Lancaster Colony reports Q3 EPS $1.49, consensus $1.58

Reports Q3 revenue $457.84M, consensus $483.9M. CEO David Ciesinski commented, “We were pleased to report third quarter records for gross profit and operating income. The 2.9% decline in consolidated net sales includes the unfavorable impacts of the perimeter-of-the-store bakery product lines we exited in March 2024 and the shift of some Retail segment sales into our fiscal fourth quarter due to the later Easter holiday. In addition, we experienced a more challenging consumer environment in our fiscal third quarter as evidenced by reduced traffic in the foodservice channel and some softening demand in the retail channel. Despite the headwinds, our Retail segment’s licensing program remained a source for growth in the quarter as we began shipping Chick-fil-A sauce into the club channel; our Texas Roadhouse dinner rolls continued to perform very well; and the Subway sauces we introduced last March delivered incremental sales. Net sales for our category-leading New York Bakery frozen garlic bread products also improved. In our Foodservice segment, net sales decreased 3.2%, reflective of the industry-wide decline in store traffic and the impact of menu changes as some customers shifted to value offerings. Higher demand from some of our core national chain restaurant accounts helped to support Foodservice segment sales.”