The Marzetti Company reported record fiscal 2026 results, but a Cyclospora outbreak and a guidance cut threaten to interrupt its streak. Fourth-quarter sales slipped 2.2% to $465.0 million due to a planned supply agreement expiration, while adjusted sales grew. Gross margin expanded 220 basis points to 24.5%, marking the twelfth consecutive quarter of improvement, and adjusted operating income rose 17.5% to $52.2 million. The company expects the outbreak to cut first-quarter net sales by roughly 250 basis points in both retail and foodservice, with operating income down about 15%. CFO Tom Pigott said the company does not expect to grow margins in the first quarter. Marzetti also faces higher SG&A costs from the Bachan's acquisition, a tax rate jump to 23% in fiscal 2027, and 5% commodity inflation. Despite record cash flow of $283.8 million and a 63rd straight dividend increase, hedge funds trimmed positions and short interest stands at 27.07% of the float.
The Marzetti CompanyCyclospora outbreak expected to cut first-quarter net sales by 250 basis points in retail and foodservice.
