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What changed in INGLES MARKETS INC's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of INGLES MARKETS INC's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+154 added−142 removedSource: 10-K (2025-11-26) vs 10-K (2024-12-27)

Top changes in INGLES MARKETS INC's 2025 10-K

154 paragraphs added · 142 removed · 126 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

40 edited+7 added−3 removed47 unchanged
Biggest changeThe Company owns the real property for 175 of its supermarkets, either in free-standing stores or as the anchor tenant in a Company-owned shopping center. The Company also owns 29 undeveloped sites suitable for a free-standing store or other development by the Company or a third party.
Biggest changeThe milk processing and packaging plant did not sustain physical damage as a result of Hurricane Helene but was temporarily impacted by water supply disruptions for approximately one month. 5 The Company owns the real property for 174 of its supermarkets (including the three temporarily closed stores), either in free-standing stores or as the anchor tenant in a Company-owned shopping center.
Ingle II, our Chairman, beneficially owned approximately 72.5% of the combined voting power and 22.7% of the total number of shares of the Company’s outstanding Class A and Class B Common Stock (in each case including 5 stock held by the Company’s Investment/Profit Sharing Plan and Trust of which Mr. Ingle II serves as one of the trustees).
Ingle II, our Chairman, beneficially owned approximately 72.5% of the combined voting power and 22.7% of the total number of shares of the Company’s outstanding Class A and Class B Common Stock (in each case including stock held by the Company’s Investment/Profit Sharing Plan and Trust of which Mr. Ingle II serves as one of the trustees).
The Company’s stores are also subject to local laws regarding zoning, land use and the sale of alcoholic beverages and tobacco products. The Company believes that its locations are in material compliance with such laws and regulations. The Company is not aware of any proposed regulations that would materially affect the Company’s business, financial condition, or results of operations. 10
The Company’s stores are also subject to local laws regarding zoning, land use and the sale of alcoholic beverages and tobacco products. The Company believes that its locations are in material compliance with such laws and regulations. The Company is not aware of any proposed regulations that would materially affect the Company’s business, financial condition, or results of operations.
The Company also provides its customers with an expanded selection of frozen food items (including organics) to meet the increasing demands of its customers. 7 The Ingles Curbside service allows customers to order any product in the Company’s stores online. The order is picked by store associates and loaded into the customer’s vehicle.
The Company also provides its customers with an expanded selection of frozen food items (including organics) to meet the increasing demands of its customers. The Ingles Curbside service allows customers to order any product in the Company’s stores online. The order is picked by store associates and loaded into the customer’s vehicle.
The “Sav-Mor” store concept accommodates smaller shopping areas and carries dry groceries, dairy, fresh meat and produce, all of which are displayed in a modern, readily accessible environment. 6 The following table sets forth certain information with respect to the Company’s supermarket operations.
The “Sav-Mor” store concept accommodates smaller shopping areas and carries dry groceries, dairy, fresh meat and produce, all of which are displayed in a modern, readily accessible environment. The following table sets forth certain information with respect to the Company’s supermarket operations.
The Company’s principal competitors are, in alphabetical order, Aldi, Inc., Earth Fare, Inc, Food City (K-VA-T Food Stores, Inc.), Food Lion (Koninlijke Ahold Delhaize America N.V.), The Fresh Market, Inc., Harris Teeter (owned by The Kroger Co.), The Kroger Co., Lidl (Lidl Stiftung & Co.
The Company’s principal 9 competitors are, in alphabetical order, Aldi, Inc., Earth Fare, Inc., Food City (K-VA-T Food Stores, Inc.), Food Lion (Koninlijke Ahold Delhaize America N.V.), The Fresh Market, Inc., Harris Teeter (owned by The Kroger Co.), The Kroger Co., Lidl (Lidl Stiftung & Co.
Purchasing and Distribution The Company currently supplies approximately 58% of its supermarkets’ inventory requirements from its modern warehouse and distribution facilities. The Company has 1.65 million square feet of office, warehouse and distribution facilities at its headquarters near Asheville, North Carolina.
Purchasing and Distribution The Company currently supplies approximately 58.8% of its supermarkets’ inventory requirements from its modern warehouse and distribution facilities. The Company has 1.65 million square feet of office, warehouse and distribution facilities at its headquarters near Asheville, North Carolina.
Management considers labor relations to be good. The 9 Company values its associates and believes that associate loyalty and enthusiasm are key elements of its operating performance.
Management considers labor relations to be good. The Company values its associates and believes that associate loyalty and enthusiasm are key elements of its operating performance.
This service is currently offered at 134 of the Company’s stores. Ingles’ private labels cover a broad range of products throughout the store, such as milk, bread, organic products, soft drinks and canned goods. Ingles believes that private label sales help promote customer loyalty and provide a value-priced alternative to national brands.
This service is currently offered at 131 of the Company’s stores. Ingles’ private labels cover a broad range of products throughout the store, such as milk, bread, organic products, soft drinks and canned goods. Ingles believes that private label sales help promote customer loyalty and provide a value-priced alternative to national brands.
Management believes that customers perceive supermarkets offering a broad array of products and time-saving services as part of a solution to today’s lifestyle demands. Accordingly, a principal component of the Company’s merchandising strategy is to design stores that enhance the shopping experience. The Company operates fuel stations at 108 of its store locations.
Management believes that customers perceive supermarkets offering a broad array of products and time-saving services as part of a solution to today’s lifestyle demands. Accordingly, a principal component of the Company’s merchandising strategy is to design stores that enhance the shopping experience. The Company operates fuel stations at 106 of its store locations.
To further ensure product quality, the Company also owns and operates a milk processing and packaging plant that supplies approximately 68% of the milk products sold by the Company’s supermarkets as well as a variety of organic milk, fruit juices and bottled water products.
To further ensure product quality, the Company also owns and operates a milk processing and packaging plant that supplies approximately 65% of the milk products sold by the Company’s supermarkets as well as a variety of organic milk, fruit juices and bottled water products.
The current expiration dates for significant trade and service marks are as follows: “Ingles” – December 9, 2025; “Laura Lynn” – March 13, 2034; “Harvest Farms Organic” – August 21, 2028; and “The Ingles Advantage” – August 30, 2025. Each registration may be renewed for an additional ten-year term prior to its expiration.
The current expiration dates for significant trade and service marks are as follows: “Ingles” – December 9, 2026; “Laura Lynn” – March 13, 2034; “Harvest Farms Organic” – August 21, 2028; and “The Ingles Advantage” – August 30, 2035. Each registration may be renewed for an additional ten-year term prior to its expiration.
Overview The Company remodels, expands and relocates stores in these communities and builds stores in new locations to retain and grow its customer base while retaining a high level of customer service and convenience.
Overview The Company remodels, expands and relocates stores in the aforementioned communities and builds stores in new locations to retain and grow its customer base while retaining a high level of customer service and convenience.
The Company has various programs to ensure adequate store staffing levels at any given time during the week. Store managers are given tools to assist in scheduling and levels of staffing.
The Company has various programs to ensure adequate store staffing levels at any given time during the week. Store managers are given tools to assist with scheduling and levels of staffing.
These facilities supply the Company’s supermarkets with approximately 58% of the goods the Company sells. The remaining 42% is purchased from third parties and is generally delivered directly to the stores. The close proximity of the Company’s purchasing and distribution operations to its stores facilitates the timely distribution of consistently high quality perishable and non-perishable items.
These facilities supply the Company’s supermarkets with approximately 58.8% of the goods the Company sells. The remaining 41.2% is purchased from third parties and is generally delivered directly to the stores. The close proximity of the Company’s purchasing and distribution operations to its stores facilitates the timely distribution of consistently high quality perishable and non-perishable items.
Goods from the warehouse and distribution facilities and the milk processing and packaging plant are distributed to the Company’s stores by a fleet of 182 tractors and 842 trailers that the Company owns, operates and maintains. The Company invests on an ongoing basis in the maintenance, upgrade and replacement of its tractor and trailer fleet.
Goods from the warehouse and distribution facilities and the milk processing and packaging plant are distributed to the Company’s stores by a fleet of 189 tractors and 819 trailers that the Company owns, operates and maintains. The Company invests on an ongoing basis in the maintenance, upgrade and replacement of its tractor and trailer fleet.
Number of Supermarkets Percentage of Total at Fiscal Year Ended Net Sales for Fiscal Years Ended September 28, September 30, September 24, September 28, September 30, September 24, 2024 2023 2022 2024 2023 2022 North Carolina 75 75 75 41% 41% 41% South Carolina 35 35 35 19% 19% 19% Georgia 65 65 65 32% 32% 32% Tennessee 21 21 21 8% 8% 8% Virginia 1 1 1 — — — Alabama 1 1 1 — — — 198 198 198 100% 100% 100% The Company believes that today’s supermarket customers focus on convenience, quality and value in an attractive store environment.
Number of Supermarkets Percentage of Total at Fiscal Year Ended Net Sales for Fiscal Years Ended September 27, September 28, September 30, September 27, September 28, September 30, 2025 2024 2023 2025 2024 2023 North Carolina 72 75 75 41% 41% 41% South Carolina 35 35 35 19% 19% 19% Georgia 64 65 65 32% 32% 32% Tennessee 21 21 21 8% 8% 8% Virginia 1 1 1 — — — Alabama 1 1 1 — — — 194 198 198 100% 100% 100% The Company believes that today’s supermarket customers focus on convenience, quality and value in an attractive store environment.
The remaining 42% of the Company’s inventory requirements, primarily beverages, pharmacy, fuel, bread and snack foods, are supplied directly to the Company’s supermarkets by local distributors and manufacturers.
The remaining 41.2% of the Company’s inventory requirements, primarily beverages, pharmacy, fuel, bread and snack foods, are supplied directly to the Company’s supermarkets by local distributors and manufacturers.
The Company’s Class A Common Stock is listed on The NASDAQ Global Select Market under the symbol “IMKTA.” The Company’s Class B Common Stock is not publicly listed or traded. As of September 28, 2024, Mr. Robert P.
The Company’s Class A Common Stock is listed on The NASDAQ Global Select Market under the symbol “IMKTA.” The Company’s Class B Common Stock is not publicly listed or traded. As of September 27, 2025, Mr. Robert P.
During fiscal year 2024, the Company started construction on a new store and started remodeling projects on several stores. The Company renovates and remodels stores in order to increase customer traffic and sales, respond to existing customer demand, compete effectively against new stores opened by competitors and support its quality image merchandising strategy.
During fiscal year 2025, the Company continued construction on a new store and continued or commenced remodeling projects on several existing stores. The Company renovates and remodels stores in order to increase customer traffic and sales, respond to existing customer demand, compete effectively against new stores opened by competitors and support its quality image merchandising strategy.
