J & J Snack Foods (NASDAQ:JJSF) Issues Earnings Results
by Renee Jackson · The Cerbat GemJ & J Snack Foods (NASDAQ:JJSF – Get Free Report) released its quarterly earnings data on Wednesday. The company reported $0.40 EPS for the quarter, beating the consensus estimate of $0.39 by $0.01, FiscalAI reports. J & J Snack Foods had a return on equity of 8.79% and a net margin of 3.92%.The firm had revenue of $344.82 million during the quarter, compared to the consensus estimate of $349.67 million. During the same quarter in the previous year, the company posted $0.35 earnings per share. The company’s quarterly revenue was down 3.2% on a year-over-year basis.
Here are the key takeaways from J & J Snack Foods’ conference call:
- Adjusted EBITDA rose 9.5% year‑over‑year to $28.7 million and adjusted EPS increased 14.3% to $0.40, achieved despite a 3.2% sales decline to $344.8 million.
- Management says Project Apollo and plant consolidations are driving gross margin expansion and they expect at least $20 million of annualized savings, with remaining administrative and distribution savings slated to ramp in Q3–Q4.
- Top‑line softness remains a concern: food service sales fell 5% (largely from planned bakery SKU rationalization and a large customer’s inventory drawdown) and retail sales declined 4.1% due to higher slotting fees and trade investments.
- Rising fuel costs create a clear headwind—management estimates an approximate $3.5 million distribution cost exposure in the second half if fuel stays at current levels and noted fuel pressure can dampen convenience‑store and food‑service demand.
- Balance sheet and capital returns remain strong: $22 million of share repurchases in the quarter (about $95 million returned in H1 including dividends), roughly $31 million cash net of debt and $181 million of revolver capacity.
J & J Snack Foods Trading Down 7.0%
Shares of JJSF stock traded down $5.93 during trading on Wednesday, hitting $78.66. The company’s stock had a trading volume of 453,409 shares, compared to its average volume of 268,198. The company has a market cap of $1.50 billion, a PE ratio of 25.05 and a beta of 0.43. The business has a fifty day moving average of $82.02 and a 200-day moving average of $87.20. J & J Snack Foods has a 52 week low of $73.75 and a 52 week high of $129.24.
J & J Snack Foods Announces Dividend
The firm also recently announced a quarterly dividend, which was paid on Tuesday, April 7th. Stockholders of record on Tuesday, March 17th were issued a $0.80 dividend. The ex-dividend date of this dividend was Tuesday, March 17th. This represents a $3.20 annualized dividend and a dividend yield of 4.1%. J & J Snack Foods’s dividend payout ratio is currently 101.91%.
Wall Street Analyst Weigh In
A number of analysts have commented on the stock. Benchmark restated a “buy” rating on shares of J & J Snack Foods in a research note on Tuesday, January 20th. Zacks Research cut shares of J & J Snack Foods from a “strong-buy” rating to a “hold” rating in a report on Monday, January 19th. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of J & J Snack Foods in a report on Friday, March 27th. One investment analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $130.00.
Check Out Our Latest Stock Report on JJSF
Hedge Funds Weigh In On J & J Snack Foods
Institutional investors have recently modified their holdings of the business. Quadrature Capital Ltd grew its holdings in shares of J & J Snack Foods by 23.5% in the fourth quarter. Quadrature Capital Ltd now owns 3,015 shares of the company’s stock valued at $272,000 after acquiring an additional 574 shares in the last quarter. Bridgewater Associates LP lifted its stake in J & J Snack Foods by 16.1% in the fourth quarter. Bridgewater Associates LP now owns 2,997 shares of the company’s stock valued at $271,000 after purchasing an additional 415 shares during the last quarter. State of Wyoming lifted its stake in J & J Snack Foods by 93.0% in the second quarter. State of Wyoming now owns 2,150 shares of the company’s stock valued at $244,000 after purchasing an additional 1,036 shares during the last quarter. AQR Capital Management LLC purchased a new position in J & J Snack Foods in the first quarter valued at approximately $228,000. Finally, Arrowstreet Capital Limited Partnership purchased a new position in J & J Snack Foods in the second quarter valued at approximately $207,000. 76.04% of the stock is owned by institutional investors.
J & J Snack Foods declared that its board has initiated a stock repurchase plan on Tuesday, February 3rd that allows the company to repurchase $50.00 million in shares. This repurchase authorization allows the company to repurchase up to 2.8% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.
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.