NASDAQ: BRID

2025
2024

Frozen Food Products
25 %
26 %

Snack Food Products
75 %
74 %

100 %
100 %

We
manufacture nearly all of our food products and distribute an extensive line of biscuits, bread dough items, roll dough items, dry sausage
products, salami and beef jerky. Our direct-store-delivery network consists of non-refrigerated snack food products. Our frozen food
products division serves both food service and retail customers.

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During
fiscal year 2025, we shifted toward producing more private label products due to increased consumer demand for more affordable non-branded
productions. We believe that increased demand is due to higher inflation and rising costs for basic needs, driving consumer spending
habits towards more affordable private-label snack foods, including meat product purchases, in order to reduce expenses, Besides our
private label offerings, no other new products have contributed significantly to our revenue growth for the fiscal year 2025. Our sales
are not subject to material seasonal variations. Historically we have been able to respond quickly to the receipt of orders and, accordingly,
do not maintain a significant sales backlog. Neither Bridgford nor its industry generally has unusual demands or restrictions on working
capital items. During the last fiscal year, we did not enter into any new markets or any significant contractual or other material relationships.

Product
Distribution Methods

Our
products are delivered to customers using several distinct distribution channels. The distribution channel utilized is dependent upon
the needs of our customers, the most efficient proximity to the delivery point, trade customs, and operating segment as well as product
type, life, and stability. Among our customers are many of the country’s largest broadline and specialty food service distributors.
These and other large-end purchasers occasionally go through extensive qualification procedures, and our manufacturing capabilities are
subjected to thorough review by the end purchasers prior to our approval as a vendor. Large end purchasers typically select suppliers
that can consistently meet increased volume requirements on a national basis during peak promotional periods. We believe that our manufacturing
flexibility, national presence, and long-standing customer relationships should allow us to compete effectively with other manufacturers
seeking to provide similar products to our current large food service end purchasers, although no assurances can be given.

The
factors that contribute to higher or lower margins generated from each method of distribution depend upon the accepted selling price,
level of involvement by our employees in setting up and maintaining displays, distance traveled, and fuel consumed by our Company-owned
fleet as well as freight and shipping costs depending on the distance the product travels to the delivery point. Management is continually
evaluating the profitability of product delivery methods, analyzing alternate methods, and weighing economic inputs to determine the
most efficient and cost-effective method of delivery to fulfill the needs of our customers.

Major
Product Classes

Frozen
Food Products

Our
frozen food products division serves both food service and retail customers. We sell approximately 130 unique frozen food products through
approximately 820 wholesalers, cooperatives, and distributors.

Frozen
Food Products – Food Service Customers

The
food service industry is composed of establishments that serve food outside the home and includes restaurants, the food operations of
health care providers, schools, hotels, resorts, corporations, and other traditional and non-traditional food service outlets. Growth
in this industry has been driven by the increase in away-from-home meal preparation. Another trend within the food service industry is
the growth in the number of non-traditional food service outlets such as convenience stores, retail stores and supermarkets. These non-traditional
locations often lack extensive cooking, storage, or preparation facilities resulting in a need for pre-cooked and prepared foods similar
to those we provide. The expansion in the food service industry has also been accompanied by the continued consolidation and growth of
broadline and specialty food service distributors, many of which are long-standing customers.

Frozen
Food Products – Retail Customers

The
majority of our existing and targeted retail customers are involved in the resale of branded and private label packaged foods. The same
trends which have contributed to the increase in away-from-home meal preparation have fueled growth in easy to prepare, microwaveable
frozen and refrigerated convenience foods. Among the fastest growing segments is the frozen and refrigerated hand-held foods market.
This growth has been driven by improved product quality and variety and the increasing need for inexpensive and healthy food items that
require minimal preparation. Despite rapid growth, many categories of frozen and refrigerated hand-held foods have achieved minimal household
penetration. We have been successful in establishing and maintaining supply relationships with certain selected leading retailers in
this market.

Frozen
Food Products – Sales and Marketing

Our
frozen food business covers the United States. Products produced by the Frozen Food Products segment are generally supplied to food service
and retail distributors who take title to the product upon shipment receipt. The Company has shifted away from Company-leased long-haul
vehicles toward less costly transportation methods such as common carriers. In addition to regional sales managers, we maintain a network
of independent food service and retail brokers covering most of the United States. Brokers are compensated on a commission basis. We
believe that our broker relationships, in close cooperation with our regional sales managers, are a valuable asset providing significant
new product distribution channels and customer opportunities. Regional sales managers perform several significant functions, including
identifying and developing new business opportunities, providing customer service, and supporting distributors and end purchasers through
the effective use of our broker network.

Our
annual advertising expenditure is directed towards retail and institutional (foodservice) customers. These customers participate in special
promotional and marketing programs as well as direct advertising allowances we sponsor. We also invest in general consumer advertising
in various periodicals, and coupons to advertise in major markets. We direct advertising toward food service customers with campaigns
in major industry publications and through our participation in trade shows throughout the United States. Our advertising strategy includes
our presence on social media and online distribution of promotional material.

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Snack
Food Products

During
fiscal year 2025, our snack food products division sold approximately 180 different items through customer-owned distribution centers
and a direct-store-delivery network serving approximately 19,000 supermarkets, mass merchandise, and convenience retail stores located
in all 50 states.

Products
produced or distributed by the Snack Food Products segment are supplied to customers through either direct delivery to customer warehouses
or direct-store-delivery to retail locations. We utilize customer managed warehouse distribution centers to lower distribution cost.
Products including high quality private-label products are delivered to the customer’s warehouse which is then distributed to the
store where it is resold to the end consumer. Our direct-store-delivery system focus emphasizes high quality service and supply of our
premium branded products to our customers. We also provide the service of setting up and maintaining the display and restocking our products.

