Weis Markets reported higher revenue and earnings for the third quarter, with stronger gross margins helping offset softer sales in several product categories. Growth was supported mainly by fuel sales and new stores; comparable sales excluding fuel declined.
The grocer also declared a quarterly dividend of 34 cents per share, payable Nov. 23 to shareholders of record Nov. 9.
Third-quarter results
- Revenue rose 3.0% to $1.28 billion for the 13 weeks ended Sept. 26, 2026. Comparable-store sales increased 1.3%, but fell 1.2% excluding fuel.
- Higher fuel sales—including the effects of higher retail prices and more gallons sold—and sales from new stores drove growth. Lower pharmacy, dairy and produce sales partly offset those gains.
- Pharmacy revenue faced an estimated $14.56 million headwind from Medicare drug-pricing provisions that took effect Jan. 1. Weis said the impact reduced quarterly revenue growth by about 1.2 percentage points. Lower egg prices weighed on dairy sales, while produce demand was affected by a Cyclospora outbreak.
- Gross profit increased 5.8% to $324.61 million. Gross margin rose to 25.5% from 24.8% a year earlier, helped by improved inventory-shrink performance and lower internal supply-chain costs.
- Operating income climbed 38.6% to $28.51 million. Net income increased 31.4% to $22.21 million, or 90 cents per share, compared with $16.90 million, or 69 cents per share, a year earlier.
- Lower investment income and a higher effective tax rate partly offset the improvement in operating income.
Year-to-date results
- For the 39 weeks ended Sept. 26, revenue increased 4.1% to $3.81 billion. Comparable-store sales rose 1.9%, while comparable sales excluding fuel slipped 0.1%.
- Fuel and new stores were the main growth drivers. Grocery and pharmacy sales also increased, while lower dairy and produce sales were a partial drag.
- Pharmacy pricing changes reduced year-to-date revenue by an estimated $32.75 million, trimming revenue growth by about 0.9 percentage points.
- Gross profit rose 7.8% to $983.26 million, and gross margin expanded to 25.9% from 25.0%. Operating income increased 28.6% to $93.31 million.
- Net income grew 18.1% to $72.92 million, or $2.95 per share, from $61.73 million, or $2.38 per share. Lower investment income and a higher tax rate moderated the increase.
Dividend and business context
- The 34-cent quarterly dividend will be paid Nov. 23 to shareholders of record Nov. 9.
- Weis operates 201 stores across seven Mid-Atlantic states.
What changed: Weis delivered stronger profitability and wider margins in both the quarter and year to date, even as comparable sales excluding fuel were slightly lower. Fuel and new-store sales boosted reported revenue, while pharmacy pricing changes and weaker dairy and produce sales constrained growth.