Core Insights - The Zacks Rank system focuses on earnings estimates and revisions to identify winning stocks, while also considering trends in value, growth, and momentum [1] Value Investing - Value investing is a popular strategy that relies on traditional analysis of key valuation metrics to identify undervalued stocks, providing opportunities for profit [2] Zacks Style Scores - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the "Value" category, where stocks with "A" grades and high Zacks Ranks are considered strong value stocks [3] John B. Sanfilippo & Son (JBSS) - JBSS currently holds a Zacks Rank of 2 (Buy) and an A for Value, making it a stock of interest for investors [3] - JBSS has a Price-to-Sales (P/S) ratio of 0.81, which is lower than the industry average of 0.84, indicating potential undervaluation [4] - The Price-to-Cash Flow (P/CF) ratio for JBSS is 8.21, compared to the industry average of 9.76, suggesting a solid cash outlook [5] - Over the past 52 weeks, JBSS's P/CF has fluctuated between 7.93 and 13.64, with a median of 10.44, further supporting its undervaluation [5] - Overall, JBSS appears to be undervalued based on its metrics and strong earnings outlook, making it an attractive value stock at this time [6]

Core Insights - John B. Sanfilippo & Son (JBSS) represents an investment opportunity in the growing popularity of nuts, which are currently experiencing rising prices, indicating favorable market conditions for the company [1] Company Overview - JBSS is positioned to benefit from the increasing demand for nuts, which is a positive trend for its business operations [1] Market Trends - The nut market is witnessing a surge in popularity, leading to higher prices, which is advantageous for companies like JBSS that are involved in nut production and distribution [1]

Core Insights - John B. Sanfilippo & Son (JBSS) represents an investment opportunity in the growing popularity of nuts, which are currently experiencing rising prices, indicating favorable market conditions for the company [1] Company Overview - JBSS is positioned to benefit from the increasing demand for nuts, which is a positive trend for its business operations [1] Market Trends - The nut market is witnessing a surge in popularity, leading to higher prices, which is advantageous for companies like JBSS [1]

Core Insights - The company reported a net sales increase of 4.6% to $314.8 million, driven by a 15.8% rise in weighted average sales price per pound, despite a 9.7% decline in sales volume [4][6] - The company is facing challenges from shifting consumer behavior, health trends, and elevated retail prices impacting overall sales volume, but is focusing on aligning its product portfolio with health priorities and expanding innovation [5][20] Sales Performance - Bar sales declined due to low inventory levels in the prior year and a strategic reduction in sales to a grocery retailer [1] - In the consumer distribution channel, sales volume fell 8.4%, primarily due to a 7.9% drop in private brand sales, with nuts and trail mix also experiencing declines [2] Profitability and Costs - Gross profit increased by $6.9 million, or 13.2%, to $59.2 million, attributed to higher net sales and better alignment of selling prices with commodity acquisition costs [7] - Gross margin rose to 18.8% from 17.4% year-over-year, while operating expenses remained flat, increasing only $300,000 [8] Inventory and Commodity Costs - Inventory levels increased by $29.6 million, or 14.4%, due to higher commodity acquisition costs and planned demand [10] - The weighted average cost per pound of raw nuts and dried fruit increased by 11.8% year-over-year, driven mainly by higher acquisition costs for most major nut types [11] Year-to-Date Results - For the first two quarters of fiscal 2026, net sales increased by 6.3% to $613.5 million, with a 12.2% increase in weighted average selling price per pound, despite a 5.3% decline in volume [12] - Year-to-date gross margin improved to 18.5% from 17.1% a year earlier [13] Strategic Initiatives - The company is focusing on expanding its snack and energy bar business, with 85% of new bar equipment on-site or in transit, aiming to begin production in July 2026 [15] - Management is implementing "Optimize for Growth" initiatives to enhance cost optimization and efficiency across various operations [17] Financial Position - The company paid a special dividend of $1 per share, reflecting a strong financial position and disciplined capital allocation [18] - Interest expense declined to $500,000 from $800,000, while net income rose to $18.0 million, or $1.53 per diluted share [9] Future Outlook - The company is cautiously optimistic about the second half of fiscal 2026, citing recent commercial momentum and new business wins, while acknowledging ongoing economic risks [20]

