Company: BRID
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001493152-25-012266
Chunk: 129

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 3
Chunk 129
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 forth below, there have been no material changes in our assessment of risk factors affecting our business since those presented
in our Annual Report. The following risk factor amends and restates in its entirety the risk factor of the same heading set forth in
the Annual Report.

Fluctuations
in commodity prices and the availability of raw materials could negatively impact our financial results.

We
purchase large quantities of commodity pork, beef, and flour. Historically, market prices for products we process have fluctuated in
response to a number of factors, including changes in the United States government farm support programs, changes in international agricultural
and trading policies, weather, and other conditions during the growing and harvesting seasons. Our operating results are heavily dependent
upon the prices paid for raw materials, as well as the available supply of commodities. Commodity costs have and may continue to fluctuate
due to political and economic conditions, including the ongoing conflict between Ukraine and Russia. Further, the potential for the imposition
of new or additional U.S. tariffs on imports as well as potential retaliatory tariffs or other measures certain other countries may impose
on U.S. imports has increased with the new U.S. federal administration. These actions could further increase our cost of goods sold and
negatively impact our business and operating results. Supply chain disruptions and delays as a result of any new tariff policies or trade
restrictions could also negatively impact our cost of materials and production processes.

The
marketing of our value-added products does not lend itself to instantaneous changes in selling prices. We have begun implementing a
price increase on our products to help offset some of our higher input costs. Increased prices of our products could lead to lower
demand for our products and sales volumes. Conversely, decreases in our commodity and other input costs may create pressure on us to
decrease our prices. Changes in selling prices are relatively infrequent and do not compare with the volatility of commodity
markets. If there is a lag between when costs increase and when we are able to increase selling prices, our profits margins may
suffer. Production and pricing of commodities, on the other hand, are determined by constantly changing market forces of supply and
demand over which we have limited or no control. Such factors include, among other things, weather patterns throughout the world,
outbreaks of disease, the global level of supply inventories and demand for grains and other feed ingredients, as well as
agricultural, energy and trade policies of domestic and foreign governments. While fluctuations in significant cost structure