Ingles Markets Inc 10-Q for FY2026 Q3

Ingles Markets Inc (IMKTA)

10-Q 2026-08-06 For: 2026-06-27

Added on August 06, 2026

About this 10-Q

Ingles Markets Inc filed this 10-Q on August 6, 2026, covering the quarter ended June 27, 2026 (FY2026 Q3).

Headline figures

Quarter ended June 27, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.37B; up 1.6% from $1.35B a year earlier
Net income: $25.9M; down 1.1% from net income of $26.2M a year earlier

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North Carolina		56-0846267
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
2913 U.S. Hwy. 70 West, Black Mountain, NC		28711
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.05 par value per share	IMKTA	The NASDAQ Global Select Market


Large accelerated filer x	Accelerated filer ¨
Non-accelerated filer ¨	Smaller reporting company ¨
	Emerging growth company ¨



		Page No.
Part I – Financial Information

Item 1. Financial Statements (Unaudited)

Condensed Consolidated Balance Sheets as of June 27, 2026 and September 27, 2025		3

Condensed Consolidated Statements of Income and Comprehensive Income for the
Three Months Ended June 27, 2026 and June 28, 2025		4
Nine Months Ended June 27, 2026 and June 28, 2025		5

Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Three Months and Nine Months Ended June 27, 2026 and June 28, 2025		6

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended June 27, 2026 and June 28, 2025		7

Notes to Unaudited Interim Financial Statements		8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		15

Item 3. Quantitative and Qualitative Disclosures About Market Risk		22

Item 4. Controls and Procedures		22

Part II – Other Information

Item 5. Other Information		22

Item 6. Exhibits		23

Signatures		24



	June 27,		September 27,
	2026		2025
ASSETS
Current Assets:
Cash and cash equivalents	$	455,086,566	$	366,245,951
Receivables - net		102,682,302		106,355,244
Inventories		479,654,229		482,979,330
Other current assets		19,341,207		19,976,402
Total Current Assets		1,056,764,304		975,556,927
Property and Equipment - Net		1,501,440,844		1,515,070,221
Operating lease right of use assets		22,143,716		25,139,210
Other Assets		53,156,005		50,288,285
Total Assets	$	2,633,504,869	$	2,566,054,643

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Current portion of long-term debt	$	17,481,301	$	17,477,241
Current portion of operating lease liabilities		4,614,190		4,968,121
Current portion of finance lease liabilities		868,368		716,377
Accounts payable - trade		189,916,078		179,226,467
Accrued expenses and current portion of other long-term liabilities		116,328,035		100,514,387
Total Current Liabilities		329,207,972		302,902,593
Deferred Income Taxes		51,743,000		65,040,000
Long-Term Debt		483,045,941		497,289,417
Noncurrent operating lease liabilities		18,910,931		21,549,312
Noncurrent finance lease liabilities		1,659,574		1,668,802
Other Long-Term Liabilities		64,145,568		61,672,942
Total Liabilities		948,712,986		950,123,066
Stockholders’ Equity
Preferred stock, $0.05 par value per share; 10,000,000 shares authorized; no shares issued		—		—
Common stocks:
Class A, $0.05 par value per share; 150,000,000 shares authorized; ‎14,552,786 shares and 14,548,611 shares issued and outstanding at June 27, 2026 and September 27, 2025, respectively		727,640		727,431
Class B, convertible to Class A, $0.05 par value per share; ‎100,000,000 shares authorized; 4,441,590 shares and 4,445,765 shares issued and outstanding at June 27, 2026 and September 27, 2025, respectively		222,079		222,288
Paid-in capital in excess of par value		—		—
Accumulated other comprehensive income		5,364,406		5,597,024
Retained earnings		1,678,477,758		1,609,384,834
Total Stockholders’ Equity		1,684,791,883		1,615,931,577
Total Liabilities and Stockholders’ Equity	$	2,633,504,869	$	2,566,054,643



	Three Months Ended
	June 27,		June 28,
	2026		2025
Net sales	$	1,368,324,128	$	1,346,221,519
Cost of goods sold		1,035,879,885		1,018,891,349
Gross profit		332,444,243		327,330,170
Operating and administrative expenses		298,005,144		290,131,745
Gain from sale or disposal of assets		44,127		143,235
Income from operations		34,483,226		37,341,660
Other income, net		3,037,263		2,769,378
Interest expense		4,503,187		4,856,083
Income before income taxes		33,017,302		35,254,955
Income tax expense		7,118,000		9,056,000
Net income	$	25,899,302	$	26,198,955

