Our fiscal year begins on July 1 and ends on June 30. Unless otherwise noted, references to “year” pertain to our fiscal year; for example, 2026 refers to fiscal 2026, which is the period from July 1, 2025 to June 30, 2026. The following discussion should be read in conjunction with our consolidated financial statements and the notes thereto in Item 8 of this Annual Report on Form 10-K. We prepare our consolidated financial statements in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). We have also presented Adjusted Consolidated Net Sales, Adjusted Foodservice Net Sales, Adjusted Cost of Sales, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income and Adjusted Net Income Per Diluted Share, each of which is considered a non-GAAP financial measure, to supplement the financial information included in this report. Refer to the “Reconciliation of GAAP to non-GAAP Financial Measures” section below for additional information and reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures. The forward-looking statements in this section and other parts of this report involve risks, uncertainties and other factors, including statements regarding our plans, objectives, goals, strategies, and financial performance. Our actual results could differ materially from the results anticipated in these forward-looking statements as a result of factors set forth under the caption “Forward-Looking Statements” and those set forth in Item 1A of this Annual Report on Form 10-K. Our discussion of results for 2026 compared to 2025 is included herein. For discussion of results for 2025 compared to 2024, see our 2025 Annual Report on Form 10-K. OVERVIEW Business Overview The Marzetti Company is a manufacturer and marketer of specialty food products for the retail and foodservice channels. Our financial results are presented as two reportable segments: Retail and Foodservice. Costs that are directly attributable to either Retail or Foodservice are charged directly to the appropriate segment. Costs that are deemed to be indirect, excluding corporate expenses and other unusual significant transactions, are allocated to the two reportable segments using a reasonable methodology that is consistently applied. Over 95% of our products are sold in the United States. Foreign operations and export sales have not been significant in the past and are not expected to be significant in the future based upon existing operations. We do not have any fixed assets located outside of the United States. Our business has the potential to achieve future growth in sales and profitability due to attributes such as: •leading Retail market positions in several product categories with a high-quality perception; •recognized innovation in Retail products; •a broad customer base in both Retail and Foodservice accounts; •well-regarded culinary expertise among Foodservice customers; •long-standing Foodservice customer relationships that help to support strategic licensing opportunities in Retail; •demonstrated success with strategic licensing programs in Retail through both established relationships in the foodservice industry and new relationships; •recognized leadership in Foodservice product development; •experience in integrating complementary business acquisitions; and •historically strong cash flow generation that supports growth opportunities. Our goal is to grow both Retail and Foodservice segment sales over time by: •introducing new products and expanding distribution; •leveraging the strength of our Retail brands to increase current product sales; •expanding Retail growth through strategic licensing agreements; •continuing to rely upon the strength of our reputation in Foodservice product development and quality; and •acquiring complementary businesses. With respect to our long-term growth strategy, in addition to complementary acquisitions, we continually evaluate the future opportunities and needs for our business specific to our plant infrastructure, production capacity and IT platforms to support and strengthen our operations. Recent examples of resulting strategic actions include: •the acquisition of Bachan’s, Inc. (“Bachan’s”), the rapidly growing Japanese Barbecue Sauce brand known for its authentic, clean-label products, in May 2026; •the closure of our sauce and dressing production facility in Milpitas, California during the quarter ended September 30, 2025; and •the acquisition of a sauce and dressing production facility in the Atlanta, Georgia area in February 2025. 