The Marzetti Company

The Marzetti Co reported a record fiscal year 2026, with record net sales, gross profit, and operating income, despite a 2.2% decline in fourth-quarter net sales to $465 million. Adjusted net sales improved 40 basis points excluding noncore temporary supply agreement sales, and the retail segment grew 0.9% including $15.4 million from Bachan's. Gross profit rose 7.4% to $114 million, with margins expanding 220 basis points reported and 160 basis points adjusted. Operating income grew 48.2% reported and 17.5% adjusted, while diluted EPS increased 49.2% to $1.76. The company generated record operating cash flow of $283.8 million, up 8.5%, and raised its quarterly dividend 5% to $1 per share. However, a Cyclospora outbreak is expected to cause a 250 basis point net sales headwind in fiscal first quarter 2027, with flattish sales and a 15% decline in operating income. Management expects mid-single-digit revenue growth for fiscal 2027, driven by Bachan's and foodservice, with gross margin expansion of 100 basis points.

The Marzetti Company reported record full-year net sales and operating income for fiscal 2026, its fourth consecutive year of top-line growth, and guided to mid-single-digit revenue and bottom-line growth for fiscal 2027. Retail performance was driven by the Bachan's acquisition and Texas Roadhouse dinner rolls, which grew 28.1% in the quarter, while foodservice stability came from partnerships with Chick-fil-A, Domino's, and Taco Bell. Gross margin expanded for a 12th straight quarter, helped by the sale of the Milpitas facility and plant optimizations, and the company recorded an $18.5 million gain from that sale. Management flagged a 250-basis-point net sales headwind in the first quarter of fiscal 2027 from the Cyclospora outbreak, which caused a temporary 30% dip in lettuce sales and an 11-15% drop in dressing volumes in late July, with recovery expected over four months. The Bachan's brand is projected to exceed $100 million in sales in fiscal 2027, supported by new products like Japanese Mayo and a Wing Sauce, while Texas Roadhouse rolls reached $58 million in annual sales with only 2.5% household penetration, suggesting runway toward a $100 million target.

The Motley Fool highlights three consumer goods dividend payers for the second half of 2026. The Marzetti Company, formerly Lancaster Colony, has raised its dividend for 63 straight years and grows by licensing restaurant brands like Texas Roadhouse and Chick-fil-A for retail. Reynolds Consumer Products offers a forward dividend yield above 4%, supported by habitual purchases of Reynolds Wrap and Hefty bags, though aluminum costs and flat revenue pose risks. Energizer Holdings yields over 5%, backed by its battery and auto-care businesses, but carries significant debt and faces input cost pressures; its largest outside shareholder, Aqua Capital, recently added 40,000 shares. The article frames the three as a risk ladder, with Marzetti the safest, Reynolds in the middle, and Energizer the highest risk.