John B. Sanfilippo & Son, Inc. is one of the leading processors and distributors of peanuts, pecans, cashews, walnuts, almonds and other nuts in the United States, and also manufactures and distributes a portfolio of snack and nutrition bars. The company operates in a single reporting unit and operating segment, selling products through three core distribution channels: the consumer channel, the commercial ingredient channel, and the contract manufacturing channel. The industry is highly competitive, with competition based on price, product quality, customer service, breadth of product line, brand name awareness, method of distribution, sales promotion, category management, service level compliance and innovation. The company faces competition from numerous regional, national and international companies, some of which are substantially larger and have greater resources.

Primary competitors named in the filing include Hormel Foods Corp. (Planters brand), Diamond brand, General Mills (Nature Valley brand), PepsiCo, Inc. (Quaker brand), Mondelez (CLIF brand), Kellanova (Nutrigrain brand), and Mars (KIND and Nature's Bakery brands). The company's competitive advantages include a generally vertically integrated operating model with respect to pecans, peanuts and walnuts, product quality, product offering, brand strength, innovation, distribution model, and a focus on nut, bar and nut related products. Net sales to Walmart Inc. accounted for approximately 41% of net sales for fiscal 2026, 40% for fiscal 2025 and 39% for fiscal 2024. Net sales to Target Corporation accounted for approximately 12% of net sales for fiscal 2026, 11% for fiscal 2025 and 13% for fiscal 2024. Sales to the five largest customers represented approximately 67% of net sales in fiscal 2026 and fiscal 2025 and 66% of net sales in fiscal 2024.

The company generates revenue by processing, manufacturing, marketing and distributing nut and nut-related products and bars. Revenue is generated through three distribution channels: the consumer channel, which supplies nut-based and bar products to retailers including supermarket chains, wholesalers, supercenters, internet retailers and other retail outlets; the commercial ingredient channel, which supplies nut-based products to other manufacturers for use as ingredients in their final food products; and the contract manufacturing channel, which primarily processes and packages nut and fruit-based snacks for other food companies under their brand names. The company sells products under a variety of private brand names, as well as under its Fisher, Orchard Valley Harvest, Squirrel Brand and Southern Style Nuts brand names. The company sells to approximately 200 customers.

Principal products are raw and processed nuts and bars. Including trail and snack mixes, these nut and bar products accounted for approximately 93% of gross sales for fiscal 2026, and 92% for fiscal 2025 and fiscal 2024. The nut product line includes almonds, pecans, peanuts, walnuts, cashews, macadamia nuts, pistachios, pine nuts and filberts. The bar product line includes chewy granola, fruit and grain, sweet and salty, dipped chewy granola, crunchy, energy, fiber, nut, fig and protein bars. The company also manufactures and markets peanut butter in several sizes and varieties, and markets and distributes other food and snack products including salad toppings, dried fruit, chocolate and yogurt coated products, recipe ingredients, bulk food products, sunflower kernels, pepitas, snack mixes, almond butter, cashew butter, candy and confections, corn snacks, sesame sticks and other sesame snack products.

The company is generally vertically integrated for pecans, peanuts and walnuts, controlling procurement from growers, shelling, processing, packaging and marketing. The company has made capital investments to support and expand the bar business in the last two fiscal years. The company's brands include Fisher, Orchard Valley Harvest, Squirrel Brand and Southern Style Nuts, which are registered as trademarks with the U.S. Patent and Trademark Office and in various foreign jurisdictions. The company also owns several patents of various durations.

In fiscal 2026, approximately 13% of employees were promoted into roles with greater responsibilities. Approximately 20% of employees participate in the Sanfilippo Value Added incentive program and approximately 80% participate in the Total Team Performance incentive program. In fiscal 2026, 90% of employees received wage increases. The company had approximately 1,770 full-time employees as of June 25, 2026. The company's products are sold through a network of approximately 55 independent brokers, independent distributors and suppliers, including group purchasing organizations. On January 15, 2026, the company executed a 10 year lease for the remaining available 285,000 square feet in the current warehouse in Huntley, Illinois. Subsequent to the end of fiscal 2026, the Board declared an annual and special cash dividend of $0.95 and $1.05, respectively, that will be paid on September 9, 2026.

For fiscal 2026, net sales were $1,175,673,000 ¹, compared to $1,107,246,000 ² in fiscal 2025 and $1,066,783,000 ³ in fiscal 2024. Gross profit was $211,181,000 ⁴ in fiscal 2026, compared to $203,471,000 ⁵ in fiscal 2025 and $214,139,000 ⁶ in fiscal 2024. Income from operations was $89,198,000 ⁷ in fiscal 2026, compared to $84,711,000 ⁸ in fiscal 2025 and $85,187,000 ⁹ in fiscal 2024. Net income was $61,934,000 ¹⁰ in fiscal 2026, compared to $58,934,000 ¹¹ in fiscal 2025 and $60,249,000 ¹² in fiscal 2024. Diluted earnings per common share were $5.26 ¹³ in fiscal 2026, compared to $5.03 ¹⁴ in fiscal 2025 and $5.15 ¹⁵ in fiscal 2024.

The company believes there are significant growth opportunities in the private brand bar business as well as opportunities to bring experience in the snack category and innovation to expand the private brand bar business. The company has made capital investments to support and expand the bar business in the last two fiscal years. The company expects to continue participation and funding with trade associations and groups to focus on sustainability efforts while continuing to partner with farmers to further mitigate climate and other environmental risks.

