Shares of Utz Brands, Inc. (UTZ) plummeted 5.69% in Thursday's pre-market trading session, despite the company meeting earnings expectations and raising its full-year outlook. The sharp decline comes as investors digest the snack maker's third-quarter results, which revealed a widened loss despite sales growth.

Utz Brands reported adjusted earnings per share of $0.23 for the third quarter, in line with analyst estimates. Net sales grew 3.4% to $377.8 million, surpassing the expected $374.4 million. However, the company posted a loss of $14.7 million, or $0.17 per share, compared to a loss of $2.2 million, or $0.03 per share, in the same quarter last year. The widened loss was attributed to higher expenses.

Despite the mixed results, Utz Brands raised its 2025 organic net sales growth outlook to approximately 3%, citing strength in its salty snacks business, particularly its Power Four Brands. The company also reaffirmed its expectations for adjusted earnings growth of 7% to 10% for the full year. Additionally, Utz announced plans to expand its presence in California, a key growth market, through the acquisition of Insignia International's direct store delivery distribution assets. However, these positive developments were overshadowed by concerns over the company's profitability, leading to the significant stock price drop.