Mama’s Creations (NASDAQ:MAMA) used its third annual investor day to outline fiscal 2027 priorities across sales, marketing, operations, and financial targets, repeatedly emphasizing a consistent strategy built on “Cost, Controls, Culture, and Catapults.” Executives highlighted continued category momentum in deli prepared foods, recent customer wins, and operational initiatives tied to improved capacity utilization and margin expansion.
Strategic priorities and category backdrop
Management reiterated that the company is focused on market share gains in deli prepared foods, noting that the broader category is growing while the company believes it is growing materially faster. The leadership team also pointed to recent data indicating unit growth outpacing dollar growth in the category, which they described as unusual in food and supportive of increased retailer shelf space allocation.
Sales plan: portfolio selling, mass-channel expansion, and NAE chicken
Chief commercial executive Chris (last name not provided) presented five pillars for fiscal 2027 sales initiatives, emphasizing a shift toward portfolio selling rather than “order taking” or single-item selling. A key KPI for the year is expanding average items per existing customer, with a goal of a net +2 SKUs in each of the top 10 accounts.
He also highlighted distribution expansion into underpenetrated regions and channels—particularly mass retail—alongside continued growth in grocery, club, and other channels. A major product positioning change discussed was a company-wide move to no antibiotics ever (NAE) chicken, described as an additional “moat” and a reinforcement of the “Grandma Quality” positioning. Management said the company is transitioning all chicken items to NAE as a core identity rather than treating it as a limited product-line initiative. In response to a question, management said NAE chicken is roughly $0.10–$0.15 per pound more expensive on the spot market, and that contracting and scale help manage the cost impact.
Chris also addressed pricing expectations, saying pricing is expected to track roughly in line with inflation, with operational efficiencies and contracted inputs helping the company avoid relying on price increases for growth.
Customer wins: Walmart, Target, Food Lion, and Costco progress
Executives highlighted several account wins and expansions discussed as foundational for fiscal 2027:
- Walmart: Eight new SKUs launching across up to approximately 2,000 stores, with some items in more than 2,000 depending on planograms; seven of the eight are branded. Management said the company is in roughly 2,150 Walmart stores overall, with assortment varying by store format.
- Target: Two SKUs launching, starting with about 750 stores in the current quarter and expanding toward roughly 2,000 stores as rollout progresses.
- Food Lion: Five SKUs launched around the transition into fiscal 2027, with expansion toward about 1,200 stores in the Southeast.
- Costco: The company secured its first “everyday item” status in Costco’s Northeast region for its jumbo beef meatballs. Chris described an evolution from one item and one region in fiscal 2023 (about $0.5 million in sales) to $10 million in fiscal 2025, followed by significant fiscal 2026 momentum that included digital and print member-only promotions and a quarter that exceeded $14 million. Management said the near-term opportunity is extending everyday status to additional regions while maintaining service and quality expectations.
Chris attributed Costco execution to a partnership between commercial and operations teams, emphasizing that delivering large quarter-to-quarter volume without service issues helped build trust and supported the move to everyday status.
Marketing and innovation: increased spend, retail media, and trim utilization
Chief Marketing Officer Lauren Sella said brand building efforts are designed to drive both consumer and retailer engagement, focusing on awareness, connection, and loyalty. She cited a consumer survey of 575 participants that found the top trial driver in prepared foods is a “brand I trust,” which the company views as support for increased marketing investment.
Marketing updates included:
- A plan to increase marketing investment by 50% in fiscal 2027.
- Expanded micro-influencer activations tied to events such as Costco promotions and a Publix launch.
- Brand partnerships mentioned with Brooklyn Bread and Mike’s Hot Honey.
- Growth in owned channels, including doubling the email list and adding 8,000 SMS subscribers.
- Retail media investment doubled last year with four new retail partners and an indicated return on ad spend of about $8+.
- Use of QR codes on select packaging to drive repeat purchase and build CRM engagement.
Lauren and Chris also tied innovation to margin health through improved utilization of chicken trim, which management described as a key driver to reduce waste and manage commodity exposure. Examples cited included paninis (described as growing over 80%) and branded chicken meatball items, including cheese-stuffed chicken meatballs discussed as part of Walmart, Target, and Food Lion assortments. Chris said the company is targeting a 100% increase in branded sales in fiscal 2027.
Operations, integration, and fiscal 2027 financial targets
COO Skip Tappan said the company now operates as “one plant, three locations” following the Crown I/Bayshore acquisition. He described opportunities to increase capacity through schedule optimization, industrial engineering, and better asset utilization, noting none of the sites are running 24/7. He also discussed expanded use of contracted commodity pricing (including chicken and beef) and emphasized increased trimming and in-house marination as an important gross margin lever.
On the Bayshore/Crown I integration, Skip said the company is moving to a single ERP system (NetSuite) by mid-year, has integrated suppliers into the broader network, and is implementing enterprise-level processes across procurement, planning, finance, and HR. He added that leadership promotions and role changes were implemented across the three locations, and that the company expects Bayshore’s gross margin performance to move toward legacy levels over time, including an effort to exit lower-margin “street business” and replace it with higher-margin branded growth.
CFO Anthony Gruber outlined fiscal 2027 targets, including:
- Top line: double-digit revenue growth, described as organic growth (excluding any potential M&A).
- Gross margin: aiming for mid-to-high 20% range, supported by trimming initiatives, contracted inputs, and operational flexibility across locations.
- Operating expenses: targeting about 20% of sales excluding marketing spend, with continued investment in middle management.
- Profitability: moving net income from low single-digit to mid single-digit percentage of revenue, and adjusted EBITDA progressing toward the mid-teens, with discussion indicating a glide path through the year.
Management said marketing and promotional spending would be managed as levers tied to margin performance. Executives also discussed planned capital spending in “mid to high single digits” (in millions of dollars), with management stating it does not intend to spend beyond cash generated from operations.
In the Q&A, leadership characterized remaining customer “white space” as significant, though difficult to quantify precisely, and said that for certain large retailers not yet won, the primary obstacles are timing and organizational complexity rather than product acceptance. Management also emphasized that it would walk away from low-margin opportunities and that it does not intend to pursue acquisitions “at all costs.”
About Mama’s Creations (NASDAQ:MAMA)
Mama’s Creations, Inc engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini’s, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.
