Marzetti's stock plummeted 5.12% during Tuesday's intraday trading session following the release of its second-quarter financial results and the announcement of a major acquisition.

The specialty food maker reported Q2 earnings per share of $2.15, missing analyst estimates that ranged from $2.22 to $2.24. Quarterly sales of $517.95 million also fell slightly short of consensus estimates of approximately $520.35 million. The company noted that retail segment sales declined 1.1% due to softer demand, partially offset by inflationary pricing.

Simultaneously, Marzetti announced a definitive agreement to acquire Japanese barbecue sauce brand Bachan's for $400 million in cash, with plans to fund the purchase through cash on hand and additional financing. While the acquisition aims to expand Marzetti's position in the sauce category and provide growth opportunities, investors appeared concerned about the combined impact of the earnings miss and the substantial acquisition price.