A virtual meeting is scheduled for May 20 at 10 a.m., orchestrated by Benchmark. During this event, stakeholders will have the opportunity to delve into the performance insights of Lancaster Colony Corporation (LANC, Financial). This gathering aims to enhance understanding and facilitate informed investment decisions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Lancaster Colony Corp (LANC, Financial) is $194.90 with a high estimate of $232.00 and a low estimate of $180.00. The average target implies an upside of 14.99% from the current price of $169.49. More detailed estimate data can be found on the Lancaster Colony Corp (LANC) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Lancaster Colony Corp's (LANC, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Lancaster Colony Corp (LANC, Financial) in one year is $193.20, suggesting a upside of 13.99% from the current price of $169.49. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Lancaster Colony Corp (LANC) Summary page.
LANC Key Business Developments
Release Date: April 30, 2025
- Consolidated Net Sales: Decreased 2.9% to $458 million.
- Gross Profit: Reached a record $106 million.
- Operating Income: Increased to $50 million.
- Retail Segment Net Sales: Decreased 2.6%; excluding exited bakery lines, decreased 0.7%.
- Frozen Dinner Roll Market Share: Increased by 520 basis points to 60.9%.
- Frozen Garlic Bread Market Share: Increased by 180 basis points to 43.9%.
- Gross Margin: Improved by 90 basis points to 23.1%.
- SG&A Expenses: Decreased by $1.1 million or 2%.
- Tax Rate: 20.7% compared to 23.2% in the prior year quarter.
- Diluted EPS: Increased by $0.46 or 44.7% to $1.49.
- Cash Dividend: $0.95 per share, a 6% increase from the prior year.
- Cash Position: $124.6 million, reflecting a $78.8 million acquisition.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Lancaster Colony Corp (LANC, Financial) reported record third quarter gross profit of $106 million and operating income of $50 million despite a decline in net sales.
- The company's licensing program, particularly with Chick-fil-A sauce and Texas Roadhouse dinner rolls, continues to be a source of growth.
- The New York bakery frozen garlic bread products and Sister Schubert's brand saw significant market share increases, indicating strong performance in these categories.
- Lancaster Colony Corp (LANC) maintained a strong financial position with a debt-free balance sheet and $124.6 million in cash.
- The company continues to invest in growth and cost-saving projects, including the acquisition of an Atlanta-based manufacturing facility, which is expected to enhance their supply chain.
Negative Points
- Consolidated net sales declined by 2.9% to $458 million, with the retail segment experiencing a 2.6% decrease.
- The food service segment saw a 3.2% decline in net sales, attributed to weather impacts and industry-wide declines in restaurant traffic.
- The company faced challenges in the refrigerated dressings and dips segment, partly due to the timing of Easter and broader consumer shifts.
- Lancaster Colony Corp (LANC) anticipates ongoing challenges in the consumer environment, which may impact future sales.
- The planned closure of the Milpitas, California sauce and dressing facility will affect 78 employees, highlighting operational restructuring challenges.
