J & J Snack Foods Reports Fiscal 2026 Second Quarter Results

MOUNT LAUREL, N.J., May 06, 2026 (GLOBE NEWSWIRE) -- J & J Snack Foods Corp. (Nasdaq: JJSF) today reported financial results for the first quarter ended March 28, 2026.

  Second QuarterActuals$ v. LY% v. LYNet Sales$344.8M$(11.3)M(3.2)%Gross Profit$99.3M$3.6M3.8%Operating Income$1.8M($4.2M)(70.1%)Net Earnings$1.7M($3.1M)(65.2%)Earnings per Diluted Share$0.09($0.16)(64.0%)    Adjusted Operating Income$9.6M$0.8M8.7%Adjusted EBITDA$28.7M$2.5M9.5%Adjusted Earnings per Diluted Share$0.40$0.0514.3%

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.

"Our second quarter results demonstrate meaningful progress in our strategic transformation, with strong profitability improvements that position us well for the future," said Dan Fachner, Chairman, President, and CEO of J&J Snack Foods. "Our transformation initiatives and mix improvements enabled us to drive solid bottom line growth including a 9.5% increase in Adjusted EBITDA and a 14.3% increase in Adjusted earnings per share. These results clearly show that Project Apollo is delivering tangible benefits and improving our underlying business performance.

"The innovative product launches we discussed last quarter are now reaching customers with positive early reception, and our pipeline remains robust. During the quarter, we repurchased $22 million of stock and we continue to see compelling value in our shares as we execute our transformation strategy."

Second Quarter Results

Net sales decreased 3.2% from the prior year quarter to $344.8 million, with most of the decline attributable to anticipated reductions to our bakery business.

• Food Service segment net sales decreased 5.0%
• Retail Supermarket segment net sales decreased 4.1%
• Frozen Beverage segment net sales increased 3.1%
  

Gross profit increased from $95.7 million in the prior year quarter to $99.3 million, while gross margin improved from 26.9% to 28.8%. The improvement in gross margin primarily reflects our Apollo transformation initiatives and mix improvements versus the prior year.

Total operating expenses of $97.5 million included $6.5 million in non-recurring plant closure costs, as well as other non-recurring expenses. Of the non-recurring costs, $4.1 million was non-cash.

• Selling and Marketing expenses increased 5.5% to $30.1 million or 8.7% of sales, up from 8.0% in the prior year quarter. The increase included investments in brand support and sponsorships.
• Distribution expenses decreased 0.2% to $41.7 million or 12.1% of sales up from 11.7% in the prior year quarter. Distribution expenses included higher fuel costs of approximately $0.4 million.
• Administrative expenses increased 7.2% to $21.2 million or 6.1% of sales, up from 5.5% in the prior year quarter. The increase was primarily due to a $0.9 million increase in non-recurring legal expenses and other restructuring charges including severance.
  

Operating income was $1.8 million, compared to $6.0 million in the prior year quarter, while adjusted operating income was $9.6 million, compared to $8.9 million in the prior year quarter. Earnings per diluted share were $0.09, compared to $0.25 in the prior year quarter, while adjusted earnings per diluted share were $0.40, compared to $0.35 in the prior year quarter. The effective tax rate was 28.1%, compared to 27.2% in the prior year quarter.

Food Service Segment

• Net sales of $214.7 million, a year-over-year decrease of $11.4 million or 5.0%. 
• Anticipated reductions in our lower margin bakery business represented approximately $8.0 million of the decline.
• Pretzels sales increased $6.7 million, partly offsetting lower sales of handhelds, cookies, and churros.
• Operating income increased $3.4 million to $10.9 million.

Retail Supermarket Segment

• Net sales of $51.6 million, a year-over-year decrease of $2.2 million or 4.1%.
• Frozen novelty sales declined $3.9 million, driven primarily by increased slotting fees associated with our new product innovation and higher trade investment compared to the prior year.
• Retail handheld sales increased as we lapped capacity constraints in the prior year.
• Operating income decreased $3.9 million to a ($0.4) million loss.

Frozen Beverages Segment

• Net sales of $78.5 million, a year-over-year increase of $2.3 million or 3.1%.
• Beverage sales were up $5.2 million while service sales declined $3.2 million.
• Operating income increased $2.1 million to $4.6 million.
  

Share Repurchases

During the quarter, we repurchased 259,889 shares of common stock for $22 million. As of March 28, 2026, there was $28 million remaining under the $50 million share repurchase program approved by the Board of Directors.

Conference Call

J&J Snack Foods Corp. will host a conference call to discuss results and business outlook today, May 6, 2026, at 10:00 a.m. Eastern Time. Investors interested in participating in the live call can dial (844) 826-3033 from the U.S. or international callers can dial (412) 317-5185. There will also be a live webcast available on the Investor Relations section of the Company's web site at investors.jjsnack.com/news-events/events or directly here. The webcast will be archived for approximately 30 days.

About J & J Snack Foods Corp.

