Shares of Lancaster Colony Corporation (NASDAQ: LANC), a leading producer of specialty food products, plummeted 5.29% on Wednesday after the company reported mixed first-quarter results for fiscal 2025. While the company's revenue increased 1.1% year-over-year to $466.6 million, in line with analysts' expectations, earnings per share of $1.62 missed the consensus estimate of $1.66 by 2.4%.
The key factor weighing on Lancaster Colony's stock price appears to be the softness in its Retail segment, which saw a 1.1% decline in revenue to $239.6 million. Excluding the bakery product lines that the company exited in March, Retail revenue grew a modest 1.4%. This sluggish growth in the Retail segment raised concerns among investors about potential weakening consumer demand for the company's branded products.
On the other hand, Lancaster Colony's Foodservice segment performed well, with revenue increasing 3.5% to $227.0 million, driven by higher demand from national chain restaurant customers and volume gains for its branded products. However, this positive performance was overshadowed by the Retail segment's slowdown.
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