BRIDGFORD FOODS CORP
For the period ended Jul 10, 2026. Filed Aug 24, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jul 10, 2026 · Filed Aug 24, 2026
BRID$5.41+2.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-04-17; filed 2026-06-01.
0001493152-26-026675
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-07-10; filed 2026-08-24.
0001493152-26-039892
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 101 previous paragraphs and 102 current paragraphs.
55 unchanged; 39 reworded; 7 added; 7 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 21 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Net sales in the Frozen Food Products segment decreased by $850 (8.0%) to $9,942 in the third twelve-week period of the 2026 fiscal year compared to the same twelve-week period in fiscal year 2025. The changes in net sales were comprised as follows:
Current report
Net sales in the Snack Food Products segment decreased by $4,089 (9.9%) to $37,073 in the third twelve-week period of the 2026 fiscal year compared to the same twelve-week period in fiscal year 2025. The changes in net sales were comprised as follows:
Current report
Net sales decreased by $2,767 (1.8%) to $152,371 in the thirty-six-week period of the 2026 fiscal year compared to the same thirty-six-week period in fiscal year 2025. The changes in net sales were comprised as follows:
Current report
Net sales in the Frozen Food Products segment decreased by $1,232 (3.2%) to $37,402 in the thirty-six-week period of the 2026 fiscal year compared to the same thirty-six-week period in fiscal year 2025. The changes in net sales were comprised as follows:
Current report
Net sales in the Snack Food Products segment decreased by $1,535 (1.34%) to $114,969 in the thirty-six-week period of the 2026 fiscal year compared to the same thirty-six-week period in fiscal year 2025. The changes in net sales were comprised as follows:
Current report
Cost of products sold in the Snack Food Products segment decreased by $881 (1.0%) to $90,724 in the thirty-six-week period of the 2026 fiscal year compared to the same thirty-six-week period in fiscal year 2025 due to a reduction in unit sales volume in pounds. The cost of meat commodities increased by approximately $7,887 due to a strategic buildup of inventory to take advantage of favorable pricing and sustained increases in price compared to the same period in fiscal year 2025. The gross margin decreased slightly to 21.1% in the thirty-six-weeks of fiscal year 2026 compared to 21.4% in the same thirty-six-week period in fiscal year 2025.
Current report
SG&A expenses in the Snack Food Products segment increased by $18 (0.1%) to $34,423 in the thirty-six-week period of fiscal year 2026 compared to the same thirty-six-week period in the prior fiscal year. Most of the decrease was due to lower wages and bonuses, storage units and travel expenses due to the ongoing reorganization of our direct-store delivery-system partially offset by high outside consultant fee and vehicle repairs.
Removed paragraphs (7)
Previous report
Net sales in the Frozen Food Products segment decreased by $208 (1.2%) to $13,105 in the second twelve-week period of the 2026 fiscal year compared to the same twelve-week period in fiscal year 2025. The changes in net sales were comprised as follows:
Previous report
Net sales in the Snack Food Products segment decreased by $387 (1.0%) to $36,939 in the second twelve-week period of the 2026 fiscal year compared to the same twelve-week period in fiscal year 2025. The changes in net sales were comprised as follows:
Previous report
SG&A expenses in the Snack Food Products segment increased by $321 (2.9%) to $11,406 in the second twelve-week period of fiscal year 2026 compared to the same twelve-week period in the prior fiscal year. Most of the increase was due to higher healthcare costs, insurance costs and outside consultants, partially offset by decreased storage units.
Previous report
Net sales increased by $2,172 (2.1%) to $105,356 in the twenty-four-week period of the 2026 fiscal year compared to the same twenty-four-week period in fiscal year 2025. The changes in net sales were comprised as follows:
Previous report
Net sales in the Frozen Food Products segment decreased by $382 (1.4%) to $27,460 in the twenty-four-week period of the 2026 fiscal year compared to the same twenty-four-week period in fiscal year 2025. The changes in net sales were comprised as follows:
Previous report
Net sales in the Snack Food Products segment increased by $2,554 (3.4%) to $77,896 in the twenty-four-week period of the 2026 fiscal year compared to the same twenty-four-week period in fiscal year 2025. The changes in net sales were comprised as follows:
Previous report
Cost of products sold in the Snack Food Products segment increased by $3,563 (6.1%) to $62,337 in the twenty-four-week period of the 2026 fiscal year compared to the same twenty-four-week period in fiscal year 2025 due to higher meat commodity costs. The cost of meat commodities increased by approximately $5,405 due to a limited supply of cattle ready for market and other unfavorable market conditions (including inflation and tariffs) in the twenty-four-week period of fiscal year 2026 compared to the same period in fiscal year 2025. The gross margin decreased slightly to 20.0% in the twenty-four-weeks of fiscal year 2026 compared to 22.0% in the same twenty-four-week period in fiscal year 2025. We maintain a net realizable reserve of $440 on products as of April 17, 2026, after determining that the market value on some meat products could not cover the costs associated with completion and sale of the product.
