HANOVER, Pa. - Utz Brands, Inc. (NYSE: UTZ), a prominent manufacturer of salty snacks, announced the retirement of Michael W. Rice from its Board of Directors, effective today. Rice, a key figure in the company's history, will continue to serve as an observer on the board. Concurrently, William B.J. Werzyn Jr. has been appointed to fill the vacancy on the board.
Michael Rice's career with Utz spans over five decades, including leadership roles that saw the company's expansion and diversification into various snack food categories. Rice became President and CEO in 1978 and later Chairperson and CEO in 1992. Under his guidance, Utz transitioned from a family-owned business to a publicly traded company in 2020. Rice's philosophy of focusing on small details for greater success has been a guiding principle within the company.
In a statement, Utz CEO Howard Friedman praised Rice's legacy, noting his treatment of company associates as family and his role in building Utz's success. Rice's continued involvement as an observer is anticipated to provide valuable insights to the board.
William Werzyn Jr., the newly appointed director, is the Executive Chairman, Founder, and CEO of West Shore Home, LLC, a leading home remodeling company. Werzyn brings entrepreneurial experience and business acumen to the Utz board, with a background that includes launching a nonprofit organization to support U.S. veterans and their families.
Utz Brands, Inc. is known for its diverse portfolio of savory snacks, including popular brands like Utz®, On The Border® Chips & Dips, and Boulder Canyon®. The company operates multiple manufacturing facilities across the U.S. and distributes its products nationally.
This board transition is part of Utz's ongoing efforts to maintain strong leadership and governance. The information regarding these changes is based on a press release statement from Utz Brands, Inc.
In other recent news, Utz Brands, Inc. reported mixed results for its second quarter of 2024, but remained optimistic about its future growth. The company's leadership, CEO Howard Friedman and CFO Ajay Kataria, cited strategic geographic expansion and a focus on high-margin products as key drivers for their positive outlook. The company increased its earnings per share (EPS) guidance due to tax rate adjustments and a decrease in core depreciation and amortization expenses.
Utz Brands also highlighted the strong performance of its Power Four brands and expressed confidence in their long-term sales growth outlook of 3-4%. Despite slower than expected sales under the Zapp's brand and potential pressure on sales of family-sized snack items, the company is prepared to compete in a more promotional market. The company plans to sustain its market share through geographic expansion, distribution gains, and marketing.
Moreover, the company anticipates flat overall inflation, with commodities slightly deflationary and transportation and labor costs increasing. Boulder Canyon's performance is exceeding expectations, with plans to expand its shelf presence. These are among the recent developments that have shaped the company's current position.
InvestingPro Insights
As Utz Brands, Inc. (NYSE: UTZ) undergoes a significant transition with the retirement of Michael W. Rice and the appointment of William B.J. Werzyn Jr. to its Board of Directors, the company's financial health and growth prospects remain a focal point for investors and stakeholders alike. With a current market capitalization of approximately $2.39 billion and a robust gross profit margin of 33.36% over the last twelve months as of Q2 2024, Utz's financial metrics indicate a stable position in the snack food industry.
An InvestingPro Tip highlights that Utz has raised its dividend for four consecutive years, signaling confidence in its financial stability and a commitment to returning value to shareholders. This is further corroborated by the company's dividend yield of 1.38% and a recent dividend growth of 3.51%. Moreover, Utz is expected to be profitable this year, with a positive net income growth forecast, which is a testament to the company's ability to navigate the competitive landscape effectively.
However, with a high price-to-earnings (P/E) ratio of 333.14, investors are pricing in high expectations for future earnings growth, underscoring the importance of monitoring the company's performance closely. Additionally, Utz's commitment to shareholder returns is further evidenced by a high shareholder yield, a key InvestingPro Tip that suggests a favorable return on investment.
For those interested in a deeper analysis, InvestingPro offers additional tips on Utz Brands, Inc., which can be accessed at https://www.investing.com/pro/UTZ. These insights, including analyst revisions and valuation multiples, can provide a more nuanced understanding of the company's prospects and help inform investment decisions.
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