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]

Core Insights - J&J Snack Foods Corp. reported first-quarter fiscal 2025 results with revenue growth but a decline in earnings per share [1][3] Revenue Performance - Total revenues increased by 4.1% year over year to $362.6 million, surpassing the Zacks Consensus Estimate of $361 million, driven by volume expansion and price increases [4] - Revenue growth was particularly strong in Frozen Beverages, core Food Service products, and frozen novelties within Retail Supermarkets [2] Earnings Performance - Quarterly earnings were reported at 33 cents per share, missing the Zacks Consensus Estimate of 62 cents and down 36.5% from 52 cents in the prior year [3] Gross Profit and Margin - Gross profit decreased by 0.7% to $93.9 million from $94.6 million in the year-ago quarter, with gross margin contracting by 130 basis points to 25.9% [5] Operating Expenses - Operating expenses rose by 3.3% year over year to $87.7 million, representing 24.2% of sales, a slight contraction from 24.4% in the prior quarter [6] Segment Performance - Food Services revenue increased by 4.5% year over year to $238.9 million, but operating income fell by 72.2% to $1.7 million due to product mix and input cost inflation [7] - Retail Supermarket revenues grew by 2.2% to $44.7 million, while operating income declined by 13.3% to $0.4 million [8] - Frozen Beverages revenues rose by 4% to $79 million, with operating income increasing by 29.9% to $4.2 million [8] Financial Snapshot - The company ended the fiscal first quarter with cash and cash equivalents of $73.6 million and total shareholders' equity of $946.8 million [9] - Net cash flow from operations was reported at $35.2 million for the three months ended December 28, 2024 [9]

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]