Reworded paragraphs (39)
Previous wording
Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause our actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions; macroeconomic conditions, including global financial pressures, inflation, market volatility, and recessionary concerns; fluctuations in commodity costs, including as a result of political and economic conditions and current or prospective tariffs; success of operating initiatives; development and operating costs; trends impacting the purchasing behavior of our customers and consumers; advertising and promotional efforts; adverse publicity; acceptance of new product offerings; consumer trial and frequency; changes in business strategy or development plans; availability, terms and deployment of capital; availability of qualified personnel; commodity, labor, and employee benefit costs; changes in, or failure to comply with, government regulations; weather conditions, including the effects of climate change and changes in the regulatory environment and consumer demand to mitigate these effects; construction schedules; supply chain, consumer demand, and cost of products sold; the impact of competitive products and pricing, and other factors referenced in this Report as well as in our other filings with the Securities and Exchange Commission (the “SEC”). In addition, actual results may differ as a result of additional risks and uncertainties of which we are currently unaware of or which we do not currently view as material to our business.
Current wording
Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause our actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions; macroeconomic conditions, including global financial pressures, inflation, market volatility, and recessionary concerns; fluctuations in commodity costs, including as a result of political and economic conditions and current or prospective tariffs; success of operating initiatives; development and operating costs; trends impacting the purchasing behavior of our customers and consumers; advertising and promotional efforts; adverse publicity; acceptance of new product offerings; consumer trial and frequency; changes in business strategy or development plans; availability, terms and deployment of capital; availability of qualified personnel; commodity, labor, and employee benefit costs; changes in, or failure to comply with, government regulations; weather conditions, including the effects of climate change and changes in the regulatory environment and consumer demand to mitigate these effects; construction schedules; supply chain, consumer demand, and cost of products sold; the impact of competitive products and pricing, and other factors referenced in this Report as well as in our other filings with the Securities and Exchange Commission (the “SEC”). In addition, actual results may differ as a result of additional risks and uncertainties which we are currently unaware of or which we do not currently view as material to our business.
Previous wording
Current accounting principles require that our pension benefit obligation be measured using an internal rate of return (“IRR”) analysis to be included in the discount rate selection process. The IRR calculation for the Retirement Plan for Employees of Bridgford Foods Corporation is measured annually and based on the Citigroup Pension Discount Rate. The Citigroup Pension Discount Rate as of April 30, 2026, was 5.79% as compared to 5.16% as of October 31, 2025. The discount rate applied can significantly affect the value of the projected benefit obligation as well as the net periodic benefit cost.
Current wording
Current accounting principles require that our pension benefit obligation be measured using an internal rate of return (“IRR”) analysis to be included in the discount rate selection process. The IRR calculation for the Retirement Plan for Employees of Bridgford Foods Corporation is measured annually and based on the Citigroup Pension Discount Rate. The Citigroup Pension Discount Rate as of July 31, 2026, was 6.14% as compared to 5.16% as of October 31, 2025. The discount rate applied can significantly affect the value of the projected benefit obligation as well as the net periodic benefit cost.
Previous wording
We record the cash surrender value or contract value for life insurance policies as an adjustment of premiums paid in determining the expense or income to be recognized under the contract for the period. The cash surrender value is included in other non-current assets in the accompanying Consolidated Balance Sheets. Expected proceeds from life insurance are recorded under prepaid expenses and other current assets. Pension income from overfunded pension plans arises when plan assets exceed the projected pension obligation and are also recorded under other non-current assets.
Current wording
We record the cash surrender value or contract value for life insurance policies as an adjustment of premiums paid in determining the expense or income to be recognized under the contract for the period. The cash surrender value is included in other non-current assets in the accompanying Condensed Consolidated Balance Sheets. Expected proceeds from life insurance are recorded under prepaid expenses and other current assets. Pension income from overfunded pension plans arises when plan assets exceed the projected pension obligation and are also recorded under other non-current assets.
Previous wording
The table below shows customers that accounted for more than 20% of consolidated AR or 10% of consolidated sales for the twenty-four weeks ended April 17, 2026, and April 18, 2025, respectively.
Current wording
The table below shows customers that accounted for more than 20% of consolidated AR or 10% of consolidated sales for the thirty-six weeks ended July 10, 2026, and July 11, 2025.
Previous wording
The table below shows customers that accounted for more than 20% of consolidated AR or 10% of consolidated sales for the twelve weeks ended April 17, 2026, and April 18, 2025, respectively.
Current wording
The table below shows customers that accounted for more than 20% of consolidated AR or 10% of consolidated sales for the twelve weeks ended July 10, 2026, and July 11, 2025.
Previous wording
Our Snack Food Products segment primarily distributes products manufactured in-house. All items within this segment are considered similar products and have been aggregated at this level. The dry sausage division includes products such as jerky, meat snacks, salami, sausage, and pepperoni products. During the second quarter of fiscal year 2026, our Snack Food Products segment sold approximately 180 different items through customer-owned distribution centers and a direct-store-delivery network serving approximately 19,000 supermarkets, mass merchandise and convenience retail stores located in all 50 states.
Current wording
Our Snack Food Products segment primarily distributes products manufactured in-house. All items within this segment are considered similar products and have been aggregated at this level. The dry sausage division includes products such as jerky, meat snacks, salami, sausage, and pepperoni products. During the third quarter of fiscal year 2026, our Snack Food Products segment sold approximately 180 different items through customer-owned distribution centers and a direct-store-delivery network serving approximately 19,000 supermarkets, mass merchandise and convenience retail stores located in all 50 states.
