Breaking Down Bridgford Foods Corporation (BRID) Financial Health: Key Insights for Investors

You're looking at Bridgford Foods Corporation (BRID) and seeing a classic consumer staple dilemma: top-line growth fighting a brutal margin squeeze. For the trailing twelve months ending July 11, 2025, the company pulled in a solid $227.36 million in revenue, which sounds good, but the cost pressures are defintely showing up in the bottom line, with a TTM net loss of -$7.26 million. The real story is in the segments: while the Snack Food Products division drove Q3 2025 consolidated net sales up 5.5% to $51.95 million, the overall gross margin contracted sharply to just 20.5% due to rising commodity prices and operational costs. We need to dig into whether the successful pivot to private-label snacks can outrun the rising cost of goods and the liquidity concerns flagged by that Fixed Charge Coverage Ratio covenant violation, because right now, the balance sheet is flashing a warning sign despite the sales bump. That's the core trade-off we're analyzing.

Revenue Analysis

If you're looking at Bridgford Foods Corporation (BRID), the direct takeaway is this: the company's revenue engine is heavily reliant on its Snack Food division, which is currently driving top-line growth despite significant cost pressures. For the trailing twelve months (TTM) ending July 11, 2025, Bridgford Foods reported consolidated revenue of $227.36 million, which actually represents a slight year-over-year decline of -1.89%. This tells you the full-year picture is still challenging, but the near-term quarterly data shows a positive shift.

The primary revenue streams for Bridgford Foods Corporation (BRID) break down into two main segments: Frozen Food Products and Snack Food Products. The Snack Food segment is the clear heavyweight, pulling the majority of the sales. This segment includes items like jerky, meat snacks, salami, and pepperoni.

Here's the quick math on the segment contribution for the third quarter of fiscal year 2025 (Q3 2025), which ended on July 11, 2025. Consolidated net sales for the quarter were $51.95 million, marking a healthy quarterly year-over-year increase of 5.5%.

• Snack Food Products: Contributed $41.16 million in Q3 2025.
• Frozen Food Products: Accounted for $10.79 million in Q3 2025.

The Snack Food segment contributed approximately 79.2% of the Q3 2025 net sales, making it the defintely critical driver of the business. The remaining 20.8% came from Frozen Food Products, which includes biscuits, bread dough, and roll dough items.

Looking at the growth rates, the two segments are moving in opposite directions, which is a key risk factor. The Snack Food Products segment is thriving, reporting a 9.0% increase in net sales in Q3 2025, driven by higher selling prices and increased unit sales volume. This suggests consumers are shifting towards more affordable private-label snack options, a trend that Bridgford Foods is capturing. However, the Frozen Food Products segment saw a net sales decline of 6.3% to $10.79 million in the same quarter, due to lower selling prices and reduced unit sales volume, plus a temporary halt in production for necessary repairs on a spiral freezer. What this estimate hides is the reliance on a few major customers; for instance, sales to Walmart and Dollar General accounted for 27.8% and 14.2% of revenues, respectively, in fiscal year 2024. Losing one of those major accounts would be a serious blow to the top line.

For a deeper dive into the company's costs and profitability, you should read the full analysis at Breaking Down Bridgford Foods Corporation (BRID) Financial Health: Key Insights for Investors.

Profitability Metrics

The headline takeaway for Bridgford Foods Corporation (BRID) is a clear profitability squeeze: the company is currently operating at a loss, primarily driven by escalating commodity costs that are crushing its gross margin. Your focus should be on the steep decline in operational efficiency, which is starkly visible in the negative operating and net profit margins for the first three quarters of fiscal year 2025.

Looking at the Q3 2025 results, which ended July 11, 2025, the challenge is cost management, not just revenue generation. While consolidated net sales hit $51.95 million for the quarter, the cost of products sold rose faster than sales, pushing the Gross Margin down to 20.5%. That's a significant contraction from the prior year, and it's the first sign that Bridgford Foods Corporation is struggling to pass on its rising input costs, especially in the Snack Food Products segment, where costs jumped 11.8% due to meat commodity prices.

Here's the quick math on Q3 2025: a gross profit of roughly $10.65 million (20.5% of $51.95 million in sales) was not enough to cover the $14.61 million in selling, general, and administrative (SG&A) expenses.

That means the company is losing money before even accounting for interest and taxes. That's defintely not a sustainable model in the near-term.