Other comprehensive loss:
Change in fair value of interest rate swap	$	(72,152)	$	(1,445,649)
Income tax benefit		30,000		358,000
Other comprehensive loss, net of tax		(42,152)		(1,087,649)
Comprehensive income	$	25,857,150	$	25,111,306

Per share amounts:
Class A Common Stock
Basic earnings per common share	$	1.39	$	1.41
Diluted earnings per common share	$	1.36	$	1.38
Class B Common Stock
Basic earnings per common share	$	1.27	$	1.28
Diluted earnings per common share	$	1.27	$	1.28
Cash dividends per common share
Class A Common Stock	$	0.165	$	0.165
Class B Common Stock	$	0.150	$	0.150



	Nine Months Ended
	June 27,		June 28,
	2026		2025
Net sales	$	4,049,164,793	$	3,965,609,341
Cost of goods sold		3,056,904,220		3,026,167,821
Gross profit		992,260,573		939,441,520
Operating and administrative expenses		884,572,836		859,984,727
Gain from sale or disposal of assets		401,698		3,097,150
Income from operations		108,089,435		82,553,943
Other income, net		8,719,998		8,909,015
Interest expense		13,605,347		14,745,648
Income before income taxes		103,204,086		76,717,310
Income tax expense		24,909,000		18,824,000
Net income	$	78,295,086	$	57,893,310

Other comprehensive loss:
Change in fair value of interest rate swap	$	(322,618)	$	(779,562)
Income tax benefit		90,000		196,000
Other comprehensive loss, net of tax		(232,618)		(583,562)
Comprehensive income	$	78,062,468	$	57,309,748

Per share amounts:
Class A Common Stock
Basic earnings per common share	$	4.21	$	3.11
Diluted earnings per common share	$	4.12	$	3.05
Class B Common Stock
Basic earnings per common share	$	3.83	$	2.83
Diluted earnings per common share	$	3.83	$	2.83
Cash dividends per common share
Class A Common Stock	$	0.495	$	0.495
Class B Common Stock	$	0.450	$	0.450



							Paid-in		Accumulated
	Class A			Class B			Capital in		Other
	Common Stock			Common Stock			Excess of		Comprehensive		Retained
	Shares	Amount		Shares	Amount		Par Value		Income (Loss)		Earnings		Total
Balance, September 28, 2024	14,544,925	$	727,247	4,449,451	$	222,472	$	—	$	6,737,631	$	1,538,061,740	$	1,545,749,090
Net income	—		—	—		—		—		—		16,588,340		16,588,340
Other comprehensive income, net of income tax	—		—	—		—		—		2,337,737		—		2,337,737
Cash dividends	—		—	—		—		—		—		(3,067,331)		(3,067,331)
Common stock conversions	825		41	(825)		(41)		—		—		—		—
Balance, December 28, 2024	14,545,750	$	727,288	4,448,626	$	222,431	$	—	$	9,075,368	$	1,551,582,749	$	1,561,607,836
Net income	—		—	—		—		—		—		15,106,015		15,106,015
Other comprehensive loss, net of income tax	—		—	—		—		—		(1,833,650)		—		(1,833,650)
Cash dividends	—		—	—		—		—		—		(3,067,343)		(3,067,343)
Common stock conversions	1,305		65	(1,305)		(65)		—		—		—		—
Balance, March 29, 2025	14,547,055	$	727,353	4,447,321	$	222,366	$	—	$	7,241,718	$	1,563,621,421	$	1,571,812,858
Net income	—		—	—		—		—		—		26,198,955		26,198,955
Other comprehensive loss, net of income tax	—		—	—		—		—		(1,087,649)		—		(1,087,649)
Cash dividends	—		—	—		—		—		—		(3,067,366)		(3,067,366)
Common stock conversions	225		11	(225)		(11)		—		—		—		—
Balance, June 28, 2025	14,547,280	$	727,364	4,447,096	$	222,355	$	—	$	6,154,069	$	1,586,753,010	$	1,593,856,798