We provide flexible scheduling to accommodate the needs of our full and part-time associates, and we also provide incentives for associates based on the achievement of operating and safety goals. The Company has made technology investments to allow efficient remote work environments for associates that do not work in our stores or distribution center.
We provide flexible scheduling to accommodate the needs of our full and part-time associates, and we also provide incentives for associates based on the achievement of operating and safety goals. The Company has invested in technology that allows efficient remote work environments for associates who do not work in our stores or distribution center.
At September 28, 2024, the Company operated 115 pharmacies and 108 fuel stations, in each case at the Company’s grocery store locations. The Company plans to continue to incorporate these departments in substantially all future new and remodeled stores. The Company trains its associates to provide friendly service and to actively address the needs of customers.
At September 27, 2025, the Company operated 112 pharmacies and 106 fuel stations, in each case at the Company’s grocery store locations. The Company plans to continue to incorporate these departments in substantially all future new and remodeled stores. The 7 Company trains its associates to provide friendly service and to actively address the needs of customers.
These recorded losses do not include future repairs and rebuilds, nor do they account for revenue lost due to store closures or electronic payment disruptions. The Company’s properties, including its distribution center, were impacted; however, the distribution center returned to full operation within two weeks following the storm. Four stores sustained damage that required that they be temporarily closed.
These recorded losses do not include future repairs and rebuilds, nor did they account for revenue lost due to store closures or electronic payment disruptions. The Company’s properties, including its distribution center, were impacted; however, the distribution center returned to full operation within two weeks following the storm.
The Company’s fluid dairy operations have a slight seasonal variation to the extent of its sales into the grocery industry. The Company’s real estate operations are not subject to seasonal variations. Human Capital At September 28, 2024, the Company had approximately 26,360 associates, of which 92% were supermarket personnel. Approximately 58% of supermarket personnel work on a part-time basis.
The Company’s fluid dairy operations have a slight seasonal variation to the extent of its sales into the grocery industry. The Company’s real estate operations are not subject to seasonal variations. Human Capital At September 27, 2025, the Company had approximately 25,551 associates, of which 92% were supermarket personnel. Approximately 57% of supermarket personnel work on a part-time basis.
The Company may elect to relocate, rather than remodel, certain stores where relocation provides a more convenient location for its customers. 8 The following table sets forth, for the fiscal years indicated, the Company’s new store development, including the effect of the Company’s store remodeling activities, which has generally increased the average square footage of its stores: 2024 2023 2022 2021 2020 Number of Stores: Opened — — — 2 — Closed — — — 1 1 Stores open at end of period 198 198 198 198 197 Size of Stores: Less than 42,000 sq. ft. 45 45 46 46 46 42,000 up to 51,999 sq. ft. 22 22 22 22 22 52,000 up to 61,999 sq. ft. 46 47 47 47 47 At least 62,000 sq. ft. 85 84 83 83 82 Average store size (sq. ft.) 57,602 57,589 57,281 57,281 57,138 The Company’s ability to open new stores is subject to many factors, including the acquisition of satisfactory sites, as well as zoning limitations and other government regulations.
The following table sets forth, for the fiscal years indicated, the Company’s new store development, including the effect of the Company’s store remodeling activities, which has generally increased the average square footage of its stores: 2025 2024 2023 2022 2021 Number of Stores: Opened — — — — 2 Closed 4 — — — 1 Stores open at end of period 194 198 198 198 198 Size of Stores: Less than 42,000 sq. ft. 45 45 45 46 46 42,000 up to 51,999 sq. ft. 22 22 22 22 22 52,000 up to 61,999 sq. ft. 45 46 47 47 47 At least 62,000 sq. ft. 82 85 84 83 83 Average store size (sq. ft.) 57,411 57,602 57,589 57,281 57,281 The Company’s ability to open new stores is subject to many factors, including the acquisition of satisfactory sites, as well as zoning limitations and other government regulations.
The Company has responded to the tight labor market by increasing resources devoted to associate recruitment and retention, and by expanding the ways in which it markets itself to prospective associates; however, competition for labor has become more intense, resulting in higher costs to attract and retain associates.
The Company continues to respond to the tight labor market by increasing resources devoted to associate recruitment and retention, and by expanding the ways in which it markets itself to prospective associates; however, there remains competition for labor, resulting in higher costs to attract and retain associates.
Information about the Company’s operations is as follows (for information regarding the Company’s industry segments, see Note 11, “Segment Information” to the Consolidated Financial Statements contained in this Annual Report on Form 10-K): Fiscal Years Ended (dollars in millions) September 28, 2024 September 30, 2023 September 24, 2022 Revenues from unaffiliated customers: Grocery $ 1,983.2 $ 2,062.4 $ 1,940.4 Non-foods 1,273.3 1,326.9 1,204.5 Perishables 1,441.1 1,482.1 1,445.0 Fuel 724.2 792.5 885.8 Total retail 5,421.8 96.1% 5,663.9 96.1% 5,475.7 96.4% Other 217.8 3.9% 228.9 3.9% 203.1 3.6% $ 5,639.6 100.0% $ 5,892.8 100.0% $ 5,678.8 100.0% Income from operations: Retail $ 123.0 83.6% $ 263.2 90.0% $ 353.0 93.7% Other 24.2 16.4% 29.1 10.0% 23.9 6.3% 147.2 100.0% 292.3 100.0% 376.9 100.0% Other income, net 14.2 8.3 5.9 Interest expense 21.9 22.1 21.5 Income before income taxes $ 139.5 $ 278.5 $ 361.3 The “Grocery” category includes grocery, dairy and frozen foods.
Information about the Company’s operations is as follows (for information regarding the Company’s industry segments, see Note 11, “Segment Information” to the Consolidated Financial Statements contained in this Annual Report on Form 10-K): Fiscal Years Ended (dollars in millions) September 27, 2025 September 28, 2024 September 30, 2023 Revenues from unaffiliated customers: Grocery $ 1,934.4 $ 1,983.2 $ 2,062.4 Non-foods 1,167.6 1,273.3 1,326.9 Perishables 1,404.7 1,441.1 1,482.1 Fuel 620.9 724.2 792.5 Total retail 5,127.6 96.1% 5,421.8 96.1% 5,663.9 96.1% Other revenues 206.4 3.9% 217.8 3.9% 228.9 3.9% $ 5,334.0 100.0% $ 5,639.6 100.0% $ 5,892.8 100.0% Income from operations: Retail $ 100.5 85.5% $ 131.0 89.0% $ 271.2 92.8% Income from all other 17.1 14.5% 16.2 11.0% 21.1 7.2% 117.6 100.0% 147.2 100.0% 292.3 100.0% Other income, net 12.0 14.2 8.3 Interest expense 19.7 21.9 22.1 Income before income taxes $ 109.9 $ 139.5 $ 278.5 The “Grocery” category includes grocery, dairy and frozen foods.
The Company’s centrally managed purchasing and distribution operations provide several advantages, including the ability to negotiate and reduce the cost of merchandise, decrease overhead costs and better manage its inventory at both the warehouse and store level.
The Company believes that its warehouse and distribution facilities contain sufficient capacity for the continued expansion of its store base for the foreseeable future. 8 The Company’s centrally managed purchasing and distribution operations provide several advantages, including the ability to negotiate and reduce the cost of merchandise, decrease overhead costs and better manage its inventory at both the warehouse and store level.
The milk processing and packaging plant did not sustain physical damage as a result of Hurricane Helene. In addition, the milk processing and packaging plant sells approximately 82% of its products to other retailers, food service distributors and grocery warehouses in 17 states, which provides the Company with an additional source of revenue.
In addition, the milk processing and packaging plant sells approximately 81% of its products to other retailers, food service distributors and grocery warehouses in 18 states, which provides the Company with an additional source of revenue.
For the year ended September 28, 2024, the Company recognized an impairment loss of $30.4 million related to inventory damaged or destroyed by Hurricane Helene. Additionally, the Company recognized a property and equipment impairment loss of $4.5 million for the year ended September 28, 2024 pertaining to the same storm.
For the year ended September 28, 2024, the Company recognized impairment losses of $30.4 million related to inventory and $4.5 million related to property and equipment, in each case that was damaged or destroyed by Hurricane Helene.
The Company’s owned real estate, including undeveloped sites, is generally located in the same geographic region as its supermarkets. Common Stock and Corporate Information The Company has been publicly traded since September 1987.
The Company also owns 29 undeveloped sites suitable for a free-standing store or other development by the Company or a third party. The Company’s owned real estate, including undeveloped sites, is generally located in the same geographic region as its supermarkets. Common Stock and Corporate Information The Company has been publicly traded since September 1987.
Environmental Matters Under applicable environmental laws, the Company may be responsible for remediation of environmental conditions and may be subject to associated liabilities relating to its stores and other buildings and the land on which such stores and other buildings are situated (including responsibility and liability related to its operation of its gas stations and the storage of fuel in underground storage tanks), regardless of whether the Company leases or owns the stores, other buildings or land in question and regardless of whether such environmental conditions were created by the Company or by a prior owner or tenant.
Each of the Company’s trademark license agreements has a one year term which, with respect to one license, is automatically renewed annually, unless the owner of the trademark provides notice of termination prior to the expiration date and, with respect to the other licenses, are renewed periodically by letter from the licensor. 10 Environmental Matters Under applicable environmental laws, the Company may be responsible for remediation of environmental conditions and may be subject to associated liabilities relating to its stores and other buildings and the land on which such stores and other buildings are situated (including responsibility and liability related to its operation of its gas stations and the storage of fuel in underground storage tanks), regardless of whether the Company leases or owns the stores, other buildings or land in question and regardless of whether such environmental conditions were created by the Company or by a prior owner or tenant.
Item 1. BUSINESS General Ingles Markets, Incorporated, a North Carolina corporation (collectively with its subsidiaries, “Ingles,” or the “Company,” “we,” “us” or “our”), is a leading supermarket chain in the southeast United States and operates a total of 198 supermarkets in North Carolina (75), Georgia (65), South Carolina (35), Tennessee (21), Virginia (1) and Alabama (1).
BUSINESS General Ingles Markets, Incorporated, a North Carolina corporation (collectively with its subsidiaries, “Ingles,” or the “Company,” “we,” “us” or “our”), is a leading supermarket chain in the southeast United States and operates a total of 194 supermarkets in North Carolina (72), Georgia (64), South Carolina (35), Tennessee (21), Virginia (1) and Alabama (1), excluding three stores that remain temporarily closed due to damage sustained during Hurricane Helene.