The resulting operational and net losses paint a worrying picture when mapped against industry peers. The trailing twelve months (TTM) Net Profit Margin, as of April 2025, sat at -3.19%. To be fair, the food industry generally runs on razor-thin margins, but a negative number is a different ballgame. For context, the broader food retail industry's net profit margin was around 1.6% in 2023, and while Bridgford Foods Corporation is a manufacturer, this highlights the gap between its current performance and the sector's baseline profitability.

The trend is the real issue here. Bridgford Foods Corporation is consistently moving into loss territory, as evidenced by the Q2 2025 net loss of $3.86 million. This isn't a one-off event; it's a trend of contracting margins that started with higher costs and is now compounded by a highly competitive market where consumers are already seeking more affordable options, including private-label products.

The operational efficiency breakdown looks like this:

• Gross Margin: Falling due to unrecovered raw material costs.
• Operating Margin: Deeply negative, showing SG&A costs are too high relative to gross profit.
• Net Margin: In the red, confirming a substantial bottom-line loss.

You need to see a clear plan to either drastically cut SG&A or successfully push through price increases without losing significant volume. Until then, the investment risk remains elevated. For a more detailed look at the company's financial stability, check out the full analysis: Breaking Down Bridgford Foods Corporation (BRID) Financial Health: Key Insights for Investors.

Here is a summary of the most recent profitability metrics:

Debt vs. Equity Structure

Bridgford Foods Corporation (BRID) maintains an extremely conservative financing structure, relying overwhelmingly on shareholder equity rather than debt to fund its operations and growth. The company's financial leverage is minimal, which is a sign of exceptional balance sheet strength, though it also suggests a potentially low-risk, low-reward approach to capital allocation.

For the fiscal year ended November 1, 2024, the company's total interest-bearing debt stood at just $2.786 million (in thousands), a very small figure compared to its total equity. This low debt profile is a defintely a core pillar of its financial stability.

The Minimal Debt Load: A Closer Look at Liabilities

The total debt for Bridgford Foods Corporation is almost entirely composed of equipment notes payable, reflecting financing for operational assets rather than large-scale corporate borrowing. There is a clear, scheduled repayment structure for this debt, with the majority being long-term.

• Short-Term Debt (Current Portion): $1.084 million (due in fiscal year 2025).
• Long-Term Debt: $1.702 million.
• Total Debt (FY 2024): $2.786 million.

This debt is primarily structured through Equipment Notes Payable under the Wells Fargo Loan Agreements, which also include a revolving credit facility of up to $7.500 million that the company can tap into, but which had no outstanding balance at the end of fiscal year 2024. The company did, however, extend its Wells Fargo credit line to July 31, 2026, with an outstanding balance of $2 million reported in March 2025, indicating a slight, temporary increase in short-term borrowing during the year.

Debt-to-Equity Ratio: A Fortress Balance Sheet

The Debt-to-Equity (D/E) ratio is the clearest measure of Bridgford Foods Corporation's conservative stance. This ratio compares total debt to total shareholder equity, showing how much of the company's financing comes from creditors versus owners.

Here's the quick math using the most recent full-year data, with total debt of $2.786 million and total shareholders' equity of $128.136 million as of November 1, 2024:

D/E Ratio = $2,786,000 / $128,136,000 $\approx$ 0.02.

This 0.02 ratio is exceptionally low. To be fair, the average D/E ratio for the Packaged Foods & Meats industry is around 0.7084 as of early 2025. Bridgford Foods Corporation is carrying less than 3% of the debt load relative to equity compared to its peers. This means the company is almost entirely equity-financed, which is a huge buffer against economic downturns and interest rate hikes. It's a fortress balance sheet, plain and simple.

Covenants and Capital Strategy

The company's low debt levels mean it generally operates well within its loan covenants, such as the requirement that Total Liabilities divided by Tangible Net Worth not be greater than 2.0 to 1.0. However, the Q2 2025 report (ending April 18, 2025) did note a violation of the Fixed Charge Coverage Ratio covenant. This is a critical near-term risk: while the absolute debt is small, the company's recent net losses (a loss of $3.860 million in Q2 2025) have negatively impacted its ability to cover even its minimal fixed charges, which can trigger lender action and restrict future borrowing capacity.

