Tofutti Brands Reports Decline in Net Sales but Increase in Gross Profit for Recent Period

Tofutti Brands Inc. reported its financial results for the thirteen and thirty-nine weeks ended September 27, 2025, revealing a decline in net sales and an increase in gross profit. For the thirteen-week period, net sales decreased by 4% to $1.907 million, down from $1.986 million in the same period last year. The thirty-nine-week results showed a more significant decline, with sales falling 15% to $5.527 million compared to $6.481 million in the prior year. Despite the drop in sales, gross profit for the thirteen weeks increased to $519,000, up from $485,000, attributed to a price increase implemented at the beginning of the fiscal year.

The company’s operating expenses reflected mixed trends. Selling expenses rose slightly by 5% to $217,000 for the thirteen weeks, primarily due to increased bad debt and warehouse rental expenses. Conversely, general and administrative expenses decreased by 17% to $309,000, driven by reductions in various operational costs, including stock option expenses and building expenses. For the thirty-nine weeks, general and administrative expenses also fell by 11% to $979,000. The overall net loss for the thirteen weeks was $137,000, or $(0.03) per share, compared to a loss of $207,000, or $(0.04) per share, in the prior year.

In terms of operational metrics, Tofutti Brands reported a total of 5,153,706 shares of common stock outstanding as of November 11, 2025. The company continues to face challenges in the competitive vegan cheese market, which has impacted sales of its cheese products, contributing to the overall decline in revenue. The Americas accounted for approximately 97% of the company’s revenue, with the majority coming from the United States. The company also noted a decrease in freight out expenses, which fell to $136,000 for the thirteen weeks, reflecting the reduced sales volume.

Looking ahead, Tofutti Brands anticipates that its selling and marketing expenses will remain stable for the remainder of the fiscal year. The company is also evaluating the impact of recent accounting standards that may affect its financial reporting. Management expressed confidence that existing cash reserves and working capital will support operational needs over the next twelve months, despite the ongoing challenges posed by inflation and competitive pressures in the market. The company remains focused on maintaining its market position while navigating the complexities of the food industry.