J & J Snack Foods (NASDAQ:JJSF – Get Free Report) posted its quarterly earnings data on Wednesday. The company reported $1.96 EPS for the quarter, beating analysts’ consensus estimates of $1.70 by $0.26, FiscalAI reports. The business had revenue of $425.96 million for the quarter, compared to analyst estimates of $427.65 million. J & J Snack Foods had a return on equity of 9.01% and a net margin of 3.75%.The business’s revenue for the quarter was down 6.3% compared to the same quarter last year. During the same quarter last year, the company earned $2.00 earnings per share.
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 Trading Up 6.7%
JJSF traded up $5.23 during midday trading on Wednesday, hitting $83.87. The company’s stock had a trading volume of 149,438 shares, compared to its average volume of 257,595. J & J Snack Foods has a 52-week low of $68.87 and a 52-week high of $119.14. The firm has a 50-day moving average price of $76.30 and a two-hundred day moving average price of $80.50. The firm has a market cap of $1.57 billion, a P/E ratio of 28.20 and a beta of 0.38.
J & J Snack Foods Dividend Announcement
Institutional Investors Weigh In On J & J Snack Foods
Several hedge funds have recently modified their holdings of JJSF. Goldman Sachs Group Inc. grew its holdings in J & J Snack Foods by 295.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 171,718 shares of the company’s stock valued at $15,518,000 after purchasing an additional 128,301 shares during the period. Two Sigma Investments LP raised its stake in J & J Snack Foods by 962.0% during the third quarter. Two Sigma Investments LP now owns 107,202 shares of the company’s stock worth $10,301,000 after purchasing an additional 97,108 shares during the period. Russell Investments Group Ltd. boosted its holdings in shares of J & J Snack Foods by 3,379.2% in the 4th quarter. Russell Investments Group Ltd. now owns 87,016 shares of the company’s stock valued at $7,864,000 after purchasing an additional 84,515 shares during the last quarter. Qube Research & Technologies Ltd purchased a new stake in shares of J & J Snack Foods during the 3rd quarter valued at $7,045,000. Finally, Jane Street Group LLC grew its stake in shares of J & J Snack Foods by 137.0% during the 4th quarter. Jane Street Group LLC now owns 126,796 shares of the company’s stock valued at $11,459,000 after buying an additional 73,296 shares during the period. 76.04% of the stock is owned by institutional investors and hedge funds.
Analysts Set New Price Targets
A number of research analysts have issued reports on the stock. Zacks Research lowered shares of J & J Snack Foods from a “hold” rating to a “strong sell” rating in a report on Thursday, May 7th. Benchmark lowered their price target on shares of J & J Snack Foods from $130.00 to $120.00 and set a “buy” rating for the company in a report on Monday, May 11th. Finally, Weiss Ratings reissued a “sell (d+)” rating on shares of J & J Snack Foods in a research note on Wednesday, June 24th. One equities research analyst has rated the stock with a Buy rating and two have issued a Sell rating to the stock. According to MarketBeat.com, J & J Snack Foods has an average rating of “Reduce” and a consensus price target of $120.00.
Check Out Our Latest Analysis on J & J Snack Foods
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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