Snack
Food Products — Customers

Our
customers are comprised of large retail chains and smaller “independent” or non-chain operators. This part of our business
is highly competitive. Proper placement of our product lines is critical to selling success since most items could be considered “impulse”
items which are often consumed shortly after purchase. Our ability to sell successfully to this distribution channel depends on aggressive
marketing and maintaining relationships with key buyers.

Snack
Food Products — Sales and Marketing

Snack
food products are distributed across the United States. Regional sales managers perform several significant functions including identifying
and developing new business opportunities and providing customer service and support to our customers. We also utilize the services of
brokers, where appropriate, to support efficient product distribution and customer satisfaction. Bridgford is the primary sponsor for
several professional anglers that compete at the highest level of competitive bass fishing. In addition to our Bridgford Pro Fishing
team, which consists of Pro Anglers from the Bass Master Elites, FLW Tour, and Major League Fishing, we have also made a commitment for
college bass fishing teams, partnering with fours universities in addition to launching our Bridgford Outdoors Ambassador program to
continue to grow and support others who share our passion for the outdoors.

Product
Planning and Research and Development

We
continually monitor consumer acceptance of each product within our extensive product line. Individual products are regularly added to
and deleted from our product line. Historically, the addition or deletion of any individual product has not had a material effect on
our operations at the end of the fiscal year. We believe that a key factor in the success of our products is our system of carefully
targeted research and testing of our products to ensure high quality and that each product matches an identified market opportunity.
The emphasis on new product introductions in the past year has been on private label products and partnerships. We are constantly striving
to develop new products to complement our existing product lines and improve processing techniques and formulas. We utilize an in-house
test kitchen and consultants to research and experiment with unique food preparation methods, improve quality control and analyze new
ingredient mixtures.

Competition

Our
products are sold under highly competitive conditions. All food products can be considered competitive with other food products, but
we consider our principal competitors to include national, regional, and local producers and distributors of refrigerated, frozen and
non-refrigerated snack food products. Several of our competitors include large companies with substantially greater financial and marketing
resources than ours. Existing competitors may broaden their product lines and potential competitors may enter or increase their focus
on our markets, resulting in greater competition for us. We believe that our products compete favorably with those of our competitors.
Such competitors’ products compete against ours for retail shelf space, institutional distribution, and customer preference. Innovation,
high quality and consistency are the major attributes of our products.

Effect
of Government Regulations

Our
operations are subject to extensive inspection and regulation by the United States Department of Agriculture (the “USDA”),
the Food and Drug Administration (the “FDA”), and by other federal, state, and local authorities regarding the processing,
packaging, storage, transportation, distribution, and labeling of products that we manufacture, produce and process. Our processing facilities
and products are subject to continuous inspection by the USDA and/or other federal, state, and local authorities. The USDA has issued
strict regulations concerning the control of listeria monocytogenes in ready-to-eat meat and poultry products and contamination by food
borne pathogens such as E. coli and salmonella and implemented a system of regulation known as the Hazard Analysis Critical Control Points
(“HACCP”) program. The HACCP program requires all meat and poultry processing plants to develop and implement sanitary operating
procedures and other program requirements. The Department of Labor’s Occupational Health and Safety Administration (“OSHA”)
oversees safety compliance and establishes certain employer responsibilities to help assure safe and healthful working conditions and
keep the workplace free of recognized hazards or practices likely to cause death or serious injury. We believe that we are currently
in compliance with governmental laws and regulations and that we maintain the necessary permits and licenses relating to our operations.

To
date, federal, state, and local environmental laws and regulations, including those relating to the discharge of materials into the environment,
and the resources we expend to comply with such regulations, have not had a material effect on our business.

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Importance
of Key Customers

Sales
to Wal-Mart® comprised 33.5% of revenues in fiscal year 2025 and 8.2% of total accounts receivable was due from Wal-Mart® as
of October 31, 2025. Sales to Wal-Mart® comprised 27.8% of revenues in fiscal year 2024 and 25.4% of total accounts receivable was
due from Wal-Mart® as of November 1, 2024. Sales to Dollar General® comprised 14.2% of revenues in fiscal year 2025 and 28.8%
of total accounts receivable was due from Dollar General® as of October 31, 2025. Sales to Dollar General® comprised 14.2% of
revenues in fiscal year 2024 and 20.2% of total accounts receivable was due from Dollar General® as of November 1, 2024.

Sources
and Availability of Raw Materials

We
purchase large quantities of pork, beef, and flour. These ingredients are generally available from a number of different suppliers although
the availability of these ingredients is subject to seasonal variation. We build ingredient inventories to take advantage of downward
trends in seasonal prices or anticipated supply limitations.

We
purchase bulk flour under short-term fixed price contracts at current market prices. The contracts are usually effective for and settle
within three months or less. We monitor and manage our ingredient costs to help negate volatile daily swings in market prices when possible.
We do not participate in the commodity futures market or hedging to limit commodity exposure.

Employees

We
had 668 employees (649 full-time employees) as of October 31, 2025, approximately 44% of those employment relationships are governed
by collective bargaining agreements. These agreements either “have expired” or “will expire” between June 2025
and February 2028. We believe that our relationship with all of our employees is favorable and that any pending contracts will be settled
favorably.

Availability
of SEC Filings and Code of Conduct on Internet Website

We
maintain a website at www.bridgford.com. Available through the “Investors” link on this website, free of charge, are our
annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments thereto, and reports filed under
Section 16 of the Exchange Act, filed with the Securities and Exchange Commission (the “SEC”). Our Code of Conduct is also
available on the website through the “Governance” link. The information contained on the website is not incorporated by reference
into this filing. Further, our reference to the website URL is intended to be an inactive textual reference only.