WMKHIGH SIGNALRISK10-K

WMK disclosed a material financial restatement spanning multiple years due to employee misconduct that overstated inventory and understated cost of goods sold at a manufacturing facility.

The company has restated financial statements for 2023, 2024, and multiple interim periods through Q3 2025, indicating significant internal control failures that allowed fraudulent activity to persist across multiple reporting periods. The misconduct by a single non-executive employee accumulated over time and required a $5.5 million adjustment to retained earnings dating back to 2022, raising serious questions about management oversight and financial reporting reliability.

Comparing 2026-03-12 vs 2025-02-26View on EDGAR →
FINANCIAL ANALYSIS

Despite the restatement concerns, WMK showed strong operational performance with operating income increasing 56.6% to $113.7M and net income rising 51.8% to $93.7M, while gross profit expanded 36% to $1.2B. Operating cash flow surged 71.8% to $207.2M, though this was partially offset by higher capital expenditures of $202.4M and a concerning 38.5% decline in cash reserves to $117.1M. The strong profitability improvements suggest underlying business momentum, but the cash position decline amid higher capex spending warrants monitoring for liquidity management.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
+71.8%
$120.6M→$207.2M

Operating cash flow surged 71.8% — exceptional cash generation, highest quality earnings signal.

Operating Income
P&L
+56.6%
$72.6M→$113.7M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Net Income
P&L
+51.8%
$61.7M→$93.7M

Net income grew 51.8% — bottom-line growth signals improving overall business health.

Cash & Equivalents
Balance Sheet
-38.5%
$190.3M→$117.1M

Cash declined 38.5% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Gross Profit
P&L
+36%
$911.8M→$1.2B

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Capital Expenditure
Cash Flow
+25.4%
$161.3M→$202.4M

Capex increased 25.4% — ongoing investment in capacity or infrastructure for future growth.

Accounts Receivable
Balance Sheet
+17%
$81.6M→$95.4M

Receivables grew 17% — monitor days sales outstanding for collection efficiency.

LANGUAGE CHANGES
NEW — 2026-03-12
PRIOR — 2025-02-26
ADDED
(the Company ) is filing this Annual Report on Form 10-K for the fiscal year ended December 27, 2025.
The Company has restated the consolidated financial statements for the years ended December 28, 2024 and December 30, 2023, as well as the condensed consolidated interim financial statements for the thirteen and thirty-nine weeks ended September 27, 2025 and September 28, 2024, the thirteen and twenty-six weeks ended June 28, 2025 and June 29, 2024, and the thirteen weeks ended March 29, 2025 and March 30, 2024.
As disclosed, the Company became aware of errors related to the overstatement of inventory and the understatement of cost of goods sold at a single meat product manufacturing plant.
Restatement of Previously Issued Financial Statements of this Form 10-K, the errors resulted from the misconduct of a single former non-executive employee and accumulated over multiple fiscal periods, impacting previously reported interim and annual periods through September 27, 2025.
The Company has determined the amount of the errors for the impacted periods, including the income tax provision effects, and has concluded the consolidated financial statements for the years ended December 28, 2024 and December 30, 2023, as well as the condensed consolidated interim financial statements for the thirteen and thirty-nine weeks ended September 27, 2025 and September 28, 2024, the thirteen and twenty-six weeks ended June 28, 2025 and June 29, 2024, and the thirteen weeks ended March 29, 2025 and March 30, 2024, should be restated.
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REMOVED
The Weis family currently owns approximately 65% of the outstanding shares.
The Company promotes competitive pricing by using Everyday Lower Price; Low Price Guarantee; Low, Low Price; 3 Day Sale; senior and military discounts; and Loyalty programs.
The Company owns and operates 198 retail food stores many of which have on-line order customer service.
The following table provides additional detail on the percentage of consolidated net sales contributed by product category for fiscal years 2024, 2023 and 2022, respectively: 2024 2023 2022 Center Store (1) 53.7 % 54.4 % 54.7 % Fresh (2) 28.6 29.1 30.0 Pharmacy Services 12.5 11.2 9.4 Fuel 4.9 5.1 5.6 Other 0.3 0.2 0.3 Consolidated net sales 100.0 % 100.0 % 100.0 % (1) Consists primarily of groceries, dairy products, frozen foods, beer and wine, and general merchandise items, such as health and beauty care and household products.
Since the end of 2024, the Company acquired one store location in Pennsylvania and closed one store location in Pennsylvania, so the current total store count remains at 198.
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