Weis Markets — Third Quarter 2026 Earnings Summary

Financial Performance

• Total revenue for the 13-week third quarter ended September 26, 2026, was $1.28 billion, a 3.0% increase from $1.24 billion in the same period in 2025.
• Year-to-date total revenue for the 39-week period ended September 26, 2026, was $3.81 billion, a 4.1% increase from $3.66 billion in 2025.
• Third quarter gross profit increased 5.8% to $324.61 million, with gross profit margin rising to 25.5% from 24.8% in 2025.
• Year-to-date gross profit increased 7.8% to $983.26 million, with gross profit margin rising to 25.9% from 25.0% in 2025.
• Third quarter income from operations increased 38.6% to $28.51 million compared to 2025.
• Year-to-date income from operations increased 28.6% to $93.31 million compared to 2025.
• Third quarter net income was $22.21 million, a 31.4% increase from $16.90 million in 2025.
• Year-to-date net income was $72.92 million, an 18.1% increase from $61.73 million in 2025.
• Third quarter earnings per share (EPS) were $0.90, up from $0.69 in 2025.
• Year-to-date EPS were $2.95, up from $2.38 in 2025.
• Third quarter comparable store sales increased 1.3%, while comparable store sales excluding fuel decreased 1.2%.
• Year-to-date comparable store sales increased 1.9%, while comparable store sales excluding fuel decreased 0.1%.
• Two-year stacked comparable store sales for the third quarter were 3.8%, and excluding fuel were 1.3%.
• Two-year stacked comparable store sales for the year-to-date period were 3.6%, and excluding fuel were 1.8%.
• Investment income decreased to $2.09 million in the third quarter from $3.28 million in 2025, and $7.38 million year-to-date from $12.98 million in 2025.
• The effective income tax rate increased, moderating net income growth.

Business Segments and Product Lines

• Sales growth was driven primarily by higher fuel sales, reflecting retail price inflation and increased gallons sold, and sales from new stores.
• Pharmacy sales were negatively impacted by approximately $14.56 million in the third quarter and $32.75 million year-to-date due to Inflation Reduction Act Medicare maximum fair price provisions effective January 1, 2026.
• Dairy sales reflected lower egg pricing compared with the prior year.
• Produce sales were negatively affected by lower customer demand during the Cyclospora outbreak in the third quarter.
• Grocery sales increased year-to-date compared with the prior year.
• Improved store inventory shrink performance and lower internal supply chain costs contributed to higher gross profit margins.

Risks and Challenges

• Customers remain cautious with spending and continue to seek affordability and value.
• Pharmacy pricing headwinds related to the Inflation Reduction Act reduced total revenue growth by approximately 1.2 percentage points in the third quarter and 0.9 percentage points year-to-date.
• Egg price deflation and lower produce demand during the Cyclospora outbreak moderated sales performance.
• Forward-looking statements note risks including changes in general economic conditions, tariffs and trade policies, retail industry business conditions, regulatory environment, technology changes (cybersecurity and data privacy), and competitive factors.
• Risks include price pressures, further expenditures related to the restatement of financial statements, and results of shareholder actions associated with restatements referenced in the 2025 Form 10-K.

Management Commentary and Tone

• Chairman, President and CEO Jonathan H. Weis stated the company delivered higher total revenue and improved earnings despite cautious customer spending.
• Management highlighted that price investments and an expanded loyalty marketing program continue to support customers.
• Management noted that people, process, and technology investments are enhancing customer value, convenience, and operational efficiency across stores, supply chain, manufacturing, and the Store Support Center.
• Management expressed gratitude to associates for their commitment to customers and the business.

Other Key Points

• On October 29, 2026, the Board of Directors declared a quarterly cash dividend of $0.34 per share, payable on November 23, 2026, to shareholders of record as of November 9, 2026.
• The company operates 201 stores in Pennsylvania, Maryland, Delaware, New Jersey, New York, West Virginia, and Virginia.
• Management provided a two-year stacked comparable store sales analysis as a non-GAAP measure, noting it is useful to investors but should not replace GAAP operating results.