J.M. Smucker has one jammy lining in an otherwise gloomy outlook
Uncrustables are still on track to deliver $1 billion of sales in the coming fiscal year.
J.M. Smucker had a tough week, with its stock dropping 16% on Tuesday after reporting a spread of disappointing results.
Sales for the final quarter of fiscal year 2025 were down 3% year over year, and the company cut its profit outlook for FY26 to $9.50 earnings per share, compared with the $10.25 analysts had expected.
Since acquiring Twinkies maker Hostess in 2023, its sweet baked goods segment has struggled as Smucker has tried to integrate the brand, with sales in that division falling 26% in Q4 FY25. The company’s coffee products, including Folgers and Café Bustelo, could also suffer looking forward, with prices set to rise in August.
But at least Smucker’s (crustless) crown jewel is still shining. Sales of Uncrustables — the lunchbox staple frozen sealed sandwiches beloved by kids, parents, and the Kelce brothers — reached $920 million in FY25, up 34% in the last two years.
Indeed, Smucker says that Uncrustables is still on track to hit $1 billion in fiscal year 2026 — not bad considering that it bought the snack brand for just $1 million back in 1998.
And, with a 900,000-square-foot megafactory dedicated solely to making Uncrustables opening in McCalla, Alabama, last November, Smucker’s production capacity will finally be able to meet the growing demand for bite-size, borderless bread.
