Checking In With UTZ: Visibility On Potential 2H26 Acceleration

Research evidence excerpt

Checking In With UTZ: Visibility On Potential 2H26 Acceleration

s (see paragraph 52-Week High / Low US$14.67 / US$6.78

below). It has stepped up merchandising in June with innovation launching now, which Shares Out (mil) 143.9

should help re-accelerate top-line growth in late 2Q26. It also expects a lift from inventory Market Cap. (mil) US$985.7

sell-in ahead of July 4th. We model +2.5% organic sales growth in 2Q26E. Avg Daily Vol (000) 1,918

Div (ann) US$0.25

Div Yield 3.65%

• CA launch in-line with expectations; distribution still building. We expect sales Fiscal Year End Dec

growth to accelerate progressively in CA through 2026, and expect a step change in

distribution in 2Q26/3Q26 as larger retailers reset shelves in May through July, as had Price Performance - 1 Year

been expected. It also turned on marketing and promotional spend in the back half of USD

2Q26. Some smaller shelf resets happen again in the Fall (September/October), and we 16

would expect UTZ to gain incremental distribution.

• Higher resin costs are manageable in 2026; may get cost pressure relief in 2027. 12

UTZ is covered on freight and logistics costs for 2026, but has exposure to higher resin 10

costs in its packaging (film). It expects higher costs to flow through in late 3Q26 and into

4Q26. Assuming UTZ has roughly six month forward contracts in place for resins, we 8

would expect some cost relief to start to roll through in 1Q27.

RISKS TO ACHIEVEMENT OF PT & RECOMMENDATION Jun-25 Aug-25 Oct-25 Dec-25 Feb-26 Apr-26 Jun-26

Rising input costs, changing consumer preferences, inability to scale Source: Bloomberg

COMPANY DESCRIPTION

Utz manufactures salty snacks brands like Utz, Zapp's, Hawaiian. Based in Hanover, PA.

REVENUE (US$ m) EARNINGS PER SHARE (US$) YEAR