Financial Data and Key Metrics Changes - The company achieved a record-breaking top-line growth with a 32% increase in diluted earnings per share for the quarter, driven by strategic initiatives [2] - Net sales for the second quarter of fiscal 2026 increased by 4.6% to $314.8 million, compared to $301.1 million in the same quarter of fiscal 2025 [9] - Gross profit increased by $6.9 million, or 13.2%, to $59.2 million, with gross profit margin rising to 18.8% of net sales from 17.4% in the prior year [11][12] - Net income for the second quarter was $18 million, or $1.53 per diluted share, compared to $13.6 million, or $1.16 per diluted share for the same quarter last year [13] Business Line Data and Key Metrics Changes - The weighted average sales price per pound increased by 15.8%, while sales volume decreased by 9.7% [9] - Sales volume in the consumer distribution channel decreased by 8.4%, primarily due to a 7.9% decline in private brand sales [10] - The contract manufacturing channel saw a significant decline of 26.5% in sales volume, attributed to reduced granola volume processed [11] Market Data and Key Metrics Changes - The snack nut and trail mix category was down 4% in pounds but up 3% in dollars, indicating a price increase of 8% for snack nuts [21] - The recipe nut category experienced a 2% increase in pounds and a 14% increase in dollars, driven by seasonal demand and higher prices [23] - The bar category grew by 6% in pounds and dollars, indicating a rebound in the market [24] Company Strategy and Development Direction - The company is focused on accelerating its snack and energy bar business, particularly in the protein-forward segment [4] - Strategic investments are being made to enhance operational efficiency and expand production capacity [4] - The long-range plan emphasizes growth in private brand business and innovation in product offerings [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from shifting consumer behavior and elevated retail prices impacting overall sales volume [3] - There is cautious optimism for the second half of fiscal 2026, driven by recent commercial momentum and new business secured with important customers [25] - The company remains committed to navigating challenges in the economic environment while focusing on long-term shareholder value [25] Other Important Information - A special dividend of $1 per share was distributed, reflecting the company's strong financial position [4] - The total value of inventories increased by 14.4% year-over-year, primarily due to higher commodity acquisition costs [14][15] Q&A Session Questions and Answers Question: Where do you stand on the equipment delivery and quality assurance? - The company confirmed that 85% of the new equipment is on-site or in transit, with installation and production expected to begin in July 2026 [30][31] Question: How quickly can pricing adjustments be passed through to retailers? - The company typically undergoes a 6-month price review with retailers, followed by a 60-90 day timeline to implement price changes [33]

Financial Data and Key Metrics Changes - The company achieved a record-breaking top-line growth with a 32% increase in diluted earnings per share for the quarter, driven by strategic initiatives [2] - Net sales for the second quarter of fiscal 2026 increased by 4.6% to $314.8 million, compared to $301.1 million in the second quarter of fiscal 2025 [9] - Gross profit increased by $6.9 million, or 13.2%, to $59.2 million, with gross profit margin rising to 18.8% of net sales from 17.4% in the prior year [11][12] - Net income for the second quarter of fiscal 2026 was $18 million, or $1.53 per diluted share, compared to $13.6 million, or $1.16 per diluted share for the same quarter last year [13] Business Line Data and Key Metrics Changes - The consumer distribution channel saw an 8.4% decline in sales volume, primarily due to a 7.9% decline in private brand sales [10] - Sales volume in the contract manufacturing channel decreased by 26.5%, attributed to reduced granola volume processed [11] - The recipe nut category experienced a 2% increase in pounds and a 14% increase in dollars, driven by seasonal impacts and higher prices [23] Market Data and Key Metrics Changes - The snack nut and trail mix category was down 4% in pounds but up 3% in dollars, with snack nut prices rising by 8% [21] - The Orchard Valley Harvest brand saw a 42% decline in pound shipments due to lost distribution at a national specialty retailer [22] - The bar category grew by 6% in pounds and dollars, driven by branded player growth, while private label bar shipments were down 12% [24] Company Strategy and Development Direction - The company is focused on accelerating its snack and energy bar business, particularly in the protein-forward segment [4] - Strategic investments are being made to enhance operational efficiency and expand production capacity [4] - The long-range plan emphasizes growth in private brand business and innovation in product offerings [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from shifting consumer behavior and elevated retail prices impacting overall sales volume [3] - There is cautious optimism for the second half of fiscal 2026, driven by recent commercial momentum and new business secured with important customers [25] - The company remains committed to creating long-term shareholder value through strategic initiatives and operational excellence [25] Other Important Information - A special dividend of $1 per share was distributed, reflecting the company's strong financial position [4] - The total value of inventories increased by 14.4% year-over-year, primarily due to higher commodity acquisition costs [14][15] Q&A Session Questions and Answers Question: Where do you stand on the equipment delivery and quality assurance? - The company confirmed that 85% of the new equipment is on-site or in transit, with installation and production expected to begin in July 2026 [30][31] Question: How quickly can pricing adjustments be passed through due to higher nut costs? - The company typically has a 6-month price review cycle with a 60-90 day timeline to implement price changes [33]

