Armanino Foods Reports Third Quarter 2026 Financial Results
Quarterly sales growth coincided with lower reported earnings, while adjusted operating income increased 16.5%.
Sentiment and the balance of points
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Rhea-AI Summary
Armanino Foods of Distinction (OTCQX: AMNF) reported third-quarter 2026 net sales of $21.7 million, up from the prior-year quarter. Sales rose 10.0%, while net income fell 4.2% to $4.6 million and diluted earnings per share declined to $0.1484 from $0.1533. Gross margin fell to 46.5% from 49.5%, and operating income declined 1.8% to $6.0 million.
Adjusted operating income, which excludes relocation costs and stock-based compensation, rose 16.5% to $7.3 million. Nine-month sales increased 8.9% to $61.7 million, with net income up 4.7% to $14.2 million. Quarter-end cash was $29.5 million, with no debt. The planned $20 million Mountain House expansion remains on schedule and within budget; the company targets production in Q2 2027. Management expects inflation, tariffs and commodity-cost pressures to intensify in Q4, with transition expenses and inventory investments extending into Q2 2027.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointQ3 net sales increased 10.0% year over year to $21.7 million.
- Moderate pointQ3 adjusted operating income rose 16.5% to $7.3 million; margin increased to 33.6% from 31.7%.
- Minor pointNine-month net sales increased 8.9% year over year to $61.7 million.
- Minor pointQ3 gross profit increased 3.3% year over year to $10.1 million.
- Minor pointNine-month gross profit rose 12.1% to $29.7 million; gross margin increased to 48.1% from 46.7%.
14 minor points
- Minor pointNine-month operating income rose 6.1% year over year to $18.6 million.
- Minor pointNine-month net income increased 4.7% year over year to $14.2 million.
- Minor pointNine-month diluted earnings per share increased 5.4% to $0.4555 from $0.4323.
- Minor pointQ3 adjusted net income rose 13.0% year over year to $5.5 million.
- Minor pointQ3 adjusted diluted earnings per share increased 14.2% to $0.1775 from $0.1555.
- Minor pointQ3 adjusted gross profit rose 10.0% to $10.7 million; margin remained 49.5%.
- Minor pointNine-month adjusted gross profit rose 16.3% to $30.8 million; margin increased to 49.9% from 46.7%.
- Minor pointNine-month adjusted operating income rose 18.8% to $20.9 million; margin increased to 33.9% from 31.1%.
- Minor pointNine-month adjusted net income increased 16.7% year over year to $15.9 million.
- Minor pointNine-month adjusted diluted earnings per share increased 17.4% to $0.5113 from $0.4354.
- Minor pointSecondary sauces grew 20% in the quarter.
- Minor pointInternational business increased to 10% of total company sales.
- Minor point. Forward-looking: it has not happened yet and may not happen.Mountain House expansion remains on schedule and within budget, with production targeted for Q2 2027.
- Minor pointQuarter-end liquidity included $29.5 million in cash and cash equivalents, with no debt.
Negative
- Moderate pointQ3 net income declined 4.2% year over year to $4.6 million.
- Moderate pointQ3 operating income declined 1.8% to $6.0 million; margin fell to 27.9% from 31.3%.
- Moderate pointQ3 gross margin declined 3.0 percentage points to 46.5% from 49.5%.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Mountain House capital investment is planned at $20 million; quarterly capital expenditures were $2.0 million. 5.3% of market cap
- Minor pointQ3 diluted earnings per share fell 3.2% to $0.1484 from $0.1533.
8 minor points
- Minor pointNine-month operating margin fell 0.8 percentage points to 30.1%.
- Minor pointQ3 operating expenses increased to $4.0 million from $3.6 million a year earlier.
- Minor pointNine-month operating expenses increased to $11.1 million from $9.0 million a year earlier.
- Minor pointQ3 facility relocation costs added back to adjusted operating income totaled $1.0 million; nine-month costs totaled $1.6 million.
- Minor pointStock-based compensation expense reached $0.3 million in Q3 and $0.8 million over nine months.
- Minor point. Forward-looking: it has not happened yet and may not happen.Inflation, tariffs and commodity costs are expected by management to create intensifying pressure in Q4.
- Minor point. Forward-looking: it has not happened yet and may not happen.Manufacturing transition expenses and inventory investments are planned to extend into Q2 2027.
- Minor pointLong-term operating lease liabilities increased to $10.4 million at September 30, 2026, from $0.1 million at December 31, 2025.
