Release Details

MOUNT LAUREL, N.J., Aug. 05, 2025 (GLOBE NEWSWIRE) -- J & J Snack Foods Corp. (NASDAQ: JJSF) (the “Company”) today reported financial results for the third quarter ended June 28, 2025. 

This press release contains non-GAAP financial measures. Please refer to the Non-GAAP Financial Measures section below for reconciliations to the most comparable GAAP measures.

Dan Fachner, J&J Snack Foods Chairman, President, and CEO stated, “We delivered strong third quarter results, achieving record performance across key financial metrics, including net sales of $454.3 million and adjusted EBITDA of $72.0 million. These results reflect the resilience of our business, the strength of our diversified portfolio, the continued appeal of our brands, and our team’s relentless focus on disciplined execution in the face of a cautious consumer environment and weather-related headwinds.  

“Our performance was led by sales growth within our Food Service and Frozen Beverage segments, with meaningful sales growth in our core soft pretzel, bakery, and Dippin’ Dots businesses. Retail sales fell as we reduced promotional activity for frozen novelties while handheld sales declined due to capacity constraints resulting from a facility fire last year. We are implementing a solution to restore handheld capacity by the end of the calendar year. Sequential margin expansion was supported by a seasonal mix shift toward our higher-margin products, as well as recent pricing initiatives designed to offset persistent input cost inflation.   

“As we close out our fiscal fourth quarter, we remain cautious given the consumer backdrop, tariff-related risks, and projections for box office sales to be down in the fourth quarter. Looking ahead to fiscal 2026, we remain focused on execution and innovation, with several key product launches and customer pilots underway across pretzels, churros and frozen beverages. We are also making progress on better-for-you innovation, including high protein pretzels and clean-label novelties with functional benefits.   We remain committed to driving sustainable growth and long-term value for our customers, partners and shareholders.”

Third Quarter Highlights

Net sales increased 3.3% from the prior year quarter to $454.3 million due primarily to higher Food Service and Frozen Beverage sales.

Key highlights include:

• Food Service segment sales increased 4.8%
• Retail Supermarket segment sales decreased 7.1%
• Frozen Beverage segment sales increased 6.1%
  

Gross profit increased from $147.8 million in the prior year quarter to $150.0 million, while gross margin declined from 33.6% to 33.0%. The slight decline in gross margin is mostly attributable to lower gross margin in the Frozen Beverage segment due to a higher proportion of lower margin machine sales in the quarter. Ingredient costs increased in the aggregate as compared to the prior year quarter, with the largest increases related to chocolates; however, price increases helped to offset these impacts in the quarter.

Total operating expenses of $89.4 million, which included a $10.6 million gain on insurance proceeds received for damage to property, plant and equipment, and a $1.5 million intangible asset impairment charge, represented 19.7% of sales for the quarter, compared to 22.2% in the prior year quarter. Excluding these non-recurring items, operating expenses would have increased less than 1% in the quarter.

• Marketing and selling expenses were $33.8 million or 7.5% of sales, up slightly from 7.4% in the prior year quarter, and increased 3.8%. The increase was primarily related to expenses for summer promotions in our Frozen Beverages and Dippin’ Dots businesses.
• Distribution expenses were $44.7 million or 9.8% of sales, down from 10.2% in the prior year quarter. Distribution cost improvements were driven by our exit from third-party logistics facilities, lower outbound freight costs from freight optimization initiatives, and lower fuel expenses.
• Administrative expenses were $20.0 million or 4.4% of sales, down slightly from 4.5% in the prior year quarter. Administrative expenses were materially flat to the prior year quarter, reflecting expense control discipline.
  

Operating income was $60.6 million, compared to $50.1 million in the prior year quarter, while adjusted operating income was $53.4 million, compared to $53.1 million in the prior year quarter. Earnings per diluted share were $2.26, compared to $1.87 in the prior year quarter, while adjusted earnings per diluted share were $2.00, compared to $1.98 in the prior year quarter. The effective tax rate was 27.2%, compared to 27.9% in the prior year quarter.

Food Service Segment Third Quarter Highlights

• Food Service sales increased 4.8% to $277.2 million.  
• Pretzel sales increased 12.8%, with a significant portion of the growth attributable to our Bavarian varieties. Churro sales declined 13.2%, reflecting the wind-down of a limited time offer program in the prior year.
• Sales of new products and added placement with new customers were approximately $8.4 million in the quarter, driven primarily by the addition of frozen novelties and churro related products, as well as new distribution of cookies.
• Operating income increased by $11.3 million, or 55.7% to $31.5 million, which included the net $9.1 benefit of the non-recurring insurance gain on proceeds received for property, plant and equipment, and the intangible asset impairment charge.

Retail Supermarket Segment Third Quarter Highlights

• Retail sales decreased 7.1% to $63.9 million
• Frozen novelties sales decreased 8.5% and were impacted by lower promotional activity in the quarter. Although frozen novelty sales declined in total, Dogsters and Dippin’ Dots Sundaes continued to deliver sales growth in the quarter. Retail handheld sales declined 21% as continued capacity constraints from the fire at our North Carolina facility last year limited sales. Soft pretzel sales increased 3.3%.
• Sales of new products and added placement with new customers were approximately $3.3 million in the quarter driven by the recent launch of our Dippin’ Dots Sundaes as well as additional distribution of pretzel dogs.
• Operating income decreased 26.3% to $5.8 million.

