MKC - Lancaster: Keeping An Eye On The Promised Productive Improvement
2024-02-26 01:55:19 ET
Summary
- Lancaster Colony Corporation is a specialty food products manufacturer and marketer with a strong presence in major restaurant chains.
- The company is focused on increasing its influence in the retail market and expanding its operations.
- LANC's financial strength and stable dividend make it a secure investment, but its margins and expansion plans need to be closely monitored.
My Thesis
Lancaster Colony Corporation ( LANC ) is a Manufacturer and Marketer of Specialty Food Products that has been operating in the market since 1961, with a strong presence in the main lines of 18 of the 30 largest restaurant chains in the United States. Based on net sales reported over the last 12 months to June 2023, 21% were from branded products and other categories, while 79% were attributed to national accounts, including customers in the QSR segment.
In terms of retail sales, Lancaster Colony is predominantly positioned in three distinct segments:
- Refrigerated Dressings, Dips & Other
- Frozen Breads and Shelf-Stable
- Dressings, Sauces & Croutons