The Top 5 Analyst Questions From Utz’s Q1 Earnings Call

Utz’s first quarter faced a negative market reaction, with management attributing the results to shifts in consumer value-seeking behavior and ongoing investments in expansion geographies. CEO Howard Friedman noted that while core volume share held steady, untracked channels such as natural, discount, and club contributed significantly to organic sales growth. The company’s bonus pack program provided a temporary volume lift, particularly in expansion markets, but contributed to lower operating margins and more competitive pricing. Management also highlighted that new product launches, especially within the Boulder Canyon and On The Border brands, continued to gain traction across both tracked and untracked retail channels.

Is now the time to buy UTZ? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Utz’s Q1 Earnings Call

• Andrew Lazar (Barclays) asked about the gap between reported organic sales growth and flat tracked retail sales. CEO Howard Friedman explained the difference stemmed from strong performance in untracked channels and improved distribution throughput.
• Peter Galbo (Bank of America) probed the impact of bonus packs on price and volume mix, with CFO Ajay Kataria confirming that most price investment was tied to the program and only a small portion reflected other pricing actions.
• Michael Lavery (Piper Sandler) questioned the outlook for non-branded and partner brands. CEO Howard Friedman indicated near-term pressure would persist in dips and salsa, while partner brands are expected to decline but become less negative over time.
• Scott Marks (Jefferies) asked about the sustainability of volume share gains as bonus packs wind down. Friedman suggested that future growth will rely more on distribution and innovation rather than continued promotional intensity.
• John Baumgartner (Mizuho) sought clarity on household penetration and the impact of bonus packs on new buyer growth. Friedman noted all-time high penetration rates and emphasized the company’s focus on trial and repeat purchase metrics.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will focus on (1) tracking the pace of distribution gains for Boulder Canyon and On The Border, (2) monitoring the impact of phasing out bonus packs on both volume and margins, and (3) assessing how channel mix shifts affect overall revenue growth. Execution on new product launches and retailer partnerships will also be key areas of observation.

Utz currently trades at $12.69, down from $13.30 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

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