Previous wording
Net sales decreased by $595 (1.3%) to $50,044 in the second twelve-week period of the 2026 fiscal year compared to the same twelve-week period in fiscal year 2025. The changes in net sales were comprised as follows:
Current wording
Net sales decreased by $4,939 (9.5%) to $47,015 in the third twelve-week period of the 2026 fiscal year compared to the same twelve-week period in fiscal year 2025. The changes in net sales were comprised as follows:
Previous wording
The decrease in net sales for the twelve-week period ended April 17, 2026, primarily relates to lower selling prices per pound due to changes in product mix partially offset by an increase in sales volume in pounds. Returns activity was lower compared to the same twelve-week period in the 2025 fiscal year. Promotional activity was lower in absolute dollars and higher as a percentage of sales.
Current wording
The decrease in net sales for the twelve-week period ended July 10, 2026 primarily relates to lower unit sales volume in pounds, partially offset by higher selling prices per pound. The decrease in sales volume was due a to single customer’s non-recurring order from the prior year. Returns activity was similar compared to the same twelve-week period in the 2025 fiscal year. Promotional activity was higher in absolute dollars and as a percentage of sales.
Previous wording
Net sales of snack food products increased due to higher selling prices per pound despite lower unit sales volume in pounds during the second quarter of fiscal year 2026. Price increases implemented during the prior fiscal year have been partially successful in combatting the margin reductions we saw from unprecedented commodity price increases during the preceding twenty-four months. Returns activity increased compared to the same twelve-week period in the 2025 fiscal year due to non-recurring shifts in product mix. As we transition to higher margin items returns for lower margin items were temporarily elevated to accommodate the product change. Promotional activity was also lower in both absolute dollars and as a percentage of sales compared to the same twenty-four-week period in fiscal year 2025.
Current wording
Net sales of snack food products decreased due to lower unit sales volume in pounds because of higher selling prices per pound during the third quarter of fiscal year 2026. Price increases implemented during the prior fiscal year have been partially successful in combatting the margin reductions we saw from unprecedented commodity price increases during the preceding twenty-four months. Returns activity increased compared to the same twelve-week period in the 2025 fiscal year. Promotional activity increased as a percentage of sales and absolute dollars compared to the same twelve-week period in fiscal year 2025.
Previous wording
Cost of products sold from continuing operations increased on a consolidated basis by $1,695 (4.3%) to $41,263 in the second twelve-week period of the 2026 fiscal year compared to the same twelve-week period in fiscal year 2025. The gross margin decreased to 17.5% in the second twelve-weeks of fiscal year 2026 compared to 21.9% in the same twelve-week period in fiscal year 2025.
Current wording
Cost of products sold from continuing operations decreased on a consolidated basis by $5,172 (12.5%) to $36,153 in the third twelve-week period of the 2026 fiscal year compared to the same twelve-week period in fiscal year 2025. The gross margin increased to 23.1% in the third twelve-week period of fiscal year 2026 compared to 20.5% in the same twelve-week period in fiscal year 2025.
Previous wording
Cost of products sold in the Frozen Food Products segment increased by $334 (3.4%) to $10,204 in the second twelve-week period of the 2026 fiscal year compared to the same twelve-week period in fiscal year 2025. The cost of purchased flour decreased by approximately $93 based on global economic conditions in the second twelve-week period of fiscal year 2026 compared to the same twelve-week period in fiscal year 2025. The gross margin decreased to 22.1% in the second twelve-weeks of fiscal year 2026 compared to 25.9% in the same twelve-week period in fiscal year 2025 due to higher gross overhead. Gross overhead increased as a result of higher healthcare expenses, and repairs and maintenance on buildings and processing equipment.
Current wording
Cost of products sold in the Frozen Food Products segment decreased by $728 (8.6%) to $7,766 in the third twelve-week period of the 2026 fiscal year compared to the same twelve-week period in fiscal year 2025. The cost of purchased flour decreased by approximately $48 based on global economic conditions in the third twelve-week period of fiscal year 2026 compared to the same twelve-week period in fiscal year 2025. The gross margin increased to 21.9% in the third twelve-week period of fiscal year 2026 compared to 21.3% in the same twelve-week period in fiscal year 2025 due to lower commodity costs and reduced gross overhead. Gross overhead decreased as a result of lower insurance costs and lower wage and bonus expenses.
Previous wording
Cost of products sold in the Snack Food Products segment increased by $1,361 (4.6%) to $31,059 in the second twelve-week period of the 2026 fiscal year compared to the same twelve-week period in fiscal year 2025 due to higher meat commodity costs. The cost of meat commodities increased by approximately $2,306 due to a limited supply of cattle ready for market and other unfavorable market conditions (including inflation and tariffs) in the second twelve-week period of fiscal year 2026 compared to the same period in fiscal year 2025. The gross margin decreased to 15.9% in the second twelve-weeks of fiscal year 2026 compared to 20.4% in the same twelve-week period in fiscal year 2025. We maintain a net realizable reserve of $440 on products as of April 17, 2026, after determining that the market value on some meat products could not cover the costs associated with completion and sale of the product.
