Utz Brands outlines growth strategies at CAGNY conference

By Chris Stiles • Wednesday, February 18 11:40 • Permanent Link

Utz Brands, Inc. has outlined its strategies and long-term growth targets at the 2026 Consumer Analyst Group of New York (CAGNY) conference. The company is focused on delivering sustainable growth and accelerating free cash flow as it exits a capital-intensive transformation stage.

Key Strategies: 1. Outgrow the category profitably 2. Expand margins 3. Accelerate free cash flow to delever and allocate capital efficiently 4. Deploy leading capabilities to build a best-in-class organization

Key Growth Differentiators: The company aims to grow organic net sales 2-3 percentage points faster than the salty snack category. This growth will be driven by four key differentiators: Boulder Canyon, the company's fastest-growing brand, will focus on expanding distribution and launching new product innovation. Geographic expansion, especially in California, which represents 45% of the company's retail sales. Strengthened core geographies through expanded distribution, a focused pricing strategy, and innovation. Winning innovation, introducing new on-trend products supported with increased marketing support.

Long-Term Financial Targets: Organic net sales are targeted to grow 2-3 percentage points faster than the category, with a long-term net sales potential of $1.9 billion, supported by Boulder Canyon and expansion geographies share growth. Annual adjusted EBITDA growth of 6-8% and margin expansion, with a target of at least 17% long-term. Annual adjusted EPS growth approximately in-line with adjusted EBITDA growth after 2026. Accelerated adjusted free cash flow of $100 million plus in 2027 and beyond, representing approximately 80-90% conversion of adjusted net income to adjusted free cash flow.

Leverage: The company expects to reach a leverage of approximately 2.7x-3.0x in 2027 and aims for a long-term leverage of approximately 2.5x through adjusted EBITDA growth and debt paydown.

Utz Brands, Inc. manufactures a diverse portfolio of savory snacks through popular brands, including Utz®, On The Border® Chips & Dips, Zapp’s®, and Boulder Canyon®, distributed nationally through various channels. Today the company's shares have moved -1.15% to a price of $10.29. For the full picture, make sure to review Utz Brands's 8-K report.

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