Selected statistics on the Company’s supermarket operations are presented below: Fiscal Year Ended September 28, September 30, September 24, September 25, September 26, 2024 2023 2022 2021 2020 Weighted Average Sales Per Store (000’s) (1) $ 27,341 $ 28,565 $ 27,622 $ 23,926 $ 22,215 Total Square Feet at End of Year (000’s) 11,405 11,403 11,342 11,342 11,256 Average Total Square Feet per Store 57,602 57,589 57,281 57,281 57,138 Average Square Feet of Selling Space per Store (2) 40,322 40,313 40,097 40,097 39,997 Weighted Average Sales per Square Foot of ‎ Selling Space (1) (2) 676 709 689 609 568 (1) Weighted average sales per store include the effects of increases in square footage due to the opening of replacement stores and the expansion of stores through remodeling during the periods indicated, and fuel sales.
Selected statistics on the Company’s supermarket operations are presented below: Fiscal Year Ended September 27, September 28, September 30, September 24, September 25, 2025 2024 2023 2022 2021 Weighted Average Sales Per Store (000’s) (1) $ 25,916 $ 27,341 $ 28,565 $ 27,622 $ 23,926 Total Square Feet at End of Year (000’s) 11,138 11,405 11,403 11,342 11,342 Average Total Square Feet per Store 57,411 57,602 57,589 57,281 57,281 Average Square Feet of Selling Space per Store (2) 40,188 40,322 40,313 40,097 40,097 Weighted Average Sales per Square Foot of ‎ Selling Space (1) (2) 656 676 709 689 609 (1) Weighted average sales per store include the effects of decreases in square footage due to the three stores that remain temporarily closed due to damage sustained during Hurricane Helene, as well as one store permanently closed store in fiscal year 2025.
Supermarket Operations At September 28, 2024, the Company operated 189 supermarkets under the name “Ingles,” and nine supermarkets under the name “Sav-Mor” with locations in western North Carolina, western South Carolina, northern Georgia, eastern Tennessee, southwestern Virginia and northeastern Alabama.
Supermarket Operations At September 27, 2025, the Company operated 185 supermarkets under the name “Ingles,” and nine supermarkets under the name “Sav-Mor” with locations in western North Carolina, western South Carolina, northern Georgia, eastern Tennessee, southwestern Virginia and northeastern Alabama. The foregoing figures exclude the three stores that remain temporarily closed due to damage sustained during Hurricane Helene.
Business The Company operates one primary business segment, retail grocery, on a 52- or 53-week fiscal year ending on the last Saturday in September. The consolidated statements of income for the fiscal years ended September 28, 2024 and September 24, 2022 each consisted of 52 weeks of operations.
The consolidated statements of income for the fiscal years ended September 27, 2025 and September 28, 2024 each consisted of 52 weeks of operations. The consolidated statements of income for the fiscal year ended September 30, 2023 had 53 weeks.
Visitors to our website can also register to receive financial information press releases. Information contained on, or accessible through, our website is not a part of and is not incorporated by reference into this Annual Report on Form 10-K.
Information contained on, or accessible through, our website is not a part of and is not incorporated by reference into this Annual Report on Form 10-K. 6 Business The Company operates one primary business segment, retail grocery, on a 52- or 53-week fiscal year ending on the last Saturday in September.
The Company retains the existing customer base by keeping the store in operation during the entire remodeling process.
The Company retains the existing customer base by keeping the store in operation during the entire remodeling process. The Company may elect to relocate, rather than remodel, certain stores where relocation provides a more convenient location for its customers.
As of the date of this Annual Report on Form 10-K, one of the four stores has reopened and the three remaining stores are scheduled to reopen during 2025.
Four stores sustained damage that required that they be temporarily closed, of which, as of the date of this Annual Report on Form 10-K, three remain closed and are currently expected to reopen at various times during 2026 or in 2027.
The consolidated statements of income for the fiscal year ended September 30, 2023 had 53 weeks. Income from operations for the primary business segment, retail grocery sales, includes the charges for impairment losses from Hurricane Helene of $34.9 million.
Income from operations for the primary business segment, retail grocery sales, included the charges for impairment losses from Hurricane Helene of $34.9 million for fiscal year ended September 28, 2024. For fiscal year 2025, our expense allocation methodology changed to include direct and indirect costs associated with the shopping center rentals that were previously included in the retail segment.
Removed
Due to damage sustained at the distribution center from Hurricane Helene, including power outages and connectivity issues, water outages and road closures, the normal receiving and shipping activities were limited for approximately two weeks after the storm.
Added
In addition, for the year ended September 27, 2025, the Company incurred approximately $9.0 million in cleanup and repair costs and received aggregate insurance proceeds of $6.2 million. Legislative Update On July 4, 2025, the One Big Beautiful Bill Act (“OBBB”) was signed into law. The OBBB reinstated several key income tax provisions that were initially part of the U.S.
Removed
The Company believes that its warehouse and distribution facilities contain sufficient capacity for the continued expansion of its store base for the foreseeable future.
Added
Tax Cuts and Jobs Act of 2017, but which have been phased out in recent years or were set to expire in 2025, and made other changes to income tax provisions, many of which are not effective until 2026.
Removed
The Company intends to timely file all renewals. Each of the Company’s trademark license agreements has a one year term which, with respect to one license, is automatically renewed annually, unless the owner of the trademark provides notice of termination prior to the expiration date and, with respect to the other licenses, are renewed periodically by letter from the licensor.
Added
The OBBB, among other things, repealed the mandatory capitalization of domestic research and development expenditures under Internal Revenue Code Section 174, extended the ability to take 100% bonus depreciation, reinstituted the EBITDA based Section 163(j) calculation, revised international tax regimes, and accelerated the phase out of clean energy credits.
Added
The Company has evaluated the impact of the OBBB and does not believe it will have a material impact on its consolidated financial statements. The Company will continue to monitor future guidance and developments related to the OBBB and will update its income tax disclosures as appropriate.
Added
Visitors to our website can also register to receive financial information press releases.
Added
Fiscal years 2024 and 2023 have been recast to be comparable.
Added
The Company intends to timely file all renewals.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

9 edited+3 added−1 removed34 unchanged
Biggest changeTwelve Months Ended September 28, September 30, 2024 2023 All items 2.4 % 3.7 % Food at home 1.3 % 2.4 % Energy (6.8) % (0.5) % If we are unable to successfully identify market trends and react to changing consumer preferences in a timely manner, our sales may decrease. 12 We believe our success depends, in substantial part, on our ability to: anticipate, identify and react to fresh, natural and organic grocery and dietary supplement trends and changing consumer preferences and demographics in a timely manner; translate market trends into appropriate, innovative, saleable product and service offerings in our stores before our competitors and effectively market these trends to our target customers; and develop and maintain those relationships that provide us access to the newest on-trend merchandise and customer engagement options on reasonable terms.
Biggest changeWe believe our success depends, in substantial part, on our ability to: anticipate, identify and react to fresh, natural and organic grocery and dietary supplement trends and changing consumer preferences and demographics in a timely manner; translate market trends into appropriate, innovative, saleable product and service offerings in our stores before our competitors and effectively market these trends to our target customers; and develop and maintain those relationships that provide us access to the newest on-trend merchandise and customer engagement options on reasonable terms. 13 Consumer preferences often change rapidly and without warning, moving from one trend to another among many product or retail concepts.
The right of our Board of Directors to declare dividends, however, is subject to the availability of sufficient funds under North Carolina law to pay dividends. Additionally, the payment of cash dividends is subject to restrictions contained in certain of our financing arrangements. 13 Item 1B. UNRESOLVED STAFF COMMENTS None.
The right of our Board of Directors to declare dividends, however, is subject to the availability of sufficient funds under North Carolina law to pay dividends. Additionally, the payment of cash dividends is subject to restrictions contained in certain of our financing arrangements. Item 1B. UNRESOLVED STAFF COMMENTS None.
Ingle II, has the ability to elect a majority of the Company’s directors, appoint new members of management and approve many actions requiring stockholder approval. Mr. Ingle II’s beneficial ownership represented approximately 72.5% of the combined voting power of all classes of the Company’s capital stock as of September 28, 2024. As a result, Mr.
Ingle II, has the ability to elect a majority of the Company’s directors, appoint new members of management and approve many actions requiring stockholder approval. Mr. Ingle II’s beneficial ownership represented approximately 72.5% of the combined voting power of all classes of the Company’s capital stock as of September 27, 2025. As a result, Mr.
In recent years, more industry transactions have been online for ordering and fulfillment. This trend places a higher reliance on effective and efficient information systems. The Company is affected by the availability and wholesale price of fuel and retail fuel prices, all of which can fluctuate quickly and considerably. The Company operates fuel stations at 108 of its store locations.
In recent years, more industry transactions have been online for ordering and fulfillment. This trend places a higher reliance on effective and efficient information systems. The Company is affected by the availability and wholesale price of fuel and retail fuel prices, all of which can fluctuate quickly and considerably.
Although the Company largely returned to normal operations within a reasonably short period of time following Hurricane Helene, there can be no assurance that future storms impacting the region will not have more severe consequences with respect to the Company’s operations, which could more significantly and adversely impact the Company’s financial position, cash flow and results of operation.
Although the Company largely returned to normal operations within a reasonably short period of time following Hurricane Helene, there can be no assurance that future storms impacting the region will not have more severe consequences with respect to the Company’s operations, which could more significantly and adversely impact the Company’s financial position, cash flow and results of operation. 11 Various aspects of the Company’s business are subject to federal, state and local laws and various operating regulations.
If the Company were to experience disruption in these systems, did not maintain existing systems properly, or did not 11 implement new systems appropriately, operations could suffer. The Company is currently undergoing a systematic program to enhance its information technology abilities. The Company has implemented procedures to protect its information technology systems and data necessary to conduct ongoing operations.
If the Company were to experience disruption in these systems, did not maintain existing systems properly, or did not implement new systems appropriately, operations could suffer. The Company has implemented procedures to protect its information technology systems and data necessary to conduct ongoing operations.
The Company’s industry is highly competitive. If the Company is unable to compete effectively, the Company’s financial condition and results of operations could be materially affected. The supermarket industry is highly competitive and continues to be characterized by intense price competition, increasing fragmentation of retail formats, entry of non-traditional competitors (both physical and online) and market consolidation.
The supermarket industry is highly competitive and continues to be characterized by intense price competition, increasing fragmentation of retail formats, entry of non-traditional competitors (both physical and online) and market consolidation.
Various aspects of the Company’s business are subject to federal, state and local laws and various operating regulations. The Company’s compliance with these regulations may require additional capital expenditures and could adversely affect the Company’s ability to conduct the Company’s business as planned.
The Company’s compliance with these regulations may require additional capital expenditures and could adversely affect the Company’s ability to conduct the Company’s business as planned.
