MAMA Q3 2026: Crown One Acquisition Drives 50% Revenue Surge, Unlocks Scale Advantage
MAMA’s third quarter showcased the operational and strategic lift from integrating the Bayshore facility, following the Crown One acquisition, with revenue growth outpacing the broader deli-prepared foods category. The company’s unified production network, disciplined cost controls, and new national retail wins signal a step-change in scale and market access. With integration synergies ahead of plan and a strong pipeline of club and mass channel opportunities, MAMA is positioned for continued profitable expansion in fiscal 2027.
Summary
- Integration Synergy Execution: Bayshore’s rapid assimilation is driving procurement savings and capacity unlocks.
- Retail Channel Expansion: Major wins at Target and Food Lion extend national reach and validate demand for MAMA’s deli-prepared foods.
- Margin Optimization Focus: Leadership is prioritizing margin lift at the acquired facility and SKU rationalization to support sustainable growth.
Performance Analysis
MAMA delivered a 50% year-over-year revenue increase, propelled by the Crown One acquisition and robust double-digit organic growth in the legacy business. The Bayshore facility, acquired through Crown One, immediately contributed to both top-line expansion and operational leverage, as evidenced by gross profit rising faster than revenue and gross margin improving to 23.6% from 22.6% a year ago. These gains were supported by centralized procurement, optimized logistics, and a disciplined approach to trade and marketing investments.
Operating expenses rose due to integration and transaction costs, but underlying OPEX as a percent of revenue remained below 20% when adjusted for one-time items. Net income was up 31.7% despite acquisition-related expenses, and adjusted EBITDA more than doubled, reflecting the efficiency of the new three-facility network. Cash and equivalents climbed to $18.1 million, reinforcing balance sheet strength for continued growth investments.
- Volume-Driven Growth: 80% of organic growth was volume-based, signaling sustained demand and effective velocity programs.
- Procurement Scale Impact: Centralized buying, especially for chicken, delivered double-digit cost reductions at Bayshore.
- Club Channel Momentum: Accelerating Costco and club sales validate operational scalability and brand resonance in high-velocity formats.
Integration synergies are being realized ahead of expectations, with further margin improvements targeted as the Bayshore facility’s gross margin converges with corporate averages in the coming year.
Executive Commentary
"Our newly acquired facility in Bayshore brings a recently upgraded USDA facility, automated and artisan production capabilities, and a reputation for grandma quality items that fit squarely within our brand promise. It also opens the door to a customer set that historically has been difficult to access. The proximity of their facility to our Farmingdale facility gives us a structural advantage...We are one plant, delivering on our shared one-stop-shop strategy."
Adam O. Michaels, Chairman and Chief Executive Officer
"Revenue for the third quarter of fiscal 2026 increased 50%...The increase was largely attributable to the acquisition of Crown One as well as robust double-digit growth in the legacy business on a pre-acquisition basis...We remain vigilant in managing the magnitude and ROI of our trade and marketing spend and see it as a critical tool to achieve our ambitions."
Anthony Gruber, Chief Financial Officer
Strategic Positioning
1. Crown One Acquisition as Scale Catalyst
The Bayshore facility, gained via the Crown One acquisition, has rapidly become a cornerstone of MAMA’s scaled production platform. Proximity to the Farmingdale site enables shared procurement, labor optimization, and cross-facility training, creating a unified “one plant, three locations” network. This structure has already resulted in double-digit beef cost reductions and meaningful capacity increases, with the integration moving faster than management’s initial targets.
2. Retail and Club Channel Penetration
Major wins at Target and Food Lion, along with expanded Costco programs, validate MAMA’s brand and operational readiness for national scale. The company’s ability to launch multiple SKUs at new retailers and quickly meet volume requirements is a direct result of the integrated production network. Club channel momentum, particularly with Costco’s national MVM (Multi-Vendor Mailer) events, is driving trial and visibility, supporting both short-term sales and long-term brand equity.
3. Margin Expansion and SKU Optimization
Management is focused on elevating Bayshore’s margin profile to match legacy levels, targeting the mid-20% range through operational synergies and SKU rationalization. The team is taking a measured approach, prioritizing customer relationships and production optimization before removing underperforming SKUs. This discipline is expected to unlock further profitability without sacrificing volume or customer breadth.