The company has observed rapid inflation with respect to packaging and other products used to manufacture and package products and general inflationary conditions that are difficult to predict, and may not be able to pass along such inflationary increases to customers or may not be able to do so in a timely fashion. The company has also observed tariffs and the threat of tariffs causing increased or uncertain changes in prices and uncertainty in the markets in which it operates, including for the purchase of certain equipment for the manufacture of products.

Material costs, including tree nuts, peanuts, other commodities, packaging and other edible ingredients, including rolled oats, represented approximately 73% of total cost of sales for fiscal 2026 ¹⁶. The company attempts to increase prices of products to reflect increases in raw material costs, but may not be successful in passing along partial or full price increases to customers, if at all, and may not be able to do so in a timely fashion.

The Elgin Site, the main processing and packaging facility, can accommodate an increase in production capacity of 15% to 20% of current capacity ¹⁷, however certain production lines are at full capacity during peak periods. The Huntley facility can, on average, accommodate an increase of 20% of its current storage capacity ¹⁸, however at certain points in time of the year, it is at full capacity. With the additional square footage being leased in fiscal 2027, the Huntley facility will be able to accommodate a 40% increase in storage capacity ¹⁹. The Lakeville facility can accommodate an increase in production capacity of 15% to 20% of its current capacity ²⁰, however certain production lines are at full capacity and there is no available physical space for additional capacity.

The filing does not specify R&D spending levels, capital expenditure plans, share repurchase authorization amounts, or dividend policy with exact figures for the upcoming period beyond the declared dividends. The current financing agreements, as amended and restated on June 16, 2025, allow the company to make up to four cash dividends or distributions of stock in any fiscal year in an amount not to exceed $100 million in the aggregate per fiscal year ²¹. Cash dividends declared per share were $4.00 ²² for fiscal 2026, $2.10 ²³ for fiscal 2025, and $3.00 ²⁴ for fiscal 2024.

The company has limited ability to control the availability or cost of raw materials, which are subject to crop size and yield fluctuations caused by factors beyond its control including adverse weather conditions, natural disasters, changing climate patterns, agricultural diseases and pests, foreign currency fluctuations, trade agreements, tariffs and embargos, import/export controls, prices of other crops, labor shortages, inflationary conditions, political change and unrest, sanctions, boycotts, revised sourcing regulations, armed hostilities, changes in fuel prices, changes in global customer demand, pandemics and disease, changes in government agricultural programs, and purchasing behavior of certain countries. The company is not able to hedge against changes in nut commodity prices because no appropriate futures, derivative or other risk-sharing market for these commodities exists.

The company is dependent on a few significant customers for a large portion of total net sales, particularly in the consumer channel. Sales to the five largest customers represented approximately 67% of net sales in fiscal 2026 and fiscal 2025 ²⁵ and 66% of net sales in fiscal 2024 ²⁶. There can be no assurance that all significant customers will continue to purchase branded or private brand products in the same quantities, same product mix or on the same terms as in the past. A loss of one of the largest customers, a material decrease in purchases, the inability to collect a receivable from, or a significant business interruption at one of the largest customers would result in decreased sales and would materially and adversely affect results of operations, financial condition and cash flows.

Management's message emphasizes the company's position as one of the leading processors and distributors of tree nuts and peanuts in the United States, and its deliberate strategy of focused capital expenditures and complementary acquisitions to build a generally vertically integrated nut processing operation. Key strategic priorities include expanding the private brand bar business, where management believes there are significant growth opportunities, and continuing to invest in capital to support and expand that business. Management also highlights the company's focus on sustainability efforts and partnering with farmers to further mitigate climate and other environmental risks.

For fiscal 2026, net sales were $1,175,673,000 ³⁰ compared to $1,107,246,000 ³¹ in fiscal 2025. Net income was $61,934,000 ³² compared to $58,934,000 ³³ in the prior year. Diluted earnings per common share were $5.26 ³⁴ versus $5.03 ³⁵ in fiscal 2025. Gross profit was $211,181,000 ³⁶ compared to $203,471,000 ³⁷ in the prior year, representing a gross margin of approximately 18.0% versus 18.4%. Income from operations was $89,198,000 ³⁸ compared to $84,711,000 ³⁹ in fiscal 2025. Interest expense was $2,429,000 ⁴⁰ compared to $3,552,000 ⁴¹ in the prior year. Income tax expense was $21,041,000 ⁴² compared to $18,931,000 ⁴³ in fiscal 2025. Cash dividends declared per share were $4.00 ⁴⁴ in fiscal 2026 compared to $2.10 ⁴⁵ in fiscal 2025. Working capital was $181,378,000 ⁴⁶ at June 25, 2026 compared to $190,378,000 ⁴⁷ at June 26, 2025.

The company has limited ability to control the availability or cost of raw materials, which are subject to crop size and yield fluctuations caused by factors beyond its control, and it is not able to hedge against changes in nut commodity prices because no appropriate futures, derivative or other risk-sharing market exists. The company is dependent on a few significant customers, with sales to the five largest customers representing approximately 67% of net sales in fiscal 2026 ²⁷ and fiscal 2025 ²⁸, and a loss of any such customer would materially and adversely affect results. The company's products are processed at a limited number of production facilities, and certain nut and nut-related products, including the shelling of peanuts, walnuts and pecans and processing and packaging of certain types of bars, are conducted only at a single location, so any significant disruption could materially and adversely affect financial condition and results of operations. Approximately 28% of the dollar value of total nut, dried fruit and oat purchases for fiscal 2026 ²⁹ was from foreign sources, exposing the company to risks inherent in international markets including tariffs, quotas, duties, import and export restrictions, sanctions, armed hostilities and other barriers to trade.