Furthermore, fluctuating fuel costs could have an adverse effect on the Company’s total fuel sales (both in terms of dollars and gallons sold), the profitability of fuel sales, and the Company’s plans to develop additional fuel centers. Also, retail gas price volatility could diminish customer usage of fueling centers and, thus, adversely affect customer traffic at the Company’s stores.
Furthermore, fluctuating fuel costs could have an adverse effect on the Company’s total fuel sales (both in terms of dollars and gallons sold), the profitability of fuel sales, and the Company’s plans to develop additional fuel centers.
Removed
Consumer preferences often change rapidly and without warning, moving from one trend to another among many product or retail concepts.
Added
The Company operates fuel stations at 106 of its store locations, which excludes two fuel locations temporarily closed due to Hurricane Helene.
Added
Also, retail gas price volatility could diminish customer usage of fueling centers and, thus, adversely affect customer traffic at the Company’s stores. 12 The Company’s industry is highly competitive. If the Company is unable to compete effectively, the Company’s financial condition and results of operations could be materially affected.
Added
Twelve Months Ended September 27, September 28, 2025 2024 All items 3.0 % 2.4 % Food at home 2.7 % 1.3 % Energy 2.8 % (6.8) % If we are unable to successfully identify market trends and react to changing consumer preferences in a timely manner, our sales may decrease.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe results of all internal audits, including information technology issues, are shared with the Company’s Audit Committee of the Board of Directors which reports to the full Board of Directors. The Company is constantly evolving its information security strategy and responses for new and emerging threats.
Biggest changeThe results of all internal audits, including information technology issues, and updates on the Company’s incident response program and results are shared with the Company’s Audit Committee of the Board of Directors which reports to the full Board of Directors. The Company is constantly evolving its information security strategy and responses for new and emerging threats.
The Company uses an enterprise vulnerability management platform to scan IT assets and report any known vulnerabilities associated with such IT assets. This platform enables the Company’s Information Security Team to identify and prioritize solutions necessary to remediate any identified vulnerabilities.
The Company uses an enterprise vulnerability 14 management platform to scan IT assets and report any known vulnerabilities associated with such IT assets. This platform enables the Company’s Information Security Team to identify and prioritize solutions necessary to remediate any identified vulnerabilities.
As of the date of this Annual Report on Form 10-K, the Company has not encountered risks from cybersecurity threats that have materially affected, or are reasonably likely to materially affect, the Company’s business strategy, results of operations or financial position. 14
As of the date of this Annual Report on Form 10-K, the Company has not encountered risks from cybersecurity threats that have materially affected, or are reasonably likely to materially affect, the Company’s business strategy, results of operations or financial position. 15

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 2. PROPERTIES Owned Properties The Company owns 175 of its supermarkets either as free-standing locations or in shopping centers owned by the Company where it is the anchor tenant. The Company also owns 29 undeveloped sites which are suitable for a free-standing store or shopping center development.
Biggest changeItem 2. PROPERTIES Owned Properties The Company owns the real property for 174 of its supermarkets (including the three temporarily closed stores), either as free-standing stores or as the anchor tenant in a Company-owned shopping center. The Company also owns 29 undeveloped sites which are suitable for a free-standing store or shopping center development.
See Note 7, “Long-Term Debt” to the Consolidated Financial Statements of this Annual Report on Form 10-K for further details. Leased Properties The Company operates supermarkets at 23 locations leased from various unaffiliated third parties. The Company has six owned store buildings that are on ground leases.
See Note 7, “Long-Term Debt” to the Consolidated Financial Statements of this Annual Report on Form 10-K for further details. Leased Properties The Company operates supermarkets at 23 locations leased from various unaffiliated third parties. The Company has five owned store buildings that are on ground leases.
See Note 1 to the Consolidated Financial Statements contained in this Annual Report on Form 10-K. The shopping centers owned by the Company contain an aggregate of 9.3 million square feet of leasable space, of which 4.5 million square feet is used by the Company’s supermarkets.
See Note 1 to the Consolidated Financial Statements contained in this Annual Report on Form 10-K. The shopping centers owned by the Company contain an aggregate of 9.2 million square feet of leasable space, of which 4.4 million square feet is used by the Company’s supermarkets.
The Company additionally owns various outparcels and other acreage located adjacent to the shopping centers and supermarkets it owns. Real estate owned by the Company is generally located in the same geographic regions as its supermarkets. All of the Company’s shopping center rental operations are part of the Company’s “other” segment.
The Company additionally owns various outparcels and other acreage located adjacent to the shopping centers and supermarkets it owns. Real estate owned by the Company is generally located in the same geographic regions as its supermarkets. The Company’s shopping center rental operations are part of the Company’s “all other” segment.
A breakdown by size of the shopping centers owned and operated by the Company as of September 28, 2024 was as follows: Size Number Less than 50,000 square feet 20 50,000 – 100,000 square feet 40 More than 100,000 square feet 41 Total 101 The Company owns a 1,649,000 square foot facility, which is strategically located between Interstate 40 and Highway 70 near Asheville, North Carolina, as well as the 119 acres of land on which it is situated.
A breakdown by size of the shopping centers owned and operated by the Company as of September 27, 2025 was as follows: Size Number Less than 50,000 square feet 19 50,000 – 100,000 square feet 41 More than 100,000 square feet 40 Total 100 The Company owns a 1,649,000 square foot facility, which is strategically located between Interstate 40 and Highway 70 near Asheville, North Carolina, as well as the 119 acres of land on which it is situated.
The following table summarizes lease expiration dates as of September 28, 2024, with respect to the initial and any renewal option terms of leased supermarkets properties: Year of Expiration Number of (Including Renewal Terms) Leases Expiring 2024-2035 4 2036-2050 1 2051 or after 19 Management believes that the long-term rent stability provided by these leases is a valuable asset of the Company.
The following table summarizes lease expiration dates as of September 27, 2025, with respect to the initial and any renewal option terms of leased supermarkets properties: Year of Expiration Number of (Including Renewal Terms) Leases Expiring 2025-2036 4 2037-2051 1 2052 or after 19 Management believes that the long-term rent stability provided by these leases is a valuable asset of the Company.
In addition to base rent, most leases contain provisions that require the Company to pay additional percentage rent (ranging from 0.75% to 1.50%) if sales exceed a specified amount. Rental rates generally range from $3.00 to $7.48 per square foot.
In addition to base rent, most leases contain provisions that require the Company to pay additional percentage rent (ranging from 0.75% to 1.00%) if sales exceed a specified amount. Rental rates generally range from $3.09 to $8.49 per square foot.
During fiscal 2024, 2023 and 2022, the Company paid cash supermarket rent of $8.3 million, $9.4 million and $10.0 million, respectively. These amounts exclude property taxes, utilities, insurance, repairs, other expenses, and non-cash rent adjustments.
During fiscal 2025, 2024 and 2023, the Company paid cash supermarket rent of $6.2 million, $8.3 million and $9.4 million, respectively. These amounts exclude property taxes, utilities, insurance, repairs, other expenses, and non-cash rent adjustments.
The Company’s milk processing and packaging subsidiary, Milkco, Inc., which did not sustain physical damage as a result of Hurricane Helene, owns a 140,000 square foot manufacturing and storage facility in Asheville, North Carolina. In addition to the plant, the 20-acre property includes truck cleaning and fuel storage facilities.
The Company’s milk processing and packaging subsidiary, Milkco, Inc., owns a 140,000 square foot manufacturing and storage facility in Asheville, North Carolina. In addition to the plant, the 20-acre property includes truck cleaning and fuel storage facilities.
However, the water outage and ban on water usage, which was not lifted until November 2024, did impact operations and will have an impact on results for the first quarter of fiscal year 2025. Certain long-term debt of the Company is secured by the owned properties.
While our manufacturing and storage facility did not sustain physical damage as a result of Hurricane Helene, the water outage and ban on water usage, which was not lifted until November 2024, impacted operations and results for the first quarter of fiscal year 2025. Certain long-term debt of the Company is secured by the owned properties.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeItem 3. LEGAL PROCEEDING S Various legal proceedings and claims arising in the ordinary course of business are pending against the Company. In the opinion of management, the ultimate liability, if any, from all pending legal proceedings and claims would not materially affect the Company’s business, financial condition, results of operations or cash flows. 15 Item 4.
Biggest changeItem 3. LEGAL PROCEEDING S Various legal proceedings and claims arising in the ordinary course of business are pending against the Company. In the opinion of management, the ultimate liability, if any, from all pending legal proceedings and claims would not materially affect the Company’s business, financial condition, results of operations or cash flows. 16 Item 4.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeINGLES MARKETS, INCORPORATED ‎ COMPARATIVE RETURN TO STOCKHOLDERS ‎ 17 INDEXED RETURNS OF INITIAL $100 INVESTMENT * Company/Index 2020 2021 2022 2023 2024 Ingles Markets, Incorporated Class A Common Stock $ 95.49 $ 173.74 $ 218.71 $ 203.00 $ 202.06 S&P 500 Comprehensive – Last Trading Day Index $ 115.15 $ 149.70 $ 126.54 $ 153.89 $ 209.84 Peer Group $ 128.12 $ 151.81 $ 149.57 $ 167.31 $ 215.67 *Assumes $100 invested in the Class A Common Stock of Ingles Markets, Incorporated after the close of the market on September 28, 2019.
Biggest changeINGLES MARKETS, INCORPORATED ‎ COMPARATIVE RETURN TO STOCKHOLDERS ‎ 18 INDEXED RETURNS OF INITIAL $100 INVESTMENT * Company/Index 2021 2022 2023 2024 2025 Ingles Markets, Incorporated Class A Common Stock $ 181.94 $ 229.03 $ 212.58 $ 211.60 $ 197.59 S&P 500 Comprehensive – Last Trading Day Index $ 130.01 $ 109.89 $ 133.65 $ 182.23 $ 214.30 Peer Group $ 118.49 $ 116.74 $ 130.59 $ 168.33 $ 194.78 *Assumes $100 invested in the Class A Common Stock of Ingles Markets, Incorporated after the close of the market on September 26, 2020.
Repurchase of Equity Securities None. 16 Stock Performance Graph Set forth below are a graph and accompanying table comparing the five-year cumulative total stockholder return on the Class A Common Stock with the five-year cumulative total return of (i) the S&P 500 Comprehensive-Last Trading Day Index and (ii) a peer group of companies in the Company's line of business.
Repurchase of Equity Securities None. 17 Stock Performance Graph Set forth below are a graph and accompanying table comparing the five-year cumulative total stockholder return on the Class A Common Stock with the five-year cumulative total return of (i) the S&P 500 Comprehensive-Last Trading Day Index and (ii) a peer group of companies in the Company's line of business.
