J & J Snack Foods Q4 sales miss estimates on drop in frozen beverages business

Overview

• J & J Snack Foods Q4 net sales declined 4% yr/yr, missing analyst expectations

• Adjusted EPS for Q4 beats analyst expectations, indicating better-than-expected profitability

• Company initiated a business transformation program, incurring $24 mln in non-recurring charges

Outlook

• Company to launch major commercial programs in fiscal 2026

• Business transformation program to generate $20 mln annualized operating income

• Company expects $3 mln to $5 mln in additional plant closure charges in fiscal 2026

Result Drivers

• FROZEN BEVERAGE DECLINE - Sales in the Frozen Beverage segment fell 8.3% due to lower theater volumes, as last year's results were boosted by a major movie release

• PRETZEL BUSINESS GROWTH - Pretzel sales rose in both Retail and Foodservice segments, driven by Bavarian varieties

• BUSINESS TRANSFORMATION - The company initiated a business transformation program, incurring $24 mln in non-recurring charges due to plant consolidation

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy"

• Wall Street's median 12-month price target for J&J Snack Foods Corp is $150.00, about 44.6% above its November 14 closing price of $83.09

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nGNX94PZV9

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)