Top-Line Growth Delivered in 2025
Utz reported ~2.4% organic sales growth in the most recent year, outperforming a category that was down ~50 basis points (0.5%). Management highlighted positive category inflection in Q4 and into January.
Distribution and Geographic Expansion
Management expects positive distribution gains in 2026, driven by continued expansion into white-space geographies. Expansion geographies represent ~45% of the business and have been growing ~5-8% year-over-year. California expansion begins shelving in coming weeks (management noted current California share ~1.9%).
Innovation Pipeline and New Product Launches
New innovation (protein pretzels/puffs with ~8-10g protein, Boulder Canyon beef tallow and other premium-oil SKUs) are expected to launch beginning in Q2 and be margin-accretive, drive trial and expand household penetration.
Productivity Performance
Management called out strong productivity gains (analysts referenced ~ $40M COGS productivity) that are being used to mitigate inflationary pressure and fund reinvestment and growth initiatives.
Revenue Management and Pricing Capabilities
Company invested in revenue management and price-pack architecture; 2025 included ~1 percentage point of price investment early in the year with improving price toward year-end. Management expects more balanced contributions between price and volume in 2026.
Capital Allocation and Cash Targets
Management reiterated a free cash flow goal of ~$100 million and a plan to deleverage ~0.3–0.4x per year toward a long-term leverage target of 2.5–3.0x.
Confidence in Commercial Plan and Marketing
Management expressed high conviction in the commercial plan for 2026 (geographic growth, distribution, innovation and marketing) and indicated marketing/consumer spend will be up (similar percentage basis to prior year) to support trial and household acquisition.