Bridgford Foods Corporation's capital strategy is clearly to prioritize equity funding-retained earnings and capital in excess of par value-over debt, even in a growth environment. They are not using debt to 'leverage' returns, which limits financial risk but also caps the potential return on equity (ROE) you might see in more aggressive, debt-fueled competitors. This conservative approach is consistent with a family-controlled business model that values stability and asset preservation above all else. For a deeper dive into who is investing and why, you should be Exploring Bridgford Foods Corporation (BRID) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

You need to know how Bridgford Foods Corporation (BRID) can meet its short-term obligations, and the quick answer is: the company has a defintely strong liquidity position, but it is currently burning cash from operations. The high volume of inventory is a key factor in its liquidity profile, which you need to watch.

As of the third quarter of fiscal year 2025 (ending July 11, 2025), Bridgford Foods Corporation's balance sheet shows significant strength in its ability to cover current debts. Here is the quick math based on the Q3 2025 data:

• Current Assets: $73.63 million
• Current Liabilities: $20.80 million (Calculated from Current Assets minus Net Working Capital of $52.83 million)
• Inventory: $42.91 million

Current and Quick Ratios (Liquidity Positions)

The company's liquidity ratios are robust, signaling a strong buffer against immediate financial pressure. The current ratio is excellent, but the quick ratio shows how much the company relies on selling its product.

The Current Ratio (Current Assets / Current Liabilities) for Q3 2025 stands at 3.54. This means Bridgford Foods Corporation has $3.54 in current assets for every dollar of current liability, which is well above the typical 2.0 benchmark for a healthy company. The Quick Ratio (or Acid-Test Ratio), which excludes inventory-a less liquid asset-is 1.48 (Calculated as ($73.63M - $42.91M) / $20.80M). A quick ratio of 1.0 or higher is generally considered good, so at 1.48, the company maintains a solid position even without immediately liquidating its inventory.

The difference between the two ratios (3.54 vs. 1.48) highlights the substantial role of inventory, totaling $42.91 million, in the company's current asset structure. This is a common situation for a food manufacturer, but it means a sharp downturn in demand could quickly strain liquidity if the inventory cannot be moved.

Cash Flow and Working Capital Trends

The working capital (Current Assets minus Current Liabilities) is a healthy $52.83 million as of July 11, 2025, which provides a large operational cushion. The trend in cash flow, however, is a clear point of concern you should not overlook. Cash flow statements for the first half of 2025 show a negative trend in operations.

For the second quarter of 2025 (Q2 2025), Bridgford Foods Corporation reported net cash used in operating activities of $5.426 million, a significant swing from the cash provided in the prior year. This indicates that, despite strong balance sheet ratios, the core business is consuming cash due to factors like rising commodity prices and margin pressure, which is a near-term risk. You can dive deeper into the ownership structure and market sentiment by Exploring Bridgford Foods Corporation (BRID) Investor Profile: Who's Buying and Why?

Here is a snapshot of the cash flow activities:

Potential Liquidity Concerns and Strengths

The main strength is the high Current Ratio of 3.54, which shows the company is not in immediate danger of defaulting on its short-term debt. They also have an amended credit line with Wells Fargo, allowing for borrowing up to $7.5 million, which offers a good safety net for managing short-term working capital swings.

The primary liquidity concern is the sustained negative operating cash flow, which creates a cash burn. If this trend continues, the company will have to rely on its existing cash balance (which was $3.4 million as of July 11, 2025) and its credit facility to fund operations. Furthermore, a prior report noted a potential violation of a Fixed Charge Coverage Ratio covenant, which is a serious issue that could restrict future borrowing capacity and trigger default clauses if not resolved. That is a big red flag for any analyst.

Valuation Analysis

You're looking for a clear signal on Bridgford Foods Corporation (BRID), and honestly, the numbers are giving us a mixed picture that leans toward caution. The direct takeaway is this: Bridgford Foods Corporation looks cheap on its balance sheet, trading at a significant discount, but its recent stock performance and negative earnings make it a high-risk proposition. The consensus from analysts is a firm Sell right now.

The core valuation ratios tell the story of a company with tangible assets but struggling operations. This is a classic value trap warning, where a low price might not mean a good deal. We need to look closely at the Price-to-Earnings (P/E), Price-to-Book (P/B), and Enterprise Value-to-EBITDA (EV/EBITDA) to see the full picture.

Decoding the Core Multiples

When we look at the standard metrics for Bridgford Foods Corporation as of November 2025, the figures are starkly different from what you'd see in a healthy packaged foods peer. The negative earnings are the biggest red flag, but the Price-to-Book ratio is the most compelling aspect for a deep-value investor.

