Mama's Creations Inc Q1 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ryan Meyers - Lake Street Capital Markets, LLC - Analyst : Congrats on another really strong quarter of growth here, ahead of our expectations. So just wondering how we should be thinking about growth rate for the balance of the rest of the year given the strong growth rate you reported this quarter? Maybe what you're seeing here in Q2 and kind of if you're still confident to be able to kind of generate that double-digit growth rate.

Question: Ryan Meyers - Lake Street Capital Markets, LLC - Analyst : Okay. Got it. And then, switching gears a bit here and thinking about the gross margins for the business. Are you confident in the sense that you have part of the chicken hedged as well as the efficiencies and throughput improvements that you guys are making that you can see gross margin improvement throughout the year? Or is there a little too much volatility in the kind of chicken suppliers, or how should we be thinking about kind of gross margins as we progress through the year?

Question: Eric Des Lauriers - Craig-Hallum Capital Group LLC - Analyst : Congrats on another very strong quarter here and on that chicken trimming coming in nicely ahead of expectations. That's actually where my first question is. So could you just kind of help us understand the sort of ability you have to continue increasing the mix of in-house trimmed chicken? I would imagine you sort of get to an appropriate sales mix and then it's more about increasing overall sales. So just kind of trying to understand if trimming 100% of chicken in-house is something achievable within the next year, or is this maybe like a two or three-year goal? Can you just kind of help us understand sort of where you are in this broader strategy?

Question: Eric Des Lauriers - Craig-Hallum Capital Group LLC - Analyst : That's great to hear. I know how crucial that can be for margins, so great to hear. So I guess just kind of sticking on this topic quickly. So it's clear that all the capital investments you've made into the facilities in the past year, 1.5 years, like really starting to bear fruit here. What other CapEx projects are on the horizon if any? I mean, I know you've significantly expanded your capacity. Maybe there's not any near-term need to add any new pieces of equipment, but just kind of wanted to check in here, see if there's any other CapEx projects over the next, call it, 12 months or so that we should be aware of?

Question: George Kelly - Roth Capital Partners - Analyst : A couple for you. First, Adam, I think you said in your prepared remarks that you refined your M&A criteria. So I was wondering if that's the case, could you walk through any changes there?

Question: George Kelly - Roth Capital Partners - Analyst : It does. Yes, that's good context. And then second question for you on Costco. You included a little note about the MVM that you ran in the quarter in your press release and commented in your prepared remarks. So I guess the question is -- two questions. A, do you have additional promotions with Costco planned for the year? And can you give any update on timing or what those promotions might look like? And then B, you've done so well at Club. I'm curious with respect to Costco, what's like the near and medium-term opportunity?

Question: George Kelly - Roth Capital Partners - Analyst : Okay. Excellent. And then just a quick one, maybe for Anthony, on pricing. The pricing that you had fully implemented in May, I think you said. How much -- is there any way to think about just -- can you give any kind of quantification there? And that's all I had.

Question: Anthony Vendetti - Maxim Group, LLC - Analyst : Adam, I was wondering if you can give us any update on how the rollout is going in Walmart? And then, any color on Kroger or Target?

Question: Anthony Vendetti - Maxim Group, LLC - Analyst : And then just a follow-up, just to make sure I'm doing the math correct here. So you obviously saw the ROI of putting 6% of gross revenue into trade promotion. If you put -- if you had -- instead of putting 6%, hadn't put anything in there, would your gross margin be 32%?

Question: Anthony Vendetti - Maxim Group, LLC - Analyst : Sure. No, there is always a balance trade-off there. Just lastly, I know you've significantly increased the number of chicken SKUs. Maybe just to put things in context, when you took over as Chairman and CEO, how many SKUs -- total SKUs were there? And how many total SKUs do you have at this point, including -- I know some of the SKUs are like, okay, it comes in this single-serve pack versus multi-pack. But if you included all -- not just the difference, let's say, a chicken SKU, but like, okay, it also comes in different forms. How would you count the number of SKUs today versus what you had when you took over?