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Investing.com -- Lancaster Colony Corporation (NASDAQ:LANC) reported third-quarter earnings that fell short of analyst expectations, sending shares down 2% in early trading Thursday.
The food products company posted adjusted earnings per share of $1.49 for the quarter ended March 31, missing the consensus estimate of $1.58. Revenue came in at $457.8 million, below analyst projections of $483.95 million and down 2.9% YoY.
Lancaster Colony’s retail segment sales decreased 2.6% to $241.5 million, partly due to the company’s exit from perimeter-of-store bakery products in March 2024. Excluding those product lines, retail sales dipped 0.7%. Foodservice segment revenue fell 3.2% to $216.3 million amid reduced restaurant traffic.
Despite the top and bottom line misses, the company reported record third-quarter gross profit of $106 million, up $1.5 million YoY. Operating income rose $14.7 million to a Q3 record of $49.9 million.
CEO David A. Ciesinski commented, "We were pleased to report third quarter records for gross profit and operating income. 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."
Looking ahead, Lancaster Colony expects "some ongoing challenges with the consumer environment" but sees opportunities for growth through innovation and expanded distribution in its retail business.
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