Ingles Signals Stability With Dividend Amid Post-Hurricane Recovery

ASHEVILLE, NC – December 29, 2025 – Ingles Markets, Incorporated has once again signaled its financial fortitude and commitment to shareholders, declaring its regular quarterly cash dividend even as it continues to navigate the lingering operational effects of Hurricane Helene. The announcement serves as a testament to the regional grocer's resilience in a competitive market still recovering from significant natural disaster impacts.

The Board of Directors approved a cash dividend of $0.165 per share for its Class A Common Stock and $0.15 per share for its Class B Common Stock. The dividends are scheduled for payment on January 15, 2026, to all shareholders of record as of January 8, 2026.

A Legacy of Shareholder Returns

For investors, the dividend declaration is more than just a routine announcement; it is a continuation of a long-standing policy. Ingles has now maintained dividend payments for 39 consecutive years, a track record that underscores its stability and dedication to providing consistent shareholder returns. This latest declaration keeps the annual dividend rates at $0.66 per share for Class A stock and $0.60 for Class B.

While the company's dividend yield of approximately 0.94% may seem modest compared to some high-yield players in the consumer defensive sector, its sustainability is a key factor for long-term investors. With a dividend payout ratio reported to be around 15%, Ingles demonstrates that its earnings comfortably cover the payments. This conservative ratio suggests that the company is not overextending itself financially to reward shareholders, leaving ample capital for reinvestment, debt service, and managing unforeseen challenges. This disciplined approach has been a hallmark of the company's financial strategy, allowing it to weather economic downturns and unexpected events with confidence.

Operational Resilience in the Face of Disaster

The dividend's affirmation is particularly noteworthy given the significant operational hurdles the company has faced since late 2024. Hurricane Helene brought unprecedented flooding and property damage to the southeastern United States, directly impacting Ingles' core operational footprint. The storm initially forced the closure of 13 of the company's 198 supermarkets and severely compromised its distribution center.

The financial toll was substantial. In its fiscal year 2024 results, Ingles recognized a $30.4 million impairment loss for destroyed inventory and an additional $4.5 million loss for property and equipment damage. This led to a rare net loss in the fourth quarter of 2024.

However, the company's response highlighted its operational agility. The critical distribution center was brought back to full shipping and receiving capacity within two weeks, a crucial step in stabilizing the supply chain for its remaining stores. While the recovery continues, the latest reports indicate that three of the most heavily damaged stores remain closed but are slated to reopen at various points in 2026. This ongoing recovery effort, coupled with consistent dividend payments, paints a picture of a company managing a complex crisis without sacrificing its fundamental financial commitments.

A Deeper Look at Financial Health

Despite the top-line revenue challenges posed by the hurricane's aftermath, Ingles' recent financial reports reveal a company on solid footing. For the fiscal year ending in September 2025, net sales were $5.33 billion. While this was a decrease from the prior year, the company's gross profit margin actually improved to 23.9%, aided in part by insurance proceeds that helped offset lost revenue.

Prudent financial management is evident across its balance sheet. The company has actively reduced its total debt, which stood at approximately $518 million as of mid-2025. Furthermore, capital expenditures were significantly curtailed in fiscal 2025, dropping to $114.5 million from $210.9 million the previous year, indicating a conservative and strategic approach to investment while navigating its recovery phase.

Key financial health metrics reinforce this stability. Ingles maintains a strong current ratio of 3.22, suggesting ample liquidity to cover short-term obligations. Its debt-to-equity ratio of 0.34 is low for the industry, reflecting a healthy balance between debt and equity financing. This strong financial foundation provides the necessary resources to fund ongoing operations, complete the reopening of its damaged stores, and continue its long history of dividend payments.

The Tale of Two Stocks: Control and Compensation

Underpinning the company's structure is a dual-class stock system that has defined its corporate governance since it went public in 1987. This system creates a clear distinction between its Class A (IMKTA) and Class B shares, primarily centered on voting rights and dividend payouts.

Class B stockholders wield significant power, with each share granting ten votes compared to the single vote afforded to each Class A share. This structure concentrates control, as Chairman of the Board Robert P. Ingle II holds a majority of the outstanding Class B stock, giving him approximately 75% of the combined voting power. This makes Ingles a "Controlled Company" under Nasdaq rules, exempting it from certain corporate governance requirements, such as having a majority of independent directors.

In exchange for this diminished voting power, Class A shareholders receive a slightly higher dividend—a long-standing trade-off designed to appeal to income-focused investors. The structure has faced scrutiny from some shareholders who have proposed equalizing voting rights, but such measures have been consistently opposed by management and are unlikely to pass given the existing control structure. For investors, this dual-class system presents a clear choice: prioritize the potential for higher income with Class A shares or align with the controlling family's interests through Class B shares, albeit with a slightly lower dividend. This unique framework continues to shape the company’s path as a publicly-traded, yet family-controlled, regional powerhouse.