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UTZ Brands (UTZ)
NYSE:UTZ
US Market

UTZ Brands (UTZ) AI Stock Analysis

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UTZ Brands

(NYSE:UTZ)

Rating:49Neutral
Price Target:
$13.50
▲(4.65%Upside)
UTZ Brands has demonstrated revenue growth and strategic initiatives, but faces challenges with profitability, valuation, and cash flow management. While technical indicators show a neutral trend, overvaluation concerns persist. Positive earnings call highlights are tempered by ongoing market challenges.
Positive Factors
Financial Performance
EBITDA grew 4% and margin expanded 30 bps to 12.8%, showing positive financial performance.
Sales Growth
Utz's branded salty snacks business has grown retail sales a robust +3.7% YOY despite a salty snack category that has been down slightly YOY during this period.
Strategic Leadership
The appointment of William J. Kelley Jr. as the new CFO and Principal Accounting Officer is seen as a strategic move, bringing experience from leading companies like Tropicana Brands Group and The Kraft Heinz Company.
Negative Factors
Market Environment
The 8.6% pullback in Utz stock is attributed to market fears of a more promotional environment, although this may be an overreaction.
Pricing Concerns
The greater-than-anticipated impact from negative price/mix in 1Q25 due to the planned use of bonus packs may have sparked some concern, resulting in significant share weakness on the day earnings was reported.
Sales Decline
There will be a headwind related to Non-Branded and Non-Salty Snacks, which saw sales down close to -9% YOY last quarter, resulting in about a -2pt YOY headwind to the total company.

UTZ Brands (UTZ) vs. SPDR S&P 500 ETF (SPY)

UTZ Brands Business Overview & Revenue Model

Company DescriptionUtz Brands, Inc. operates as a snack food manufacturing company. It offers a range of salty snacks, including potato chips, kettle chips, tortilla chips, pretzels, cheese snacks, veggie snacks, pork skins, pub/party mixes, salsa and queso, ready-to-eat popcorn, and other snacks under the Utz, Zapp's, ON THE BORDER, Golden Flake, Good Health, Boulder Canyon, Hawaiian, TGIF, TORTIYAHS!, and other brand names. The company distributes its products to grocery, mass, club, convenience, drug, and other retailers though direct shipments, distributors, and direct store delivery routes. Utz Brands, Inc. was founded in 1921 and is headquartered in Hanover, Pennsylvania.
How the Company Makes MoneyUTZ Brands generates revenue primarily through the sale of its snack products across various distribution channels. The company sells its products through a combination of direct-store delivery, direct-to-warehouse, and third-party distributors, ensuring extensive reach and availability in supermarkets, convenience stores, grocery stores, and other retail outlets. UTZ also leverages e-commerce platforms to reach a broader audience, capitalizing on the growing trend of online grocery shopping. Key revenue streams include the retail sales of its branded snacks, private label offerings, and potential collaborations with other food companies for co-manufacturing or product development. Strategic partnerships, acquisitions, and product innovations also contribute to the company's growth and expansion in the competitive snack food industry.

UTZ Brands Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: -2.49%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
Utz Brands demonstrated solid growth in organic sales and household penetration, driven by strong performance in untracked channels and the Boulder Canyon brand. However, challenges remain with specific product lines and channels, such as Dips & Salsa and convenience stores. The bonus pack program contributed to short-term volume gains but is not sustainable long-term. Overall, while there are positive aspects, there are also notable challenges.
Q1-2025 Updates
Positive Updates
3% Organic Sales Growth
Utz Brands reported a 3% organic sales growth despite flat overall retail sales, driven by significant strength in untracked channels such as natural, discount, and club.
Boulder Canyon Performance
Boulder Canyon has been a tremendous growth driver, gaining distribution in both untracked and traditional channels, with increasing velocity and consumer reception.
Household Penetration Increase
Utz Brands achieved an all-time high household penetration rate of 49%, indicating strong trial and repeat rates among consumers.
Negative Updates
Dips & Salsa Under Pressure
The non-branded Dips & Salsa business is expected to face near-term pressure as it laps the prior year.
Convenience Store Performance
Performance in convenience stores has not returned to growth, affected by overall traffic trends and macroeconomic factors.
Impact of Bonus Packs on Volume Share
The bonus pack program contributed to volume share gains but is winding down, potentially affecting future volume performance.
Company Guidance
During the Utz Brands, Inc. First Quarter 2025 Earnings Call, several metrics and insights were discussed regarding the company's performance and future outlook. The company reported a 3% organic sales growth despite flat overall retail sales, attributing this to strength in untracked channels like natural, discount, and club, as well as improved throughput from the new Rice distribution center. The bonus pack program was highlighted as a significant driver of volume share gains, contributing about 300 basis points to price impacts, with an additional 60 basis points from other pricing investments. Boulder Canyon's expansion into new categories and increased distribution were noted as key growth drivers, with continued distribution gains expected in both core and expansion geographies. The call also addressed the potential for long-term growth through innovation, expanded distribution, and marketing investments, while acknowledging potential near-term challenges in the non-branded segment and convenience stores. Overall, Utz Brands expressed optimism about sustaining their growth trajectory through strategic initiatives and market responsiveness.