During both fiscal 2024 and fiscal 2023, the Company paid annual dividends totaling $0.66 per share of Class A Common Stock and $0.60 per share of Class B Common Stock, paid in quarterly installments of $0.165 and $0.15 per share, respectively.
During both fiscal 2025 and fiscal 2024, the Company paid annual dividends totaling $0.66 per share of Class A Common Stock and $0.60 per share of Class B Common Stock, paid in quarterly installments of $0.165 and $0.15 per share, respectively.
Dividends The Company has paid cash dividends on its Common Stock in each of the past 40 fiscal years, except for the 1984 fiscal year when the Company paid a 3% stock dividend.
Dividends The Company has paid cash dividends on its Common Stock in each of the past 41 fiscal years, except for the 1984 fiscal year when the Company paid a 3% stock dividend.
The 2024 peer group consists of the following companies: Koninklijke Ahold Delhaize N.V., Weis Markets, Inc., The Kroger Co., SpartanNash Co., Sprouts Farmers Markets, Inc., and Village Super Market, Inc.
The 2025 peer group consists of the following companies: Koninklijke Ahold Delhaize N.V., Weis Markets, Inc., The Kroger Co., SpartanNash Co., Sprouts Farmers Markets, Inc., and Village Super Market, Inc.
The Company’s last dividend payment was made on October 17, 2024 to common stockholders of record on October 10, 2024. For additional information regarding the dividend rights of the Class A Common Stock and Class B Common Stock, please see Note 8, “Stockholders’ Equity” to the Consolidated Financial Statements of this Annual Report on Form 10-K.
The Company’s last dividend payment was made on October 16, 2025 to common stockholders of record on October 09, 2025. For additional information regarding the dividend rights of the Class A Common Stock and Class B Common Stock, please see Note 8, “Stockholders’ Equity” to the Consolidated Financial Statements of this Annual Report on Form 10-K.
The comparisons cover the five-years ended September 28, 2024 and assume that $100 was invested after the close of the market on September 28, 2019, and that dividends were reinvested quarterly. Returns of the companies included in the peer group reflected below have been weighted according to each company’s stock market capitalization at the beginning of each year presented.
The comparisons cover the five-years ended September 27, 2025 and assume that $100 was invested after the close of the market on September 26, 2020, and that dividends were reinvested quarterly. Returns of the companies included in the peer group reflected below have been weighted according to each company’s stock market capitalization at the beginning of each year presented.
As of December 24, 2024, there were approximately 307 holders of record of the Company’s Class A Common Stock and 85 holders of record of the Company’s Class B Common Stock.
As of November 24, 2025, there were approximately 296 holders of record of the Company’s Class A Common Stock and 83 holders of record of the Company’s Class B Common Stock.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeIncluded in the operating expenses is the asset impairment write off of $4.5 million, due to Hurricane Helene. The costs of clean up and repairs will impact operating and administrative expenses for the first quarter and full fiscal year of 2025. A breakdown of the primary increases in operating and administrative expenses is as follows.
Biggest changeThe costs of clean up and repairs incurred in fiscal year 2025 as a result of Hurricane Helene were $9.0 million, which were partially offset by insurance proceeds of $1.5 million. Included in the operating expenses for fiscal year 2024 was the asset impairment write off of $4.5 million due to Hurricane Helene.
Additional financing sources for capital expenditures could include borrowings under the Company’s $150 million committed line of credit (described below), other borrowings that could be collateralized by unencumbered real property and equipment with a net book value of approximately $1.5 billion, and the public debt or equity markets.
Additional financing sources for capital expenditures could include borrowings under the Company’s $150 million committed line of credit (described below), other borrowings that could be collateralized by unencumbered real property and equipment with a net book value of approximately $1.3 billion, and the public debt or equity markets.
In September 2017, the Company refinanced approximately $60 million of secured borrowing obligations with a SOFR-based amortizing floating rate loan secured by real estate, which matures in October 2027. The Company has an interest rate swap agreement for a current notional amount of $18.5 million at a fixed rate of 3.962%.
In September 2017, the Company refinanced approximately $60 million of secured borrowing obligations with a SOFR-based amortizing floating rate loan secured by real estate, which matures in October 2027. The Company has an interest rate swap agreement for a current notional amount of $12.5 million at a fixed rate of 3.962%.
Recent Developments On September 27, 2024, Hurricane Helene severely impacted western North Carolina, including where the Company’s headquarters are located, resulting in catastrophic flooding and destruction, power and communication outages, water outages and ban on usage, major road closures and loss of life.
Recent Developments On September 27, 2024, Hurricane Helene severely impacted western North Carolina, including the area where the Company’s headquarters are located, resulting in catastrophic flooding and destruction, power and communication outages, water outages, major road closures, and loss of life.
The Company has an interest rate swap agreement for a current notional amount of $116.9 million at a fixed rate of 2.998%. Under this agreement, the Company pays monthly the fixed rate of 2.998% and receives the one-month SOFR plus 1.60%.
The Company has an interest rate swap agreement for a current notional amount of $109.1 million at a fixed rate of 2.998%. Under this agreement, the Company pays monthly the fixed rate of 2.998% and receives the one-month SOFR plus 1.60%.
These amounts were inclusive of expected 18 recoveries from excess cost insurance or other sources that are recorded as receivables of $4.1 million at September 28, 2024 and $4.3 million at September 30, 2023. Asset Impairments The Company accounts for the impairment of long-lived assets in accordance with Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) Topic 360.
These amounts were inclusive of expected recoveries from excess cost insurance or other sources that are recorded as receivables of $3.3 million at September 27, 2025 and $4.1 million at September 28, 2024. Asset Impairments The Company accounts for the impairment of long-lived assets in accordance with Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) Topic 360.
Fiscal Year Ended September September 28, September 30, September 24, 2024 2023 2022 Net sales 100.0% 100.0% 100.0% Gross profit 23.0 23.8 24.9 Operating and administrative expenses 20.6 18.9 18.3 Gain from sale or disposal of assets 0.2 0.1 — Income from operations 2.6 5.0 6.6 Other income, net 0.3 0.2 — Interest expense 0.4 0.4 0.4 Income before income taxes 2.5 4.8 6.4 Income tax expense 0.6 1.2 1.6 Net income 1.9 3.6 4.8 Fiscal Year Ended September 28, 2024 Compared to the Fiscal Year Ended September 30, 2023 Net income for the fiscal year ended September 28, 2024 was $105.5 million, compared with net income of $210.8 million for the fiscal year ended September 30, 2023.
Fiscal Year Ended September September 27, September 28, September 30, 2025 2024 2023 Net sales 100.0% 100.0% 100.0% Gross profit 23.9 23.0 23.8 Operating and administrative expenses 21.7 20.6 18.9 Gain from sale or disposal of assets — 0.2 0.1 Income from operations 2.2 2.6 5.0 Other income, net 0.3 0.3 0.2 Interest expense 0.4 0.4 0.4 Income before income taxes 2.1 2.5 4.8 Income tax expense 0.5 0.6 1.2 Net income 1.6 1.9 3.6 Fiscal Year Ended September 27, 2025 Compared to the Fiscal Year Ended September 28, 2024 Net income for the fiscal year ended September 27, 2025 was $83.6 million, compared with net income of $105.5 million for the fiscal year ended September 28, 2024.
The Company currently expects that its net annual capital expenditures will be in the range of approximately $100 to $160 million going forward in order to maintain a modern store base.
The Company currently expects that its net annual capital expenditures will be in the range of approximately $120 to $140 million going forward in order to maintain a modern store base.
Management analyzes comparable stores sales for the 52 weeks of fiscal year 2024 with the corresponding 52 calendar weeks of the 53 week fiscal year 2023. On this basis, retail grocery comparable store sales excluding fuel decreased 1.7% for fiscal year 2024 compared to fiscal year 2023.
Management analyzes comparable stores sales for the 52 weeks of fiscal year 2025 with the corresponding 52 weeks of fiscal year 2024. On this basis, retail grocery comparable store sales excluding fuel decreased 1.7% for fiscal year 2025 compared to fiscal year 2024.
The consolidated statements of income for the fiscal years ended September 28, 2024 and September 24, 2022 each consisted of 52 weeks of operations. The consolidated statements of income for the fiscal year ended September 30, 2023 consisted of 53 weeks.
The consolidated statements of income for the fiscal years ended September 27, 2025 and September 28, 2024 each consisted of 52 weeks of operations. The consolidated statements of income for the fiscal year ended September 30, 2023 consisted of 53 weeks.
In addition, the Company focuses on selling products to its customers through the development of certified organic products, bakery departments and prepared foods including delicatessen sections. As of September 28, 2024, the Company operated 115 in-store pharmacies and 108 fuel stations. Ingles also operates a fluid dairy and earns shopping center rentals.
In addition, the Company focuses on selling products to its customers through the development of certified organic products, bakery departments and prepared foods including delicatessen sections. As of September 27, 2025, the Company operated 112 in-store pharmacies and 106 fuel stations. Ingles also operates a fluid dairy and earns shopping center rentals.
These estimates can fluctuate significantly due to changes in real estate market conditions, the economic environment, capital spending decisions and inflation. The Company monitors the carrying value of long-lived assets for potential impairment each quarter based on whether any indicators of impairment have occurred.
These estimates can fluctuate significantly due to changes in real estate market conditions, the economic environment, capital spending decisions and inflation. The Company monitors the carrying value of long-lived assets for potential impairment each quarter based on whether any indicators of impairment have occurred and determined that no impairments existed as of September 27, 2025.
The number of transactions (excluding fuel) decreased 0.3% while the average transaction size (excluding fuel) decreased by 1.4%. Comparing fiscal year 2024 with 2023, fuel gallons sold decreased 5.5% and per gallon fuel prices decreased 3.3%.
The number of transactions (excluding fuel) decreased 4.2% while the average transaction size (excluding fuel) increased by 0.1%. Comparing fiscal year 2025 with 2024, fuel gallons sold decreased 5.4% and per gallon fuel prices decreased 9.4%.
Income tax expense totaled $34.0 million for fiscal year 2024, reflecting an effective tax rate of 24.3%. This compares with an income tax expense totaling $67.7 million and an effective tax rate of 24.3% for fiscal year 2023. Net Income.
Income tax expense totaled $26.3 million for fiscal year 2025, reflecting an effective tax rate of 24.0%. This compares with an income tax expense totaling $34.0 million and an effective tax rate of 24.3% for fiscal year 2024. 22 Net Income.
Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in Ingles Annual Report on Form 10-K for the year ended September 30, 2023, filed with the SEC on November 29, 2023, for a discussion of the year ended September 30, 2023 as compared to September 24, 2022.
Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in Ingles Annual Report on Form 10-K for the year ended September 28, 2024, filed with the SEC on December 27, 2024, for a discussion of the year ended September 28, 2024 as compared to September 30, 2023.