Current wording
Cost of products sold in the Snack Food Products segment decreased by $4,444 (13.5%) to $28,387 in the third twelve-week period of the 2026 fiscal year compared to the same twelve-week period in fiscal year 2025. The cost of meat commodities increased by approximately $2,482 due to a limited supply of cattle ready for market and other unfavorable market conditions (including inflation and tariffs) in the third twelve-week period of fiscal year 2026 compared to the same period in fiscal year 2025. The gross margin increased to 23.4% in the third twelve-week period of fiscal year 2026 compared to 20.2% in the same twelve-week period in fiscal year 2025. Gross margin increases were driven by higher selling prices per pound despite a continuation of elevating commodity prices.
Previous wording
Selling, general and administrative expenses (“SG&A”) increased by $364 (2.5%) to $14,650 in the second twelve-week period of fiscal year 2026 compared to the same twelve-week period in the prior fiscal year. The table below summarizes the significant expense increases (decreases) included in this category:
Current wording
Selling, general and administrative expenses (“SG&A”) decreased by $414 (2.8%) to $14,194 in the third twelve-week period of fiscal year 2026 compared to the same twelve-week period in the prior fiscal year. The table below summarizes the significant expense increases (decreases) included in this category:
Previous wording
Repairs and maintenance have increased due to a large spiral freezer repair in the Frozen Food Products segment. Insurance costs have increased due to market pressure from insurance companies. Outside consulting costs have increased due to higher advisory services including cost analysis and reduction assistance. Storage unit costs have decreased due to a reorganization of our direct store delivery system. Healthcare costs have increased due to higher health insurance claims and premiums. None of the changes individually or as a group of expenses in “Other SG&A” were significant enough to merit separate disclosure. The major components comprising the decrease of “Other SG&A” were lower wage and bonus expenses and reduced travel expenses partially offset by higher product advertising and fleet expenses.
Current wording
Insurance costs have decreased due to lower property insurance premiums and decreased claims activity. Wages and bonus expenses are down after a reduction in headcount resulting from a reorganization of the direct-store delivery route system. Provision for credit losses on accounts receivable increased due to a non-recurring reversal of a credit reserve in the prior year. None of the changes individually or as a group of expenses in “Other SG&A” were significant enough to merit separate disclosure. The major components comprising the decrease of “Other SG&A” were lower pension benefits, product advertising, and storage fees, partially offset by higher fuels costs and outside consultant fees.
Previous wording
SG&A expenses in the Frozen Food Products segment increased by $43 (1.3%) to $3,244 in the second twelve-week period of fiscal year 2026 compared to the same twelve-week period in the prior fiscal year. The overall increase in SG&A expenses was due to an increase in healthcare costs, insurance costs, higher repair and maintenance costs and depreciation expenses.
Current wording
SG&A expenses in the Frozen Food Products segment decreased by $47 (1.7%) to $2,784 in the third twelve-week period of fiscal year 2026 compared to the same twelve-week period in the prior fiscal year. The overall decrease in SG&A expenses was due to a decrease in insurance and depreciation costs, lower fleet expenses and reduced promotional activities.
Previous wording
SG&A expenses in the Snack Food Products segment increased by $387 (1.7%) to $23,014 in the twenty-four-week period of fiscal year 2026 compared to the same twenty-four-week period in the prior fiscal year. Most of the increase was due to higher vehicle repair costs, insurance premiums and outside consultants, partially offset by decreased provisions for credit losses on accounts receivable.
Current wording
SG&A expenses in the Snack Food Products segment decreased by $367 (3.5%) to $11,410 in the third twelve-week period of fiscal year 2026 compared to the same twelve-week period in the prior fiscal year. Most of the decrease was due to lower insurance premiums and claims, reduced freight charges and decreased storage unit rents.
Previous wording
We recorded a benefit on income taxes of $1,190 for the twelve-week period ended April 17, 2026, and a benefit on income taxes of $915 for the twelve-week period ended April 18, 2025, related to federal and state taxes, based on the Company’s expected annual effective tax rate. The effective income tax rate differed from the applicable mixed statutory rate of approximately 26.4% due to non-deductible meals and entertainment, non-taxable gains and losses on life insurance policies, and state income taxes.
Current wording
We recorded a benefit on income taxes of $746 for the twelve-week period ended July 10, 2026, and a benefit on income taxes of $915 for the twelve-week period ended July 11, 2025, related to federal and state taxes, based on the Company’s expected annual effective tax rate. The effective income tax rate differed from the applicable mixed statutory rate of approximately 26.4% due to non-deductible meals and entertainment, non-taxable gains and losses on life insurance policies, and state income taxes.
Previous wording
Results of Operations for the Twenty-four Weeks Ended April 17, 2026, and April 18, 2025
Current wording
Results of Operations for the Thirty-six Weeks Ended July 10, 2026, and July 11, 2025
Previous wording
The decrease in net sales for the twenty-four-week period ended April 17, 2026, primarily relates to a lower selling price per pound due to changes in product mix and to a lesser extent, a lower unit volume. Returns activity decreased compared to the same twenty-four-week period in the 2025 fiscal year. Promotional activity was both lower in absolute dollars and as a percentage of sales.
