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1. Company Snapshot

1.a. Company Description

J&J Snack Foods Corp.manufactures, markets, and distributes nutritional snack foods and beverages to the food service and retail supermarket industries in the United States, Mexico, and Canada.It operates in three segments: Food Service, Retail Supermarkets, and Frozen Beverages.


The company offers soft pretzels under the SUPERPRETZEL, PRETZEL FILLERS, PRETZELFILS, GOURMET TWISTS, MR.TWISTER, SOFT PRETZEL BITES, SOFTSTIX, SOFT PRETZEL BUNS, TEXAS TWIST, BAVARIAN BAKERY, SUPERPRETZEL BAVARIAN, NEW YORK PRETZEL, KIM & SCOTT'S GOURMET PRETZELS, SERIOUSLY TWISTED!, BRAUHAUS, AUNTIE ANNE'S, and LABRIOLA, as well as under the private labels.It also provides frozen novelty under the LUIGI'S, WHOLE FRUIT, PHILLY SWIRL, SOUR PATCH, ICEE, and MINUTE MAID brands; churros under the TIO PEPE'S and CALIFORNIA CHURROS brands; and handheld products under the SUPREME STUFFERS and SWEET STUFFERS brands.


In addition, the company offers bakery products, including biscuits, fig and fruit bars, cookies, breads, rolls, crumbs, muffins, and donuts under the MRS.GOODCOOKIE, READI-BAKE, COUNTRY HOME, MARY B'S, DADDY RAY'S, and HILL & VALLEY brands, as well as under private labels; and frozen beverages under the ICEE, SLUSH PUPPIE, and PARROT ICE brands.Further, it provides funnel cakes under the FUNNEL CAKE FACTORY brand, as well as various other food products; and sells machines and machine parts to other food and beverage companies.


The company sells its products through a network of food brokers, independent sales distributors, and direct sales force.It serves snack bars and food stand locations in chain, department and mass merchandising stores, malls and shopping centers, fast food and casual dining restaurants, stadiums and sports arenas, leisure and theme parks, convenience stores, movie theatres, warehouse club stores, schools, colleges and other institutions, and independent retailers.The company was incorporated in 1971 and is headquartered in Pennsauken, New Jersey.

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1.b. Last Insights on JJSF

J&J Snack Foods Corp.'s recent performance was negatively impacted by revenue declines across all segments, particularly in Frozen Beverages, due to weaker movie theater demand. However, the company announced cost-cutting plans, Project Apollo, to achieve $20 million in annual cost savings. Additionally, the company declared a quarterly cash dividend of $0.80 per share. Despite mixed Q4 2025 results, adjusted EPS beat estimates. Institutional investors, such as Bank of New York Mellon Corp, have increased their holdings in the company. (Source: Zacks Rank)

1.c. Company Highlights

2. J&J Snack Foods' Q4 2025 Earnings: A Resilient Performance Amidst Challenges

J&J Snack Foods reported adjusted EBITDA of $57.4 million on sales of $410.2 million for Q4 2025, representing a 3.9% decline from the prior year. The company's full-year adjusted EBITDA was $180.9 million, with net sales increasing 0.5% to $1.58 billion. Adjusted earnings per diluted share were $4.27 for the full year, while Q4 EPS came in at $0.582, below estimates of $1.06. The company's gross margin was impacted by various factors, including chocolate cost inflation.

Publication Date: Nov -18

📋 Highlights
  • Q4 Financial Performance:: Adjusted EBITDA of $57.4M on $410.2M sales (-3.9% YoY), with full-year adjusted EBITDA at $180.9M and net sales up 0.5% to $1.58B.
  • Project Apollo Cost Savings:: $20M+ annualized operating income target by 2026 via facility closures, distribution/ admin savings, and production consolidation.
  • Balance Sheet Strength:: $106M in cash, zero debt, and $210M borrowing capacity, supporting buybacks ($42M remaining) and strategic investments.
  • Product Innovation Pipeline:: Launches include protein pretzels, Super Pretzel pizza sticks, Luigi’s Mini Pops, and Dippin’ Dots retail expansions in 2026.
  • Commercial Momentum:: Churros LTO with major QSR, ICEE machine rollout completion, and positive frozen beverage test with West Coast QSR drive growth prospects.

Operational Highlights and Initiatives

The company has initiated Project Apollo, a business transformation program aimed at generating sustainable efficiencies and cost savings. This program is expected to deliver at least $20 million of annualized operating income in 2026, driven by manufacturing network consolidation, distribution system initiatives, and administrative efficiencies. The company is also focusing on innovation, with new product launches planned for fiscal 2026, including a new protein pretzel, Super Pretzel pizza sticks, and Luigi's Mini Pops.

Commercial Activities and Outlook

J&J Snack Foods is experiencing encouraging trends in its commercial activities, including the rollout of ICEE machines for a large convenience store operator and a frozen beverage test with a major QSR operator. The company is also set to commence shipping churros to a major QSR as part of a limited-time offer program. The outlook for theaters is positive, with industry sources projecting a 9% increase in North America box office sales for fiscal 2026.

Valuation and Financial Position

The company's financial position remains strong, with $106 million in cash and no debt. The P/E Ratio is 24.92, indicating that the stock may be fairly valued. The EV/EBITDA ratio is 12.02, suggesting a reasonable valuation relative to its earnings. The Dividend Yield is 3.74%, providing a relatively stable return for investors. With a strong balance sheet and a commitment to returning capital to shareholders, J&J Snack Foods is well-positioned for future growth.