AI-generated analysis. How Rhea-AI works. Not financial advice.
PLEASANTON, CA / ACCESS Newswire / November 10, 2026 / Armanino Foods of Distinction, Inc. (OTCQX:AMNF), a leading producer and marketer of premium frozen Italian and specialty foods serving foodservice, retail, and industrial customers across North America and select international markets, today announced financial results for the third quarter ended September 30, 2026.
Financial Summary:
$ in millions, except per share amounts | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||||||||
Net Sales | $ | 21.7 | $ | 19.7 | 10.0 | % | $ | 61.7 | $ | 56.6 | 8.9 | % | ||||||||||||
Gross Profit | $ | 10.1 | $ | 9.7 | 3.3 | % | $ | 29.7 | $ | 26.5 | 12.1 | % | ||||||||||||
As a % of Net Sales | 46.5 | % | 49.5 | % | -3.0pts | 48.1 | % | 46.7 | % | 1.4pts | ||||||||||||||
Operating Income | $ | 6.0 | $ | 6.2 | -1.8 | % | $ | 18.6 | $ | 17.5 | 6.1 | % | ||||||||||||
As a % of Net Sales | 27.9 | % | 31.3 | % | -3.4pts | 30.1 | % | 30.9 | % | -0.8pts | ||||||||||||||
Net Income | $ | 4.6 | $ | 4.8 | -4.2 | % | $ | 14.2 | $ | 13.6 | 4.7 | % | ||||||||||||
Earnings per Share (Diluted) | $ | 0.1484 | $ | 0.1533 | -3.2 | % | $ | 0.4555 | $ | 0.4323 | 5.4 | % | ||||||||||||
Non-GAAP Gross Profit | $ | 10.7 | $ | 9.7 | 10.0 | % | $ | 30.8 | $ | 26.5 | 16.3 | % | ||||||||||||
As a % of Net Sales | 49.5 | % | 49.5 | % | 0.0pts | 49.9 | % | 46.7 | % | 3.1pts | ||||||||||||||
Non-GAAP Operating Income | $ | 7.3 | $ | 6.2 | 16.5 | % | $ | 20.9 | $ | 17.6 | 18.8 | % | ||||||||||||
As a % of Net Sales | 33.6 | % | 31.7 | % | 1.9pts | 33.9 | % | 31.1 | % | 2.8pts | ||||||||||||||
Non-GAAP Net Income | $ | 5.5 | $ | 4.8 | 13.0 | % | $ | 15.9 | $ | 13.7 | 16.7 | % | ||||||||||||
Non-GAAP Earnings per Share (Diluted) | $ | 0.1775 | $ | 0.1555 | 14.2 | % | $ | 0.5113 | $ | 0.4354 | 17.4 | % | ||||||||||||
Third Quarter 2026 and Recent Business Highlights:
- Delivered
10% net sales growth, driven by continued momentum across core U.S. Foodservice, National Accounts, and International markets. - Generated
$6.0 million in reported operating income, representing27.9% of net sales, and$7.3 million of non-GAAP operating income, representing33.6% of net sales, an increase of approximately 190 basis points vs. Q3 2025; non-GAAP operating income grew by16.5% year-over-year. - Achieved
20% growth in secondary sauces, reinforcing the Company's progress in expanding specialty sauces beyond pesto. - Increased International business to
10% of total company sales, reflecting continued market penetration and growing demand across international markets. - Advanced National Accounts partnerships, including the national launch of a co-developed Gochujang Carbonara sauce with Noodles & Company. In addition, the Company expanded its partnership with Wonder, a growing multi-concept restaurant platform focused on convenience and delivery, with the nationwide introduction of Royal Miso and Pomegranate Vinaigrette dressings, building on its existing Basil Pesto and Romesco sauces.
- The Mountain House manufacturing expansion remains on schedule and within budget, targeting production in Q2 2027.Maintained a strong financial position, with
$29.5 million in cash and cash-equivalents and no debt.
Management Commentary:
Deanna Jurgens, President and Chief Executive Officer, commented, "Armanino delivered another strong quarter, with double-digit net sales growth, expanded adjusted operating margins and double-digit growth in both non-GAAP operating income and net income. More importantly, our results demonstrate the continued execution of our growth strategy, as we translate our strategic priorities into measurable commercial momentum and financial performance.
