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

J & J Snack Foods (NASDAQ:JJSF) released its earnings results on Wednesday. The company reported $1.96 earnings per share for the quarter, beating analysts’ consensus estimates of $1.70 by $0.26, FiscalAI reports. The company had revenue of $425.96 million for the quarter, compared to analysts’ expectations of $427.65 million. J & J Snack Foods had a net margin of 3.75% and a return on equity of 9.01%. J & J Snack Foods’s revenue for the quarter was down 6.3% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.00 EPS.

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 Trading Up 6.5%

Shares of NASDAQ:JJSF traded up $5.14 during trading on Wednesday, reaching $83.78. The company’s stock had a trading volume of 209,906 shares, compared to its average volume of 257,972. The stock has a market capitalization of $1.57 billion, a PE ratio of 27.96 and a beta of 0.38. J & J Snack Foods has a 12 month low of $68.87 and a 12 month high of $119.14. The firm’s 50 day simple moving average is $76.30 and its two-hundred day simple moving average is $80.50.

J & J Snack Foods Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, July 7th. Stockholders of record on Tuesday, June 16th were given a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a dividend yield of 3.8%. The ex-dividend date was Tuesday, June 16th. J & J Snack Foods’s dividend payout ratio is currently 107.38%.

Analysts Set New Price Targets

JJSF has been the topic of a number of research analyst reports. Zacks Research cut J & J Snack Foods from a “hold” rating to a “strong sell” rating in a report on Thursday, May 7th. Weiss Ratings reissued a “sell (d+)” rating on shares of J & J Snack Foods in a report on Wednesday, June 24th. Finally, Benchmark reduced their price target on shares of J & J Snack Foods from $130.00 to $120.00 and set a “buy” rating on the stock in a report on Monday, May 11th. One analyst has rated the stock with a Buy rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus price target of $120.00.

Institutional Investors Weigh In On J & J Snack Foods

Several institutional investors have recently modified their holdings of JJSF. Global Retirement Partners LLC increased its position in J & J Snack Foods by 1,133.3% during the fourth quarter. Global Retirement Partners LLC now owns 333 shares of the company’s stock valued at $30,000 after acquiring an additional 306 shares during the last quarter. EverSource Wealth Advisors LLC grew its holdings in J & J Snack Foods by 902.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 351 shares of the company’s stock valued at $40,000 after purchasing an additional 316 shares during the last quarter. Smartleaf Asset Management LLC raised its position in J & J Snack Foods by 58.4% in the 4th quarter. Smartleaf Asset Management LLC now owns 404 shares of the company’s stock worth $36,000 after purchasing an additional 149 shares during the period. Parallel Advisors LLC lifted its stake in J & J Snack Foods by 191.7% in the fourth quarter. Parallel Advisors LLC now owns 665 shares of the company’s stock worth $60,000 after purchasing an additional 437 shares during the last quarter. Finally, Virtus Advisers LLC purchased a new position in shares of J & J Snack Foods during the third quarter valued at approximately $120,000. 76.04% of the stock is owned by institutional investors.

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.