDLZ) announced on February 17 that it would highlight its commitment to long-term value creation at the 2026 Consumer Analyst Group of New York (CAGNY) Conference, supported by its portfolio of snack brands. It further stated that Mondelēz International will reaffirm its long-term growth algorithm of 3% to 5% organic net revenue growth, high-single-digit adjusted ...

Frito-Lay, owned by PepsiCo Foods, said the affected employees will be given pay and benefits continuation as well as career support. (Tripplaar Kristoffer / Sipa USA) Frito-Lay, the snack company that makes Doritos and Cheetos, is laying off 247 employees and closing its facility in Rancho Cucamonga, the company confirmed Friday. The vast warehouse will shut down in June. Frito-Lay announced last summer that manufacturing operations at the same location were coming to an end. The plant has been a majo ...

Market Overview - Wall Street began 2026 positively after a significant bull run over the past three years, but U.S. stock markets experienced fluctuations in February due to concerns regarding artificial intelligence (AI) trade [1] - Investors are moving away from tech stocks amid growing worries about the downsides of AI stocks, leading to a continued selloff as fears increase about the potential of AI stocks compared to the substantial investments in the sector [1] Investment Strategy - It is advisable to invest in high dividend-paying corporate giants, which typically possess strong financial positions, robust business models, and globally recognized brand value, providing a steady income stream during market fluctuations [2] Stock Recommendations - Five stocks with a top Zacks Rank are identified as strong investment opportunities: - AngloGold Ashanti plc (AU) - Ford Motor Co. (F) - The Hershey Co. (HSY) - Rio Tinto Group (RIO) - BHP Group Ltd. (BHP) - Each of these stocks currently holds a Zacks Rank 1 (Strong Buy) [3] Company Profiles AngloGold Ashanti plc (AU) - Operates as a gold mining company with a focus on Africa, Australia, and the Americas, primarily exploring for gold and producing silver and sulphuric acid as by-products [6] - Expected revenue and earnings growth rates for the current year are 22.5% and 52.9%, respectively, with a 10% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [7] - Current dividend yield stands at 3.36% [7] Ford Motor Co. (F) - Generated $187 billion in revenues in 2025, marking its fifth consecutive year of revenue growth, with the Ford Pro unit being a key growth driver [8][9] - Expected revenue and earnings growth rates for the current year are 0.3% and 39.5%, respectively, with a 3.4% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [11] - Current dividend yield is 4.33% [11] The Hershey Co. (HSY) - Focused on innovation, supply-chain agility, and commercial execution, expanding its presence in the snacking category [12] - Expected revenue and earnings growth rates for the current year are 4.4% and 27.1%, respectively, with a 15.9% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [14] - Current dividend yield is 2.62% [14] Rio Tinto Group (RIO) - An international mining company with interests in various minerals, including aluminum, copper, and iron ore, with operations in multiple countries [15] - Expected revenue and earnings growth rates for the current year are 10% and 19%, respectively, with a 9% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [16] - Current dividend yield is 2.98% [16] BHP Group Ltd. (BHP) - Experienced a 1% dip in iron ore output, while copper production increased by 4% in the first quarter of fiscal 2026, projecting iron ore production of 258-269 million tons for fiscal 2026 [17][9] - Expected revenue and earnings growth rates for the current year are -4.1% and 29.1%, respectively, with a 0.4% improvement in the Zacks Consensus Estimate for earnings over the last seven days [19] - Current dividend yield is 3.18% [19]

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]

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]

Core Insights - Utz Brands, Inc. (NYSE:UTZ) is anticipated to report fiscal Q4 2025 results on February 12, 2026, with expected quarterly revenue of approximately $344.65 million and a GAAP EPS of $0.27, indicating a positive outlook from Wall Street with 73% of analysts maintaining a Buy rating [1] Group 1: Analyst Ratings - Scott Marks from Jefferies reiterated a Buy rating on Utz Brands with a price target of $15 on January 27 [2] - DA Davidson also maintained a Buy rating with a $15 price target on January 14 [2] Group 2: Preliminary Results - DA Davidson noted modest preliminary Q4 2025 results, with expected net sales between $342 million and $343 million, reflecting a year-over-year increase of 0.3% to 0.6% [4] - Adjusted EBITDA for the quarter is projected to be between $62 million and $64 million, representing a year-over-year increase of 17% to 21% [4] - Despite modest expectations, DA Davidson considers the results strong given the challenging consumer packaged goods market environment [4] Group 3: Company Overview - Utz Brands, Inc. manufactures and sells a variety of snacks under brands such as Utz, On The Border, Zapp's, and Boulder Canyon, including products like potato chips, pretzels, cheese snacks, tortilla chips, salsas, and bold-flavored kettle chips [5]

Mondelez International, Inc. (NASDAQ:MDLZ) is included among the 15 Best Wide Moat Dividend Stocks to Invest in. TD Cowen Raises Mondelez (MDLZ) Target While North America Volumes Remain Weak On February 4, TD Cowen lifted its price target on Mondelez International, Inc. (NASDAQ:MDLZ) to $65 from $62 and maintained a Buy rating. The firm noted that management’s early outlook for 2026 came in below consensus, with organic growth projected at 0%–2%. That range reflects the risk that competitors could cut c ...