Vendor allowances applied as a reduction of merchandise costs totaled $146.9 million, $128.9 million and $110.6 million for the fiscal years ended September 28, 2024, September 30, 2023, and September 24, 2022, respectively.
Vendor allowances applied as a reduction of merchandise costs totaled $151.9 million, $146.9 million and $128.9 million for the fiscal years ended September 27, 2025, September 28, 2024, and September 30, 2023, respectively.
Vendor advertising allowances recorded as a reduction of advertising expense totaled $8.9 million, $8.5 million, and $7.1 million for the fiscal years ended September 28, 2024, September 30, 2023, and September 24, 2022, respectively.
Vendor advertising allowances recorded as a reduction of advertising expense totaled $8.2 million, $8.9 million, and $8.5 million for the fiscal years ended September 27, 2025, September 28, 2024, and September 30, 2023, respectively.
The Company believes that the following trends are likely to continue for at least the next fiscal year: The impact of Hurricane Helene due to physical damage to stores, water outage and ban and connectivity issues, will impact the 2025 first quarter and fiscal year 2025 results. The supermarket industry will remain highly competitive and will be characterized by industry consolidation, fragmented food retail platforms, and continued competition from super centers and other non-supermarket operators. Traditional supermarket products will be acquired by customers in new and diverse ways, including online ordering, home delivery and pre-picked for customer pickup. Economic conditions will continue to affect customer behavior.
The Company believes that the following trends are likely to continue for at least the next fiscal year: Impacts of Hurricane Helene , including the costs to repair and reopen our temporarily closed stores, will impact fiscal year 2026 results. The supermarket industry will remain highly competitive and will be characterized by industry consolidation, fragmented food retail platforms, and continued competition from super centers and other non-supermarket operators. Traditional supermarket products will be acquired by customers in new and diverse ways, including online ordering, home delivery and pre-picked for customer pickup. Economic conditions will continue to affect customer behavior.
Basic and diluted earnings per share for Class B Common Stock were each $5.16 for the fiscal year ended September 28, 2024 compared with $10.32 of basic and diluted earnings per share for the fiscal year ended September 30, 2023. 21 Fiscal Year Ended September 30, 2023 Compared to the Fiscal Year Ended September 24, 2022 See “Item 7.
Basic and diluted earnings per share for Class B Common Stock were each $4.09 for the fiscal year ended September 27, 2025 compared with $5.16 of basic and diluted earnings per share for the fiscal year ended September 28, 2024. Fiscal Year Ended September 28, 2024 Compared to the Fiscal Year Ended September 30, 2023 See “Item 7.
Since the impacts 19 of Hurricane Helene occurred during the last two days of the fiscal year ended September 28, 2024, comparable store sales included all 198 stores.
Comparable store sales for the fiscal years ended September 28, 2024 and September 30, 2023, included 198 stores. Because the impacts of Hurricane Helene occurred during the last two days of the fiscal year ended September 28, 2024, comparable store sales included all 198 stores.
The “Non-foods” category includes alcoholic beverages, tobacco, pharmacy, and health/beauty/cosmetic products.
The “Non-foods” category includes alcoholic beverages, tobacco, pharmacy, and health/beauty/cosmetic products. The “Perishables” category includes meat, produce, deli and bakery.
The Company’s self-insurance reserves totaled $35.9 million and $32.9 million for employee group insurance, workers’ compensation insurance and general liability insurance at September 28, 2024 and September 30, 2023, respectively.
The Company’s 19 self-insurance reserves totaled $38.3 million and $35.9 million for employee group insurance, workers’ compensation insurance and general liability insurance at September 27, 2025, and September 28, 2024, respectively.
Gross profit for the fiscal year ended September 28, 2024 decreased $105.1 million, or 7.5%, to $1.3 billion compared with $1.4 billion for the fiscal year ended September 30, 2023. As a percentage of sales, gross profit totaled 23.0% for the fiscal year ended September 28, 2024 as compared to 23.8% for the fiscal year ended September 30, 2023.
Gross profit for the fiscal year ended September 27, 2025 decreased $25.7 million, or 2.0%, to $1.27 billion compared with $1.30 billion for the fiscal year ended September 28, 2024. As a percentage of sales, gross profit totaled 23.9% for the fiscal year ended September 27, 2025 as compared to 23.0% for the fiscal year ended September 28, 2024.
Basic and diluted earnings per share for Class A Common Stock were $5.68 and $5.56, respectively, for the fiscal year ended September 28, 2024 compared with $11.35 and $11.10, respectively, for the fiscal year ended September 30, 2023.
Basic and diluted earnings per share for Class A Common Stock were $4.50 and $4.40, respectively, for the fiscal year ended September 27, 2025 compared with $5.68 and $5.56, respectively, for the fiscal year ended September 28, 2024.
The increase in cash used in investing activities was primarily due to capital expenditures, which increased by $37.3 in fiscal year 2024 as compared to fiscal year 2023. The Company’s cash used by net financing activities totaled $31.2 million and $35.0 million for fiscal years 2024 and 2023, respectively. The U.S.
The decrease in cash used in investing activities was primarily due to capital expenditures, which decreased by $96.4 million in fiscal year 2025 as compared to fiscal year 2024. 23 The Company’s cash used by net financing activities totaled $31.6 million and $31.2 million for fiscal years 2025 and 2024, respectively. The U.S.
Interest expense totaled $21.9 million for the fiscal year ended September 28, 2024 and $22.1 million for the fiscal year ended September 30, 2023. Total debt was $532.6 million at the end of fiscal year 2024 compared with $550.2 million at the end of fiscal year 2023. Income Taxes.
Interest expense totaled $19.7 million for the fiscal year ended September 27, 2025 and $21.9 million for the fiscal year ended September 28, 2024. Total debt was $514.8 million at the end of fiscal year 2025 compared with $532.6 million at the end of fiscal year 2024. Income Taxes.
Net income totaled $105.5 million for the fiscal year ended September 28, 2024 compared with net income of $210.8 million for the fiscal year ended September 30, 2023.
Net income totaled $83.6 million for the fiscal year ended September 27, 2025 compared with net income of $105.5 million for the fiscal year ended September 28, 2024.
The Company’s principal sources of liquidity are expected to be cash flow from operations, borrowings under the Line and long-term debt financing.
As of September 27, 2025, the Company was in compliance with these covenants. The Company’s principal sources of liquidity are expected to be cash flow from operations, borrowings under the Line and long-term debt financing.
Major capital expenditures included the following: 2024 2023 New stores 0 0 Store sites/land parcels purchased 16 15 New fuel stations added 0 1 Capital expenditures include upgrading and replacing store equipment, technology investments, those related to the Company’s distribution operation and its milk processing plant, and expenditures for stores to open in subsequent fiscal years.
Capital expenditures included predominately the purchase of store sites and land parcels totaling 9 and 16, respectively, for fiscal years 2025 and 2024. Capital expenditures include upgrading and replacing store equipment, technology investments, those related to the Company’s distribution operation and its milk processing plant, and expenditures for stores to open in subsequent fiscal years.
Ingles’ capital expenditure plans for fiscal year 2025 include investments of approximately $120 to $160 million. The Company currently plans to dedicate the majority of its fiscal 2025 capital expenditures to continued improvement of its store base, as well as technology improvements, upgrading and replacing existing store, warehouse and transportation equipment and improvements to the Company’s milk processing plant.
The Company currently plans to dedicate the majority of its fiscal 2026 capital expenditures to continued improvement of its store base, including the reopening of its temporarily closed stores, as well as technology improvements, upgrading and replacing existing store, warehouse and transportation equipment and improvements to the Company’s milk processing plant.
Sales by product category for the fiscal years ended September 28, 2024 and September 30, 2023 were as follows: (dollars in thousands) 2024 2023 Grocery $ 1,983,198 $ 2,062,416 Non-foods 1,273,324 1,326,907 Perishables 1,441,039 1,482,089 Fuel 724,230 792,524 Total retail grocery $ 5,421,791 $ 5,663,936 The “Grocery” category includes grocery, dairy and frozen foods.
Sales by product category for the fiscal years ended September 27, 2025 and September 28, 2024 were as follows: (dollars in thousands) 2025 2024 Grocery $ 1,934,445 $ 1,983,198 Non-foods 1,167,586 1,273,324 Perishables 1,404,687 1,441,039 Fuel 620,924 724,230 Total retail grocery $ 5,127,642 $ 5,421,791 21 The “Grocery” category includes grocery, dairy and frozen foods.
At September 28, 2024, the Company had no borrowings outstanding under the Line. In December 2010, the Company completed the funding of $99.7 million of Recovery Zone Facility Bonds (the “Bonds”) for the construction of new warehouse and distribution space adjacent to its existing space in Buncombe County, North Carolina (the “Project”).
In December 2010, the Company completed the funding of $99.7 million of Recovery Zone Facility Bonds (the “Bonds”) for the construction of new warehouse and distribution space adjacent to its existing space in Buncombe County, North Carolina (the “Project”). The Project was completed in 2012, and the final maturity date of the Bonds is January 1, 2036.
These allowances generally relate to short term arrangements with vendors, often relating to a period of one month or less and are negotiated on a purchase-by-purchase or transaction-by-transaction basis.
The purpose of these incentives and allowances is generally to help defray the costs incurred by the Company for stocking, advertising, promoting and selling the applicable vendor’s products. These allowances generally relate to short term arrangements with vendors, often relating to a period of one month or less and are negotiated on a purchase-by-purchase or transaction-by-transaction basis.
Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Overview Ingles is a leading supermarket chain in the Southeast United States and operates a total of 198 supermarkets in North Carolina (75), Georgia (65), South Carolina (35), Tennessee (21), Virginia (1) and Alabama (1).
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Overview Ingles is a leading supermarket chain in the Southeast United States and operates a total of 194 supermarkets in North Carolina (72), Georgia (64), South Carolina (35), Tennessee (21), Virginia (1) and Alabama (1), excluding three stores that remain temporarily closed due to damage sustained during Hurricane Helene.
The Project was completed in 2012, and the final maturity date of the Bonds is January 1, 2036. Under a Continuing Covenant and Collateral Agency Agreement (the “Covenant Agreement”) between certain financial institutions and the Company, such financial institutions hold the Bonds until December 2029, subject to certain events.
Under a Continuing Covenant and Collateral Agency Agreement (the “Covenant Agreement”) between certain financial institutions and the Company, such financial institutions hold the Bonds until December 2029, subject to certain events. Mandatory redemption of the Bonds by the Company in the annual amount of $4.5 million began on January 1, 2014.