23 Table of Contents RESULTS OF CONSOLIDATED OPERATIONS (Dollars in thousands,except per share data) Years Ended June 30, Change 2026 2025 2024 2026 vs. 2025 2025 vs. 2024 Net Sales $ 1,929,823 $ 1,909,122 $ 1,871,759 $ 20,701 1.1 % $ 37,363 2.0 % Cost of Sales 1,452,535 1,453,476 1,439,457 (941) (0.1) % 14,019 1.0 % Gross Profit 477,288 455,646 432,302 21,642 4.7 % 23,344 5.4 % Gross Margin 24.7 % 23.9 % 23.1 % Selling, General and Administrative Expenses 254,601 230,227 218,065 24,374 10.6 % 12,162 5.6 % Restructuring, Impairment and Other, Net (16,024) 5,102 14,874 (21,126) N/M (9,772) (65.7) % Operating Income 238,711 220,317 199,363 18,394 8.3 % 20,954 10.5 % Operating Margin 12.4 % 11.5 % 10.7 % Interest Expense (1,763) — — (1,763) N/M — N/M Pension Settlement Charge — (13,968) — 13,968 (100.0) % (13,968) N/M Other, Net 5,022 7,114 6,152 (2,092) (29.4) % 962 15.6 % Income Before Income Taxes 241,970 213,463 205,515 28,507 13.4 % 7,948 3.9 % Taxes Based on Income 50,364 46,116 46,902 4,248 9.2 % (786) (1.7) % Effective Tax Rate 20.8 % 21.6 % 22.8 % Net Income $ 191,606 $ 167,347 $ 158,613 $ 24,259 14.5 % $ 8,734 5.5 % Diluted Net Income Per Common Share $ 6.98 $ 6.07 $ 5.76 $ 0.91 15.0 % $ 0.31 5.4 % Net Sales Consolidated net sales for the year ended June 30, 2026 increased 1.1% to a new record of $1,929.8 million from the prior-year record total of $1,909.1 million. The net sales growth was driven by higher pricing in both segments in response to increased input costs, incremental sales resulting from the acquisition of Bachan’s that was completed on May 1, 2026, incremental sales from a temporary supply agreement (“TSA”), and higher sales volumes in our Foodservice segment. These favorable factors were partially offset by the impact of lower sales volumes in our Retail segment. The TSA sales, all of which are reported in our Foodservice segment, resulted from our acquisition of a sauce and dressing production facility located in Atlanta, Georgia (“Atlanta plant”). The acquisition was completed in February 2025. The TSA sales commenced in March 2025 and concluded during the quarter ended March 31, 2026. Breaking down the 1.1% increase in consolidated net sales as summarized in the table below, lower core volumes and product mix accounted for a decrease of approximately 90 basis points, the net pricing impact accounted for an increase of approximately 90 basis points, incremental sales from Bachan’s contributed approximately 80 basis points, and incremental sales attributed to the TSA added approximately 30 basis points. Excluding all sales attributed to the TSA, Adjusted Consolidated Net Sales for the year ended June 30, 2026 increased 0.8% to $1,909.4 million. Breakdown of Change in Consolidated Net Sales Year Ended June 30, 2026 Change in Core Sales Volume / Mix $ (17,901) (0.9) % Net Pricing Impact 16,989 0.9 % Incremental Sales from Bachan’s 15,435 0.8 % Incremental Sales for Temporary Supply Agreement (TSA) 6,178 0.3 % Total Change in Net Sales $ 20,701 1.1 % Consolidated sales volumes, measured in pounds shipped, decreased 0.2% for the year ended June 30, 2026. Excluding the impact of all sales attributed to the TSA, consolidated sales volumes decreased 0.6%. 24 Table of Contents The relative proportion of sales contributed by each of our business segments can impact a year-to-year comparison of the consolidated statements of income. The following table summarizes the sales mix over each of the last three years: 2026 2025 2024 Segment Sales Mix: Retail 52% 53% 53% Foodservice 48% 47% 47% See discussion of net sales by segment following the discussion of “Earnings Per Share” below. Gross Profit Consolidated gross profit increased 4.7% to $477.3 million in 2026 compared to $455.6 million in 2025. Consolidated gross profit benefited from our cost savings programs, as partially offset by the unfavorable impacts of a less favorable sales mix and lower core sales volumes. Reported gross margin improved 80 basis points while Adjusted Gross Margin increased 100 basis points. Selling, General and Administrative Expenses Selling, general and administrative (“SG&A”) expenses increased 10.6% to $254.6 million in 2026 compared to $230.2 million in 2025. SG&A expenses in the current year included $14.5 million in incremental expenditures attributed to the Bachan’s acquisition transaction costs in addition to $1.6 million in incremental noncash amortization expense for Bachan’s intangible assets. SG&A expenses in the prior year included $3.8 million in incremental expenditures attributed to the Atlanta plant acquisition. Excluding these items, SG&A expenses grew 5.3%, or $12.0 million, in 2026 driven by $4.8 million in incremental core SG&A expenses for Bachan’s and increased investments in IT and personnel. Restructuring, Impairment and Other, Net In 2025, we committed to a plan to close our sauce and dressing production facility in Milpitas, California as part of our ongoing strategic initiative to better optimize our manufacturing network. Production at the facility concluded in August 2025. In 2026 and 2025, we recorded restructuring and impairment charges of $1.4 million and $4.5 million, respectively, related to this closure. These charges consisted of impairment charges for personal property and operating lease right-of-use assets, one-time termination benefits and other closing costs. In 2026, we also recorded a gain of $18.5 million on the sale of the related real property. The operations of this facility were not classified as discontinued operations as the