Financial Analysis

NOTE 6- Contingencies and Commitments : The Company leases warehouse and/or office facilities throughout the United States through month-to-month rental agreements. In the case of month-to-month lease or rental agreements with terms of 12 months or less, the Company made an accounting policy election to not recognize lease assets and liabilities and record them on a straight-line basis over the lease term. For further information regarding our lease accounting policy, please refer to Note 1 The Company and Summary of Significant Accounting Policies Leases. The Company leased three long-haul trucks received during fiscal year 2019. The six-year leases for these trucks would have expired in fiscal year 2025. We returned one long-haul truck on June 22, 2023, for a loss of $ 12 and returned two long-haul trucks on July 11, 2024, for a loss of $ 90 , in an effort to reduce the overall cost of delivering products. All long-haul trucks under this lease agreement have been returned as of November 1, 2024. The Company leased one refrigerated truck received on May 10, 2024, for a net present value of $166. The seven-year lease for this truck will expire in fiscal year 2031. Amortization of equipment as a finance lease was $ 24 during the fifty-two weeks ended October 31, 2025. The Company performed a detailed analysis and determined that the only indications of a long-term lease in addition to transportation leases for long-haul trucks were the warehouse leases with Hogshed Ventures, L …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following information further disaggregates our sales to customers by major distribution channel and customer type for the fiscal years ended October 31, 2025, and November 1, 2024, respectively. Schedule of Disaggregates Our Sales to Customers 2025 Distribution Channel Total net sales Total net sales Total net sales Distribution Channel Retail (a) Foodservice (b) Totals Direct-store-delivery $ 101,485 $ - $ 101,485 Direct customer warehouse 71,456 - 71,456 Total Snack Food Products 172,941 - 172,941 Distributors 7,881 50,164 58,045 Total Frozen Food Products 7,881 50,164 58,045 Total Net Sales $ 180,822 $ 50,164 $ 230,986 (a) Includes sales to food retailers, such as grocery retailers, warehouse club stores, and internet-based retailers. (b) Includes sales to foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities and the military. Distribution Channel Total net sales Total net sales Total net sales 2024 Distribution Channel Retail (a) Foodservice (b) Totals Direct-store-delivery $ 110,361 $ - $ 110,361 Direct customer warehouse 54,876 - 54,876 Total Snack Food Products 165,237 - 165,237 Distributors 7,658 50,750 58,408 Total Frozen Food Products 7,658 50,750 58,408 Total Net Sales $ 172,895 $ 50,750 $ 223,645 (a) Includes sales to food retailers, such as grocery retailers, warehouse club stores, and internet-based retailers. (b) Includes sales to foodservice dist …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

NOTE 4 - Income Taxes : The benefit on income taxes include the following: Schedule of Provision (Benefit) for Taxes on Income October 31, 2025 November 1, 2024 (52 Weeks) (52 Weeks) Current: Federal $ 9 $ (1,163 ) State 147 1,196 Current tax expense benefit 156 33 Deferred: Federal (4,488 ) (1,222 ) State (360 ) (122 ) Deferred tax expense benefit (4,848 ) (1,344 ) Benefit on provision for income taxes $ (4,692 ) $ (1,311 ) The total tax benefit differs from the expected amount computed by applying the statutory federal income tax rate to income before income taxes as follows: Schedule of Tax Provision Differs from Statutory Federal Income Tax Rate October 31, 2025 November 1, 2025 (52 Weeks) (52 Weeks) Benefit on federal income taxes at the applicable statutory rate $ (3,791 ) $ (985 ) Decrease in provision resulting from state income taxes, net of federal income tax benefit (614 ) (16 ) Non-taxable life insurance gain (214 ) (421 ) Change in valuation allowance 404 - Other, net (477 ) 111 Benefit on income taxes $ (4,692 ) $ (1,311 ) Deferred income taxes result from differences in the basis of assets and liabilities for tax and accounting purposes. Schedule of Deferred Income Taxes Results from Differences in Bases of Assets and Liabilities October 31, 2025 November 1, 2024 Receivables allowance $ 13 $ 29 Returns allowance 150 134 Inventory packaging reserve 742 677 Inventory overhead capitalization 399 314 Employee benefits 587 790 Other 287 218 State taxes payable 161 2 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently issued accounting pronouncements and regulations In June 2016, the FASB issued ASU No. 2016-13 , Financial InstrumentsCredit Losses (ASC 326), which provides guidance on measurement of credit losses on financial instruments. This ASU adds a current expected credit loss impairment model to GAAP that is based on expected losses rather than incurred losses whereby a broader range of reasonable and supportable information is required to be utilized in order to derive credit loss estimates. The effective date of the new guidance as amended by ASU No. 2019-10 is fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted this standard on November 4, 2023 which did not have a material or significant impact on the Companys Consolidated Financial Statements as it has been our policy to estimate and record credit losses on trade accounts receivable. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting Improvements to Reportable Segments Disclosures . The amendments enhance disclosures of significant segment expenses by requiring the disclosure of significant segment expenses regularly provided to the chief operating decision maker, extending certain annual disclosures to interim periods, and permitting more than one measure of segment profit or loss to be reported under certain conditions. The amendments are effective for the Company in fiscal years beginning after December 15, 2023, and interim perio …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 3 - Retirement and Other Benefit Plans : Noncontributory-Trusteed Defined Benefit Retirement Plans for Sales, Administrative, Supervisory and Certain Other Employees We have noncontributory-trusteed defined benefit retirement plans for sales, administrative, supervisory, and certain other employees. In the third quarter of fiscal year 2006, we froze future benefit accruals under these plans for employees classified within the administrative, sales or supervisory job classifications or within any non-bargaining class. The benefits under these plans are primarily based on years of service and compensation levels. The funding policy of the plans requires contributions which are at least equal to the minimum required contributions needed to avoid a funding deficiency. The measurement date for the plans is our fiscal year end. Net pension income consisted of the following: Schedule of Net Pension Cost October 31, 2025 November 1, 2024 (52 Weeks) (52 Weeks) Service cost $ 66 $ 56 Interest cost 2,653 2,813 Expected return on plan assets (2,828 ) (3,433 ) Amortization of unrecognized loss - 349 Net pension income $ (109 ) $ (215 ) Net pension costs and benefit obligations are determined using assumptions as of the beginning of each fiscal year. Weighted average assumptions for each fiscal year are as follows: Schedule of Assumptions Used October 31, 2025 November 1, 2024 Discount rate 5.16 % 5.16 % Rate of increase in salary levels N/A N/A Expected return on plan assets 5.00 % 5 …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 7 - Segment Information : We have two reportable operating segments, Frozen Food Products (the processing and distribution of frozen products) and Snack Food Products (the processing and distribution of meat and other convenience foods). Our Executive Committee functions as the Chief Operating Decision Maker (CODM). We utilize an Executive Committee to serve in the capacity of Chief Executive Officer. We believe this structure is appropriate for the Company because it requires a full committee of officers, each of whom brings their own experiences and perspectives to bear on their decision making, to discuss and vote on important decisions affecting the Company. The Executive Committee is responsible for the day-to-day management of risk. The Executive Committee regularly assesses the operating segments performance and is responsible for allocating resources to each operating segment. The CODM is regularly provided and reviews financial data based on the two operating segments mentioned and defined above, the Frozen Food Product Segment and the Snack Food Segment. The financial data provided to the CODM includes sales, cost of goods sold, gross margin and selling, general and administrative expenses as well as total assets and additions to property, plant and equipment. Sales data involves sales to customers as well as promotional advertising and return analysis. Cost of goods sold encompasses the cost of raw materials, direct and indirect plant overhead, production labo …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 1 - The Company and Summary of Significant Accounting Policies : Bridgford Foods Corporation (collectively with its subsidiaries, Bridgford, the Company, we, our) was organized in 1952. We originally began operations in 1932 as a retail meat market in San Diego, California and evolved into a meat wholesaler for hotels and restaurants, a distributor of frozen food products, a processor and packer of meat, and a manufacturer and distributor of frozen food products for sale on a retail and wholesale basis. We, including our subsidiaries, are primarily engaged in the manufacturing, marketing, and distribution of an extensive line of frozen, refrigerated, and snack food products throughout the United States. The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All inter-company transactions and balances have been eliminated. Use of estimates and assumptions The preparation of financial statements in conformity with generally accepted accounting principles requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported revenues and expenses during the respective reporting periods. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Note 3 Contingencies and Commitments : The Company generally leases warehouses throughout the United States through month-to-month rental agreements. For month-to-month leases or rental agreements with terms of 12 months or less, the Company has elected an accounting policy to not recognize lease assets and liabilities, instead recording lease expenses on a straight-line basis over the lease term. For further information regarding our lease accounting policy, please refer to Note 1 Summary of Significant Accounting Policies Leases. The Company leased one refrigerated truck received on May 10, 2024, for a net present value of $166. The seven-year lease for this truck will expire in fiscal year 2031. Amortization of equipment as a finance lease was $ 12 during the twenty-four weeks ended April 17, 2026. The Company performed a detailed analysis and determined that other than the refrigerated truck lease described above, no other long-term leases were in effect as of April 17, 2026. The Companys 5 five-year term lease with Racine Partners 4333 LLC, was effective June 1, 2022. A ROU asset of $ 900 and corresponding liability for warehouse storage space leased by the Company of $ 942 as of April 17, 2026, was recorded for Racine Partners 4333 LLC for 43 rd Street in Chicago, Illinois. This lease does not provide an implicit rate, and the Company estimated its incremental interest rate to be approximately 3.68 %. The Company used its estimated incremental borrowing rate and other i …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 6 Equipment Notes Payable and Financial Arrangements : Revolving Credit Facility The Company maintains a revolving credit facility with Wells Fargo pursuant to a credit agreement dated November 30, 2024, as amended and restated on July 23, 2025. Pursuant to the amended and restated credit agreement and the revolving line of credit note, we may borrow up to $ 7,500 from time to time up until July 31, 2026 , at an interest rate equal to (a) the daily simple secured overnight financing rate plus 2.5% (increased from 2.0% in the July 2025 amended and restatement), or if unavailable, (b) the prime rate, in each case as determined by the bank. The revolving credit facility has an unused commitment fee of 0.35 % of the available loan amount, payable on a quarterly basis. We borrowed $ 2,000 under this line of credit as of April 17, 2026. Amounts may be repaid and reborrowed during the term of the note. Accrued interest is payable on the first day of each month and the outstanding principal balance and remaining interest are due and payable on July 31, 2026. Equipment Notes Payable On February 19, 2026, we entered into a master equipment lease agreement with First National Capital (FNC) for $ 2,000 in equipment financing. On December 26, 2018, we entered into a master collateral loan and security agreement with Wells Fargo Bank (the Original Wells Fargo Loan Agreement) for up to $ 15,000 in equipment financing which was amended and expanded as detailed below. We subsequently ent …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following information further disaggregates our sales to customers by major distribution channel and customer type for the twelve weeks ended April 17, 2026, and April 18, 2025, respectively. Schedule of Disaggregates Our Sales to Customers Twelve weeks Ended April 17, 2026 Distribution Channel Total net sales Total net sales Total net sales Distribution Channel Retail (a) Foodservice (b) Totals Direct-store-delivery $ 18,550 $ - $ 18,550 Direct customer warehouse 18,389 - 18,389 Total Snack Food Products 36,939 - 36,939 Distributors 1,390 11,715 13,105 Total Frozen Food Products 1,389 11,715 13,105 Totals $ 38,329 $ 11,715 $ 50,044 Twelve weeks Ended April 18, 2025 Distribution Channel Total net sales Total net sales Total net sales Distribution Channel Retail (a) Foodservice (b) Totals Direct-store-delivery $ 22,061 $ - $ 22,061 Direct customer warehouse 15,265 - 15,265 Total Snack Food Products 37,326 - 37,326 Distributors 2,064 11,249 13,313 Total Frozen Food Products 2,064 11,249 13,313 Totals $ 39,390 $ 11,249 $ 50,639 (a) Includes sales to food retailers, such as grocery retailers, warehouse club stores, and internet-based retailers. (b) Includes sales to foodservice distributors, restaurant operators, hotel chains and non-commercial foodservice establishments such as schools, convenience stores, healthcare facilities and the military. The following information further disaggregates our sales to customers by major distribution channel and customer type for the twen …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Note 5 Income Taxes : The Companys effective tax rate was 19.5 % and 19.2 % for the second quarter of fiscal years 2026 and 2025, respectively. The effective tax rate for the second quarter of fiscal year 2026 reflects the impact of $ 1,190 of tax benefit. As of April 17, 2026, the