Company Performance - J&J Snack Foods reported quarterly earnings of $0.35 per share, missing the Zacks Consensus Estimate of $0.69 per share, and down from $0.84 per share a year ago, representing an earnings surprise of -49.28% [1] - The company posted revenues of $356.1 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 2.89%, and down from $359.73 million year-over-year [2] - Over the last four quarters, J&J Snack Foods has not surpassed consensus EPS estimates and has topped consensus revenue estimates only once [2] Stock Performance - J&J Snack Foods shares have lost about 15% since the beginning of the year, while the S&P 500 has declined by -3.9% [3] - The current status of estimate revisions is unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $1.96 on revenues of $455.81 million, and for the current fiscal year, it is $4.68 on revenues of $1.63 billion [7] - The outlook for the industry can significantly impact the stock's performance, with the Food - Miscellaneous industry currently in the top 31% of Zacks industries [8]

Financial Performance - Net sales for the second quarter decreased by 1.0% to $356.1 million compared to the prior year quarter, primarily due to lower sales in the Frozen Beverage and Food Service segments [3]. - Gross profit fell from $108.2 million in the prior year quarter to $95.7 million, with gross margin declining from 30.1% to 26.9% [7]. - Operating income was $6.0 million, a decrease of 66% from $17.9 million in the prior year period [9]. - Net earnings dropped 64% to $4.8 million compared to $13.3 million in the prior year period [9]. - Adjusted EBITDA decreased by 33% to $26.2 million, down from $39.3 million in the prior year quarter [2]. - Net Earnings for Q2 2025 reached $4,824 million, compared to $13,329 million in Q2 2024, reflecting a decrease of approximately 64.2% [33]. - Adjusted EBITDA for the six months ended March 29, 2025, was $51,452 million, down from $69,523 million in the same period last year, a decline of about 26% [33]. - Adjusted Operating Income for Q2 2025 was $8,869 million, compared to $21,827 million in Q2 2024, representing a decrease of approximately 59.5% [33]. - Earnings per Diluted Share for Q2 2025 was $0.25, down from $0.69 in Q2 2024, a decline of about 63.8% [33]. - Adjusted Earnings per Diluted Share for the six months ended March 29, 2025, was $0.68, compared to $1.35 in the same period last year, a decrease of approximately 50.4% [33]. Segment Performance - Food Service segment sales decreased by 1.7% to $226.1 million, with churro sales declining by 18.7% due to the loss of limited-time-offer volumes [11]. - Retail Supermarket segment sales increased by 1.8% to $53.8 million, while Frozen Beverage segment sales decreased by 0.9% to $76.2 million [11]. - Sales of new products and added placements with new customers were approximately $6.5 million in the quarter, driven by churro-related products and new cookie distributions [15]. Cash Flow and Assets - Cash and cash equivalents at the end of the period were $48,514 thousand, a decrease of 33.8% from $73,394 thousand at the beginning of the period [29]. - The company reported a net cash provided by operating activities of $47,472 thousand, down 23% from $61,698 thousand in the same period last year [29]. - Total assets decreased slightly to $1,357,597 thousand from $1,365,101 thousand, a decline of approximately 0.3% [27]. Liabilities and Equity - The company’s total current liabilities increased to $182,192 thousand from $174,073 thousand, an increase of approximately 4.8% [27]. - The company’s retained earnings decreased to $815,323 thousand from $835,753 thousand, a decline of approximately 2.4% [27]. - The company reported a decrease in accounts receivable by $15,794 thousand, compared to a decrease of $20,110 thousand in the same period last year [29]. Capital Expenditures and Costs - Capital expenditures for the six months ended March 29, 2025, totaled $38,530 thousand, an increase of 5.1% compared to $36,626 thousand for the same period in 2024 [31]. - Strategic Business Transformation Costs incurred in Q2 2025 amounted to $2,307 million, while no such costs were reported in Q2 2024 [33]. - Restructuring Costs for the six months ended March 29, 2025, totaled $260 million, with no costs reported in the same period last year [33]. - Non-recurring Legal Expenses for Q2 2025 were $591 million, with no such expenses reported in Q2 2024 [33]. Depreciation and Interest - Depreciation and Amortization for the six months ended March 29, 2025, was $35,510 million, compared to $34,192 million in the same period last year, an increase of approximately 3.9% [33]. - Interest Expense for Q2 2025 was $85 million, down from $429 million in Q2 2024, a decrease of about 80.2% [33]. Market Outlook - North American box office sales are projected to rebound by 30% or more during the fiscal third quarter, following a 10% decline in the second quarter [5]. - The company repurchased approximately 39,000 shares for about $5.0 million, reflecting confidence in long-term business value [6].

