Q4 Quarterly Financial Results (MZTI FY26Q4 EarningsPresentation)

FY26 Q4 Earnings Presentation

Fiscal Period Ended June 30, 2026

August 25, 2026

Highlights

FY26 Q4

Reported consolidated net sales declined 2.2% to $465.0 million

• Adjusted Consolidated Net Sales* increased 0.4%, driven by the addition of Bachan's to our portfolio

• Bachan's added $15.4 million in net sales, or about 320 basis points of growth

  The company achieved record fourth quarter gross profit of $114.0 million, with reported gross margin up 220 basis points, driven by our ongoing cost savings programs.
  
  Twelfth consecutive quarter of Adjusted Gross Margin expansion
  
  Operating income grew $18.8 million, a fourth quarter record, to $57.7 million:
  
  

• Core Business Performance: Drove $7.8 million of operating income growth primary driven by the gross profit increase

• Other Items: Other items contributed a net $11.0 million increase to operating income, reflecting the impact of various factors

  • SG&A includes acquisition-related costs of $11.0 million and noncash amortization expense of $1.6 million attributed to Bachan's intangible assets. The prior year period included $0.5 million in acquisition related costs.

  • The sale of our Milpitas, California property resulted in an $18.5 million gain, partially offset by $0.5 million in restructuring and impairment charges. The prior year period included $5.1 million in restructuring and impairment charges.

* Adjusted Consolidated Net Sales excludes the prior-year quarter's $12.2 million in non-core sales attributed to a temporary supply agreement ("TSA") with Winland Foods, Inc., which concluded during the quarter ended March 31, 2026. See Appendix page A1 for a reconciliation of our non-GAAP measures to their most comparable GAAP financial measures.

Highlights (continued)

FY26 Q4

EPS (diluted) improved $0.58, or 49.2%, to $1.76

Adjusted Diluted EPS* improved $0.12, or 9.0%, to $1.46

FY26

Fourth consecutive year of record-high net sales and gross profit

Third consecutive year of record-high operating income

Reported and Adjusted Consolidated Net Sales* grew 1.1% and 0.8%, respectively

Reported and Adjusted Operating Income* increased 8.3% and 4.2%, respectively

Reported and Adjusted Diluted EPS* increased 15.0% and 1.6%, respectively

Operating cash flow increased 8.5% to a record $283.8 million

Regular cash dividend increased for the 63rd consecutive year, with cash dividends to shareholders totaling $108.8 million



Common stock repurchases totaling $36.3 million

* See Appendix pages A1-A3 for a reconciliation of our non-GAAP measures to their most comparable GAAP financial measures

Bachan's Acquisition Highlights Acquisition completed on May 1, 2026

Bachan's continues the path of strong growth, with Circana data for the quarter ending June 30, showing sales growth of 8.7%, and TDPs up over 16%

Bachan's added $15.4 million in net sales for the two months ended June 30, accounting for 640 basis points of Retail segment net sales growth and 520 basis points of Retail segment volume growth for the quarter

The acquisition reinforces our expanding position in the sauce category and is expected to provide additional opportunities for future growth through our retail and foodservice distribution network, supply chain capabilities and synergies, and culinary expertise

New items planned for launch in fiscal 2027 include Japanese mayonnaise and wing sauce



Q4 Retail Segment Highlights Net sales grew 0.9% to $243.6 million, while volume (measured in pounds shipped) declined 1.7%. Bachan's delivered $15.4 million in incremental net sales.

Net sales growth was unfavorably impacted by:

• Lapping the club channel pipeline fill of Chick-fil-A® sauces

• Lapping the Texas Roadhouse® dinner rolls national grocery rollout

  
  
  
  
  
  
  
  
  

• Reduced club channel sales for our Sister Schubert's® dinner rolls

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Q4 Retail Category Highlights

Source: Circana

Time period: 13 weeks ending 6/28/2026

Q4 Foodservice Segment Highlights

Foodservice segment net sales decreased 5.3% to $221.4 million

Excluding the non-core TSA sales, Adjusted Foodservice Net Sales* decreased 0.1% while volume (measured in pounds shipped) improved 0.1%

The Adjusted Foodservice Net Sales performance reflects gains from our leading national chain restaurant accounts, offset by reduced sales to other chains and lower sales for our branded Foodservice products

* See Appendix page A1 for a reconciliation of our non-GAAP measures to their most comparable GAAP financial measures

Q4 Financial Performance - Net Sales

($ in millions)

Values may not foot due to rounding

Q4 Financial Performance - Gross Margin

Reported Gross Margin increased 220 basis points to 24.5%, driven by ongoing cost savings programs

Adjusted Gross Margin*, which excludes TSA sales as those sales did not contribute meaningfully to gross profit, increased 160 basis points

*

*

*See Appendix page A1 for a reconciliation of our non-GAAP measures to their most comparable GAAP financial measures

Q4 Financial Performance - Operating Income

Operating Income grew $18.8 million to $57.7 million driven by strong gross profit improvement and the favorable impact of the $18.5 million gain on the Milpitas plant property sale, partially offset by a net increase in acquisition-related SG&A expenses and the amortization expense for Bachan's intangible assets

($ in millions)

