HANOVER, Pa. - Utz Brands, Inc. (NYSE: NYSE:UTZ), a prominent manufacturer of branded salty snacks with a market capitalization of $2.37 billion, has declared an increase in its annual dividend from $0.236 to $0.244 per share, effective today. This marks the company's fourth consecutive year of dividend increases, according to InvestingPro data, with the current yield standing at 1.37%. The company's Board of Directors also announced a regular quarterly cash dividend of roughly $0.061 per share on its Class A Common Stock, with a scheduled payment date of January 2, 2025, for shareholders on record as of December 16, 2024.
This dividend will be financed through cash distributions from Utz Brands Holdings, LLC to Utz and other common unit holders on a proportional basis. The company maintains strong liquidity with a current ratio of 1.21, indicating sufficient assets to cover short-term obligations. While the announcement indicates a commitment to shareholder returns, future dividends will depend on the Board's ongoing assessment of various factors, including operational results and financial health. For deeper insights into Utz's financial stability and growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro.
Previously, in March 2024, the Board approved an increase in the annual dividend from $0.228 to $0.236 per share, reflecting a consistent approach to shareholder value.
Utz Brands, with a history spanning over a century, is known for its wide range of savory snacks under various brands such as Utz®, On The Border® Chips & Dips, Zapp's®, and Boulder Canyon®, among others. The company's products are widely distributed across the United States in various retail channels, and it operates multiple manufacturing facilities to support its customer base.
The company's forward-looking statements, which predict future financial performance, are speculative and subject to risks and uncertainties, meaning actual results could materially differ. However, analysts maintain an optimistic outlook, with three analysts recently revising earnings estimates upward and a consensus high price target of $24 per share. These statements are not guarantees of future performance and should be considered with caution.
This financial update is based on a press release statement from Utz Brands, Inc.
In other recent news, Utz Brands reported steady growth in its third quarter of 2024 earnings, aligning with expectations. Mizuho (NYSE:MFG) Securities adjusted its outlook on the company, lowering the price target to $21.00 from the previous $24.00, while retaining an Outperform rating. Despite aggressive price discounting, the company's volume remains on track, supported by new distribution channels and market share growth.
Utz Brands is implementing strategic measures such as reinvestments, seasonal promotions, and packaging size adjustments, which are expected to sustain more than 3% organic sales growth in the fiscal year 2025. Piper Sandler increased its price target on Utz Brands stock to $24 from $22, maintaining an Overweight rating. However, the estimated earnings per share (EPS) for 2025 were revised downward from $0.86 to $0.83.
Despite some challenges in the private label segment and complementary products, Utz Brands has reported positive distribution gains with larger national retailers and alternative channels. The full-year organic growth outlook was reaffirmed at 2% to 2.5%, with kettle production capacity expansion planned to start in Q1 2025. These recent developments indicate continued success for Utz Brands, driven by strategic initiatives aimed at growth and expanding market presence.
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