Frozen Beverages Segment Third Quarter Highlights      

• Frozen beverage segment sales increased 6.1% to $113.3 million.
• Beverage sales declined 1.5% which included the impact of unfavorable foreign exchange rates.
• Machine Service revenues increased 2.7% on higher call volumes, while machine sales increased 73.4%, primarily due to a major convenience customer upgrading its equipment across its store network.
• Operating income increased 5.8% to $23.3 million driven primarily by the increase in equipment sales as well as focused expense management.

Conference Call
J&J Snack Foods Corp. will host a conference call to discuss results and business outlook on August 5, 2025, at 10:00 a.m. Eastern Time. Conference call participants should register by clicking on this Registration Link to receive the dial-in number and a personal PIN, which are required to access the conference call. A live audio webcast of the conference call will also be available on the Investors homepage at investors.jjsnack.com.

About J & J Snack Foods Corp.

J & J Snack Foods Corp. (NASDAQ: JJSF) is a leader and innovator in the snack food industry, providing innovative, niche, and affordable branded snack foods and beverages to foodservice and retail supermarket outlets. Manufactured and distributed nationwide, our principal products include SUPERPRETZEL, the #1 soft pretzel brand in the world, as well as internationally known ICEE and SLUSH PUPPIE frozen beverages, DIPPIN’ DOTS ice cream, LUIGI’S Real Italian Ice, MINUTE MAID* frozen ices, WHOLE FRUIT sorbet and frozen fruit bars, HOLA! CHURROS, and THE FUNNEL CAKE FACTORY funnel cakes and several bakery brands within DADDY RAY’S, COUNTRY HOME BAKERS and HILL & VALLEY. For more information, please visit http://www.jjsnack.com.

*MINUTE MAID is a registered trademark of The Coca-Cola Company.

Cautionary Statement Regarding Forward-Looking Information
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding the Company’s expected future financial position, results of operations, revenue growth and profit levels, cash flows, business strategy, budgets, projected costs, capital expenditures, products, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as “anticipate,” “if,” “believe,” “plan,” “goals,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will,” and other similar expressions are forward-looking statements. This includes, without limitation, our statements, and expectations regarding any current or future recovery in our industry and the future impact of our operational efficiency projects. Such forward-looking statements are inherently uncertain, and readers must recognize that actual results may differ materially from the expectations of management. We do not undertake a duty to update such forward-looking statements. Factors that may cause actual results to differ materially from those in the forward-looking statements include consumer spending, price competition, acceptance of new products, the pricing and availability of raw materials, transportation costs, changes in the competitive marketplace the uncertainty and ultimate economic impact of the COVID-19 pandemic or similar health outbreaks, and other risks identified in our annual report on Form 10-K, and our other filings with the Securities and Exchange Commission. Many of these factors are outside of the Company’s control.

Non-GAAP Financial Measures
Adjusted EBITDA consists of net earnings adjusted to exclude: income taxes (benefit); investment income; interest expense; depreciation and amortization; share-based compensation expense; net (gain) loss on sale or disposal of assets; impairment charges, restructuring costs, merger and acquisition costs, acquisition related inventory adjustments, strategic business transformation costs, integration costs, non-recurring legal fee settlements and gain on insurance proceeds received for damage to property, plant and equipment.

Adjusted Operating Income consists of operating income adjusted to exclude: impairment charges, restructuring costs, merger and acquisition costs, acquisition related amortization expenses and inventory adjustments, strategic business transformation costs, integration costs, non-recurring legal fee settlements, and gain on insurance proceeds received for damage to property, plant and equipment.

Adjusted Earnings per Diluted Share consists of net earnings adjusted to exclude: impairment charges, restructuring costs, merger and acquisition costs, acquisition related amortization expenses and inventory adjustment, strategic business transformation costs, integration costs, non-recurring legal fee settlements, and gain on insurance proceeds received for damage to property, plant and equipment. For purposes of comparability, the income tax effect of pre-tax adjustments is determined using statutory tax rates.

This press release contains certain non-GAAP financial measures; Adjusted EBITDA, Adjusted Operating Income, and Adjusted Earnings per Diluted Share. A "non-GAAP financial measure" is a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP") in the statements of income, balance sheets, or statements of cash flow of the company. Pursuant to applicable reporting requirements, the company has provided reconciliations below of non-GAAP financial measures to the most directly comparable GAAP measure.

The non-GAAP financial measures presented within the Company's earnings release are not indicators of our financial performance under GAAP and should not be considered as an alternative to the applicable GAAP measure. These non-GAAP measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. In addition, in evaluating these non-GAAP measures, you should be aware that in the future we may incur income, expenses, gains and losses, similar to the adjustments in this press release. Our presentation of these non-GAAP measures should not be construed as an inference that our future results will be unaffected by unusual or infrequent items. We compensate for these limitations by providing equal prominence to our GAAP results and using non-GAAP measures only as supplemental presentations.

The non-GAAP measures presented are utilized by management to evaluate the Company's business performance and profitability by excluding certain items that may not be indicative of our recurring core business operating results. The Company believes that these measures provide additional clarity for investors by excluding specific income, expenses, gains, and losses, in an effort to show comparable business operating results for the periods presented. Similarly, Management believes these adjusted measures are useful performance measures because certain items included in the calculations may either mask or exaggerate trends in the Company’s ongoing operating performance. See the reconciliation of Non-GAAP Financial Measures below.

Investor Contact:

Joseph Jaffoni, Norberto Aja, or Jennifer Neuman
JCIR
(212) 835-8500
jjsf@jcir.com

Source: J & J Snack Foods Corp.