Weis Markets earnings jump 38.6% as fuel masks ex-fuel sales decline

Weis Markets generated $1.28 billion in revenue for the 13-week third quarter ended Sept. 26, 2026, up 3%, while comparable-store sales fell 1.2% without fuel. Comparable sales rose 1.3% with fuel included, the company reported.

What did fuel do to third-quarter sales?

The company attributed the revenue gain primarily to higher fuel sales and sales from new stores. Lower pharmacy, dairy and produce sales partially offset those gains.

Jonathan H. Weis, chairman, president and CEO, said in the Nov. 3, 2026 news release: “In the third quarter we delivered higher total revenue and improved earnings while customers remained cautious with their spending and continued to seek affordability and value.”

“Higher fuel sales, reflecting both retail price inflation and increased gallons sold, along with sales from new stores, supported the quarter’s total revenue increase. Inflation Reduction Act-related pharmacy pricing changes, egg price deflation and lower produce demand during the Cyclospora outbreak moderated sales performance. We continue to support our customers through price investments and an expanded loyalty marketing program.”

The release did not disclose the dollar contribution from fuel or new stores, the new-store count, or fuel margins, leaving the revenue mix and driver economics unmeasured. Fuel lifted comparable sales, while fuel and new stores drove revenue; ex-fuel comps declined.

Which pressures weighed on pharmacy, dairy and produce?

The company quantified one headwind. Weis Markets said pharmacy sales took an approximately $14.56 million hit from pricing tied to the Inflation Reduction Act’s Medicare maximum fair price provisions, effective Jan. 1. The pricing change reduced total revenue growth by about 1.2 percentage points, the company said.

Dairy sales reflected lower egg pricing versus a year ago, the company reported. Produce sales were hurt by lower customer demand during the third-quarter Cyclospora outbreak, Weis Markets said.

The release did not quantify the dairy or produce effects. Pharmacy pricing was the largest disclosed drag, at approximately $14.56 million.

What drove the margin and earnings gains?

Gross profit increased 5.8% to $324.61 million, and gross profit margin rose to 25.5% from 24.8%. The 70-basis-point improvement reflected better store inventory shrink performance and lower internal supply chain costs, according to Weis Markets.

Income from operations increased 38.6% to $28.51 million. Net income rose 31.4% to $22.21 million, Weis Markets reported. The operating-income gain far outpaced the 3% revenue increase, but the release did not provide a detailed bridge from sales to earnings.

“Our people, process and technology investments continue to enhance customer value and convenience while supporting greater efficiency across our operations, including stores, supply chain, manufacturing and the Store Support Center,” Weis said. “We are grateful to our associates for their commitment to our customers and our business.”

The release did not quantify those investments or separate their effect from inventory shrink and supply-chain savings. It also did not size the price investments or expanded loyalty program. Earnings improved sharply, though the company did not isolate the contribution of each efficiency measure.

What do the 39-week figures show?

For the 39-week year-to-date period, Weis Markets reported comparable-store sales up 1.9%, but down 0.1% excluding fuel. Total revenue increased 4.1% to $3.81 billion, while net income rose 18.1% to $72.92 million.

Year-to-date pharmacy pricing headwinds tied to the Inflation Reduction Act totaled approximately $32.75 million, the company said. The gap between total and ex-fuel comps again makes fuel the deciding factor in reported comparable growth.

The release did not disclose comparable-store traffic or basket size, so it cannot show how much underlying demand changed. Year-to-date performance remained positive, but the ex-fuel measure was essentially flat.

What did shareholders receive, and how large is the chain?

The board declared a quarterly cash dividend of 34 cents per share. Shareholders of record as of Nov. 9, 2026, receive the payment on Nov. 23, 2026, according to Weis Markets.

Founded in 1912, the Sunbury, Pennsylvania-based company operates 201 stores across Pennsylvania, Maryland, Delaware, New Jersey, New York, West Virginia and Virginia. The next test for Weis Markets is whether its price investments and expanded loyalty marketing program can lift ex-fuel sales from the quarter’s 1.2% decline and the 39-week 0.1% decline.