Overview

* Marzetti ( MZTI ) Q1 revenue grows 5.8% yr/yr, beating analyst expectations

* Adjusted operating income for Q1 rises 8.1%, reflecting higher gross profit

* Restructuring charges related to facility closure reduced Q1 net income

Outlook

* Marzetti ( MZTI ) anticipates Retail sales growth from licensing program and proprietary brands

* Foodservice sales expected to be supported by quick-service restaurant demand

Result Drivers

* RETAIL SEGMENT - Sales growth driven by New York Bakery frozen garlic bread and licensing programs

* FOODSERVICE SEGMENT - Higher demand from national chain restaurant accounts and inflationary pricing drove sales growth

* COST SAVINGS - Adjusted gross margin improved due to ongoing cost savings programs and higher sales volumes

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Sales Beat $493.47 $474.11

mln mln (6

Analysts

)

Q1 EPS $1.71

Q1 Net $47.18

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the food processing peer group is "buy."

* Wall Street's median 12-month price target for Marzetti Co ( MZTI ) is $190.00, about 16.7% above its November 3 closing price of $158.24

* The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)