THE MARZETTI COMPANY

Red flags

• Walmart represented 18% of consolidated net sales and 27% of consolidated accounts receivable at June 30, 2026; Chick-fil-A represented 30% of consolidated net sales.
• The company funded the approximately $400 million Bachan’s acquisition with cash and borrowings and ended the year with $200 million of term debt, versus no Facility borrowings at June 30, 2025.
• The credit agreement requires interest coverage of at least 2.5x and consolidated net leverage of no more than 3.5x, while debt maturities include $160 million due in 2031.
• Bachan’s represented 27% of consolidated total assets but less than 1% of fiscal 2026 sales, leaving substantial acquisition goodwill and intangible value dependent on future performance.
• Over 95% of products are sold in the United States, and the company purchases a majority of key raw materials on the open market, exposing profitability to commodity, freight, tariff, and pricing pressure.