Balance, September 27, 2025	14,548,611	$	727,431	4,445,765	$	222,288	$	—	$	5,597,024	$	1,609,384,834	$	1,615,931,577
Net income	—		—	—		—		—		—		28,128,370		28,128,370
Other comprehensive loss, net of income tax	—		—	—		—		—		(529,552)		—		(529,552)
Cash dividends	—		—	—		—		—		—		(3,067,386)		(3,067,386)
Common stock conversions	—		—	—		—		—		—		—		—
Balance, December 27, 2025	14,548,611	$	727,431	4,445,765	$	222,288	$	—	$	5,067,472	$	1,634,445,818	$	1,640,463,009
Net income	—		—	—		—		—		—		24,267,415		24,267,415
Other comprehensive income, net of income tax	—		—	—		—		—		339,086		—		339,086
Cash dividends	—		—	—		—		—		—		(3,067,387)		(3,067,387)
Common stock conversions	75		4	(75)		(4)		—		—		—		—
Balance, March 28, 2026	14,548,686	$	727,435	4,445,690	$	222,284	$	—	$	5,406,558	$	1,655,645,846	$	1,662,002,123
Net income	—		—	—		—		—		—		25,899,302		25,899,302
Other comprehensive loss, net of income tax	—		—	—		—		—		(42,152)		—		(42,152)
Cash dividends	—		—	—		—		—		—		(3,067,390)		(3,067,390)
Common stock conversions	4,100		205	(4,100)		(205)		—		—		—		—
Balance, June 27, 2026	14,552,786	$	727,640	4,441,590	$	222,079	$	—	$	5,364,406	$	1,678,477,758	$	1,684,791,883



Year
2026	102.000%
2027	101.333%
2028	100.667%
2029 and thereafter	100.000%



	Three Months Ended				Nine Months Ended
	June 27, 2026				June 27, 2026
	Class A		Class B		Class A		Class B
Numerator: Allocated net income
Net income allocated, basic	$	20,270,014	$	5,629,288	$	61,274,804	$	17,020,282
Conversion of Class B to Class A shares		5,629,288		—		17,020,282		—
Net income allocated, diluted	$	25,899,302	$	5,629,288	$	78,295,086	$	17,020,282

Denominator: Weighted average shares outstanding
Weighted average shares outstanding, basic		14,549,762		4,444,614		14,549,019		4,445,357
Conversion of Class B to Class A shares		4,444,614		—		4,445,357		—
Weighted average shares outstanding, diluted		18,994,376		4,444,614		18,994,376		4,445,357

Earnings per share
Basic	$	1.39	$	1.27	$	4.21	$	3.83
Diluted	$	1.36	$	1.27	$	4.12	$	3.83



	Three Months Ended				Nine Months Ended
	June 28, 2025				June 28, 2025
	Class A		Class B		Class A		Class B
Numerator: Allocated net income
Net income allocated, basic	$	20,501,422	$	5,697,533	$	45,299,894	$	12,593,416
Conversion of Class B to Class A shares		5,697,533		—		12,593,416		—
Net income allocated, diluted	$	26,198,955	$	5,697,533	$	57,893,310	$	12,593,416

Denominator: Weighted average shares outstanding
Weighted average shares outstanding, basic		14,547,273		4,447,103		14,546,178		4,448,198
Conversion of Class B to Class A shares		4,447,103		—		4,448,198		—
Weighted average shares outstanding, diluted		18,994,376		4,447,103		18,994,376		4,448,198

Earnings per share
Basic	$	1.41	$	1.28	$	3.11	$	2.83
Diluted	$	1.38	$	1.28	$	3.05	$	2.83


Fiscal Year		Operating Leases		Finance Leases
Remainder of 2026	$	1,413,688	$	249,200
2027		5,527,431		996,800
2028		4,092,000		996,800
2029		3,088,424		258,300
2030		1,709,164		156,800
Thereafter		15,742,641		120,394
Total lease payments	$	31,573,348	$	2,778,294
Less amount representing interest		8,048,227		250,352
Present value of lease liabilities	$	23,525,121	$	2,527,942


Fiscal Year
Remainder of 2026	$	5,663,706
2027		20,136,388
2028		17,193,161
2029		13,715,567
2030		11,019,895
Thereafter		50,202,601
Total minimum future rental income	$	117,931,318

Level 1 Inputs –	Quoted prices for identical assets or liabilities in active markets.

Level 2 Inputs –	Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 Inputs –	Pricing inputs are unobservable for the assets or liabilities and include situations where there is little, if any, market activity for the assets or liabilities. The inputs into the determination of fair value require significant management judgment or estimation.



