...January 29, 2026 This report does not constitute a rating action. CHG's organic revenue is expected to grow by the low-single-digit percent area over the next 12 months amid a soft consumer demand environment. CHG increased its pro forma revenue by 2.8% over the six-months ended Sept. 27, 2025, as growth in the U.S. was offset by declines in its European and Canadian markets. The company's U.S. operating performance was supported by a strong expansion in its tortilla volumes under the Mi Rancho platform and higher pricing to offset inflation, which were partially offset by volume declines across its foodservice segment due to reduced consumer traffic. Excluding the tortilla platform, CHG's sales volumes declined by 2.5% and 3.0% in the first and second quarters of fiscal year 2025, respectively. We forecast the company will increase its organic sales by about 1%-2% in fiscal year 2026, largely on modest targeted pricing, new business wins, and new product introductions as its volumes (excluding...
