J & J Snack Foods(JJSF) - 2026 Q1 - Quarterly Results

Financial Performance - Net sales for the first quarter decreased by 5.2% year-over-year to $343.8 million, primarily due to a decline in the bakery business and strategic portfolio rationalization efforts [2][4]. - Gross profit increased to $96.0 million, with a gross margin improvement from 25.9% to 27.9%, reflecting early benefits from Project Apollo initiatives [5]. - Operating income was $0.6 million, a significant decline of 89.8% compared to the prior year quarter, while adjusted operating income was $8.0 million, down 2.4% year-over-year [2][7]. - Net earnings fell to $0.9 million, representing an 82.8% decrease from the previous year, with earnings per diluted share at $0.05, down from $0.26 [2][7]. - Adjusted EBITDA grew by 7.0% year-over-year to $27.0 million, indicating improved operational efficiency despite declining sales [2][3]. Segment Performance - The Food Service segment experienced an 8.3% decline in net sales, while the Retail Supermarket segment saw a 2.6% increase [4][10]. - The pretzel business continued to show growth, with sales increasing approximately 6.9%, driven by share gains from Bavarian formula pretzels [10]. Cost and Expenses - Selling and marketing expenses rose by 9.9% to $31.5 million, attributed to higher commissions and investments for the peak summer season [10]. - The company incurred a plant closure expense of $6,113 thousand during the three months ended December 27, 2025 [26]. Shareholder Actions - The company announced a new $50 million share repurchase authorization, reflecting confidence in long-term value and a strong balance sheet [3][12]. - Payments to repurchase common stock amounted to $42,000 thousand during the financing activities for the period [24]. Asset and Cash Management - Total assets decreased from $1,381,501 thousand as of September 27, 2025, to $1,313,274 thousand as of December 27, 2025, representing a decline of approximately 4.9% [22]. - Cash and cash equivalents decreased from $105,893 thousand at the beginning of the period to $66,761 thousand at the end, a decline of 37.0% [24]. - The company reported a decrease in accounts receivable, with a net reduction of $22,872 thousand for the three months ended December 27, 2025 [24]. Project Initiatives - The company is on track to achieve $20 million in annualized savings from its Project Apollo business transformation program [3].