	Carrying				Fair Value
	Amount		Fair Value		Measurements
Senior Notes due 2031	$	350,000	$	328,125	Level 2
Facility Bonds due 2036		40,850		40,850	Level 2
Secured notes payable and other		109,677		109,677	Level 2
Interest rate swap derivative contracts asset		7,093		7,093	Level 2
Non-qualified retirement plan assets		32,749		32,749	Level 2


		Three Months Ended		Nine Months Ended
		June 27, 2026		June 27, 2026
Rents earned on owned and subleased properties:
Base rentals	$	6,797,397	$	21,731,875
Variable rentals		35,262		105,786
Total		6,832,659		21,837,661
Depreciation on owned properties leased to others		(2,352,645)		(7,067,937)
Other shopping center expenses		(1,416,876)		(3,674,102)
Total	$	3,063,138	$	11,095,622



	Three Months Ended				Nine Months Ended
	June 27,		June 28,		June 27,		June 28,
	2026		2025		2026		2025
Retail grocery revenue
Grocery (1)	$	468,291	$	478,310	$	1,460,286	$	1,447,893
Non-foods (2)		268,491		295,100		838,844		870,717
Perishables (3)		359,742		357,752		1,072,994		1,040,186
Fuel		213,596		161,829		513,661		456,263
Total retail grocery revenue	$	1,310,120	$	1,292,991	$	3,885,785	$	3,815,059
All other revenue		58,204		53,231		163,380		150,550
Total revenues from unaffiliated customers	$	1,368,324	$	1,346,222	$	4,049,165	$	3,965,609

Total retail grocery revenue	$	1,310,120	$	1,292,991	$	3,885,785	$	3,815,059
Less retail grocery expenses:
Merchandise costs (4)		994,047		981,124		2,943,707		2,917,519
Salary and wages		149,168		146,300		445,448		430,345
Insurance costs		15,429		14,752		42,384		41,957
Repair and maintenance		23,392		22,565		68,545		67,193
Bank charges		16,549		15,475		47,648		44,040
Depreciation and amortization		22,593		23,422		68,179		70,388
Utilities		15,002		14,505		45,993		45,610
Other retail grocery expenses (5)		42,964		42,067		128,787		126,413
Retail grocery operating income	$	30,976	$	32,782	$	95,094	$	71,595
Other operating income (6)		3,507		4,559		12,995		10,959
Other income		3,037		2,769		8,720		8,909
Interest expense		4,503		4,856		13,605		14,746
Taxes		7,118		9,056		24,909		18,824
Net income	$	25,899	$	26,199	$	78,295	$	57,893



Total retail sales for the three months ended June 28, 2025	$	1,292,991
Comparable store sales increase (including fuel)		15,894
Sales growth store opened fiscal 2026		1,410
Other		(175)
Total retail sales for the three months ended June 27, 2026	$	1,310,120




			Increase
	Increase		as a % of
	in millions		sales
Salaries and wages	$	3.7	0.27	%
Miscellaneous	$	2.2	0.16	%
Bank charges	$	1.1	0.08	%



Total retail sales for the nine months ended June 28, 2025	$	3,815,059
Comparable store sales increase (including fuel)		70,924
Sales growth store opened fiscal 2026		1,410
Impact of stores closed in fiscal 2025		(2,098)
Other		490
Total retail sales for the nine months ended June 27, 2026	$	3,885,785



	Twelve Months Ended
	June 2026
All items	3.5	%
Food at home	2.7	%
Energy	15.7	%



3.1			Third Amended and Restated Bylaws of Ingles Markets, Incorporated (included as Exhibit 3.1 to Ingles Markets, Incorporated’s Current Report on Form 8-K, filed with the Commission on May 5, 2026, and incorporated herein by this reference).


101	*	The following financial information from the Quarterly Report on Form 10-Q for the fiscal quarter ended June 27, 2026, formatted in iXBRL (Inline Extensible Business Reporting Language) and furnished electronically herewith: (i) the Consolidated Statements of Earnings; (ii) the Consolidated Balance Sheets; (iii) the Consolidated Statements of Cash Flows; (iv) the Consolidated Statements of Comprehensive Income; and (v) the Notes to the Consolidated Financial Statements.


104	*	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).



		INGLES MARKETS, INCORPORATED

Date: August 6, 2026		/s/ James W. Lanning
		James W. Lanning
		President and Chief Executive Officer (principal executive officer)

Date: August 6, 2026		/s/ Patricia E. Jackson
		Patricia E. Jackson, CPA
		Vice President-Finance and Chief Financial Officer (principal financial and accounting officer)