• Price-to-Earnings (P/E) Ratio: The trailing twelve months (TTM) P/E is -9.13. This negative number is crucial; it simply means the company is currently losing money, so the ratio isn't useful for comparison. A negative P/E defintely overrides any sense of the stock being undervalued based on earnings.
• Price-to-Book (P/B) Ratio: This is where the deep-value argument starts. The P/B ratio is a low 0.59 as of September 2025. This suggests the stock is trading for less than 60 cents on the dollar of its net tangible asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA): Since the company reported negative quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of -$3.9 million in July 2025, the TTM EV/EBITDA is either negative or highly distorted. When a company has negative EBITDA, this ratio breaks down and becomes unreliable for valuation.

Here's the quick math: You are buying a dollar of assets for $0.59, but those assets aren't currently generating a profit. That P/B ratio is a strong indicator of potential asset-based value, but the negative P/E shows the business itself is under immense pressure.

Stock Performance and Analyst Sentiment

The market has reflected the operational struggles. Over the last 12 months, Bridgford Foods Corporation's stock price has fallen by 17.76%, closing recently at $7.60 per share. The 52-week range of $7.24 to $10.83 shows the stock is hovering near its annual low, a sign of sustained selling pressure and low investor confidence. You're not catching a falling knife, but you are buying a stock that is clearly out of favor.

The analyst community is not bullish. The consensus rating for Bridgford Foods Corporation is a Sell. While one recent technical analysis did upgrade the stock to a 'Hold/Accumulate' candidate on November 14, 2025, the overarching sentiment is that the fundamentals are too weak to justify a Buy rating. This negative consensus is a major headwind for any near-term price recovery.

The Dividend Reality

For income-focused investors, there is no dividend to rely on. Bridgford Foods Corporation's dividend is currently N/A or suspended, which means the dividend yield is effectively 0.00%. This is a crucial detail for a mature food company; it signals that cash flow is being conserved or is insufficient to maintain a payout, prioritizing balance sheet stability over shareholder return.

If you want to dive deeper into the operational side of this company, you can read the full analysis at Breaking Down Bridgford Foods Corporation (BRID) Financial Health: Key Insights for Investors.

Next Step: Before making any move, Finance should model a liquidation scenario to validate the 0.59 P/B value against current asset sale prices by the end of the month.

Risk Factors

You're looking at Bridgford Foods Corporation (BRID) and seeing a company that, honestly, is fighting a tough battle against macroeconomic headwinds. The direct takeaway is this: while net sales are up slightly-Q2 2025 saw a 7.0% increase to $50,639K-the core financial risk is margin compression driven by commodity inflation and a serious liquidity covenant issue.

Operational and External Cost Pressures

The most immediate risk is the rising cost of goods sold (COGS), a classic external pressure in the food industry. In Q2 2025, Bridgford Foods Corporation (BRID)'s COGS increased by 8.1% to $39,568K, which is faster than their sales growth. Here's the quick math: that surge in costs, particularly for meat and flour, pushed the Gross Margin down to 21.9% from 22.7% year-over-year. They haven't been able to raise prices high enough to fully offset this, so profitability suffers. Plus, they don't engage in commodity hedging activities, which means they are defintely exposed to price volatility.

The pain is showing up on the bottom line. The company posted a Q2 2025 Net Loss of $3,860K, a significant increase from a loss of $2,195K in the same quarter last year. This is a cash-flow killer.

Financial and Liquidity Risks

A major red flag for any seasoned analyst is the covenant violation. Bridgford Foods Corporation (BRID) was in violation of its Fixed Charge Coverage Ratio covenant in its credit agreement for the fiscal quarter ended January 24, 2025 (Q1 2025). While the lender, Wells Fargo, subsequently waived this violation, it signals financial strain and a potential impact on future borrowing capacity if the losses continue.

To be fair, the company has taken action to manage this liquidity risk. In July 2025, they amended their credit agreement with Wells Fargo, securing the ability to borrow up to $7.5 million until July 31, 2026. That provides a crucial buffer, but it doesn't solve the underlying profitability problem.

• Commodity inflation is crushing margins.
• Covenant violation signals liquidity stress.
• Snack food demand is sensitive to consumer inflation.

Segment-Specific and Demand Risks

The company's product mix presents a risk, as their premium snack foods are often impulse items, which are highly sensitive to inflation and consumer belt-tightening. This led to a 6.2% decline in sales volume in Q1 2025, even with price increases.