Core Insights - J & J Snack Foods Corp. reported a 1% decline in net sales for the second quarter of fiscal 2025, totaling $356.1 million, primarily due to lower sales in the Frozen Beverage and Food Service segments, partially offset by growth in the Retail business [3][6][7]. Financial Performance - Net sales decreased by $3.6 million compared to the prior year, with gross profit falling by 12% to $95.7 million and operating income down 66% to $6.0 million [2][9]. - Net earnings were $4.8 million, a 64% decrease from the previous year, resulting in earnings per diluted share of $0.25, down from $0.69 [2][9]. - Adjusted operating income was $8.9 million, a 59% decline, while adjusted EBITDA decreased by 33% to $26.2 million [2][9]. Segment Performance - The Food Service segment saw a 1.7% decline in sales to $226.1 million, with churro sales down 18.7% due to the loss of limited-time offer volumes from the previous year [7][10]. - Retail Supermarket segment sales increased by 1.8% to $53.8 million, driven by a 14.7% increase in frozen novelties sales [7][11]. - Frozen Beverage segment sales decreased by 0.9% to $76.2 million, attributed to weakness in the theater channel and foreign exchange headwinds [7][12]. Cost and Expenses - Total operating expenses were $89.7 million, representing 25.2% of sales, slightly up from 25.1% in the prior year [8][9]. - Marketing expenses increased to $28.5 million, or 8.0% of sales, reflecting higher brand amortization costs [8][14]. - Distribution costs decreased to $41.8 million, or 11.7% of sales, down from 12.3% in the prior year [8][14]. Future Outlook - The company anticipates earnings improvement in the second half of fiscal 2025, driven by a rebound in theater traffic and selective price increases [5][6]. - North American box office sales are projected to rebound by 30% or more in the fiscal third quarter, following a 10% decline in the second quarter [5][6]. Shareholder Actions - The company repurchased approximately 39,000 shares for about $5.0 million, demonstrating confidence in long-term business value and commitment to enhancing shareholder value [6][9].

Core Insights - J&J Snack Foods is launching a new recipe for SUPERPRETZEL, enhancing its flavor and texture while maintaining its classic convenience [1][3] - The reformulated SUPERPRETZEL features a softer texture and a more robust Bavarian-style flavor, appealing to modern consumer preferences [2][7] - The updated product will be available nationwide, coinciding with National Soft Pretzel Day, allowing fans to enjoy the improved snack [1][3] Company Overview - J&J Snack Foods Corp. is a leader in the snack food and frozen beverage industry, with over 50 years of experience [5] - The company’s portfolio includes popular brands such as SUPERPRETZEL, ICEE, SLUSH PUPPIE, and Dippin' Dots, among others [5] - The company emphasizes innovation and consumer feedback in its product development, as seen in the recent SUPERPRETZEL reformulation [3][5]

Core Viewpoint - J & J Snack Foods Corp. has scheduled a conference call to discuss its fiscal 2025 second quarter financial results on May 6, 2025, at 10:00 am Eastern time [1][2]. Group 1: Conference Call Details - Participants must pre-register to receive the dial-in number and personal PIN required for the conference call [2]. - The company will release its fiscal second quarter results for the period ended March 29, 2025, on the morning of May 6, 2025 [2]. Group 2: Webcast Information - A live webcast of the conference call will be available on the company's investor relations website, with a recommendation to allow 15 minutes for registration and software installation [3]. Group 3: Company Overview - J & J Snack Foods Corp. is a leader in the snack food and frozen beverage industry, with over fifty years of experience [4]. - The company offers a variety of well-known brands, including SUPERPRETZEL, ICEE, SLUSH PUPPIE, and Dippin' Dots, among others [4].

Company Announcement - J & J Snack Foods Corp. has scheduled a conference call and webcast to discuss its fiscal 2025 second quarter financial results on May 6, 2025, at 10:00 am Eastern time [1] - The company expects to release its fiscal second quarter results for the period ended March 29, 2025, on the morning of May 6, 2025 [2] Conference Call Details - Participants must pre-register to receive the dial-in number and personal PIN required for the conference call [2] - A live webcast of the call will be available on the company's investor relations website, with a recommendation to allow 15 minutes for registration and software installation [3] Company Overview - J & J Snack Foods Corp. is a leader and innovator in the snack food and frozen beverage industry, with over fifty years of experience [4] - The company's core brands include SUPERPRETZEL, ICEE, SLUSH PUPPIE, and Dippin' Dots, among others, serving both foodservice and retail segments [4] - The brand portfolio also features LUIGI'S Real Italian Ice, MINUTE MAID frozen ices, WHOLE FRUIT frozen fruit bars, and various bakery brands [4]