closure did not represent a strategic shift that would have a major effect on our operations or financial results. In 2026, we also recorded a noncash impairment charge of $1.1 million related to manufacturing equipment, net of a recovery through an insurance claim. This amount was reflected in our Foodservice segment. In 2025, we transitioned our internal transportation fleet operation to an external dedicated carrier. In 2025, we recorded resulting restructuring charges of $0.6 million for one-time termination benefits. Operating Income Operating income increased 8.3% to $238.7 million in 2026 compared to $220.3 million in 2025 due to the increase in gross profit and the favorable year-over-year change in Restructuring, Impairment and Other, which were partially offset by the higher SG&A expenses. Excluding the current-year net benefit and the prior-year expense in Restructuring, Impairment and Other, the current-year and prior-year acquisition costs in SG&A and Bachan’s current-year intangible asset amortization in SG&A, Adjusted Operating Income increased $9.6 million to $238.8 million. See discussion of operating results by segment following the discussion of “Earnings Per Share” below. Interest Expense Interest expense totaled $1.8 million in 2026 related to borrowings under our unsecured credit facility. See further discussion in Note 3 to the consolidated financial statements. Pension Settlement Charge Prior to November 30, 2024, we sponsored multiple defined benefit pension plans that covered certain former employees under collective bargaining contracts related to closed or sold operations. All these plans were previously frozen. In August 2024, our Board of Directors approved the merger of all five pension plans and the termination of the resulting merged plan. The merged plan was terminated effective November 30, 2024. Lump sum distributions and annuity purchases from a highly rated insurance company were completed in December 2024. As a result of the pension termination, we incurred a one-time noncash settlement charge of $14.0 million in 2025. See further discussion in Note 11 to the consolidated financial statements. 25 Table of Contents Other, Net Other, net resulted in a benefit of $5.0 million in 2026 compared to a benefit of $7.1 million in 2025. This change primarily reflects lower interest income. Taxes Based on Income Our effective tax rate was 20.8% and 21.6% in 2026 and 2025, respectively. See Note 8 to the consolidated financial statements for a reconciliation of the statutory rate to the effective rate. Earnings Per Share As influenced by the factors discussed above, diluted net income per share totaled $6.98 in 2026, an increase from the 2025 total of $6.07 per diluted share. Diluted weighted average common shares outstanding for each of the years ended June 30, 2026 and 2025 have remained relatively stable. In 2026, the benefit in Restructuring, Impairment and Other, Net increased diluted earnings per share by $0.60. Costs related to the Bachan’s acquisition reduced diluted earnings per share by $0.41 and amortization of intangible assets reduced diluted earnings per share by $0.05. In 2025, the pension settlement charge reduced diluted earnings per share by $0.39, restructuring and impairment charges reduced diluted earnings per share by $0.15 and costs related to the Atlanta plant acquisition reduced diluted earnings per share by $0.11. Refer to the “Reconciliation of GAAP to non-GAAP Financial Measures” section below for additional information. RESULTS OF OPERATIONS - SEGMENTS Retail Segment Year Ended June 30, Change (Dollars in thousands) 2026 2025 2024 2026 vs. 2025 2025 vs. 2024 Net Sales $ 1,002,769 $ 1,003,409 $ 988,424 $ (640) (0.1) % $ 14,985 1.5 % Operating Income $ 203,669 $ 211,695 $ 207,660 $ (8,026) (3.8) % $ 4,035 1.9 % Operating Margin 20.3 % 21.1 % 21.0 % In 2026, net sales for the Retail segment totaled $1,002.8 million, a 0.1% decrease from the prior-year record of $1,003.4 million, due to a decline in sales volumes as partially offset by the incremental sales from Bachan’s and some inflationary pricing. Sales highlights for the current-year period included continued strong growth for our category-leading New York BakeryTM frozen garlic bread products and expanding distribution for our recently introduced Texas Roadhouse® dinner rolls. Retail segment sales volumes, measured in pounds shipped, decreased 1.9%. Excluding Bachan’s, Retail segment sales volumes declined 3.2%, which includes the unfavorable impact of reduced sales into the club channel.. In 2026, Retail segment operating income decreased $8.0 million, or 3.8%, to $203.7 million due to lower sales volumes and inflationary costs, as partially offset by our cost savings programs and some inflationary pricing. Foodservice Segment Year Ended June 30, Change (Dollars in thousands) 2026 2025 2024 2026 vs. 2025 2025 vs. 2024 Net Sales $ 927,054 $ 905,713 $ 883,335 $ 21,341 2.4 % $ 22,378 2.5 % Operating Income $ 131,329 $ 111,579 $ 97,094 $ 19,750 