J & J Snack Foods Corp. (Nasdaq: JJSF) is a leader and innovator in the snack food and frozen beverage industry. For over fifty years, the company has specialized in delicious snack and beverage brands for the foodservice and retail segments, serving up fun across the U.S. market. J & J Snack Foods’ core brands include SUPERPRETZEL, the #1 soft pretzel brand, ICEE and SLUSH PUPPIE frozen beverages, and Dippin’ Dots, the original beaded ice cream. The company’s broad brand portfolio also includes LUIGI’S Real Italian Ice, MINUTE MAID* frozen ices, WHOLE FRUIT frozen fruit bars, DOGSTERS ice cream style treats for dogs, ¡Hola! Churros, THE FUNNEL CAKE FACTORY funnel cakes and fries, and bakery brands including MARY B’S, 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, gain on insurance proceeds received for damage to property, plant and equipment, and plant closure expenses. 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, gain on insurance proceeds received for damage to property, plant and equipment, and plant closure expenses. 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, gain on insurance proceeds received for damage to property, plant and equipment, and plant closure expenses. 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:
Reed Anderson, ICR
(646) 277-1260
[email protected]

 J & J SNACK FOODS CORP. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF EARNINGS(Unaudited)(in thousands, except per share amounts)         Three months ended Six months ended March 28, March 29, March 28, March 29,  2026   2025   2026   2025         Net sales$344,819  $356,099  $688,597  $718,697 Cost of goods sold 245,527   260,396   493,293   529,093 Gross profit 99,292   95,703   195,304   189,604         Operating expenses       Marketing 30,083   28,507   61,582   57,176 Distribution 41,737   41,833   79,793   81,443 Administrative 21,184   19,754   41,561   38,657 Gain on insurance proceeds received for damage to property, plant and equipment -   -   (800)  - Plant closure expenses 4,756   -   10,869   - Other general expense (271)  (414)  (141)  66 Total operating expenses 97,489   89,680   192,864   177,342         Operating income 1,803   6,023   2,440   12,262         Other income (expense)       Investment income 832   689   1,544   1,726 Interest expense (302)  (85)  (441)  (297)        Earnings before income taxes 2,333   6,627   3,543   13,691         Income tax expense 656   1,803   983   3,724         NET EARNINGS$1,677  $4,824  $2,560  $9,967         Earnings per diluted share$0.09  $0.25  $0.13  $0.51         Weighted average number of diluted shares 18,930   19,563   19,136   19,568         Earnings per basic share$0.09  $0.25  $0.13  $0.51         Weighted average number of basic shares 18,910   19,488   19,113   19,480         

 J & J SNACK FOODS CORP. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Unaudited)(in thousands, except share amounts)     March 28, September 27,  2026   2025 Assets   Current assets     Cash and cash equivalents$59,746  $105,893   Accounts receivable, net 178,011   184,069   Inventories 171,561   175,173   Prepaid expenses and other 24,169   13,197      Total current assets 433,487   478,332     Property, plant and equipment, at cost 1,030,562   1,009,463   Less accumulated depreciation and amortization 646,912   619,310      Property, plant and equipment, net 383,650   390,153     Other assets     Goodwill 185,070   185,070   Trade name intangible assets, net 105,920   105,920   Other intangible assets, net 63,930   66,730   Operating lease right-of-use assets 149,591   151,538   Other 3,488   3,758      Total other assets 507,999   513,016 Total Assets$1,325,136  $1,381,501     Liabilities and Stockholders' Equity   Current Liabilities     Current portion of long-term debt$29,000  $-   Current finance lease liabilities 615   563   Accounts payable 89,631   82,405   Accrued insurance liability 15,718   16,441   Accrued liabilities 12,326   12,606   Current operating lease liabilities 23,064   21,624   Accrued compensation expense 22,143   26,475   Dividends payable 15,003   15,552      Total current liabilities 207,500   175,666     Long-term debt -   - Noncurrent finance lease liabilities 1,117   1,355 Noncurrent operating lease liabilities 138,737   140,021 Deferred income taxes 91,180   91,703 Other long-term liabilities 6,526   6,061     Stockholders' Equity   Preferred stock, $1 par value; authorized 10,000,000 shares; none issued -   - Common stock, no par value; authorized, 50,000,000 shares; issued and outstanding 18,753,000 and 19,440,000 respectively 78,110   139,118 Accumulated other comprehensive loss (10,607)  (12,647)Retained Earnings 812,573   840,224      Total stockholders' equity 880,076   966,695 Total Liabilities and Stockholders' Equity$1,325,136  $1,381,501     