"We are seeing tangible progress against our growth agenda. Our core U.S. Foodservice business continues to generate strong momentum, while expanding our National Accounts partnerships are creating new opportunities for growth. Recent national launches with Noodles & Company and the expansion of our relationship with Wonder demonstrate our ability to leverage culinary innovation to secure new business and broaden our market reach. At the same time, secondary sauces grew
"We are also advancing the infrastructure required to support our next phase of growth. Our Mountain House manufacturing facility remains on schedule and within budget, with production targeted for the second quarter of 2027. This investment is designed to increase capacity, enhance operating efficiencies and position Armanino to support a substantially larger business.
"We are making these investments while navigating an increasingly challenging cost environment. Inflation, tariffs, and rising commodity costs continue to create pressure, and we anticipate these headwinds will intensify into the fourth quarter. We are also managing planned manufacturing transition expenses and working capital requirements, including inventory investments extending into the second quarter of 2027. Our strong adjusted profitability and
"As I look ahead, my confidence in Armanino's long-term potential continues to grow. We have a leading position in foodservice pesto, an expanding portfolio of sauces, stronger relationships with national customers and growing international opportunities. These strengths, combined with the progress we are making against our commercial priorities, reinforce my conviction in the scale of the opportunity ahead. I believe Armanino is exceptionally well positioned for its next phase of growth."
Third Quarter 2026 Financial Results
Net sales for the quarter increased
Reported gross profit totaled
Reported operating expenses were
Reported operating income totaled
Reported net income was
See the Use of Non-GAAP Measures discussion below for more information on the non-GAAP metrics mentioned in this section.
Capital Allocation and Balance Sheet
The Company ended the quarter with
Q3 Earnings Call and Webcast
Management will host an investor conference call at 4:30 p.m. Eastern time today, Tuesday, November 10, 2026 to discuss the Company's third quarter fiscal 2026 financial results. To participate, please use the following information:
Date: Tuesday, November 10, 2026
Time: 4:30 p.m. Eastern time
U.S. Dial-in: 1-877-451-6152
International: 1-201-389-0879
Webcast: AMNF Q3 FY2026 Earnings Conference Call
Please join at least five minutes before the start of the call to ensure timely participation.
A telephonic replay of the conference call will also be available through November 24, 2026. To listen, please call 1-844-512-2921 within the United States and Canada or 1-412-317-6671 when calling internationally, using replay pin number 13763241. A webcast replay will also be available using the webcast link above.
About Armanino Foods of Distinction, Inc.
Armanino Foods of Distinction, Inc. (OTCQX: AMNF) is a leading producer and marketer of premium frozen Italian and specialty foods serving retail, foodservice and industrial customers across North America and select international markets. Best known for its top selling Basil Pesto, the Company's product line spans a wide variety of sauces and stuffed pasta dishes, chiefly produced in a British Retail Consortium Global Standards Grade AA facility with rigorous quality systems and scalable packaging formats to meet customer needs. To learn more, please visit the Company's website at armaninofoods.com.
Cautionary Statements Regarding Forward-Looking Information
Statements in this news release regarding our expectations and beliefs about our future financial performance and trends in our markets are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may."
The forward-looking statements in this news release regarding our future financial performance are based on current information and because our business is subject to several risks and uncertainties, actual operating results in the future may differ significantly from the future financial performance expected at the current time. Those risks and uncertainties may include, among others: economic factors affecting consumer confidence and discretionary spending and reducing the consumption of food prepared away from home; cost inflation/deflation and commodity volatility; competition; reliance on third party suppliers and interruption of product supply or increases in product costs; changes in the Company's relationships with customers and group purchasing organizations; the Company's ability to increase or maintain the highest margin portions of the Company's business; achievement of expected benefits from cost savings initiatives; increases in fuel costs; changes in consumer eating habits; cost and pricing structures and other governmental regulation. The forward-looking statements contained in this press release speak only as of the date of this press release and are based on information and estimates available to the Company at this time. We undertake no obligation to update or revise any forward-looking statements, except as may be required by law.