17.7 % $ 14,485 14.9 % Operating Margin 14.2 % 12.3 % 11.0 % In 2026, Foodservice segment net sales increased 2.4% to a new record of $927.1 million from last year’s record of $905.7 million driven by increased demand from several of our national chain restaurant account customers, the benefit of inflationary pricing, and the higher TSA sales. Excluding all sales attributed to the TSA, Adjusted Foodservice Net Sales increased 1.7%. Foodservice segment sales volumes, measured in pounds shipped, increased 0.9%. Excluding all TSA sales, Foodservice sales volumes increased 0.3%. In 2026, Foodservice segment operating income increased 17.7% to $131.3 million driven by our cost savings programs, inflationary pricing, a more favorable sales mix and the benefit of recent IT investments to support a more optimized trade spend system, as partially offset by inflationary costs. 26 Table of Contents Corporate Expenses In 2026, corporate expenses totaled $113.4 million as compared to $97.9 million in 2025. Excluding acquisition-related expenses, this increase was primarily driven by increased investments in personnel and IT. Corporate expenses in the current year included $14.5 million in incremental expenditures attributed to the Bachan’s acquisition. Corporate expenses in the prior year included $3.8 million in incremental expenditures attributed to the Atlanta plant acquisition. LOOKING FORWARD For 2027, in addition to incremental sales attributed to the Bachan’s acquisition, we expect Retail sales will benefit from new items we recently launched or have planned for introduction in the year ahead for both our legacy brands and licensing program. In the Foodservice segment, we expect sales to remain supported by select quick-service restaurant customers in our mix of national chain restaurant accounts. Note that external factors, including U.S. economic performance and consumer behavior, may impact the topline growth for both segments in the coming year. We also continue to monitor the impact of the Cyclospora outbreak on product demand and sales. With respect to our input costs, in aggregate we anticipate a moderate level of inflation in fiscal 2027 that we plan to offset through inflationary pricing and our cost savings programs as we remain focused on continued margin improvement. FINANCIAL CONDITION Liquidity and Capital Resources We maintain sufficient flexibility in our capital structure to ensure our capitalization is adequate to support our future internal growth prospects, acquire food businesses consistent with our strategic goals, and maintain cash returns to our shareholders through cash dividends and opportunistic share repurchases. We ended the year with $25 million in cash and equivalents, shareholders’ equity of $1,053 million and outstanding debt of $200 million. On May 1, 2026, we completed the acquisition of Bachan’s. The purchase price of $399 million, net of cash acquired, is subject to future post-closing adjustments and was financed with cash on hand and a $200 million term loan. Under our unsecured credit facility (“Facility”), which was amended in March 2026, we may borrow up to a maximum of $200 million at any one time on a revolving credit basis, as well as an additional $200 million under a term loan to finance our acquisition of Bachan’s. At June 30, 2026, we had borrowings of $200 million outstanding under the term loan and no revolving loans outstanding. At June 30, 2026, we had $2.6 million of standby letters of credit outstanding, which reduced the amount available for borrowing under the Facility. The Facility expires in March 2029, and all outstanding revolving loans are then due and payable. The maturity date for the term loan is April 29, 2031; however, there is a springing maturity date of March 6, 2029, if, by December 6, 2028, the Facility termination date has not been extended to April 29, 2031 or later with an aggregate revolving commitment equal to or greater than the outstanding principal balance of the term loan. Interest is variable based upon formulas tied to SOFR or an alternate base rate defined in the Facility. We must also pay facility fees that are tied to our then-applicable consolidated leverage ratio. Revolving loans may be used for general corporate purposes. The Facility contains certain restrictive covenants, including limitations on liens, asset sales and acquisitions, and financial covenants relating to interest coverage and leverage. At June 30, 2026, we were in compliance with all applicable provisions and covenants of this facility, and we exceeded the requirements of the financial covenants by substantial margins. At June 30, 2026, there were no events that would constitute a default under this facility. We currently expect to remain in compliance with the Facility’s covenants for the foreseeable future. However, a default under the Facility could accelerate the repayment of any then outstanding indebtedness and limit our access to $200 million of additional revolving credit available under the