J&J Snack Foods' Q1 Earnings Lag Estimates, Sales Grow 4.1% Y/Y

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]