Investor Relations Contact
Lucas A. Zimmerman
Managing Director
MZ Group - MZ North America
(262) 357-2918
AMNF@mzgroup.us
www.mzgroup.us
Unaudited Condensed Consolidated Statements of Operations
| Quarter Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
Net Sales | $ | 21.7 | $ | 19.7 | $ | 61.7 | $ | 56.6 | ||||||||
Cost of goods sold | 11.6 | 9.9 | 32.0 | 30.2 | ||||||||||||
Gross profit | 10.1 | 9.7 | 29.7 | 26.5 | ||||||||||||
Operating expenses: | ||||||||||||||||
General, administrative and selling expense | 2.2 | 2.2 | 5.8 | 4.4 | ||||||||||||
Salaries & wages | 1.5 | 1.0 | 4.3 | 3.6 | ||||||||||||
Commissions | 0.3 | 0.4 | 1.0 | 1.0 | ||||||||||||
Total operating expenses | 4.0 | 3.6 | 11.1 | 9.0 | ||||||||||||
Income from operations | 6.0 | 6.2 | 18.6 | 17.5 | ||||||||||||
Other Income / (Expense) | 0.3 | 0.3 | 0.8 | 0.8 | ||||||||||||
Income before income taxes | 6.3 | 6.4 | 19.4 | 18.3 | ||||||||||||
Income taxes | 1.7 | 1.6 | 5.2 | 4.7 | ||||||||||||
Net income | $ | 4.6 | $ | 4.8 | $ | 14.2 | $ | 13.6 | ||||||||
| Earnings per common and equivalent shares: | ||||||||||||||||
Basic earnings per share | $ | 0.1489 | $ | 0.1534 | $ | 0.4602 | $ | 0.4324 | ||||||||
Weighted average common shares outstanding | 30.7 | 31.1 | 30.9 | 31.4 | ||||||||||||
Diluted earnings per share | $ | 0.1484 | $ | 0.1533 | $ | 0.4555 | $ | 0.4323 | ||||||||
Weighted average common shares outstanding assuming dilution | 30.8 | 31.1 | 31.2 | 31.4 | ||||||||||||
Unaudited Condensed Consolidated Balance Sheets
$ in millions | As of | |||||||
| September 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 29.5 | $ | 29.5 | ||||
Accounts receivable, net | 13.4 | 11.8 | ||||||
Inventories, net | 4.7 | 4.7 | ||||||
Prepaid Expenses | 1.1 | 0.7 | ||||||
Total Current Assets | 48.7 | 46.7 | ||||||
Property and Equipment, Net | 10.3 | 8.6 | ||||||
Deposits | 0.3 | 0.1 | ||||||
Operating lease right of use asset | 10.7 | 0.7 | ||||||
Goodwill | 0.4 | 0.4 | ||||||
Trademarks | 0.1 | 0.1 | ||||||
Total Non-Current Assets | 21.7 | 9.9 | ||||||
TOTAL ASSETS | $ | 70.4 | $ | 56.6 | ||||
LIABILITIES AND STOCKHOLDER'S EQUITY | ||||||||
Accounts Payable | $ | 4.3 | $ | 4.7 | ||||
Contract Liabilities | 0.6 | 2.3 | ||||||
Accrued Payroll and Payroll Taxes | 1.5 | 1.4 | ||||||
Phantom Stock Liability | 0.9 | 2.2 | ||||||
Operating Lease Liability ST | 0.5 | 0.7 | ||||||
Dividends Payable | 1.6 | 1.6 | ||||||
Income Taxes Payable | 0.5 | -- | ||||||
Total Current Liabilities | 10.0 | 12.8 | ||||||
Operating Lease Liability LT | 10.4 | 0.1 | ||||||
Deferred Tax Liability LT | 0.6 | 0.6 | ||||||
Total Non-Current Liabilities | 11.0 | 0.6 | ||||||
Total Liabilities | 20.9 | 13.4 | ||||||
Common Stock | 2.8 | 2.8 | ||||||
Treasury Stock | -12.0 | -7.5 | ||||||
Additional Paid-In Capital | 1.5 | 0.3 | ||||||
Retained Earnings | 57.2 | 47.6 | ||||||
Total Stockholder's Equity | 49.5 | 43.1 | ||||||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ | 70.4 | $ | 56.6 | ||||
Use of Non-GAAP Measures
In preparing the Company's non-GAAP gross profit, non-GAAP operating income, non-GAAP earnings before interest, taxes, depreciation and amortization (EBITDA) and non-GAAP net income, the Company excluded items that either have a non-recurring impact on our financial performance or which, in the judgment of our management, are not reflective of our underlying business performance. The items excluded from our non-GAAP gross profit, non-GAAP operating income, non-GAAP earnings before interest, taxes, depreciation and amortization (EBITDA) non-GAAP net income and non-GAAP EPS include:
- Costs resulting from the upcoming relocation of production operations from the Company's current production facility in Hayward, California to its new production facility in Mountain House, California, including accelerated depreciation of leasehold improvements to the Hayward facility, rent expense on the Mountain House facility prior to occupancy, and employee retention bonuses.