Financial Performance - Net sales increased by $14.3 million, or 4.1%, to $362.6 million for the three months ended December 28, 2024, driven by growth in Retail Supermarket and Frozen Beverages segments [118]. - Gross profit decreased by $0.7 million, or 0.7%, to $93.9 million, with gross profit margin declining from 27.2% to 25.9% due to rising raw material costs [119]. - Operating expenses increased by $2.8 million, or 3.3%, to $87.7 million, while as a percentage of sales, they decreased from 24.4% to 24.2% [120]. - Net earnings decreased by $2.1 million, or 29.4%, to $5.1 million for the three months ended December 28, 2024 [123]. Segment Performance - Food Service segment sales increased by $10.3 million, or 4.5%, to $238.9 million, with soft pretzels sales up 4.8% to $52.5 million [127]. - The Frozen Beverages segment reported a sales increase of 4.0% to $79.0 million, with operating income rising by 29.9% to $4.2 million [126]. - Operating income in the Food Service segment decreased by $4.3 million to $1.7 million due to gross margin pressures from rising raw material costs and an unfavorable product mix [130]. - Retail Supermarket sales increased by $1.0 million, or 2.2%, to $44.7 million, with soft pretzel sales decreasing by 7.4% to $17.1 million [131]. - Frozen Beverages sales increased by $3.1 million, or 4.0%, to $79.0 million, with beverage sales rising by 6.4% to $44.7 million [134]. - Operating income in the Frozen Beverages segment increased by $1.0 million to $4.2 million, driven by strong sales and well-managed operating expenses [135]. Operational Developments - The company opened three regional distribution centers, projected to drive significant cost reductions in warehousing and distribution [116]. - Six new production lines were added, significantly expanding capacity for core products like pretzels and churros [116]. - The company launched new products, generating approximately $0.7 million in sales in the first twelve months since their introduction [129]. Cash Flow and Financial Position - Net cash provided by operating activities decreased to $35.2 million from $49.0 million year-over-year [137]. - Cash flows used in investing activities were $18.9 million, slightly down from $19.8 million in the prior year, primarily due to timing of spending [138]. - As of December 28, 2024, the company had $73.6 million in cash and cash equivalents [140]. - The amount available under the Amended Credit Agreement was $212.7 million after accounting for $12.3 million in letters of credit outstanding [144]. - The company is in compliance with all financial covenants of the Credit Agreement as of December 28, 2024 [143]. Tax and Dividends - The effective tax rate remained stable at 27% for both the three months ended December 28, 2024, and December 30, 2023 [122]. - The increase in cash dividends from the prior year was due to a raise in the quarterly dividend during fiscal 2024 [147].

Financial Data and Key Metrics Changes - The company reported a revenue increase of 4.1% to $362.6 million, driven by volume increases and pricing [5][19] - Gross margin declined to 25.9% from 27.2% year-over-year, reflecting input cost inflation not fully offset by price increases [6][19] - Operating income decreased to $6.2 million from $9.7 million, with adjusted operating income at $8.2 million compared to $13.5 million last year [22][24] - Net earnings fell to $5.1 million from $7.3 million, with earnings per diluted share decreasing to $0.26 from $0.37 [23][24] Business Line Data and Key Metrics Changes - Foodservice revenue increased by 4.5%, with soft pretzel sales up 4.8% due to convenience store recovery [11] - Frozen novelties saw a significant increase of 9.8%, driven by Zippin' Dots growth [11] - Bakery sales grew by 6.6%, primarily due to price increases [12] - Retail sales increased by 2.2%, with frozen novelty sales rising significantly, while soft pretzel sales declined by 7.4% due to an ordering system issue [12] Market Data and Key Metrics Changes - Frozen beverage sales increased by 4%, with a notable 10% volume increase attributed to a 45% growth in theater channels [13] - The North American box office is projected to grow over 10% year-over-year, indicating a strong recovery in the entertainment sector [13][14] - Consumer spending on leisure and entertainment is outpacing traditional retail channels, providing a favorable environment for the company [14] Company Strategy and Development Direction - The company is focused on driving volume growth and mix improvement across its portfolio, with a disciplined approach to capital deployment [10][17] - A new $50 million stock repurchase authorization reflects confidence in long-term value and financial flexibility [10] - The rollout of Dippin' Dots to theaters is progressing well, with plans for further growth in retail channels [16][70] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in Q1 but expressed confidence in overcoming them, citing strong underlying business fundamentals [9][17] - The company is optimistic about the recovery trajectory in theater traffic and overall consumer spending trends [14][25] - Management expects gross margins to improve in the second half of the year, targeting a return to low 30% levels [66][67] Other Important Information - The company experienced significant inflation in chocolates, eggs, and proteins, which impacted profitability [7][20] - The effective tax rate for the quarter was 27.2%, up from 26.6% in the prior year [23] Q&A Session Summary Question: Can you provide a gross margin bridge for the decline year over year? - Management indicated that about 80 basis points of the decline were due to pricing gaps relative to input costs, with the remainder attributed to mix changes in the bakery business [30][31] Question: How does the pricing lag occur? - The delay in implementing price increases was primarily due to the time taken to push these through to customers, not a lack of visibility [46][47] Question: What is the impact of the peso on profitability? - The peso's depreciation had a nearly $1 million impact on profitability for the frozen beverage segment [54] Question: What is the outlook for gross margins in the second half of the year? - Management expects gross margins to improve, aiming for low 30% levels, with seasonal factors contributing positively [66][67] Question: Can you elaborate on the Dippin' Dots rollout? - The Dippin' Dots product has been well received, launching with a major nationwide retailer, and is expected to see significant growth [70] Question: Will stock repurchases occur alongside potential acquisitions? - The company plans to be opportunistic with stock repurchases while also actively seeking attractive acquisition opportunities [75]

