Utz Brands stock rises 9.2% on stronger snack sales
Updated
Updated · MarketWatch · May 6
Utz Brands stock rises 9.2% on stronger snack sales
11 articles · Updated · MarketWatch · May 6
The shares reached $8.40 after first-quarter revenue rose 2.6% to $361.3 million, while adjusted earnings of 15 cents a share beat analysts' 14-cent estimate.
Growth was driven by higher prices and a 5.2% increase in organic net sales for branded salty snacks, including Utz, On The Border, Zapp's and Boulder Canyon.
Utz swung to a net loss of $1.7 million from a $7.5 million profit a year earlier, but reaffirmed full-year sales growth guidance of 2% to 3%; the stock remains down 19% this year.
How can Utz sustain its shareholder dividend with a net loss and an alarming 2,500% payout ratio?
As weight-loss drugs curb snack cravings, can Utz innovate fast enough to avoid being left on the shelf?