- Non-cash expenses related to our equity compensation
The Company's non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. Therefore, investors should consider non-GAAP measures in addition to, and not as a substitute for, or superior to, measures of financial performance in accordance with GAAP. For a definition and reconciliation of income from operations to non-GAAP income from operations and net income to non-GAAP net income, their corresponding GAAP measure, please see the reconciliation table shown below.
Reconciliation of GAAP to Non-GAAP Metrics
$ in millions, except per share amounts | Quarter Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
GAAP gross profit | $ | 10.1 | $ | 9.7 | $ | 29.7 | $ | 26.5 | ||||||||
Facility relocation costs | 0.7 | -- | 1.1 | -- | ||||||||||||
Non-GAAP gross profit | 10.7 | 9.7 | 30.8 | 26.5 | ||||||||||||
% of net sales | 49.5 | % | 49.5 | % | 49.9 | % | 46.7 | % | ||||||||
% Y/Y growth | 10.0 | % | -- | 16.3 | % | -- | ||||||||||
GAAP income from operations | $ | 6.0 | $ | 6.2 | $ | 18.6 | $ | 17.5 | ||||||||
Facility relocation costs | 1.0 | -- | 1.6 | -- | ||||||||||||
Stock-based compensation expense | 0.3 | 0.1 | 0.8 | 0.1 | ||||||||||||
Non-GAAP income from operations | 7.3 | 6.2 | 20.9 | 17.6 | ||||||||||||
% of net sales | 33.6 | % | 31.7 | % | 33.9 | % | 31.1 | % | ||||||||
% Y/Y growth | 16.5 | % | -- | 18.8 | % | -- | ||||||||||
GAAP earnings before interest, taxes, depreciation and amortization (EBITDA) | $ | 7.1 | $ | 6.7 | $ | 20.8 | $ | 18.4 | ||||||||
Facility relocation costs | 1.0 | -- | 1.6 | -- | ||||||||||||
Stock-based compensation expense | 0.3 | 0.1 | 0.8 | 0.1 | ||||||||||||
Non-GAAP earnings before interest, taxes, depreciation and amortization (EBITDA) | 8.3 | 6.8 | 23.2 | 18.5 | ||||||||||||
GAAP net income | $ | 4.6 | $ | 4.8 | $ | 14.2 | $ | 13.6 | ||||||||
Facility relocation costs | 0.7 | -- | 1.1 | -- | ||||||||||||
Stock-based compensation expense | 0.2 | 0.1 | 0.6 | 0.1 | ||||||||||||
Non-GAAP net income | 5.5 | 4.8 | 15.9 | 13.7 | ||||||||||||
% of net sales | 25.2 | % | 24.6 | % | 25.8 | % | 24.1 | % | ||||||||
% Y/Y growth | 13.0 | % | -- | 16.7 | % | -- | ||||||||||
Tax rate (1) | 27.4 | % | 25.6 | % | 26.7 | % | 25.8 | % | ||||||||
Non-GAAP diluted earnings per share | $ | 0.1775 | $ | 0.1555 | $ | 0.5113 | $ | 0.4354 | ||||||||
SOURCE: Armanino Foods of Distinction, Inc.
View the original press release on ACCESS Newswire
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Armanino Foods' third-quarter 2026 sales and earnings?
Armanino Foods reported $21.7 million in net sales and $4.6 million in net income for the quarter ended September 30, 2026. Sales increased 10.0% year over year, while net income declined 4.2%. Diluted earnings per share were $0.1484, compared with $0.1533 a year earlier.
When will Armanino Foods' Mountain House facility begin production?
Armanino Foods targets Q2 2027 for production at its Mountain House facility. The expansion remains on schedule and within budget. Planned capital investment is $20 million, and quarterly capital expenditures were $2.0 million, reflecting the initial stages of that investment.
What costs does Armanino Foods exclude from its adjusted earnings?
Armanino Foods excludes facility relocation costs and non-cash equity compensation expenses from its adjusted earnings measures. Relocation items include accelerated depreciation of Hayward leasehold improvements, Mountain House rent before occupancy and employee retention bonuses. These adjusted measures supplement, rather than replace, earnings prepared under generally accepted accounting principles.