Mandatory redemption of the Bonds by the Company in the annual amount of $4.5 million began on January 1, 2014. The outstanding aggregate principal amount of the Bonds was $49.9 million at September 28, 2024. The Company may redeem the Bonds without penalty or premium at any time prior to December 17, 2029.
The outstanding aggregate principal amount of the Bonds was $45.4 million at September 27, 2025. The Company may redeem the Bonds without penalty or premium at any time prior to December 17, 2029.
As a percentage of sales, operating and administrative expenses were 20.6% and 18.9% for fiscal years 2024 and 2023, respectively. Excluding fuel, which does not have significant direct operating expenses, the ratio of operating expenses to sales was 23.4% for fiscal year 2024 compared with 21.7% for fiscal year 2023.
Excluding fuel, which does not have significant direct operating expenses, the ratio of operating expenses to sales was 24.4% for fiscal year 2025 compared with 23.4% for fiscal year 2024.
Capital expenditures totaled $210.9 million and $173.6 million for fiscal years 2024 and 2023, respectively, with the increase driven primarily by the purchase of new sites and land parcels.
Capital expenditures totaled $114.5 million and $210.9 million for fiscal years 2025 and 2024, respectively, with the decrease driven primarily by more purchases of new sites and land parcels during fiscal year 2024 as compared to fiscal year 2025.
Dollar LIBOR panel ceased following June 30, 2023, and the Company’s debt agreements and interest rate swaps that utilized LIBOR discontinued the use of LIBOR and adopted the Secured Overnight Financing Rate (“SOFR”).
Dollar LIBOR panel ceased following June 30, 2023, and the Company’s debt agreements and interest rate swaps that utilized LIBOR discontinued the use of LIBOR and adopted the Secured Overnight Financing Rate (“SOFR”). In June 2021, the Company issued at par $350.0 million aggregate principal amount of 4.00% senior notes due 2031 (the “Notes”).
Risk Factors.” It is also possible, for such reasons, that the results of operations from the new, expanded, remodeled and/or replacement stores will not meet or exceed the results of operations from existing stores that are described in this Annual Report on Form 10-K.
Risk Factors.” It is also possible, for such reasons, that the results of operations from the new, expanded, remodeled and/or replacement stores will not meet or exceed the results of operations from existing stores that are described in this Annual Report on Form 10-K. 24 Quarterly Cash Dividends Since December 27, 1993, the Company has paid regular quarterly cash dividends of $0.165 per share on its Class A Common Stock and $0.15 per share on its Class B Common Stock for an annual rate of $0.66 and $0.60 per share, respectively.
The decrease in gross profit resulted primarily from the $30.4 million in inventory loss due to Hurricane Helene. Retail grocery gross profit as a percentage of total sales (excluding fuel) decreased 0.9 basis points in fiscal year 2024, compared with fiscal year 2023.
The decrease in gross profit resulted primarily from the lost revenue from the temporarily closed stores and the electronic payment disruptions due to Hurricane Helene partially offset by insurance proceeds of $4.7 million. Retail grocery gross profit as a percentage of total sales (excluding fuel) increased 0.8 basis points in fiscal year 2025, compared with fiscal year 2024.
A major remodel entails substantial remodeling of an existing store and may include additional retail square footage. Comparable store sales for the fiscal years ended September 28, 2024 and September 30, 2023 included 198 stores.
A major remodel entails substantial remodeling of an existing store and may include additional retail square footage. 20 Comparable store sales for the fiscal year ended September 27, 2025 included 194 stores, which excluded three stores temporarily closed due to damage from Hurricane Helene.
Other income, net totaled $14.2 million and $8.3 million for the fiscal years ended September 28, 2024 and September 30, 2023, respectively. Other income consists primarily of interest earned, which increased for the 2024 fiscal year due to a combination of higher deposits in interest bearing accounts and higher rates of interest earned on the Company’s cash balances. Interest Expense.
Other income consisted primarily of interest earned, which decreased for the 2025 fiscal year due to a combination of lower deposits in interest bearing accounts and lower rates of interest earned on the Company’s cash balances. Interest Expense.
Gain from Sale or Disposal of Assets. Gains on sale or disposal of assets totaled $9.1 million for fiscal year 2024 and $2.8 million for fiscal year 2023. The increase was primarily related to the swap of shopping center properties that occurred in January 2024. Other Income, Net.
The decrease was primarily related to the swap of shopping center properties that occurred in January 2024. Other Income, Net. Other income, net totaled $12.1 million and $14.2 million for the fiscal years ended September 27, 2025 and September 28, 2024, respectively.
For the year ended September 28, 2024, the Company recognized a property and equipment impairment loss of $4.5 million pertaining to Hurricane Helene. Vendor Allowances The Company receives funds for a variety of merchandising activities from the many vendors whose products the Company buys for resale in its stores.
Additionally, the Company recognized a property and equipment impairment loss of $4.5 million for the year ended September 28, 2024 pertaining to Hurricane Helene, for which the Company received insurance proceeds of $1.5 million for the year ended September 27, 2025.
The Line provides the Company with various interest rate options based on the prime rate, the Federal Funds Rate, or SOFR. The Line allows the Company to issue up to $10.0 million in letters of credit, of which none were issued at September 28, 2024. The Company is not required to maintain compensating balances in connection with the Line.
The Line allows the Company to issue up to $10.0 million in letters of credit, of which one in the amount of $500,000 was issued at September 27, 2025. The Company is not required to maintain compensating balances in connection with the Line. At September 27, 2025, the Company had no other borrowings outstanding under the Line.
However, the Board of Directors periodically reconsiders the declaration of dividends.
The Company expects to continue paying regular cash dividends on a quarterly basis. However, the Board of Directors periodically reconsiders the declaration of dividends.
Construction commitments at September 28, 2024 totaled $6.2 million. Liquidity The Company generated $262.5 million of cash from operations in fiscal 2024 compared with $266.4 million for fiscal year 2023. Cash used by investing activities for fiscal year 2024 totaled $206.2 million compared with $170.1 million for fiscal year 2023.
Construction commitments at September 27, 2025 totaled $4.9 million. Liquidity The Company generated $154.1 million of cash from operations for fiscal 2025 compared with $262.5 million for fiscal year 2024. The decrease was primarily due to the decrease in net income, increased receivables for electronic payments and the replenishment of inventory following Hurricane Helene.
The “Perishables” category includes meat, produce, deli and bakery. 20 Changes in retail grocery sales for the fiscal year ended September 28, 2024 are summarized as follows (in thousands): Total retail grocery sales for the fiscal year ended September 30, 2023 $ 5,663,936 Comparable store sales decrease (130,873) Effect of 53rd week in fiscal year 2023 (106,715) Other (4,557) Total retail grocery sales for the fiscal year ended September 28, 2024 $ 5,421,791 Gross Profit.
Changes in retail grocery sales for the fiscal year ended September 27, 2025 are summarized as follows (in thousands): Total retail grocery sales for the fiscal year ended September 28, 2024 $ 5,421,791 Comparable store sales decrease (168,824) Lost sales from temporarily closed stores (111,217) Lost sales from closed store (7,016) Other (7,092) Total retail grocery sales for the fiscal year ended September 27, 2025 $ 5,127,642 Gross Profit.
The gross margin decrease was primarily due to the inventory impairment loss of $30.4 million as a result of Hurricane Helene. Operating and Administrative Expenses. Operating and administrative expenses increased $46.4 million, or 4.2%, to $1.2 billion for the fiscal year ended September 28, 2024 from $1.1 billion for the fiscal year ended September 30, 2023.
For the fiscal year ended September 28, 2024, the Company recognized an impairment loss of $30.4 million related to inventory damaged or destroyed by Hurricane Helene and a property and equipment loss of $4.5 million. Net income as a percentage of sales was 1.6% for fiscal year 2025 compared with 1.9% for fiscal year 2024. Net Sales .
These incentives and allowances are primarily composed of volume or purchase based incentives, advertising allowances, slotting fees, and promotional discounts. The purpose of these incentives and allowances is generally to help defray the costs incurred by the Company for stocking, advertising, promoting and selling the applicable vendor’s products.
Vendor Allowances The Company receives funds for a variety of merchandising activities from the many vendors whose products the Company buys for resale in its stores. These incentives and allowances are primarily composed of volume or purchase based incentives, advertising allowances, slotting fees, and promotional discounts.
Removed
The storm caused damage to certain of the Company’s properties and temporarily impacted the ability of the Company’s stores to report information to the Company’s headquarters. The distribution center sustained damage but returned to full operation within two weeks following the storm.
Added
For the year ended September 28, 2024, the Company recognized an impairment loss of $30.4 million related to inventory damaged or destroyed by Hurricane Helene.
Removed
During the first two weeks immediately following the storm, the Company’s headquarters experienced communication loss and some stores remained without power and communication. Four stores sustained damage that required that they be temporarily closed. One store has now reopened and the Company expects the remaining three stores will reopen in 2025.
Added
The Company received insurance proceeds of $4.7 million for the year ended September 27, 2025 as a partial payment for inventory loss, and the Company continues to work with its insurance carriers to reach final determinations with respect to its inventory loss claims.
Removed
Among other impacts from the storm, the Company sustained approximately $30.4 million in lost inventory, of which approximately $10 million is expected to be covered by insurance. Real property and equipment damage was approximately $4.5 million. Real property and equipment repair expenses at the distribution center, including anticipated future expenses, of approximately $1.5 million were insured.
Added
These recorded losses did not include future repairs and rebuilds, nor did they account for revenue lost due to store closures or electronic payment disruptions.
Removed
Comparisons of fiscal year 2024 to fiscal year 2023 are affected by the difference in the number of weeks in each year. Fiscal year 2024 had 52 weeks and fiscal year 2023 had 53 weeks. Net income as a percentage of sales was 1.9% for fiscal year 2024 compared with 3.6% for fiscal year 2023.
Added
Four stores sustained damage that required that they be temporarily closed, of which, as of the date of this Annual Report on Form 10-K, three remain closed and are currently expected to reopen at various times during 2026 or in 2027.
Removed
Inflation in the cost of goods and increases in operating expenses due to increased labor market competition contributed to this decrease. Net Sales . Net sales for the fiscal year ended September 28, 2024 totaled $5.64 billion, compared with $5.89 billion for the fiscal year ended September 30, 2023.
Added
In addition, for the year ended September 27, 2025, the Company incurred approximately $9.0 million in cleanup and repair costs as a result of Hurricane Helene.
Removed
In addition to the stores closed due to damage and power outages caused by Hurricane Helene, the Company’s headquarters lost connectivity to the internet which disrupted the Company’s ability to accept credit and debit cards.
Added
Hurricane Helene severely impacted western North Carolina at the end of September 2024, and the Company estimates that approximately $55 to $65 million of revenue was lost during the three-week period immediately following the storm due to road and power outages which prevented some stores from opening or maintaining normal store hours, as well as due to electronic payment disruptions.