J & J SNACK FOODS CORP. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)(in thousands)     Six months ended March 28, March 29,  2026   2025 Operating activities:     Net earnings$2,560  $9,967   Adjustments to reconcile net earnings to net cash provided by operating activities       Depreciation of fixed assets 34,799   31,585     Amortization of intangibles and deferred costs 2,800   3,925     Losses (Gains) from disposals of property & equipment 168   (77)    Non-cash plant shutdown expenses 5,046   -     Non-cash impairment charge 850   -     Share-based compensation 3,131   2,753     Deferred income taxes (480)  56     Gain on insurance proceeds received for damage to property, plant, and equipment (800)  -     Other 270   209     Changes in assets and liabilities, net of effects from purchase of companies          Decrease in accounts receivable 6,378   15,794        Decrease (Increase) in inventories 2,057   (13,167)       Net changes in other operating assets and liabilities (5,137)  (3,573)    Net cash provided by operating activities 51,642   47,472     Investing activities:     Purchases of property, plant and equipment (35,184)  (38,530)  Proceeds from disposal of property and equipment 421   622   Proceeds from insurance for fixed assets 800   -     Net cash (used in) investing activities (33,963)  (37,908)    Financing activities:     Payments to repurchase common stock (63,981)  (5,000)  Proceeds from issuance of stock 1,160   2,886   Purchase of vested employee service share units and performance share units (728)  -   Borrowings under credit facility 75,000   15,000   Repayment of borrowings under credit facility (46,000)  (15,000)  Payments on finance lease obligations (249)  (121)  Payment of cash dividend (30,760)  (30,371)    Net cash (used in) financing activities (65,558)  (32,606)    Effect of exchange rates on cash and cash equivalents 1,732   (1,838)    Net (decrease) in cash and cash equivalents (46,147)  (24,880)Cash and cash equivalents at beginning of period 105,893   73,394 Cash and cash equivalents at end of period$59,746  $48,514     

J & J SNACK FOODS CORP. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited) (in thousands)           Three months ended  Six months ended  March 28, March 29,  March 28, March 29,   2026   2025   2026   2025 Sales to external customers:           Food Service$214,665  $226,053  $433,821  $464,936   Retail Supermarket 51,620   53,848   97,502   98,565   Frozen Beverages 78,534   76,198   157,274   155,196 Consolidated sales to external customers$344,819  $356,099  $688,597  $718,697           Operating Income:           Food Service$10,855  $7,465  $20,954  $16,279   Retail Supermarket (385)  3,512   775   4,703   Frozen Beverages 4,636   2,522   8,685   7,213 Total Segment Operating Income 15,106   13,499   30,414   28,195             General corporate expenses 8,547   7,476   17,905   15,933   Gain on insurance proceeds received for damage to property, plant and equipment -   -   (800)  -   Plant closure expense 4,756   -   10,869   - Total Unallocated Operating Expenses (net) 13,303   7,476   27,974   15,933           Total Operating Income$1,803  $6,023  $2,440  $12,262           

                          J & J SNACK FOODS CORP. AND SUBSIDIARIES                              NON-GAAP FINANCIAL MEASURES                        (Unaudited) (in thousands)           Three months ended Six months ended  March 28, March 29, March 28, March 29,   2026   2025   2026   2025                   Reconciliation of GAAP Net Earnings to Adjusted EBITDA                  Net Earnings $1,677  $4,824  $2,560  $9,967     Income Taxes  656   1,803   983   3,724     Investment Income  (832)  (689)  (1,544)  (1,726)    Interest Expense  302   85   441   297     Depreciation and Amortization  18,915   17,766   37,599   35,510     Share-Based Compensation  1,652   1,627   3,131   2,752     Gain on insurance proceeds received for damage to property, plant and equipment  -   -   (800)  -     Restructuring Costs  1,244   260   1,501   260     Non-recurring Legal Expenses  483   591   802   591     Net (Gain) Loss on Sale or Disposal of Assets  (175)  (69)  168   77     Plant closure expenses  4,756   -   10,869   - Adjusted EBITDA $28,678  $26,198  $55,710  $51,452                   Reconciliation of GAAP Operating Income to Adjusted Operating Income                         Operating Income $1,803  $6,023  $2,440  $12,262     Gain on insurance proceeds received for damage to property, plant and equipment  -   -   (800)  -     Restructuring Costs  1,244   260   1,501   260 Non-recurring Legal Expenses  483   591   802   591     Acquisition Related Amortization Expenses  1,357   1,995   2,800   3,925 Plant closure expenses  4,756   -   10,869   - Adjusted Operating Income $9,643  $8,869  $17,612  $17,038                   Reconciliation of GAAP Earnings per Diluted Share to Adjusted Earnings per Diluted Share                         Earnings per Diluted Share $0.09  $0.25  $0.13  $0.51 Gain on insurance proceeds received for damage to property, plant and equipment  -   -   (0.04)  -     Restructuring Costs  0.07   0.01   0.08   0.01 Non-recurring Legal Expenses  0.03   0.03   0.04   0.03     Acquisition Related Amortization Expenses  0.07   0.10   0.15   0.20 Plant closure expenses  0.25   -   0.57   -              Tax Effect of Non-GAAP Adjustments (1)  (0.11)  (0.04)  (0.22)  (0.07)         Adjusted Earnings per Diluted Share $0.40  $0.35  $0.71  $0.68          (1) Income taxes associated with pre-tax adjustments determined using statutory tax rates