J & J Snack Foods (NASDAQ:JJSF) Announces Earnings Results, Beats Estimates By $0.26 EPS

Key Points

• J & J Snack Foods beat earnings expectations, reporting quarterly EPS of $1.96 versus the $1.70 consensus estimate. Revenue of $425.96 million slightly missed estimates and fell 6.3% year over year.
• Profitability benefited from transformation efforts: gross margin expanded 240 basis points to 35.5%, while Project Apollo’s annual savings target rose to at least $20 million.
• Management expects improving sales momentum, but a return to organic growth is more likely in fiscal 2027; near-term results remain pressured by fuel and freight costs and weakness in parts of foodservice and frozen beverages.

J & J Snack Foods (NASDAQ:JJSF - Get Free Report) announced its quarterly earnings data on Wednesday. The company reported $1.96 EPS for the quarter, topping analysts' consensus estimates of $1.70 by $0.26, FiscalAI reports. The company had revenue of $425.96 million during the quarter, compared to the consensus estimate of $427.65 million. J & J Snack Foods had a net margin of 3.75% and a return on equity of 9.01%. J & J Snack Foods's quarterly revenue was down 6.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.00 EPS.

Here are the key takeaways from J & J Snack Foods' conference call:

• Third-quarter sales declined 6.2% to $426 million, while adjusted EBITDA fell 6.4% to $67.4 million, primarily due to $4.7 million in net fuel and freight cost pressures. Foodservice and frozen beverage sales were pressured by bakery SKU reductions, weaker cookies and handhelds, and lower service and machine revenue.
• Transformation efforts continued to protect profitability, with gross margin expanding 240 basis points to 35.5%. Project Apollo’s plant-consolidation savings are now expected to reach at least $20 million annually, raising total program savings to at least $25 million.
• Retail sales increased 1.7%, with underlying growth estimated at 4.8% excluding higher slotting fees, while Dogsters retail units rose about 40% and tracked sales for Dippin’ Dots increased more than 100%. Management also cited strong early performance from new “Better For You” products and continued innovation-driven distribution gains.
• Management expects sales momentum to improve in the fourth quarter and a return to organic sales growth in fiscal 2027, supported by new churro, pretzel, and frozen novelty business, a stronger movie lineup, and a new service contract. However, management indicated the inflection is more likely in fiscal 2027 than in the fourth quarter, with fuel and freight pressures expected to persist near term.
• The company ended the quarter with approximately $35 million of net cash, $182 million of revolver capacity, and $48.8 million of operating cash flow. It returned $25 million to shareholders during the quarter and expects to receive approximately $17 million in insurance proceeds in August.

J & J Snack Foods Price Performance

J & J Snack Foods stock traded up $5.23 during trading hours on Wednesday, hitting $83.87. The stock had a trading volume of 149,438 shares, compared to its average volume of 257,595. J & J Snack Foods has a 1-year low of $68.87 and a 1-year high of $119.14. The stock has a market capitalization of $1.57 billion, a price-to-earnings ratio of 28.20 and a beta of 0.38. The stock's fifty day moving average is $76.30 and its two-hundred day moving average is $80.50.

J & J Snack Foods Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, July 7th. Shareholders of record on Tuesday, June 16th were issued a $0.80 dividend. The ex-dividend date of this dividend was Tuesday, June 16th. This represents a $3.20 annualized dividend and a yield of 3.8%. J & J Snack Foods's dividend payout ratio is 107.38%.

Institutional Investors Weigh In On J & J Snack Foods

Several institutional investors and hedge funds have recently made changes to their positions in JJSF. Dimensional Fund Advisors LP increased its holdings in J & J Snack Foods by 0.4% during the 4th quarter. Dimensional Fund Advisors LP now owns 544,928 shares of the company's stock valued at $49,244,000 after acquiring an additional 2,143 shares in the last quarter. Geode Capital Management LLC grew its position in shares of J & J Snack Foods by 0.5% in the fourth quarter. Geode Capital Management LLC now owns 382,879 shares of the company's stock valued at $34,607,000 after purchasing an additional 1,909 shares during the last quarter. Bank of America Corp DE increased its stake in shares of J & J Snack Foods by 2.9% during the 2nd quarter. Bank of America Corp DE now owns 354,253 shares of the company's stock worth $40,176,000 after purchasing an additional 9,820 shares in the last quarter. Charles Schwab Investment Management Inc. raised its position in shares of J & J Snack Foods by 14.0% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 217,164 shares of the company's stock worth $19,625,000 after purchasing an additional 26,665 shares during the last quarter. Finally, Goldman Sachs Group Inc. lifted its stake in J & J Snack Foods by 295.5% in the 4th quarter. Goldman Sachs Group Inc. now owns 171,718 shares of the company's stock valued at $15,518,000 after buying an additional 128,301 shares in the last quarter. 76.04% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities research analysts recently commented on the stock. Weiss Ratings restated a "sell (d+)" rating on shares of J & J Snack Foods in a research report on Wednesday, June 24th. Benchmark cut their price objective on J & J Snack Foods from $130.00 to $120.00 and set a "buy" rating for the company in a research report on Monday, May 11th. Finally, Zacks Research lowered shares of J & J Snack Foods from a "hold" rating to a "strong sell" rating in a research report on Thursday, May 7th. One analyst has rated the stock with a Buy rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Reduce" and a consensus target price of $120.00.

About J & J Snack Foods

J & J Snack Foods NASDAQ: JJSF is a U.S.-based manufacturer and distributor of branded snack foods and frozen beverages. Headquartered in Pennsauken, New Jersey, the company develops, produces and markets a broad array of proprietary and licensed products for retail, concession and foodservice customers. Its offerings span soft pretzels, frozen novelties, real Italian ice, churros and packaged beverages under well-known names such as ICEE, SuperPretzel, Luigi's and ChurroMan.

Founded in 1971 by Gerald B.

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