What Happened?
Shares of snack food company Utz Brands (NYSE:UTZ)
jumped 2.6% in the morning session after the company announced an increase in its quarterly cash dividend. The board of directors approved a 3.3% increase to the annual dividend, raising it from $0.244 to $0.252 per share. This resulted in a new quarterly cash dividend of approximately $0.063 per share. The move marked the fifth consecutive year that the snack food maker increased its dividend, a signal of financial stability and confidence in its future performance. This decision followed other positive developments for the company, including better-than-expected third-quarter revenue and plans to expand its presence in California, which is the largest salty snack market in the United States.
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What Is The Market Telling Us
The previous big move we wrote about was 2 days ago when the stock gained 3.1% on the news that the company received a 'Buy' consensus rating from analysts, supported by a robust operational outlook. The company anticipated an increase in volume-driven organic growth, helped by additional capacity from its Kings Mountain facility. This expansion was expected to boost its kettle snack business. Furthermore, the UTZ portfolio had seen positive metrics, including a 1.2 percentage point increase in household penetration year-over-year. The company also projected EBITDA growth of 6-10% and EPS growth of 10-15%. Broader market commentary suggested that the Consumer Staples sector, which includes companies like Utz, could benefit if an economic slowdown prompted a flight to safety among investors.
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