Other SG&A Other Items

* Includes $18.5 million gain on the Milpitas plant property sale Values may not foot due to rounding

Q4 Financial Performance - EPS (diluted)

EPS (diluted) improved $0.58 to $1.76 driven by strong core business performance and the favorable impact of the gain on the Milpitas plant property sale, partially offset by a net increase in acquisition-related SG&A expenses and the amortization expense for Bachan's intangible assets

Other SG&A Other Items

* Includes $0.67 per share gain on the Milpitas plant property sale Values may not foot due to rounding

Q4 Financial Performance - EPS (diluted) Reported to Adjusted (non-GAAP)

Other SG&A

Other Items

**

* Includes $0.67 per share gain on the Milpitas plant property sale

** See Appendix page A2 for a reconciliation of our non-GAAP measures to their most comparable GAAP financial measures

Values may not foot due to rounding

FY26 Cash Flow and Balance Sheet Overview Operating cash flow increased 8.5%, to a record $283.8 million

Capital expenditures totaled $77.7 million

Interest expense totaled $1.8 million in the current year, as a portion of the Bachan's acquisition was financed with a $200 million term loan

Cash dividends to shareholders totaled $108.8 million

Common stock repurchases totaled $36.3 million

FY27 Outlook We will continue to support the three pillars of our growth plan:

• Accelerate core business growth

• Simplify our supply chain to reduce costs and grow margins

• Expand our core with focused M&A and strategic licensing

Retail segment sales will continue to benefit from incremental sales attributed to the Bachan's acquisition, in addition to the new items we have recently launched or have planned in our pipeline

Foodservice segment sales are expected to be supported by select quick-service restaurant customers in our mix of national chain restaurant accounts

We continue to monitor external factors, including U.S. economic performance and consumer behavior, that may affect demand for our products. We continue to monitor the impact of the Cyclospora outbreak on product demand and sales.

In aggregate, we anticipate a moderate level of input cost inflation that we plan to offset through inflationary pricing and our ongoing cost savings programs, as we remain focused on continued margin improvement

APPENDIX

Reconciliation of GAAP to non-GAAP Net Sales and Gross Margin - Q4 and Fiscal Year

Note: Adjusted Consolidated Net Sales, Adjusted Foodservice Net Sales, Adjusted Cost of Sales, Adjusted Gross Profit and Adjusted Gross Margin are non-GAAP financial measures that exclude non-core sales and cost of sales attributed to a temporary supply agreement ("TSA") made in connection with our February 2025 acquisition of Winland's Atlanta-based sauce and dressing production facility. The TSA sales are included in the reported net sales for our Foodservice segment and did not contribute meaningfully to gross profit. The TSA sales commenced in March 2025 and concluded during the quarter ended March 31, 2026. The table above presents a reconciliation between net sales, cost of sales, gross profit and gross margin as reported in accordance with GAAP and Adjusted Consolidated Net Sales, Adjusted Foodservice Net Sales, Adjusted Cost of Sales, Adjusted Gross Profit and Adjusted Gross Margin for the three months and fiscal year ended June 30, 2026 and 2025.

Reconciliation of GAAP to non-GAAP Operating Income and Diluted EPS - Q4

Note: Adjusted Operating Income and Adjusted Diluted EPS are non-GAAP financial measures that exclude certain items affecting comparability, which can impact the analysis of our underlying core business performance and trends. The table above presents a reconciliation between 1) operating income as reported in accordance with GAAP and Adjusted Operating Income and 2) diluted EPS as reported in accordance with GAAP and Adjusted Diluted EPS for the three months ended June 30, 2026 and 2025.

For 2026, the adjustments reflect incremental SG&A expenses attributed to the Bachan's acquisition; incremental SG&A expenses attributed to the amortization of intangible assets resulting from the Bachan's acquisition; and restructuring, impairment and other, net, which primarily consists of the gain on the sale of the Milpitas real property. For 2025, the adjustments reflect incremental SG&A expenses attributed to the Atlanta production facility acquisition and restructuring and impairment charges primarily related to the closure of our production facility in Milpitas, California.

Reconciliation of GAAP to non-GAAP Operating Income and Diluted EPS - Fiscal Year

Note: Adjusted Operating Income and Adjusted Diluted EPS are non-GAAP financial measures that exclude certain items affecting comparability, which can impact the analysis of our underlying core business performance and trends. The table above presents a reconciliation between 1) operating income as reported in accordance with GAAP and Adjusted Operating Income and 2) diluted EPS as reported in accordance with GAAP and Adjusted Diluted EPS for the fiscal year ended June 30, 2026 and 2025.

For 2026, the adjustments reflect incremental SG&A expenses attributed to the Bachan's acquisition; incremental SG&A expenses attributed to the amortization of intangible assets resulting from the Bachan's acquisition; and restructuring, impairment and other, net, which consists of restructuring and impairment charges resulting from the closure of our sauce and dressing production facility in Milpitas, California, the gain on the sale of the Milpitas real property, and charges related to the impairment of manufacturing equipment, net of a recovery through an insurance claim. For 2025, the adjustments reflect incremental SG&A expenses attributed to the Atlanta production facility acquisition; restructuring and impairment charges primarily related to the closure of our production facility in Milpitas, California; and the one-time noncash pension settlement charge.