Facility. Such an event could require a reduction in or curtailment of cash dividends or share repurchases, reduce or delay beneficial expansion or investment plans, or otherwise impact our ability to meet our obligations when due. We believe that cash provided by operating activities and our existing balances in cash and equivalents, in addition to that available under the Facility, should be adequate to meet our core liquidity needs over the next 12 months, including the projected levels of capital expenditures and dividend payments. If we were to borrow outside of the Facility under current market terms, our average interest rate may increase and have an adverse effect on our results of operations. Based on our current plans and expectations, we believe our capital expenditures for 2027 could total approximately $90 million. Beyond the next 12 months, we expect that cash provided by operating activities will be the primary source of liquidity. This source, combined with our existing balances in cash and equivalents and amounts available under the Facility, is expected to be sufficient to meet our overall cash requirements. 27 Table of Contents We have various contractual and other obligations that are appropriately recorded as liabilities in our consolidated financial statements, including finance lease obligations, operating lease obligations, other post-employment benefit obligations, tax liabilities, noncurrent workers compensation obligations, deferred compensation and interest on deferred compensation. See Note 4 to the consolidated financial statements for further information about our lease obligations, including the maturities of minimum lease payments. It is not certain when the liabilities for other post-employment benefit obligations, tax liabilities, noncurrent workers compensation obligations, deferred compensation and interest on deferred compensation will become due. See Notes 8 and 12 to the consolidated financial statements for further information about these liabilities. Certain other contractual obligations are not recognized as liabilities in our consolidated financial statements. Examples of such obligations are commitments to purchase raw materials or packaging inventory that has not yet been received as of June 30, 2026, lease commitments that have not yet commenced as of June 30, 2026, and purchase orders and longer-term purchase arrangements related to the procurement of services, including IT service agreements, and property, plant and equipment. The majority of these obligations, other than lease commitments, is expected to be due within one year. Cash Flows Year Ended June 30, Change (Dollars in thousands) 2026 2025 2024 2026 vs. 2025 2025 vs. 2024 Provided By Operating Activities $ 283,816 $ 261,496 $ 251,553 $ 22,320 8.5 % $ 9,943 4.0 % Used In Investing Activities $ (470,039) $ (148,206) $ (67,433) $ (321,833) N/M $ (80,773) (119.8) % Provided By (Used In) Financing Activities $ 49,843 $ (115,257) $ (109,150) $ 165,100 143.2 % $ (6,107) (5.6) % Cash provided by operating activities in 2026 totaled $283.8 million, an increase of 8.5% as compared with the 2025 total of $261.5 million. The 2026 increase was primarily due to the change in deferred income taxes resulting from tax timing benefits of the One Big Beautiful Bill Act, which was enacted in July 2025. The unfavorable year-over-year changes in net working capital reflected the impact of a current-year increase in inventories, reflecting higher levels of finished goods on-hand, which was largely offset by a current-year increase in accounts payable. Higher net income was offset by the impacts of the current-year gain on sale of property and the prior-year noncash pension settlement charge. Cash used in investing activities totaled $470.0 million in 2026 as compared to $148.2 million in 2025. The 2026 increase primarily reflects cash paid for the May 2026 Bachan’s acquisition of $399.3 million compared to prior-year cash paid for the Atlanta plant acquisition of $78.8 million, as well as a $19.7 million increase in payments for property additions. Partially offsetting these items were current-year proceeds from the sale of property totaling $20.3 million. Financing activities provided net cash totaling $49.8 million in 2026 and used net cash totaling $115.3 million in 2025. In 2026, net borrowing activities provided cash of $199.1 million and were partially offset by higher levels of cash used for share repurchases and dividend payments. The regular dividend payout rate for 2026 was $3.95 per share, as compared to $3.75 per share in 2025. This past fiscal year marked the 63rd consecutive year of increased regular cash dividends. Future levels of share repurchases and declared dividends are subject to the periodic review of our Board of Directors and are generally determined after an assessment is made of various factors, such as anticipated earnings levels, cash flow requirements and general business conditions. Our ongoing business activities continue to be subject to compliance with various laws, rules and regulations as may be issued and enforced by various federal, state and local agencies. With respect to environmental matters, costs are incurred pertaining to regulatory compliance and, upon occasion, remediation. Such costs have not been, and are not anticipated to become, material. We are contingently liable with respect to lawsuits, taxes and various other matters that routinely arise in the normal course of business. We do not have any related party transactions that materially affect our results of operations, cash flows or financial condition. 