Current wording
The decrease in net sales for the thirty-six-week period ended July 10, 2026 primarily relates to lower unit sales by volume in pounds partially offset by a higher selling price per pound. The decrease in sales volume was due to a single customer’s non-recurring order from the prior year. Returns activity decreased compared to the same thirty-six-week period in the 2025 fiscal year. Promotional activity was lower in absolute dollars and higher as a percentage of sales.
Previous wording
Net sales of snack food products decreased due to lower unit sales volume in pounds despite higher selling prices per pound during the second quarter of fiscal year 2026. Price increases implemented during the prior fiscal year have been partially successful in combatting the margin reductions we saw from unprecedented commodity price increases during the preceding twenty-four months. Returns activity increased compared to the same twelve-week period in the 2025 fiscal year due to non-recurring shifts in product mix. As we transition to higher margin items returns for lower margin items were temporarily elevated to accommodate the product change. Promotional activity decreased as a percentage of sales but increased in absolute dollars compared to the same twelve-week period in fiscal year 2025.
Current wording
Net sales of snack food products decreased due to lower unit sales volume in pounds offset by higher selling prices per pound during the third quarter of fiscal year 2026. Price increases implemented during the prior fiscal year have been partially successful in combatting the margin reductions we saw from unprecedented commodity price increases during the preceding twenty-four months. Returns activity increased compared to the same thirty-six-week period in the 2025 fiscal year due to non-recurring shifts in product mix. As we transition to higher margin items returns for lower margin items were temporarily elevated to accommodate the product change. Promotional activity was similar but slightly higher in both absolute dollars and as a percentage of sales compared to the same thirty-six-week period in fiscal year 2025.
Previous wording
Cost of products sold from continuing operations increased on a consolidated basis by $3,978 (5.0%) to $83,206 in the twenty-four-week period of the 2026 fiscal year compared to the same twenty-four-week period in fiscal year 2025. The gross margin decreased to 21.0% in the twenty-four-weeks of fiscal year 2026 compared to 23.2% in the same twenty-four-week period in fiscal year 2025.
Current wording
Cost of products sold from continuing operations decreased on a consolidated basis by $1,194 (1.0%) to $119,359 in the thirty-six-week period of the 2026 fiscal year compared to the same thirty-six-week period in fiscal year 2025. The gross margin decreased to 21.7% in the thirty-six-weeks of fiscal year 2026 compared to 22.3% in the same thirty-six-week period in fiscal year 2025.
Previous wording
Cost of products sold in the Frozen Food Products segment increased by $415 (2.0%) to $20,869 in the twenty-four-week period of the 2026 fiscal year compared to the same twenty-four-week period in fiscal year 2025. The cost of purchased flour decreased by approximately $181 based on global economic conditions in the twenty-four-week period of fiscal year 2026 compared to the same twenty-four-week period in fiscal year 2025. The gross margin decreased to 24.0% in the twenty-four-weeks of fiscal year 2026 compared to 26.5% in the same twenty-four-week period in fiscal year 2025 due to higher gross overhead. Gross overhead increased as a result of higher healthcare expenses, temporary labor costs and repairs and maintenance on buildings and processing equipment.
Current wording
Cost of products sold in the Frozen Food Products segment decreased by $313 (1.1%) to $28,635 in the thirty-six-week period of the 2026 fiscal year compared to the same thirty-six-week period in fiscal year 2025. The cost of purchased flour decreased by approximately $229 based on global economic conditions in the thirty-six-week period of fiscal year 2026 compared to the same thirty-six-week period in fiscal year 2025. The gross margin decreased to 23.4% in the thirty-six-weeks of fiscal year 2026 compared to 25.1% in the same thirty-six-week period in fiscal year 2025 due to similar overhead costs on lower gross sales.
Previous wording
Selling, general and administrative expenses (“SG&A”) increased by $68 (0.2%) to $29,266 in the twenty-four-week period of fiscal year 2026 compared to the same twenty-four-week period in the prior fiscal year. The table below summarizes the significant expense increases (decreases) included in this category:
Current wording
Selling, general and administrative expenses (“SG&A”) decreased by $347 (4.1%) to $43,459 in the thirty-six-week period of fiscal year 2026 compared to the same thirty-six-week period in the prior fiscal year. The table below summarizes the significant expense increases (decreases) included in this category:
Previous wording
The provision for credit losses on accounts receivable was lower for the twenty-four weeks ended April 17, 2026 as the comparative period ended April 18, 2025 had credit losses related to the bankruptcy filing of one of our customers, in the amount of $364, which did not recur. Outside consulting costs have increased due to higher advisory services including cost analysis and reduction assistance. Vehicle repairs increased due to maintenance costs for direct store delivery vehicles. Insurance costs increased due to higher annual premiums. Healthcare costs increased as a result of higher premiums and increased claims activity. Wages and bonuses, storage units and travel expenses all decreased due to the ongoing reorganization of our direct store delivery system. None of the changes individually or as a group of expenses in “Other SG&A” were significant enough to merit separate disclosure. The major components comprising the decrease of “Other SG&A” were lower office equipment expenses, decreased legal fees and recovery of sales taxes.