Growth Prospects and Capital Allocation

J&J Snack Foods is optimistic about its growth prospects, driven by the benefits of Project Apollo, innovation, and a strong balance sheet. The company plans to accelerate stock buybacks, with $42 million remaining on their authorization. Analysts estimate revenue growth of 2.9% for the next year, indicating a positive outlook for the company's top line. With a focus on investing in opportunities and returning capital to shareholders, J&J Snack Foods is poised for long-term success.

3. NewsRoom

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J&J Snack Foods (JJSF) CEO on Adding Protein to Pretzels

Nov -27

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J & J SNACK FOODS CORP. ANNOUNCES QUARTERLY CASH DIVIDEND

Nov -20

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J&J Snack Foods: Fairly Valued, Though It's Getting Harder To Say No To This Treat

Nov -18

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J&J Snack Foods Corp. (JJSF) Q4 2025 Earnings Call Transcript

Nov -17

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J & J Snack Foods Reports Fiscal 2025 Fourth Quarter and Full-Year Results

Nov -17

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Envestnet Asset Management Inc. Sells 2,065 Shares of J & J Snack Foods Corp. $JJSF

Nov -17

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J & J Snack Foods Corp. $JJSF Shares Purchased by Bank of New York Mellon Corp

Nov -16

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J & J SNACK FOODS SCHEDULES FISCAL 2025 FOURTH QUARTER EARNINGS CONFERENCE CALL AND WEBCAST

Oct -29

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.77%)

6. Segments

Food Service

Expected Growth: 2.5%

J&J Snack Foods Corp.'s Food Service segment growth of 2.5% is driven by increasing demand for convenient and portable food options, expansion into new channels such as education and healthcare, and strategic partnerships with major foodservice providers. Additionally, the company's focus on innovation, quality, and customer service has enabled it to maintain market share and attract new customers.

Frozen Beverages

Expected Growth: 3.5%

J&J Snack Foods Corp.'s Frozen Beverages segment growth of 3.5% is driven by increasing demand for convenient and healthy beverages, expansion into new distribution channels, and strategic product innovations such as organic and low-calorie offerings. Additionally, the segment benefits from a strong brand portfolio and effective marketing campaigns.

Retail Supermarket

Expected Growth: 2.8%

The 2.8% growth in Retail Supermarket segment of J&J Snack Foods Corp. is driven by increasing demand for convenient and healthy snacks, expansion of distribution channels, and strategic partnerships with major retailers. Additionally, the company's focus on innovation and new product launches, such as better-for-you options, has contributed to the growth.

7. Detailed Products

Soft Pretzels

Soft, freshly baked pretzels perfect for snacking or as a complement to meals

Frozen Juices

Frozen juice concentrates and ready-to-drink juices for schools, institutions, and foodservice providers

Churros

Cinnamon sugar-coated fried dough pastries, perfect for snacking or as a dessert

Funnel Cakes

Deep-fried batter topped with powdered sugar, perfect for fairs and festivals

Beverages

Frozen and bottled beverages, including iced tea, lemonade, and fruit flavors

Muffins and Baked Goods

Freshly baked muffins, cookies, and other sweet treats

Frozen Desserts

Frozen treats, including ice cream, gelato, and frozen yogurt

8. J&J Snack Foods Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

J&J Snack Foods Corp. operates in a competitive industry with many substitutes available, but the company's strong brand recognition and diversified product portfolio mitigate the threat of substitutes.

Bargaining Power Of Customers

J&J Snack Foods Corp. has a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are not highly customized, reducing the dependence on specific customers.

Bargaining Power Of Suppliers

J&J Snack Foods Corp. relies on a few large suppliers for its raw materials, giving them some bargaining power. However, the company's scale and diversification of suppliers mitigate this risk.

Threat Of New Entrants

The snack food industry has high barriers to entry, including significant capital requirements and established distribution networks. This makes it difficult for new entrants to compete with J&J Snack Foods Corp.

Intensity Of Rivalry

The snack food industry is highly competitive, with many established players competing for market share. J&J Snack Foods Corp. must continually innovate and invest in marketing to maintain its market position.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 11.80%
Debt Cost 5.31%
Equity Weight 88.20%
Equity Cost 6.65%
WACC 6.49%
Leverage 13.37%

11. Quality Control: J&J Snack Foods Corp. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Lancaster Colony

A-Score: 5.7/10

Value: 3.6

Growth: 5.9

Quality: 7.1

Yield: 4.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

Stock-Card
J&J Snack Foods

A-Score: 5.1/10

Value: 5.1

Growth: 5.0

Quality: 5.8

Yield: 6.0

Momentum: 0.5

Volatility: 8.3

1-Year Total Return ->

Stock-Card
Smucker

A-Score: 5.0/10

Value: 7.3

Growth: 2.7

Quality: 3.0

Yield: 7.0

Momentum: 2.5

Volatility: 7.7

1-Year Total Return ->

Stock-Card
Campbell Soup

A-Score: 4.9/10

Value: 5.9

Growth: 3.3

Quality: 4.7

Yield: 7.0

Momentum: 0.5

Volatility: 8.0

1-Year Total Return ->

Stock-Card
Central Garden & Pet

A-Score: 4.4/10

Value: 7.4

Growth: 4.8

Quality: 5.0

Yield: 0.0

Momentum: 3.5

Volatility: 6.0

1-Year Total Return ->

Stock-Card
Simply Good Foods

A-Score: 4.2/10

Value: 5.6

Growth: 5.4

Quality: 6.6

Yield: 0.0

Momentum: 1.0

Volatility: 6.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

90.97$

Current Price

90.97$

Potential

-0.00%

Expected Cash-Flows