Financial Data and Key Metrics Changes - The company reported a 4.6% increase in net sales for Q2 fiscal 2026, reaching $314.8 million compared to $301.1 million in Q2 fiscal 2025 [9] - Diluted earnings per share increased by approximately 32% for the quarter, driven by strategic initiatives [2] - Gross profit increased by $6.9 million, or 13.2%, to $59.2 million, with gross profit margin rising to 18.8% from 17.4% in the prior year [11][12] - Net income for Q2 fiscal 2026 was $18 million, or $1.53 per diluted share, compared to $13.6 million, or $1.16 per diluted share in Q2 fiscal 2025 [13] Business Line Data and Key Metrics Changes - The consumer distribution channel saw an 8.4% decline in sales volume, primarily due to a 7.9% drop in private brand sales [10] - Sales volume in the contract manufacturing channel decreased by 26.5%, attributed to reduced granola volume processed [11] - The commercial ingredients channel remained relatively unchanged, with a slight decline of 1.1% in sales volume [11] Market Data and Key Metrics Changes - The snack nut and trail mix category experienced a 4% decline in pounds but a 3% increase in dollars, indicating higher prices [21] - The recipe nut category grew by 2% in pounds and 14% in dollars, driven by seasonal demand and higher prices [22] - The bar category saw a 6% growth in pounds and dollars, indicating a rebound in the market [24] Company Strategy and Development Direction - The company is focused on accelerating its snack and energy bar business, particularly in the protein-forward segment [4] - Strategic investments are being made to enhance operational efficiency and expand production capacity [4] - The long-range plan emphasizes growth in private brand business and branded distribution through innovation [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from shifting consumer behavior and elevated retail prices impacting sales volume [3] - There is cautious optimism for the second half of fiscal 2026, supported by recent commercial momentum and new business secured [25] - The company remains committed to navigating challenges and creating long-term shareholder value through strategic initiatives [25] Other Important Information - A special dividend of $1 per share was distributed, reflecting the company's strong financial position [4] - The company is investing in new bar manufacturing capabilities, with 85% of new equipment on-site or in transit [5] Q&A Session Summary Question: Status of equipment delivery and quality assurance - The company confirmed that 85% of the equipment is being delivered and will be operational by July 2026, with confidence in the quality based on prior experience with manufacturers [30][32] Question: Pricing strategy in response to higher nut costs - The company explained that there is typically a 6-month price review with retailers, followed by a 60-90 day timeline to implement price changes [33]

分组1 - Sanfilippo & Son (JBSS) reported quarterly earnings of $1.53 per share, exceeding the Zacks Consensus Estimate of $1.36 per share, and showing an increase from $1.16 per share a year ago, representing an earnings surprise of +12.50% [1] - The company achieved revenues of $314.78 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.43% and increasing from $301.07 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] 分组2 - The stock has gained approximately 5% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $1.73 on revenues of $260.42 million, and for the current fiscal year, it is $5.94 on revenues of $1.14 billion [7] - The Zacks Industry Rank for Food - Miscellaneous is currently in the bottom 26% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - Net sales for the second quarter of fiscal 2026 increased by 4.6% to $314.8 million, compared to $301.1 million in the same quarter of fiscal 2025[80]. - Gross profit increased by $6.9 million, or 13.2%, to $59.2 million for the second quarter of fiscal 2026, with a gross profit margin of 18.8%[99]. - Net income for the second quarter of fiscal 2026 was $18.0 million, or $1.54 per common share basic, compared to $13.6 million, or $1.17 per common share basic, for the second quarter of fiscal 2025[113]. - Income from operations was $53.0 million, or 8.6% of net sales, for the first twenty-six weeks of fiscal 2026, compared to $36.4 million, or 6.3% of net sales, for the same period in fiscal 2025[107]. Sales and Volume - Sales volume decreased by 9.7% in the second quarter of fiscal 2026, with a significant decline attributed to granola sold in the contract manufacturing channel[88]. - Sales volume for the first twenty-six weeks of fiscal 2026 decreased by 5.3%, with declines in bars, granola, trail mix, and cashews, while walnuts, peanuts, pecans, and almonds saw increases[89]. - Net sales in the consumer distribution channel increased by $24.5 million, or 5.1%, while sales volume decreased by 6.8% in the first twenty-six weeks of fiscal 2026 compared to the same period in fiscal 2025[94]. Expenses and Margins - Total operating expenses for the second quarter of fiscal 2026 increased by 0.9%, but as a percentage of net sales, they decreased to 10.5% from 10.9%[83]. - Operating expenses as a percentage of net sales decreased to 9.8% for the first twenty-six weeks of fiscal 2026, down from 10.8% in the same period of fiscal 2025[104]. - Interest expense decreased to $0.5 million for the second quarter of fiscal 2026, down from $0.8 million in the same quarter of fiscal 2025 due to lower average debt levels[108]. Inventory and Costs - The total value of inventories on hand at the end of the second quarter of fiscal 2026 increased by 14.4% to $29.6 million compared to the same period in fiscal 2025[84]. - Total inventories decreased by $19.2 million, or 7.5%, from the inventory balance at June 26, 2025, but increased by $29.6 million, or 14.4%, from the balance at December 26, 2024[119]. - Raw nut and dried fruit input stocks decreased by 2.7 million pounds, or 4.5%, at December 25, 2025, while the weighted average cost per pound of raw nut input stocks increased by 11.8% compared to the end of the second quarter of fiscal 2025[120]. Capital Expenditures and Investments - The company plans significant capital investments in equipment and infrastructure improvements starting in the second quarter of fiscal 2025 to expand production capabilities[69]. - Cash used in investing activities was $46.3 million during the first twenty-six weeks of fiscal 2026, up from $25.6 million in the same period last year[121]. - Capital asset purchases totaled $47.3 million in the first twenty-six weeks of fiscal 2026, compared to $25.5 million in the prior year[121]. - Total capital expenditures for fiscal 2026 are expected to be approximately $112.0 million, including equipment purchases and upgrades[121]. Financing and Debt - Cash used in financing activities was $46.5 million during the first twenty-six weeks of fiscal 2026, compared to cash provided of $5.6 million in the same period last year[122]. - Net repayments under the Credit Facility were $47.6 million in the first twenty-six weeks of fiscal 2026, compared to net borrowings of $29.3 million in the prior year[122]. - As of December 25, 2025, the weighted average interest rate for the Credit Facility was 6.7%[128]. - The Company had $134.7 million of available credit under the Credit Facility as of December 25, 2025[128]. - The Equipment Loan allows financing of up to $50.0 million for equipment purchases, with an interest rate of SOFR plus an applicable margin of 1.49%[130]. - As of December 25, 2025, $26.2 million of the debt obligation under the Equipment Loan was outstanding[132]. Market and Consumer Trends - The company continues to face challenges from higher food and input costs, ongoing supply chain volatility, and macroeconomic uncertainties impacting consumer demand[71]. - Branded products accounted for approximately 20% of total consumer sales during the second quarter of fiscal 2026, with Fisher branded products making up 78% of branded sales[91]. - Branded products accounted for approximately 17% of total consumer sales in the first twenty-six weeks of fiscal 2026, down from 19% in fiscal 2025[93].