Current wording
Outside consulting costs have increased due to higher advisory services including cost analysis and reduction assistance. Wages and bonuses, storage units and travel expenses all decreased due to the ongoing reorganization of our direct-store delivery system. Vehicle repairs increased due to maintenance costs for direct-store delivery vehicles. The provision for credit losses on accounts receivable was lower for the thirty-six weeks ended July 10, 2026, as compared to the same prior year period ended July 11, 2025. The decrease was caused by a bankruptcy filing of one of our customers, in the amount of $364 in the prior year, which did not recur. Insurance costs increased due to higher annual premiums. Healthcare costs increased as a result of higher premiums and increased claims activity. Pension benefits decreased due to investment returns. None of the changes individually or as a group of expenses in “Other SG&A” were significant enough to merit separate disclosure. The major components comprising the decrease of “Other SG&A” were postage/shipping expense and non-deductible penalties.
Previous wording
SG&A expenses in the Frozen Food Products segment decreased by $319 (4.9%) to $6,252 in the twenty-four-week period of fiscal year 2026 compared to the same twenty-four-week period in the prior fiscal year. The overall decrease in SG&A expenses was mostly due to a decrease in product advertising, including broker commission.
Current wording
SG&A expenses in the Frozen Food Products segment decreased by $365 (3.9%) to $9,036 in the thirty-six-week period of fiscal year 2026 compared to the same thirty-six-week period in the prior fiscal year. The overall decrease in SG&A expenses was mostly due to a decrease in travel expense and product advertising, including broker commission.
Previous wording
Income tax for the twenty-four weeks ended April 17, 2026, and April 18, 2025, was as follows:
Current wording
Income tax for the thirty-six weeks ended July 10, 2026, and July 11, 2025, was as follows:
Previous wording
We recorded a benefit on income taxes of $1,435 for the twenty-four-week period ended April 17, 2026, and a benefit on income taxes of $1,368 for the twenty-four-week period ended April 18, 2025, related to federal and state taxes, based on the Company’s expected annual effective tax rate. The effective income tax rate differed from the applicable mixed statutory rate of approximately 26.4% due to non-deductible meals and entertainment, non-taxable gains and losses on life insurance policies, and state income taxes.
Current wording
We recorded a benefit on income taxes of $2,180 for the thirty-six-week period ended July 10, 2026, and a benefit on income taxes of $2,283 for the thirty-six-week period ended July 11, 2025, related to federal and state taxes, based on the Company’s expected annual effective tax rate. The effective income tax rate differed from the applicable mixed statutory rate of approximately 26.4% due to non-deductible meals and entertainment, non-taxable gains and losses on life insurance policies, and state income taxes.
Previous wording
The principal source of operating cash flows is cash receipts from the sale of our products, net of costs to manufacture, store, market and deliver such products. We evaluate cash and cash equivalents against our borrowing capacity and short-term and long-term investments. We normally fund our operations from cash balances and cash flow generated from operations. Recent losses may necessitate short-term or long-term borrowing to fund inventory purchases to meet customer orders. We are focused on restoring profitability to the Company by driving top-line revenue growth and reducing costs. In line with this focus, the Company has begun production of customer products under private-label arrangements with the goal of increasing product sales volume. Market data indicates that due to higher inflation and rising costs for basic needs, consumers are increasingly turning to private-label products to reduce their expenses. We are reorganizing our direct-store-delivery route system in response to lower sales volume through that distribution channel, including reducing the number of routes, storage units and vehicles while maintaining superior service to our customers. We are also seeking bids for production materials to drive increased competition among our vendors while maintaining quality inputs at the best possible price.
Current wording
The principal source of operating cash flows is cash receipts from the sale of our products, net of costs to manufacture, store, market and deliver such products. We evaluate cash and cash equivalents against our borrowing capacity and short-term and long-term investments. We normally fund our operations from cash balances and cash flow generated from operations. Recent losses may necessitate short-term or long-term borrowing to fund inventory purchases to meet customer orders. We are focused on restoring profitability to the Company by driving top-line revenue growth and reducing costs. In line with this focus, the Company has expanded production of customer products under private-label arrangements with the goal of increasing product sales volume. Market data indicates that due to higher inflation and rising costs for basic needs, consumers are increasingly turning to private-label products to reduce their expenses. We reorganized our direct-store-delivery route system in response to lower sales volume through that distribution channel, including reducing the number of routes, storage units and vehicles while maintaining superior service to our customers. We are also seeking bids for production materials to drive increased competition among our vendors while maintaining quality inputs at the best possible price.
Previous wording
We have implemented multiple price increases on our products to help offset some of the higher costs for meat commodities and other expenses, and we are focused on reducing selling, general and administrative expenses. Certain factors including but not limited to increased commodity costs, tariffs, the willingness of customers to accept price increases and inflation of input costs, to name a few, may cause future outcomes to differ materially from those foreseen in forward-looking statements. As of April 17, 2026, we had $1,960 of current debt on equipment loans, $37,423 of net working capital and $4,250 available under our revolving credit facility with Wells Fargo described below.