28 Table of Contents RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES We prepare our consolidated financial statements in accordance with GAAP. However, from time to time, we may present in our public statements, press releases and SEC filings, non-GAAP financial measures such as Adjusted Consolidated Net Sales, Adjusted Foodservice Net Sales, Adjusted Cost of Sales, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, and Adjusted Net Income Per Diluted Share (“Adjusted Diluted EPS”). Management considers such non-GAAP financial measures to provide useful supplemental information to investors in facilitating year-over-year comparisons by removing non-recurring items or other items that management believes do not directly reflect the underlying operations. Management uses these non-GAAP measures in the preparation of our annual operating plan and for our monthly analysis of operating results. Reconciliations of the non-GAAP measures to the most comparable GAAP financial measures are provided below. Our definitions of these non-GAAP measures may differ from similarly titled measures used by other companies. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. 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 the 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 following tables present 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 years ended June 30, 2026 and 2025. Year Ended June 30, 2026 Year Ended June 30, 2025 (Dollars in thousands) Reported TSA-Related Adjusted (non-GAAP) Reported TSA-Related Adjusted (non-GAAP) Consolidated Net Sales $ 1,929,823 $ 20,415 $ 1,909,408 $ 1,909,122 $ 14,237 $ 1,894,885 Cost of Sales 1,452,535 20,415 1,432,120 1,453,476 14,237 1,439,239 Gross Profit $ 477,288 $ — $ 477,288 $ 455,646 $ — $ 455,646 Gross Margin 24.7 % — % 25.0 % 23.9 % — % 24.0 % Foodservice Segment Foodservice Net Sales $ 927,054 $ 20,415 $ 906,639 $ 905,713 $ 14,237 $ 891,476 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 following table 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 years ended June 30, 2026, 2025 and 2024. 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. For 2024, the adjustments consist of a write-down of inventories and restructuring and impairment charges, both of which resulted from our decision to exit our perimeter-of-the-store bakery product lines. 29 Table of Contents Dollars in thousands, except per share data Reported Cost of Sales - Inventory Write-Down for Product Line Exit SG&A Expenses - Acquisition Costs SG&A Expenses - Intangibles Amortization Restructuring, Impairment and Other, Net Pension Settlement Charge Adjusted (non-GAAP) * 2026 Operating Income $ 238,711 $ — $ 14,509 $ 1,606 $ (16,024) $ — $ 238,802 2026 Diluted EPS $ 6.98 $ — $ 0.41 $ 0.05 $ (0.60) $ — $ 6.83 2025 Operating Income $ 220,317 $ — $ 3,781 $ — $ 5,102 $ — $ 229,200 2025 Diluted EPS $ 6.07 $ — $ 0.11 $ — $ 0.15 $ 0.39 $ 6.72 2024 Operating Income $ 199,363 $ 2,600 $ — $ — $ 14,874 $ — $ 216,837 2024 Diluted EPS $ 5.76 $ 0.07 $ — $ — $ 0.42 $ — $ 6.25 2026 vs 2025: Operating Income Change ($) $ 18,394 $ — $ 10,728 $ 1,606 $ (21,126) $ — $ 9,602 Operating Income Change (%) 8.3 % N/M 283.7 % N/M (414.1) % — 4.2 % Diluted EPS Change ($) $ 0.91 $ — $ 0.30 $ 0.05 $ (0.75) $ (0.39) $ 0.11 Diluted EPS Change (%) 15.0 % N/M 272.7 % N/M (500.0) % (100.0) % 1.6 % 2025 vs 2024: Operating Income Change ($) $ 20,954 $ (2,600) $ 3,781 $ — $ (9,772) $ — $ 12,363 Operating Income Change (%) 10.5 % (100.0) % N/M N/M (65.7) % — 5.7 % Diluted EPS Change ($) $ 0.31 $ (0.07) $ 0.11 $ — $ (0.27) $ 0.39 $ 0.47 Diluted EPS Change (%) 5.4 % (100.0) % N/M N/M (64.3) % N/M 7.5 % * The sum of individual per share amounts may not add due to rounding. IMPACT OF INFLATION Our business results can be influenced by significant changes in the costs of our raw materials, packaging and freight. We attempt to mitigate the impact of inflation on our raw-material costs via longer-term fixed-price contractual commitments for a portion of our most significant market-indexed commodities, most notably soybean oil and flour. Specific to freight costs, our transportation network includes a mix of dedicated carriers and longer-term fixed-rate contracts. We also have a transportation management system in place to support our freight management processes and help us to secure more competitive freight rates. Nonetheless, we are subject to events and trends in the