4. Technology and Demand Planning Investments
Enhanced demand and supply planning capabilities, along with an upcoming unified ERP system, are increasing throughput and reducing overtime. These upgrades are enabling a transition from make-to-order to make-to-stock manufacturing, improving service levels and reducing operational friction as the company scales.
5. Brand Investment and Digital Activation
Marketing spend is yielding double-digit returns on advertising, with digital and influencer programs driving both consumer trial and retailer engagement. The launch of new products at Publix and digital partnerships with Amazon Fresh and Instacart are expanding the brand’s reach and supporting its premium positioning.
Key Considerations
This quarter marks an inflection point for MAMA as it transitions from regional player to scaled national platform in deli-prepared foods. The integration of Bayshore is not only delivering immediate cost and capacity benefits, but also enabling strategic customer wins and operational flexibility.
Key Considerations:
- Integration Synergy Realization: Early success in procurement and production alignment is driving gross margin improvement and cost leverage.
- Retail Channel Depth: New national accounts and expanded club channel partnerships diversify revenue streams and reduce dependency on any single customer.
- Operational Scalability: Facility expansion and process standardization provide a foundation for doubling business without major new capital outlays.
- Margin Management Discipline: Focus on SKU rationalization and cost controls is designed to sustain profitability as the business grows in complexity.
- Consumer Demand Tailwind: The ongoing shift from restaurant to grocery deli-prepared foods aligns with MAMA’s core offering and underpins volume growth potential.
Risks
Integration risk remains as the Bayshore facility’s margin convergence is not guaranteed, particularly if commodity tailwinds reverse or customer mix shifts unfavorably. Rising beef prices and any unforeseen operational disruptions could pressure gross margin. The company’s dependence on large retail and club partners also creates exposure to shifts in buyer strategy or channel preferences. Execution on SKU rationalization must be balanced to avoid alienating key customers or reducing assortment breadth.
Forward Outlook
For Q4, MAMA expects:
- Revenue to reflect the full impact of the national Costco MVM and initial shipments to Target and Food Lion.
- Continued gross margin improvement as Bayshore integration deepens and procurement contracts for chicken are finalized.
For full-year 2026, management reiterated a focus on:
- Elevating Bayshore’s margin profile to the historical corporate range by late 2026 or early 2027.
- Sustained double-digit organic growth and disciplined trade and marketing investments.
Management highlighted several factors that will influence results:
- Finalization of commodity supply contracts, particularly for chicken, to lock in cost visibility.
- Ongoing SKU optimization and cross-facility production shifts to maximize efficiency.
Takeaways
MAMA’s Q3 execution demonstrates the power of disciplined integration, operational agility, and strategic channel expansion to drive outsized growth and profitability in a consolidating deli-prepared foods market.
- Acquisition Integration: Bayshore is delivering both immediate cost savings and long-term capacity unlocks, supporting new customer wins and margin expansion.
- Channel Diversification: The addition of Target, Food Lion, and expanded Costco programs reduces customer concentration risk and supports national scale ambitions.
- Margin Management: Continued focus on SKU rationalization and procurement leverage is designed to sustain and grow profitability as the business enters its next phase.
Conclusion
MAMA’s transformation into a scaled, multi-facility platform is ahead of schedule, with integration synergies, new retail partnerships, and disciplined margin management all contributing to a robust growth outlook. The company’s operational backbone and brand position it well to capitalize on secular shifts in consumer eating habits and retailer demand for turnkey deli solutions.
Industry Read-Through
MAMA’s results and commentary reinforce the accelerating shift from restaurant to grocery deli-prepared foods, with consumers prioritizing value, convenience, and freshness. The company’s success in integrating acquisitions and capturing procurement synergies highlights the importance of scale and operational flexibility in a fragmented category. For other food manufacturers, the quarter underscores the need to invest in supply chain integration, digital marketing, and channel diversification to remain competitive as retail buyers demand both innovation and execution certainty. Club and mass channel momentum suggests these formats will remain critical growth engines for value-oriented, ready-to-eat food brands into 2026 and beyond.