Current wording
We have implemented multiple price increases on our products to help offset some of the higher costs for meat commodities and other expenses, and we are focused on reducing selling, general and administrative expenses. Certain factors including but not limited to increased commodity costs, tariffs, the willingness of customers to accept price increases and inflation of input costs, to name a few, may cause future outcomes to differ materially from those foreseen in forward-looking statements. As of July 10, 2026, we had $1,548 of current debt on equipment loans, $34,967 of net working capital and $1,500 available under our revolving credit facility with Wells Fargo Bank, N.A. (“Wells Fargo”) described below.
Previous wording
All of our operating segments have been impacted by inflation, including higher costs for labor, freight and specific materials related to product manufacturing and delivery. We expect this trend to continue throughout the remainder of fiscal year 2026. Additionally, commodity costs, including meat and flour costs, have and may continue to fluctuate due to both political and economic conditions. Despite these higher commodity costs, we may not be able to increase our product prices in a timely manner or sufficiently to offset such increased commodity or other costs due to consumer price sensitivity, pricing in relation to competitors and the reluctance of retailers to accept the price increase. Instances of higher interest rates, general price inflation or deflation, higher raw materials costs, labor shortages or supply chain issues could adversely affect the Company’s financial results and its liquidity. Higher product prices could potentially lower demand for our products and decrease volume. Management believes there are various options available to generate additional liquidity to repay debt or fund operations such as mortgaging real estate, should that be necessary. Our ability to increase liquidity will depend upon, among other things, our business plans, the performance of operating divisions, and the economic conditions of capital markets. If we are unable to increase liquidity through mortgaging real estate or additional borrowing, or generate positive cash flow necessary to fund operations, we may not be able to compete successfully, which could negatively impact our business, operations, and financial condition. With the cash expected to be generated from the Company’s operations, we anticipate that we will maintain sufficient liquidity to operate our business for at least the next twelve months. We will continue to monitor the impact of inflation and interest rate volatility on our liquidity and, if necessary, take action to preserve liquidity and ensure that our business can operate during these uncertain times.
Current wording
All of our operating segments have been impacted by inflation, including higher costs for labor, freight and specific materials related to product manufacturing and delivery. We expect this trend to continue throughout the remainder of fiscal year 2026. Additionally, commodity costs, including meat and flour costs, have and may continue to fluctuate due to both political and economic conditions. Despite these higher commodity costs, we may not be able to increase our product prices in a timely manner or sufficiently to offset such increased commodities or other costs due to consumer price sensitivity, pricing in relation to competitors and the reluctance of retailers to accept the price increase. Instances of higher interest rates, general price inflation or deflation, higher raw materials costs, labor shortages or supply chain issues could adversely affect the Company’s financial results and its liquidity. Higher product prices could potentially lower demand for our products and decrease volume. Management believes there are various options available to generate additional liquidity to repay debt or fund operations such as mortgaging real estate, should that be necessary. Our ability to increase liquidity will depend upon, among other things, our business plans, the performance of operating divisions, and the economic conditions of capital markets. If we are unable to increase liquidity through mortgaging real estate or additional borrowing, or generate positive cash flow necessary to fund operations, we may not be able to compete successfully, which could negatively impact our business, operations, and financial condition. With the cash expected to be generated from the Company’s operations, we anticipate that we will maintain sufficient liquidity to operate our business for at least the next twelve months. We will continue to monitor the impact of inflation and interest rate volatility on our liquidity and, if necessary, take action to preserve liquidity and ensure that our business can operate during these uncertain times.
Previous wording
Cash flows from operating activities for the twenty-four weeks ended:
Current wording
Cash flows from operating activities for the thirty-six weeks ended:
Previous wording
For the twenty-four weeks ended April 17, 2026, net cash used in operating activities was $1,813, which was $3,613 less cash used than during the same period in fiscal year 2025. The decrease in net cash used in operating activities primarily relates to a decrease in promotional allowance of $614, and a decrease of accounts receivable of $1,815, partially offset by an increase in inventories of $1,467. During the twenty-four-week period ended April 17, 2026, we did not contribute towards our defined benefit pension plan. Plan funding strategies may be adjusted depending upon economic conditions, investment options, tax deductibility, or recent legislative changes in funding requirements.
Current wording
For the thirty-six weeks ended July 10, 2026, net cash used in operating activities was $3,973, which was $1,595 less cash used than during the same period in fiscal year 2025. The decrease in net cash used in operating activities primarily relates to a decrease in promotional allowance of $505, and a decrease of accounts receivable of $3,813, partially offset by an increase in inventories of $10,682. During the thirty-six-week period ended July 10, 2026, we did not contribute towards our defined benefit pension plan. Plan funding strategies may be adjusted depending upon economic conditions, investment options, tax deductibility, or recent legislative changes in funding requirements.
Previous wording
Our cash conversion cycle (defined as days of inventory and trade receivables less days of trade payables outstanding) was equal to 98 days for the twenty-four-week period ended April 17, 2026. The increase in the cash conversion cycle from 74 days to 98 days for the twenty-four-week period ended April 18, 2025, was caused by an increase in inventory.
