Mama's Creations Q3 Earnings Beat Estimates, Sales Rise 50% Y/Y

Mama's Creations, Inc. (MAMA) reported third-quarter fiscal 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year.

The company saw strong third-quarter growth and began integrating Crown 1, which expands retail access but temporarily lowers margins. Efficiency improvements are expected to lift margins to the mid-20% range. The company remains focused on disciplined integration as it advances toward $1 billion goal.

Mama's Creations, Inc. Price, Consensus and EPS Surprise

Mama's Creations, Inc. price-consensus-eps-surprise-chart | Mama's Creations, Inc. Quote

MAMA’s Quarterly Performance: Key Metrics and Insights

Mama’s Creations, a leading national marketer and manufacturer of fresh deli-prepared foods, posted quarterly earnings of 1 cent per share in contrast to the Zacks Consensus Estimate of a loss of 1 cent and increased 24.1% from the prior-year period.

Total revenues of the company rose 50% year over year to $47.3 million and beat the Zacks Consensus Estimate of $44 million. This growth was driven by the acquisition of the Crown 1 business and strong double-digit organic growth in the core business on a pre-acquisition basis.

Gross profit increased 56.6% to $11.1 million from $7.1 million in the year-ago quarter. The gross margin expanded 100 basis points (bps) to 23.6% compared with 22.6% in the third quarter of fiscal 2025. The improvement was driven by operational efficiency gains and stabilized chicken commodity prices, partially offset by elevated beef commodity prices and the addition of lower-margin Crown 1 sales.

Operating expenses were $10.3 million, up from $6.6 million in the year-ago quarter. As a percentage of sales, operating expenses increased 100 bps to 21.8% in the third quarter of fiscal 2026. The increase reflected $1 million in non-recurring professional fees and transaction costs related to the Crown 1 acquisition. Excluding these acquisition-related costs, operating expenses remained below 20% of revenues.

Adjusted EBITDA totaled $3.8 million in the third quarter of fiscal 2026. The figure was up from $1.7 million in the prior-year quarter.

MAMA’s Financial Snapshot

Mama’s Creations ended the fiscal third quarter with cash and cash equivalents of $18.1 million and total shareholders’ equity of $49.6 million. As of Oct. 31, 2025, total debt was $6.4 million. During the nine months ended Oct. 31, 2025, the net cash flow provided by operations was $8.2 million.

This Zacks Rank #4 (Sell) stock has risen 18.3% in the past three months against the industry’s decline of 9.6%.

Stocks to Consider

United Natural Foods, Inc. (UNFI) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for United Natural’s current fiscal-year sales and earnings implies growth of 1% and 187.3%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 52.1%, on average.

Lamb Weston Holdings, Inc. (LW) engages in the production, distribution and marketing of frozen potato products in the United States, Canada, Mexico and internationally. It carries a Zacks Rank #2 (Buy) at present. Lamb Weston delivered a trailing four-quarter earnings surprise of 16%, on average.

The Zacks Consensus Estimate for Lamb Weston's current fiscal-year sales indicates growth of 2.4% from the prior-year levels.

Village Farms International, Inc. (VFF) produces, markets and distributes greenhouse-grown tomatoes, bell peppers, cucumbers and mini-cukes in North America. It holds a Zacks Rank #2. VFF delivered a trailing four-quarter earnings surprise of 155.6%, on average.

The Zacks Consensus Estimate for Village Farms’ current fiscal-year earnings indicates growth of 165.6% from the prior-year levels.

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This article originally published on Zacks Investment Research (zacks.com).

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