marketplace that will impact our costs for raw materials, packaging and freight. While we attempt to pass through sustained increases in these costs, any such price adjustments can lag the changes in the related input costs. Although typically less notable, we are also exposed to the unfavorable effects of general inflation beyond material and freight costs, especially in the areas of labor rates, including annual wage adjustments and benefit costs. Over time, we attempt to minimize the exposure to such cost increases through ongoing improvements and greater efficiencies throughout our manufacturing operations, including benefits gained through our cost savings programs and strategic investments in plant equipment. With regard to the impact of commodity and freight costs on Foodservice segment operating income, most of our supply contracts with national chain restaurant accounts incorporate pricing adjustments to account for changes in ingredient and freight costs. These supply contracts may vary by account specific to the time lapse between the actual change in ingredient and freight costs we incur and the effective date of the associated price increase or decrease. As a result, the reported operating margins of the Foodservice segment are subject to increased volatility during periods of rapidly rising or falling ingredient and/or freight costs because at least some portion of the change in ingredient and/or freight costs is reflected in the segment’s results prior to the impact of any associated change in pricing. In addition, the Foodservice segment has an inherently higher degree of margin volatility from changes in ingredient costs when compared to the Retail segment due to its overall lower margin profile and higher ratio of ingredient pounds to net sales. In Retail, there is an opportunity to offset the impact of inflationary costs through net price realization actions including list price increases, decreased trade spending and packaging size changes. Note that all these Retail cost-recovery options entail some inherent risks and uncertainties, and the implementation timeframe can lag the input cost changes. We also implement value engineering initiatives, such as the use of lower-cost packaging materials and alternative ingredients and/or recipes, to reduce Retail and Foodservice product costs to help offset inflation. 30 Table of Contents CRITICAL ACCOUNTING POLICIES AND ESTIMATES This MD&A discusses our consolidated financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles. The preparation of these consolidated financial statements requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates and judgments, including, but not limited to, those related to accounts receivable allowances, distribution costs, asset impairments and self-insurance reserves. We base our estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Historically, the aggregate differences, if any, between our estimates and actual amounts in any year have not had a significant impact on our consolidated financial statements. While a summary of our significant accounting policies can be found in Note 1 to the consolidated financial statements, we believe the following critical accounting policies reflect those areas in which more significant judgments and estimates are used in the preparation of our consolidated financial statements. Trade-Related Allowances Our receivables balance is net of trade-related allowances, which consist of sales discounts, trade promotions and certain other sales incentives. We evaluate the adequacy of these allowances considering several factors including historical experience, specific trade programs and existing customer relationships. These allowances can fluctuate based on the level of sales and promotional programs as well as the timing of deductions. Business Combinations, Goodwill and Other Intangible Assets We account for business combinations using the acquisition method of accounting. Accordingly, the purchase price of an acquired business is allocated to the identifiable assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with any excess purchase price recorded as goodwill. The determination of the fair values of assets acquired and liabilities assumed requires management to make significant estimates and assumptions, particularly with respect to acquired intangible assets. These estimates and assumptions may include forecasts of future revenues and cash flows, expected growth rates, customer attrition rates, royalty rates, useful lives, and discount rates. We generally estimate the fair value of acquired intangible assets using income-based valuation methodologies, including the relief-from-royalty method for tradenames and proprietary recipes and the multi-period excess earnings method for customer relationships. Goodwill is not amortized. It is evaluated annually at April 30 by applying impairment testing procedures. Other finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives to Selling, General and Administrative