Current wording
Our cash conversion cycle (defined as days of inventory and trade receivables less days of trade payables outstanding) was equal to 60 days for the thirty-six-week period ended July 10, 2026. The decrease in the cash conversion cycle from 68 days to 60 days as compared to the thirty-six-week period ended July 11, 2025, was caused by a decrease in inventory.
Previous wording
Cash flows from investing activities for the twenty-four weeks ended:
Current wording
Cash flows from investing activities for the thirty-six weeks ended:
Previous wording
The table below highlights additions to property, plant and equipment for the twenty-four weeks ended:
Current wording
The table below highlights additions to property, plant and equipment for the thirty-six weeks ended:
Previous wording
Cash flows from financing activities for the twenty-four weeks ended:
Current wording
Cash flows from financing activities for the thirty-six weeks ended:
Previous wording
On July 23, 2025, we entered into an amended and restated credit agreement dated November 30, 2024, with Wells Fargo that amends, restates and supersedes our existing credit agreement with Wells Fargo that was set to expire by its terms on November 30, 2025. Under the terms of the amended and restated credit agreement and the associated revolving line of credit note, we may borrow up to $7,500 from time to time until July 31, 2026, at an interest rate equal to (a) the daily simple secured overnight financing rate plus 2.5%, or if unavailable, (b) the prime rate, in each case as determined by the bank. The revolving credit facility has an unused commitment fee of 0.35% of the available loan amount, payable on a quarterly basis. Amounts may be repaid and reborrowed during the term of the note. Accrued interest is payable on the first day of each month and the outstanding principal balance and remaining interest are due and payable on July 31, 2026. As of April 17, 2026, the Company was in violation of the net income covenant and the quick ratio covenant of the amended and restated credit agreement. Wells Fargo waived these breaches by letter dated May 28, 2026. The Company is otherwise in compliance with all other covenants under the amended and restated credit agreement, and we expect to remain in compliance for the remainder of fiscal year 2026. If we are unable to meet the financial covenant requirements of the amended and restated credit agreement, it may impact our liquidity. Refer to Note 6 – Equipment Notes Payable and Financial Arrangements to the Condensed Consolidated Financial Statements included within this Report for further information.
Current wording
On July 23, 2025, we entered into an amended and restated credit agreement dated (as further amended, the “Amended and Restated Credit Agreement”), with Wells Fargo that amends, restates and supersedes our existing credit agreement with Wells Fargo dated November 30, 2024, that was set to expire by its terms on November 30, 2025. Under the terms of the Amended and Restated Credit Agreement and the associated revolving line of credit note, we may borrow up to $7,500 from time to time until September 29, 2026, at an interest rate equal to (a) the daily simple secured overnight financing rate plus 2.5%, or if unavailable, (b) the prime rate, in each case as determined by Wells Fargo. The revolving credit facility has an unused commitment fee of 0.35% of the available loan amount, payable on a quarterly basis. Amounts may be repaid and reborrowed during the term of the note. Accrued interest is payable on the first day of each month and the outstanding principal balance and remaining interest are due and payable on September 29, 2026. As of July 10, 2026, we were in violation of the net income covenant and the quick ratio covenant of the Amended and Restated Credit Agreement. Wells Fargo waived these breaches by letter dated August 13, 2026. The Company is otherwise in compliance with all other covenants under the Amended and Restated Credit Agreement Refer to Note 1 – Summary of Significant Accounting Policies – Subsequent Events and Note 6 – Equipment Notes Payable and Financial Arrangements of the Notes to the Condensed Consolidated Financial Statements included within this Report for further information.
Previous wording
On February 19, 2026, we entered into a master equipment lease agreement with First National Capital (“FNC”) for $2,000 in equipment financing. On December 26, 2018, we entered into a master collateral loan and security agreement with Wells Fargo Bank (the “Original Wells Fargo Loan Agreement”) for up to $15,000 in equipment financing which was amended and expanded as detailed below. We subsequently entered into additional master collateral loan and security agreements with Wells Fargo Bank on each of April 18, 2019, December 19, 2019, March 5, 2020, and April 17, 2020 (the Original Wells Fargo Loan Agreement and the subsequent agreements collectively referred to as the “Wells Fargo Loan Agreements”).
Current wording
On December 26, 2018, we entered into a master collateral loan and security agreement with Wells Fargo (the “Original Wells Fargo Loan Agreement”) for up to $15,000 in equipment financing which was amended and expanded as detailed below. We subsequently entered into additional master collateral loan and security agreements with Wells Fargo on each of April 18, 2019, December 19, 2019, March 5, 2020, and April 17, 2020 (the Original Wells Fargo Loan Agreement and the subsequent agreements collectively referred to as the “Wells Fargo Loan Agreements”).
Previous wording
The following table reflects major components of our revolving credit facility and equipment notes payable as of April 17, 2026, and October 31, 2025, respectively.
Current wording
The following table reflects major components of our revolving credit facility and equipment notes payable as of July 10, 2026, and October 31, 2025.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
On February 19, 2026, we entered into a master equipment lease agreement with First National Capital (“FNC”) for $2,000 in equipment financing with a maturity date of February 2029.