Removed
Store closures and power outages as a result of Hurricane Helene will have an impact on net sales for the first quarter and full fiscal year of 2025. In addition, the lack of water and subsequent ban on water usage, will have an impact on the fluid dairy operations for the first quarter of fiscal year 2025.
Added
Results for fiscal year 2025 as compared to fiscal year 2024 were affected by the impact of Hurricane Helene. For the fiscal year ended September 27, 2025, the Company incurred $9.0 million of cleanup and repair expenses, which were partially offset by insurance proceeds of $1.5 million.
Removed
Increase Increase as a % of (in millions) sales Insurance $ 16.9 0.30 % Salaries and wages $ 13.0 0.23 % Taxes and licenses $ 5.4 0.10 % Miscellaneous $ 4.5 0.08 % Insurance expense increased primarily due to higher claim volume for the Company’s self-insured employee benefit plans.
Added
The Company also received insurance proceeds of $4.7 million related to inventory losses, which were recorded as a reduction of cost of goods sold.
Removed
Salaries and wages increased due to increased labor market competition, which has increased the Company’s cost to attract and retain associates in the Company’s market area. Taxes and licenses expenses increases were noted in both payroll taxes and in property taxes. Miscellaneous expense increased due to the asset impairment loss of $4.5 million as a result of Hurricane Helene.
Added
The Company has estimated that approximately $55 to $65 million of lost revenue due to the temporarily closed stores and electronic payment disruptions experienced during the three weeks after the storm, most of which was during fiscal year 2025.
Removed
In June 2021, the Company issued at par $350.0 million aggregate principal amount of 4.00% senior notes due 2031 (the “Notes”). 22 The Company has a $150.0 million unsecured senior line of credit (the “Line”) that matures in June 2026.
Added
Net sales for the fiscal year ended September 27, 2025, totaled $5.33 billion, compared with $5.64 billion for the fiscal year ended September 28, 2024. Excluding fuel sales, total grocery comparable store sales decreased 1.7% over the comparative twelve-month period.
Removed
As of September 28, 2024, the Company was in compliance with these covenants. Under the most restrictive of these covenants, the Company would have been permitted to incur approximately $945.5 million of additional borrowings (including borrowings under the Line) as of September 28, 2024.
Added
Operating and Administrative Expenses. Operating and administrative expenses decreased $2.9 million, or 0.3%, to $1.159 billion for the fiscal year ended September 27, 2025 from $1.162 billion for the fiscal year ended September 28, 2024. As a percentage of sales, operating and administrative expenses were 21.7% and 20.6% for fiscal years 2025 and 2024, respectively.
Removed
Quarterly Cash Dividends Since December 27, 1993, the Company has paid regular quarterly cash dividends of $0.165 per share on its Class A Common Stock and $0.15 per share on its Class B Common Stock for an annual rate of $0.66 and $0.60 per share, respectively. 23 The Company expects to continue paying regular cash dividends on a quarterly basis.
Added
A breakdown of the primary changes in operating and administrative expenses is as follows.
Added
(Decrease) (Decrease) Increase Increase as a % of (in millions) sales Salaries and wages $ (12.7) (0.24) % Repairs and maintenance $ 10.8 0.20 % Professional fees $ 7.4 0.14 % Miscellaneous $ (5.8) (0.11) % Salaries and wages decreased due to the impact of Hurricane Helene, including the temporary closure of four stores, of which three currently remain closed, disruption at other stores due to storm-related power losses and difficulties for associates to get to work due to the damage caused by Hurricane Helene.
Added
Repairs and maintenance expense increased as a result of the cleanup and repair costs incurred as a result of Hurricane Helene. Professional fees increased due to professional services required as a result of Hurricane Helene and investments the Company has made in its information technology systems and in technology transformation projects.
Added
Miscellaneous expenses decreased primarily related to insurance proceeds of $1.5 million received in fiscal year 2025 and the $4.2 million impairment loss recorded in fiscal year 2024. Gain from Sale or Disposal of Assets. Gains on sale or disposal of assets totaled $2.4 million for fiscal year 2025 and $9.1 million for fiscal year 2024.
Added
Ingles’ capital expenditure plans for fiscal year 2026 include investments of approximately $120 to $140 million.
Added
Cash used by investing activities for fiscal year 2025 totaled $109.9 million compared with $206.2 million for fiscal year 2024.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe definitive extent of the Company’s interest rate risk is not quantifiable or predictable because of the variability of future interest rates and business financing requirements, but the Company does not believe such risk is material. 24 The table below presents principal amounts and related weighted average interest rates by year of maturity for the Company’s debt obligations at September 28, 2024 and September 30, 2023, respectively (in thousands): September 28, 2024 2025 2026 2027 2028 2029 Thereafter Total Fair ‎ Value Line of credit $ — $ — $ — $ — $ — $ — $ — $ — Average variable interest rate — % — % — % — % — % — % — % Long-term debt, variable interest rate (1)(2) $ 13,750 $ 13,750 $ 13,750 $ 8,237 $ 7,750 $ 80,083 $ 137,320 $ 137,320 Average interest rate 6.93 % 6.93 % 6.93 % 6.82 % 6.80 % 6.80 % 6.84 % Recovery Zone Bonds, variable interest rate $ 4,530 $ 4,530 $ 4,530 $ 4,530 $ 4,530 $ 27,260 $ 49,910 $ 49,910 Average year-end interest rate 5.10 % 5.10 % 5.10 % 5.10 % 5.10 % 5.10 % 5.10 % Senior Notes, fixed interest rate $ — $ — $ — $ — $ — $ 350,000 $ 350,000 $ 317,625 Average interest rate — % — % — % — % — % 4.00 % 4.00 % September 30, 2023 2024 2025 2026 2027 2028 Thereafter Total Fair ‎ Value Line of credit $ — $ — $ — $ — $ — $ — $ — $ — Average variable interest rate — % — % — % — % — % — % — % Long-term debt, variable interest rate (1)(2) $ 13,750 $ 13,750 $ 13,750 $ 13,750 $ 8,237 $ 87,833 $ 151,070 $ 151,070 Average year-end interest rate (1)(2) 6.99 % 6.99 % 6.99 % 6.99 % 6.94 % 6.93 % 6.95 % Recovery Zone Bonds, variable interest rate $ 4,530 $ 4,530 $ 4,530 $ 4,530 $ 4,530 $ 31,790 $ 54,440 $ 54,440 Average year-end interest rate 5.20 % 5.20 % 5.20 % 5.20 % 5.20 % 5.20 % 5.20 % Senior Notes, fixed interest rate $ — $ — $ — $ — $ — $ 350,000 $ 350,000 $ 287,875 Average interest rate — % — % — % — % — % 4.00 % 4.00 % (1) Excludes interest rate swap that fixes at 3.962% the interest rate on $18.5 million of variable interest rate debt.
Biggest changeThe definitive extent of the Company’s interest rate risk is not quantifiable or predictable because of the variability of future interest rates and business financing requirements, but the Company does not believe such risk is material. 25 The table below presents principal amounts and related weighted average interest rates by year of maturity for the Company’s debt obligations at September 27, 2025 and September 28, 2024, respectively (in thousands): September 27, 2025 2026 2027 2028 2029 2030 Thereafter Total Fair ‎ Value Line of credit $ — $ — $ — $ — $ — $ — $ — $ — Average variable interest rate — % — % — % — % — % — % — % Long-term debt, variable interest rate (1)(2) $ 13,750 $ 13,750 $ 8,234 $ 7,750 $ 80,083 $ — $ 123,567 $ 123,567 Average interest rate 5.98 % 5.98 % 5.89 % 5.88 % 5.88 % — % 5.90 % Recovery Zone Bonds, variable interest rate $ 4,530 $ 4,530 $ 4,530 $ 4,530 $ 4,530 $ 22,730 $ 45,380 $ 45,380 Average year-end interest rate 4.37 % 4.37 % 4.37 % 4.37 % 4.37 % 4.37 % 4.37 % Senior Notes, fixed interest rate $ — $ — $ — $ — $ — $ 350,000 $ 350,000 $ 327,250 Average interest rate — % — % — % — % — % 4.00 % 4.00 % September 28, 2024 2025 2026 2027 2028 2029 Thereafter Total Fair ‎ Value Line of credit $ — $ — $ — $ — $ — $ — $ — $ — Average variable interest rate — % — % — % — % — % — % — % Long-term debt, variable interest rate (1)(2) $ 13,750 $ 13,750 $ 13,750 $ 8,237 $ 7,750 $ 80,083 $ 137,320 $ 137,320 Average year-end interest rate (1)(2) 6.93 % 6.93 % 6.93 % 6.82 % 6.80 % 6.80 % 6.84 % Recovery Zone Bonds, variable interest rate $ 4,530 $ 4,530 $ 4,530 $ 4,530 $ 4,530 $ 27,260 $ 49,910 $ 49,910 Average year-end interest rate 5.10 % 5.10 % 5.10 % 5.10 % 5.10 % 5.10 % 5.10 % Senior Notes, fixed interest rate $ — $ — $ — $ — $ — $ 350,000 $ 350,000 $ 317,625 Average interest rate — % — % — % — % — % 4.00 % 4.00 % (1) Excludes interest rate swap that fixes at 3.962% the interest rate on $12.5 million of variable interest rate debt.
Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS The Company is exposed to changes in interest rates primarily as a result of its borrowing activities, which include borrowings under the Line, real estate and equipment financing, and the Bonds. The Line, along with cash flow from operations, is used to maintain liquidity and fund business operations.
Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK The Company is exposed to changes in interest rates primarily as a result of its borrowing activities, which include borrowings under the Line, real estate and equipment financing, and the Bonds. The Line, along with cash flow from operations, is used to maintain liquidity and fund business operations.
On the basis of the fair value of the Company’s market sensitive instruments at September 28, 2024, the Company does not anticipate that near-term changes in interest and exchange rates will result in material near-term losses in future earnings, fair values or cash flows.
On the basis of the fair value of the Company’s market sensitive instruments at September 27, 2025, the Company does not anticipate that near-term changes in interest and exchange rates will result in material near-term losses in future earnings, fair values or cash flows.
(2) Excludes interest rate swap that fixes at 2.998% the interest rate on $116.9 million of variable interest rate debt. The Company will occasionally utilize financial or derivative instruments for interest rate risk management but has typically not utilized highly leveraged financial instruments.
(2) Excludes interest rate swap that fixes at 2.998% the interest rate on $109.1 million of variable interest rate debt. The Company will occasionally utilize financial or derivative instruments for interest rate risk management but has typically not utilized highly leveraged financial instruments.

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