Tucker Marshall, Chief Financial Officer, Executive Vice President, Frozen Handheld and Spreads, and Sweet Baked Snacks, will then provide a detailed analysis of the financial results and our updated fiscal 2026 outlook. Eastern Time today for a live question-and-answer session with management to further discuss our third quarter results and outlook for the full 2026 fiscal year. We delivered another quarter of strong top-line growth, driven by the ongoing demand for our leading and iconic brands and higher growth brands as we continue to realize the benefits of our transformed portfolio. First, we will continue to advance our long-term growth strategy and further the momentum of our portfolio of leading brands.
Second, we are highly focused on improving profitability and driving earnings growth across the company. We are focused on continuing this momentum by prioritizing resources towards our largest growth opportunities, the Uncrustables, Café Bustelo, Milk-Bone, and Meow Mix brands. Starting with the Uncrustables brand, which grew net sales 10% at the total company level. With household penetration at just 26%, we continue to see a long runway for growth.
Our next key growth platform, the Café Bustelo brand, continues to deliver strong results and remains one of the fastest growing brands in the at-home coffee category. The brand gained both dollar and volume share in every segment in which it competes, including the mainstream, pre-pack, one cup, and instant categories in the latest 13-week period. Through our brand-building efforts, we continue to see strong growth in brand awareness and household penetration, both of which have significant runway for continued growth. This fiscal year, we expect the brand to surpass $500 million in net sales, an increase of more than $100 million versus the prior year, driven by both volume and pricing.
| Metric | Period | Current guidance |
|---|---|---|
| Uncrustables brand net sales | FY2026 | Expected to achieve $1 billion annual net sales aspiration (On track to reach aspiration this fiscal year) |
| Cafe Bustelo net sales | FY2026 | Expected to surpass $500 million, up more than $100 million versus prior year (Increase of more than $100 million) |
| Sweet Baked Snacks reporting unit long-term growth rate | Long-term | Reduced to 2% (Reduced) |
| Metric | YoY | Note |
|---|---|---|
| Total company comparable net sales | +8% (+9% ex-divested pet contract manufacturing) | Demand for leading and higher-growth brands; 10 ppt net price realization driven by coffee pricing, partially offset by 2 ppt volume mix decline |
| U.S. Retail Coffee net sales | +23% | Higher net pricing across the portfolio to recover increased costs; volume mix down 1 ppt on Dunkin' and Folgers declines, partially offset by Cafe Bustelo |
| U.S. Retail Coffee segment profit | -5% | Higher commodity costs and tariffs, unfavorable volume mix, and lapping favorable prior-year property taxes, partially offset by higher net price realization |
| U.S. Retail Frozen Handheld and Spreads net sales | +2% | Higher net pricing for Uncrustables sandwiches, partially offset by higher trade spend for peanut butter; volume mix neutral |
| U.S. Retail Frozen Handheld and Spreads segment profit | +4% | Higher net price realization and lower pre-production expenses for the new Uncrustables facility, partially offset by higher costs and unfavorable volume mix |
| U.S. Retail Pet Foods net sales | -1% | Lapping divested pet food contract manufacturing and a dog snacks decline, partially offset by cat food growth |
| U.S. Retail Pet Foods segment profit | +4% | Lower marketing spend |
| Sweet Baked Snacks net sales | -19% (-11% ex non-comparable items) | Volume mix down 10 ppt on declines in snack cakes, donuts, and breakfast |
| Sweet Baked Snacks segment profit | -78% | Higher costs, unfavorable volume mix, and higher marketing spend |
| International and Away From Home net sales | +12% | 11 ppt net price realization driven by coffee pricing; Away From Home up 15% on coffee and Uncrustables, international up 6% on coffee |
| International and Away From Home segment profit | +17% | Higher net price realization, partially offset by higher costs, tariffs, and unfavorable volume mix |
| Adjusted earnings per share | -9% to $2.38 | Lower adjusted gross profit and operating income from higher costs and tariffs, partially offset by lower SD&A expenses |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Coffee pricing to recover costs and tariffs | — | Net pricing drove 23 ppt of U.S. Retail Coffee growth and 10 ppt of total comparable net sales growth, with ~$79 million tariff expense mostly hitting coffee | Rising |
| Uncrustables as a growth platform | — | 10% net sales growth, fridge-friendly and protein innovation, convenience-channel expansion, targeting top-three brand in the freezer aisle | Rising |
| Cafe Bustelo expansion | — | 46% segment net sales growth, share gains across all segments, targeting top-four at-home coffee brand | Rising |
| Sweet Baked Snacks / Hostess underperformance | — | Impairments of $508 million and $454 million, long-term growth rate cut to 2%, segment profit down 78% | Declining |
| Disciplined capital deployment and debt paydown | — | Prioritizing organic growth, debt paydown, dividends and buybacks while maintaining investment-grade ratings | Steady |
| Portfolio transformation post-pet divestiture | — | Lapping divested pet food contract manufacturing creating modest headwinds while two-thirds of portfolio grows or maintains dollar share | Steady |