Utz Brands outlined long-term targets including $1.9 billion in net sales potential and annual adjusted EBITDA growth of 6-8 percent with margin expansion to at least 17 percent at the Consumer Analyst Group of New York conference Feb. 18. The Hanover, Pennsylvania-based company positions itself as the largest pure-play salty snack company in the U.S.
CEO Howard Friedman and CFO BK Kelley presented the strategy as the company exits a capital-intensive transformation stage. The company expects adjusted free cash flow of $60 million-$80 million in 2026, exceeding $100 million annually from 2027 onward.
Supply chain transformation and geographic expansion
Utz has streamlined its manufacturing operations, reducing its plants from 16 to 7, significantly boosting revenue per plant from $60 million to $207 million. The company employs a hybrid distribution model evenly split between direct store delivery and direct to warehouse, covering 125,000 retail outlets weekly.
“As the largest pure-play salty snack company in the country, we are focused on driving growth faster than the category,” Friedman said. “We believe that prioritizing consistent topline growth, annual Adjusted EBITDA growth with margin expansion, and accelerating free cash flow will create shareholder value over time.”
The company targets organic net sales growth of 2-3 percent above the salty snack category’s flat growth in 2026. Geographic expansion, particularly in California, is a major focus, with plans to increase distribution and product offerings.
Marketing investment and brand portfolio
Marketing investments are rising with a 40 percent compound annual growth rate, aiming to reach 3-4 percent of sales in the long term. The portfolio includes the Utz brand, Boulder Canyon, On the Border, Zapp’s, Golden Flake, TORTIYAHS, Hawaiian, Bachman, Tim’s Cascade, Dirty Potato Chips, TGI Fridays and Vitner’s.
The company expects annual adjusted EPS growth about in line with adjusted EBITDA growth after 2026, which is impacted by a step-up of depreciation and amortization, higher interest and a higher tax rate. Utz targets leverage at about 2.5 times long-term through adjusted EBITDA growth and debt paydown, expecting to reach 2.7-3.0 times leverage in 2027.
The presentation was made at the CAGNY conference in Orlando, Florida. A webcast replay is archived online for 90 days at investors.utzsnacks.com.
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