The Frozen Food Products segment is also struggling, seeing a Q3 2025 net sales decline of 6.3%, dropping to $10.79 million. This downturn was compounded by an internal operational risk: production was temporarily reduced in Q3 2025 to repair a necessary spiral freezer.

Here is a snapshot of the core financial risks based on the first half of the 2025 fiscal year:

Mitigation and Actionable Outlook

Bridgford Foods Corporation (BRID) is attempting to restore profitability by increasing product prices and enhancing operational efficiency. They are also actively focusing on increasing sales volume through private-label product arrangements. This is a smart move, as private-label products often thrive when consumers trade down due to inflation.

The company's strategic focus is on cost management and leveraging the new credit facility. Still, the market needs to see evidence that their price increases are sticking without further crushing sales volume. If you want a deeper dive into who is betting on this turnaround, you should read Exploring Bridgford Foods Corporation (BRID) Investor Profile: Who's Buying and Why?

Growth Opportunities

You're looking for a clear path forward for Bridgford Foods Corporation (BRID), and the near-term picture shows a company fighting inflation with strategic pricing and segment-specific growth. The core takeaway is that Bridgford is leaning into its established distribution muscle and the high-growth private label space to stabilize earnings, even as commodity costs squeeze margins. The growth story hinges on execution in the foodservice and private label channels.

For the fiscal year 2025, the Trailing Twelve Months (TTM) revenue through July 31, 2025, stands at approximately $227 million. This figure reflects a difficult operating environment where cost inflation has been a significant headwind, pushing the TTM Earnings Per Share (EPS) to a loss of -$0.82. Still, the company is showing signs of traction in key areas, which is where the future growth lies.

Key Growth Drivers: Innovation and Price Power

The primary growth drivers for Bridgford Foods Corporation are centered on product mix, pricing, and operational efficiency. In the second quarter of 2025 (Q2 2025), Net Sales increased by a solid 7.0% year-over-year to $50,639K, largely driven by higher selling prices and improved unit sales in the snack products segment. This shows they have some pricing power, which is defintely crucial in an inflationary period.

• Frozen Food Segment Volume: Retail sales volume in the Frozen Food Products segment saw a significant jump, up 27% in Q2 2025, indicating strong consumer demand for their convenience items.
• Product Innovation: The company is focused on the frozen and refrigerated hand-held foods market, which is one of the fastest-growing segments in the industry, driven by the consumer need for inexpensive and healthy options.
• Operational Focus: Management is prioritizing strategic price adjustments and enhancing operational efficiency to restore profitability, a necessary action given the gross margin contraction seen in Q2 2025.

Strategic Shifts: Private Label and Foodservice Expansion

Bridgford Foods Corporation is actively pursuing two strategic initiatives that could materially change its revenue profile. They are leveraging their manufacturing capabilities to enter the private label packaged foods business, which offers volume stability and lower marketing costs compared to branded products. This is a smart move to offset the volatility of their branded, impulse-buy snack segment.

Also, the company is doubling down on the foodservice industry, supplying a broad array of frozen bakery products to a wide range of customers like restaurants, schools, and hotels. This segment is less susceptible to the immediate price sensitivity of retail consumers. The company already serves approximately 820 wholesalers, cooperatives, and distributors in this space. For a deeper dive into who is betting on these changes, see Exploring Bridgford Foods Corporation (BRID) Investor Profile: Who's Buying and Why?

Competitive Advantages and Near-Term Outlook

Bridgford Foods Corporation's competitive advantage is rooted in its extensive distribution infrastructure and its long-standing reputation in the frozen food industry. Their Snack Food Products division utilizes a direct-store-delivery network that reaches roughly 21,000 retail stores across 50 states. This network is a high-barrier-to-entry asset.

Here's the quick math on the near-term financial reality: while the company reported a Net Loss of $3,860K in Q2 2025, the revenue growth shows the underlying demand for their products remains. The focus for investors should be on whether the strategic shift to private label and foodservice, combined with price increases, can outpace the rising cost of commodities like meat and flour.

The table below summarizes the key 2025 financial performance metrics as of the latest reporting:

What this estimate hides is the potential for a significant margin rebound if commodity prices stabilize or if the private label business secures a major, high-volume contract. Your action item is to monitor Q4 2025 results for any commentary on new private label wins or a stabilization in gross margin.