Expenses. We evaluate the future economic benefit of the recorded goodwill and other intangible assets when events or circumstances indicate potential recoverability concerns. Carrying amounts are adjusted appropriately when determined to have been impaired. RECENT ACCOUNTING PRONOUNCEMENTS Recent accounting pronouncements and their impact on our consolidated financial statements are disclosed in Note 1 to the consolidated financial statements. FORWARD-LOOKING STATEMENTS We desire to take advantage of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). This Annual Report on Form 10-K contains various “forward-looking statements” within the meaning of the PSLRA and other applicable securities laws. Such statements can be identified by the use of the forward-looking words “anticipate,” “estimate,” “project,” “believe,” “intend,” “plan,” “expect,” “hope” or similar words. These statements discuss future expectations; contain projections regarding future developments, operations or financial conditions; or state other forward-looking information. Such statements are based upon assumptions and assessments made by us in light of our experience and perception of historical trends, current conditions, expected future developments and other factors we believe to be appropriate. These forward-looking statements involve various important risks, uncertainties and other factors that could cause our actual results to differ materially from those expressed in the forward-looking statements. Actual results may differ as a result of factors over which we have no, or limited, control including, without limitation, the specific influences outlined below. Management believes these forward-looking statements to be reasonable; however, one should not place undue reliance on such statements that are based on current expectations. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update such forward-looking statements, except as required by law. 31 Table of Contents Items which could impact these forward-looking statements include, but are not limited to, those risk factors identified in Item 1A and: •the ability to successfully integrate the acquired Bachan’s business and achieve operational and financial performance objectives; •changes in demand for our products, which may result from changes in consumer behavior or loss of brand reputation or customer goodwill; •significant shifts in consumer demand and disruptions to our employees, communities, customers, supply chains, production planning, operations, and production processes resulting from the impacts of epidemics, pandemics or similar widespread public health concerns and foodborne outbreaks; •efficiencies in plant operations and our overall supply chain network; •geopolitical events that could create unforeseen business disruptions and impact the cost or availability of raw materials and energy; •inflationary pressures resulting in higher input costs; •adverse changes in freight, energy or other costs of producing, distributing or transporting our products; •fluctuations in the cost and availability of ingredients and packaging; •the reaction of customers or consumers to pricing actions we take to offset inflationary costs; •price and product competition; •changes in our cash flow or use of cash in various business activities; •the success and cost of new product development efforts; •the lack of market acceptance of new products; •the impact of customer store brands on our branded retail volumes; •the impact of any laws and regulatory matters affecting our food business, including any additional requirements imposed by the federal, state or local government; •adverse changes in trade policies, including increased tariffs, retaliatory trade measures, or other trade restrictions; •dependence on key personnel and changes in key personnel; •adequate supply of labor for our manufacturing facilities; •stability of labor relations; •the extent to which good-fitting business acquisitions are identified, acceptably integrated, and achieve operational and financial performance objectives; •dependence on a wide array of critical third parties to support our operations, including contract manufacturers, distributors, logistics providers and IT vendors; •cyber-security incidents, information technology disruptions, and data breaches; •the potential for loss of larger programs or key customer relationships; •capacity constraints that may affect our ability to meet demand or may increase our costs; •failure to maintain or renew license agreements; •the possible occurrence of product recalls or other defective or mislabeled product costs; •maintenance of competitive position with respect to other manufacturers; •the outcome of any litigation or arbitration; •the effect of consolidation of customers within key market channels; •changes in estimates in critical accounting judgments; and •certain other factors, including those discussed in other filings we have submitted to the Securities and Exchange Commission. 32 Table of Contents