J & J Snack Foods (NASDAQ:JJSF) Releases Earnings Results, Beats Expectations By $0.26 EPS

J & J Snack Foods (NASDAQ:JJSF) released its quarterly earnings data on Wednesday. The company reported $1.96 EPS for the quarter, beating analysts’ consensus estimates of $1.70 by $0.26, FiscalAI reports. The company had revenue of $425.96 million during the quarter, compared to analyst estimates of $427.65 million. J & J Snack Foods had a net margin of 3.23% and a return on equity of 8.93%. J & J Snack Foods’s revenue was down 6.3% compared to the same quarter last year. During the same period last year, the business earned $2.00 earnings per share.

Here are the key takeaways from J & J Snack Foods’ conference call:

• Third-quarter sales declined 6.2% to $426 million, while adjusted EBITDA fell 6.4% to $67.4 million, primarily due to $4.7 million in net fuel and freight cost pressures. Foodservice and frozen beverage sales were pressured by bakery SKU reductions, weaker cookies and handhelds, and lower service and machine revenue.
• Transformation efforts continued to protect profitability, with gross margin expanding 240 basis points to 35.5%. Project Apollo’s plant-consolidation savings are now expected to reach at least $20 million annually, raising total program savings to at least $25 million.
• Retail sales increased 1.7%, with underlying growth estimated at 4.8% excluding higher slotting fees, while Dogsters retail units rose about 40% and tracked sales for Dippin’ Dots increased more than 100%. Management also cited strong early performance from new “Better For You” products and continued innovation-driven distribution gains.
• Management expects sales momentum to improve in the fourth quarter and a return to organic sales growth in fiscal 2027, supported by new churro, pretzel, and frozen novelty business, a stronger movie lineup, and a new service contract. However, management indicated the inflection is more likely in fiscal 2027 than in the fourth quarter, with fuel and freight pressures expected to persist near term.
• The company ended the quarter with approximately $35 million of net cash, $182 million of revolver capacity, and $48.8 million of operating cash flow. It returned $25 million to shareholders during the quarter and expects to receive approximately $17 million in insurance proceeds in August.

J & J Snack Foods Stock Down 1.2%

Shares of NASDAQ:JJSF traded down $1.07 during midday trading on Friday, reaching $90.78. The company’s stock had a trading volume of 129,500 shares, compared to its average volume of 261,127. The company has a quick ratio of 1.26, a current ratio of 2.34 and a debt-to-equity ratio of 0.03. The firm has a 50 day moving average of $76.74 and a 200-day moving average of $80.37. The firm has a market capitalization of $1.70 billion, a P/E ratio of 34.89 and a beta of 0.38. J & J Snack Foods has a 12-month low of $68.87 and a 12-month high of $116.32.

J & J Snack Foods Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, July 7th. Investors of record on Tuesday, June 16th were given a dividend of $0.80 per share. The ex-dividend date was Tuesday, June 16th. This represents a $3.20 annualized dividend and a dividend yield of 3.5%. J & J Snack Foods’s payout ratio is currently 107.38%.

Institutional Trading of J & J Snack Foods

A number of hedge funds have recently made changes to their positions in the stock. AQR Capital Management LLC bought a new stake in J & J Snack Foods during the 1st quarter valued at about $228,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of J & J Snack Foods by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,079 shares of the company’s stock valued at $1,196,000 after buying an additional 397 shares during the last quarter. Millennium Management LLC raised its holdings in J & J Snack Foods by 122.1% in the 1st quarter. Millennium Management LLC now owns 72,625 shares of the company’s stock worth $9,566,000 after acquiring an additional 39,933 shares during the last quarter. NewEdge Advisors LLC lifted its position in J & J Snack Foods by 49.6% in the 1st quarter. NewEdge Advisors LLC now owns 3,376 shares of the company’s stock valued at $445,000 after acquiring an additional 1,120 shares in the last quarter. Finally, Jane Street Group LLC boosted its stake in J & J Snack Foods by 465.8% during the 1st quarter. Jane Street Group LLC now owns 25,746 shares of the company’s stock valued at $3,391,000 after purchasing an additional 21,196 shares during the last quarter. 76.04% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several research analysts recently weighed in on JJSF shares. Zacks Research cut shares of J & J Snack Foods from a “hold” rating to a “strong sell” rating in a research report on Thursday, May 7th. Jefferies Financial Group raised shares of J & J Snack Foods from a “hold” rating to a “buy” rating and lifted their price objective for the stock from $81.00 to $101.00 in a report on Thursday. Benchmark cut their target price on shares of J & J Snack Foods from $130.00 to $120.00 and set a “buy” rating for the company in a research report on Monday, May 11th. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of J & J Snack Foods in a research report on Wednesday, June 24th. Two analysts have rated the stock with a Buy rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $110.50.

About J & J Snack Foods

J & J Snack Foods (NASDAQ: JJSF) is a U.S.-based manufacturer and distributor of branded snack foods and frozen beverages. Headquartered in Pennsauken, New Jersey, the company develops, produces and markets a broad array of proprietary and licensed products for retail, concession and foodservice customers. Its offerings span soft pretzels, frozen novelties, real Italian ice, churros and packaged beverages under well-known names such as ICEE, SuperPretzel, Luigi’s and ChurroMan.

Founded in 1971 by Gerald B.