J&J Snack Foods Corp. (JJSF) reported first-quarter fiscal 2025 results, wherein the top line beat the Zacks Consensus Estimate and showed year-over-year growth, while the bottom missed the same and declined year over year.J&J Snack Foods’ revenue growth was driven by strong sales in Frozen Beverages, solid performance across most core Food Service products and strong growth in frozen novelties within Retail Supermarkets. Despite this, results were impacted by a less favorable sales mix, particularly in the ...

Financial Performance - J & J Snack Foods reported a 4.1% increase in net sales to $362.6 million for Q1 2025, up from $348.3 million in Q1 2024[3] - Gross profit margin decreased to 25.9% in Q1 2025 from 27.2% in Q1 2024, reflecting a less favorable sales mix and input cost inflation[9] - Operating income fell by 35.6% to $6.2 million in Q1 2025, compared to $9.7 million in the prior year[3] - Net earnings decreased by 29.4% to $5.1 million in Q1 2025, down from $7.3 million in Q1 2024[3] - Adjusted EBITDA for the three months ended December 28, 2024, was $25,254,000, down 16.4% from $30,178,000 in the prior year[37] - Total operating income for the three months ended December 28, 2024, was $6,239,000, a decrease of 35.3% from $9,683,000 in the same period of 2023[37] Segment Performance - Food Services segment sales increased by 4.5% to $238.9 million in Q1 2025, driven by strong sales in soft pretzels and frozen novelties[16] - Retail Supermarket segment sales rose by 2.2% to $44.7 million in Q1 2025, with new product placements contributing approximately $2.3 million[16] - Frozen Beverage segment sales grew by 4.0% to $79.0 million, with beverage sales increasing by 6.4% driven by volume growth in the theater channel[16] Cash Flow and Assets - Cash and cash equivalents at the end of the period were $73,562,000, compared to $50,020,000 at the end of the same period in 2023, representing a year-over-year increase of 47.1%[33] - The company reported a decrease in accounts receivable by $24,987,000, indicating improved cash flow management[33] - Total current assets decreased to $427,538,000 as of December 28, 2024, from $450,414,000 as of September 28, 2024, reflecting a decline of 5.1%[31] - The total assets as of December 28, 2024, were $1,346,787,000, an increase from $1,292,557,000 in the same period of the previous year, reflecting a growth of 4.2%[35] Shareholder Actions - The company announced a new $50 million stock repurchase authorization, effective for two years, reflecting confidence in long-term value[6] Expenses and Capital Expenditures - Total operating expenses were $87.7 million, representing 24.2% of sales, slightly down from 24.4% in Q1 2024[10] - Capital expenditures for the three months ended December 28, 2024, totaled $19,065,000, slightly down from $19,930,000 in the prior year[35] Retained Earnings - The company’s retained earnings decreased to $825,703,000 as of December 28, 2024, down from $835,753,000 as of September 28, 2024[31] Future Outlook - The company is implementing additional pricing actions in Q2 2025 to mitigate input cost inflation and improve profitability[5]