Financial Performance - Net sales for Q2 fiscal 2026 increased by $13.7 million, or 4.6%, to $314.8 million, driven by a 15.8% increase in the weighted average selling price per pound [3]. - Diluted earnings per share (EPS) rose by 31.9% to $1.53 per share, reflecting strong top-line growth [4]. - Gross profit increased by $6.9 million to $59.2 million, with gross profit margin improving to 18.8% of net sales from 17.4% in the prior year [8]. - Sales volume decreased by 9.3 million pounds, or 9.7%, to 87.0 million pounds, primarily due to declines in private brand sales and contract manufacturing [4]. Inventory and Assets - The value of total inventories increased by $29.6 million, or 14.4%, driven by higher commodity acquisition costs across major nut types [10]. - Total assets increased to $617.729 million, up from $597.603 million in the previous period, representing a growth of 1.9% [20]. - Cash reserves rose significantly to $2.4 billion from $585 million, indicating a strong liquidity position [20]. - Accounts receivable decreased slightly to $79.823 million from $76.656 million, reflecting a stable collection process [20]. - Inventories decreased to $235.427 million from $254.600 million, suggesting improved inventory management [20]. Liabilities and Equity - Current liabilities decreased to $148.406 million from $156.046 million, a reduction of approximately 4.1% [20]. - Long-term debt increased to $28.839 million from $14.564 million, indicating potential leverage for future growth [20]. - Retained earnings grew to $228.981 million from $221.495 million, showing a positive trend in profitability [20]. - Total stockholders' equity increased to $370.124 million from $360.697 million, reflecting a healthy equity position [20]. - The company reported a decrease in accounts payable to $79.897 million from $60.479 million, indicating better cash flow management [20]. - The company maintained a consistent dividend policy with dividends payable recorded at $11.704 million [20]. Strategic Initiatives - The company distributed a special dividend of $1.00 per share, reflecting a strong financial position and disciplined capital allocation strategy [12]. - The company is expanding its product pipeline with new innovations to align with emerging health and wellness trends [2]. - The recent reduction in trade tariffs on imported nuts is expected to help lower selling prices over time and support future demand [2]. - The company anticipates continued growth opportunities despite headwinds from shifting consumer behavior and elevated retail prices [2]. Operating Expenses - Operating expenses increased slightly by $0.3 million, but as a percentage of net sales, they declined to 10.5% from 10.9% in the prior year [9].