Utz Brands: Margin Gains Reinforce Premium Valuation Narrative Despite Slower Revenue Growth

Utz Brands reported improved profitability with net profit margins climbing to 1.3% from 0.3% a year ago. Revenue growth is forecast to be 2.8% per year, below the broader US market's 10.3%. Strong margin gains have reinforced the premium valuation narrative, but investors are watching closely to see if this trend continues. Analysts expect Utz's profit margins to climb to 7.8% over the next three years, driven by investments in supply chain automation and premium product lines.