Company did not have any valuation allowance against its federal net deferred tax assets. Management reevaluated the need for a valuation allowance at the end of 2022 and determined that some of its California net operating losses (NOL) may not be utilized. Therefore, a valuation allowance of $ 99 has been retained for such portion of the California NOL. As of April 17, 2026, the Company had NOL carryforwards of approximately $ 0 for federal and $ 5,000 for state purposes. The state loss carryforwards will expire at various dates through 2040. Our federal income tax returns are open to audit under the statute of limitations for the fiscal years 2022 through 2025. We are subject to income tax in Texas and various other state taxing jurisdictions. Our state income tax returns are open to audit under the statute of limitations for the fiscal years 2021 through 2025. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Pronouncements and Regulations In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting Improvements to Reportable Segments Disclosures. ASU No. 2023-07 enhances disclosures of significant segment expenses by requiring disclosure of significant segment expenses regularly provided to the chief operating decision maker (CODM), extending certain annual disclosures to interim periods, and permitting more than one measure of segment profit or loss to be reported under certain conditions. ASU No. 2023-07 is effective for the Company in fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The adoption of ASU No. 2023-07 did not have a material impact on the Companys Consolidated Financial Statements as we have historically disclosed financial data at the operating segment level. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, enhances the transparency and decision usefulness of income tax disclosures by requiring additional information about specific categories in the rate reconciliation and income taxes paid by jurisdiction. The guidance is effective for annual reporting periods beginning after December 15, 2024, and will therefore apply to the Companys annual reporting period ending after December 15, 2025. The adoption of this standard is not expected to have a material impact on the Companys consolidated financial statements In March …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 4 Segment Information : The Company has two reportable operating segments, Frozen Food Products (the processing and distribution of frozen food products) and Snack Food Products (the processing and distribution of meat and other convenience foods). The Companys Executive Committee functions as the CODM. The Company utilizes an Executive Committee to serve in the capacity of Chief Executive Officer. The Company believes this structure is appropriate because it requires a full committee of officers, each of whom brings their own experiences and perspectives to bear on their decision making, to discuss and vote on important decisions affecting the Company. The Executive Committee is responsible for the day-to-day management of risk. The Executive Committee regularly assesses the operating segments performance and is responsible for allocating resources to each operating segment. The CODM is regularly provided and reviews financial data based on the two operating segments mentioned and defined above, the Frozen Food Product Segment and the Snack Food Products Segment. The financial data provided to the CODM includes sales, cost of goods sold, gross margin and selling, general and administrative expenses as well as total assets and additions to property, plant and equipment. Sales data involves sales to customers as well as promotional advertising and return analysis. Cost of goods sold encompasses the cost of raw materials, direct and indirect plant overhead, production labo …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 1 Summary of Significant Accounting Policies : The unaudited Condensed Consolidated Financial Statements of Bridgford Foods Corporation (the Company, we, our, us) for the twelve and twenty-four weeks ended April 17, 2026 and April 18, 2025 have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X, and include all adjustments considered necessary by management for a fair presentation of the interim periods. This Quarterly Report on Form 10-Q for our second fiscal quarter ended April 17, 2026 (this Report) should be read in conjunction with the Companys Annual Report on Form 10-K for the fiscal year ended October 31, 2025 (the Annual Report). Due to seasonality and other factors, interim results are not necessarily indicative of the results for the full year. The October 31, 2025, balance sheet amounts within these interim Condensed Consolidated Financial Statements were derived from the audited fiscal year 2025 consolidated financial statements included in the Companys Annual Report. The preparation of Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported revenues and expenses during the reporting peri …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing