Ingles Markets Reports 6.6% Revenue Growth to $1.37 Billion in Q1 Fiscal 2026

Ingles Markets, Incorporated reported a significant increase in financial performance for the first quarter of fiscal 2026, ending December 27, 2025. The company achieved net sales of $1.37 billion, a 6.6% increase from $1.29 billion in the same period last year. Gross profit also rose to $334.6 million, reflecting an 11.1% increase compared to $301.1 million in the prior year. This growth in revenue and profitability was attributed to improved comparable store sales, which increased by 6.2% when excluding fuel sales, despite the ongoing impact of Hurricane Helene, which had previously disrupted operations.

The company's net income for the quarter was $28.1 million, up from $16.6 million in the previous year, resulting in basic earnings per share of $1.51 for Class A Common Stock and $1.38 for Class B Common Stock. The increase in net income was primarily driven by higher sales and an improved gross profit margin, which rose to 24.4% from 23.4% year-over-year. Operating and administrative expenses increased by 5.2% to $295.4 million, but as a percentage of sales, these expenses decreased slightly, indicating improved operational efficiency.

Ingles Markets continues to operate 194 supermarkets across several states, including North Carolina, Georgia, and South Carolina, although three stores remain closed due to damage from Hurricane Helene. The company has focused on enhancing its product offerings, including certified organic products and prepared foods, which contributed to the increase in customer engagement and sales. The company also reported a decrease in total debt from $529.4 million to $511.5 million, which helped reduce interest expenses to $4.6 million from $5.0 million.

Looking ahead, Ingles Markets plans to invest between $120 million and $160 million in capital expenditures for fiscal 2026, focusing on store improvements, technology upgrades, and the reopening of stores affected by the hurricane. The company expects that its financial resources, including cash flow from operations and available credit, will be sufficient to meet its capital and operational needs. However, management acknowledges potential risks, including increased competition and economic conditions, which could impact future performance.