UTZ Brands Financial Statement Overview

Summary
UTZ Brands shows solid revenue growth and operational efficiency with a healthy gross margin. However, low net profit margins and negative free cash flow indicate challenges in profitability and cash management.
Income Statement
72
Positive
UTZ Brands demonstrates steady revenue growth with a TTM (Trailing-Twelve-Months) revenue of $1.41 billion, showing a slight increase from the previous year. The gross profit margin remains healthy at 34.9%. However, the net profit margin is relatively low at 1.7%, indicating limited profitability after expenses. The EBIT and EBITDA margins at 3.9% and 9.2% respectively suggest moderate operational efficiency.
Balance Sheet
60
Neutral
The debt-to-equity ratio has improved significantly, dropping to 0.05 in the TTM period, which indicates reduced financial leverage. Return on Equity (ROE) at 3.2% shows low profitability relative to shareholder equity. The equity ratio is solid at 26.1%, reflecting a stable capital structure with a significant portion of assets financed by equity.
Cash Flow
55
Neutral
The company’s free cash flow has turned negative in the TTM period, signaling potential issues in maintaining cash reserves after capital expenses. The operating cash flow to net income ratio of 4.41 indicates strong cash generation relative to net income, yet the free cash flow to net income ratio is negative, highlighting cash outflows exceeding inflows.
BreakdownTTMDec 2024Dec 2023Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.41B1.41B1.44B1.41B1.18B768.23M
Gross Profit493.43M494.78M456.49M449.06M383.91M253.80M
EBITDA157.72M182.12M99.25M91.33M127.67M-16.07M
Net Income27.47M15.97M-24.94M-392.00K20.55M-16.17M
Balance Sheet
Total Assets2.78B2.73B2.75B2.84B2.72B2.58B
Cash, Cash Equivalents and Short-Term Investments62.75M56.14M52.02M72.93M41.90M46.83M
Total Debt1.03B940.82M985.34M944.74M876.63M812.05M
Total Liabilities1.40B1.34B1.36B1.39B1.28B1.06B
Stockholders Equity725.60M702.45M669.50M703.15M679.71M602.26M
Cash Flow
Free Cash Flow-53.27M7.53M20.92M-39.77M14.89M8.00M
Operating Cash Flow103.91M106.17M76.64M48.19M48.39M27.99M
Investing Cash Flow-123.78M74.96M-48.49M-76.07M-136.10M-115.88M
Financing Cash Flow44.52M-177.01M-49.05M58.91M82.78M96.03M

UTZ Brands Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price12.90
Price Trends
50DMA
12.87
Positive
100DMA
13.22
Negative
200DMA
14.58
Negative
Market Momentum
MACD
-0.02
Positive
RSI
50.40
Neutral
STOCH
66.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UTZ, the sentiment is Neutral. The current price of 12.9 is below the 20-day moving average (MA) of 13.08, above the 50-day MA of 12.87, and below the 200-day MA of 14.58, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 50.40 is Neutral, neither overbought nor oversold. The STOCH value of 66.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UTZ.

UTZ Brands Risk Analysis

UTZ Brands disclosed 39 risk factors in its most recent earnings report. UTZ Brands reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

UTZ Brands Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$777.37M13.9816.58%12.71%7.40%-14.93%
67
Neutral
$2.62B11.288.59%3.93%-0.24%26.74%
64
Neutral
kr25.15B13.88159.06%3.76%8.53%-14.21%
58
Neutral
$2.26B29.898.20%2.64%0.49%-12.32%
THTHS
50
Neutral
$1.04B159.580.43%-3.37%-65.26%
UTUTZ
49
Neutral
$1.82B40.393.93%1.85%-1.29%
BGBGS
44
Neutral
$331.96M-32.48%18.27%-7.06%-83.82%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UTZ
UTZ Brands
12.90
-1.80
-12.24%
BGS
B&G Foods
4.22
-2.62
-38.30%
JJSF
J & J Snack Foods
117.28
-46.23
-28.27%
JBSS
John B Sanfilippo & Son
66.36
-24.76
-27.17%
THS
TreeHouse Foods
21.00
-15.15
-41.91%
NOMD
Nomad Foods
17.21
1.45
9.20%

UTZ Brands Corporate Events

Financial Disclosures
Utz Brands Reports Strong Q1 2025 Financial Results
Positive
May 1, 2025

On May 1, 2025, Utz Brands reported its first quarter 2025 financial results, showing a 1.6% increase in net sales to $352.1 million and a significant 137.5% rise in net income to $5.7 million compared to the previous year. The company achieved a 2.9% growth in organic net sales, with branded salty snacks seeing a 4.9% increase. Despite a decline in gross profit margin, adjusted gross profit margin expanded by 100bps, driven by productivity savings. Utz reaffirmed its full-year 2025 outlook, expecting continued growth in branded salty snacks and adjusted EBITDA, while anticipating modest impact from tariff volatility due to domestic sourcing of input costs.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Utz Brands Appoints New CFO Ahead of May 2025
Positive
Apr 17, 2025

Utz Brands announced the appointment of William J. Kelley Jr. as the new Chief Financial Officer, effective May 1, 2025, succeeding Ajay Kataria. Additionally, Mark Schreiber, the Chief Customer Officer, will retire, and Jeremy Stuart will take over the role. The company reaffirmed its fiscal year 2025 outlook and announced preliminary first-quarter results, expecting a slight increase in net sales and net income. Utz continues to focus on growth through its branded salty snacks and aims for improved financial performance, including adjusted EBITDA growth and expanded profit margins.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 08, 2025