Vending

COVID-19 clips J & J Snack Foods Q1 2021 sales by 15%

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January 26, 2021

J & J Snack Foods Corp.'s sales decreased 15% from $282.9 million in last year's first quarter to $241 million in this year's first quarter ending Dec. 26, 2020, on account of COVID-19, according to an earnings release.

Net earnings were $1.8 million in the recent quarter, down from $17.1 million last year. Earnings per diluted share was 9 cents for the first quarter down from 8.9 cents last year.

Earnings per share missed market expectations by 5 cents, according to Seeking Alpha, while revenue beat expectations by $16.19 million. Shares traded at $159.53 today against a 52-week range of $107.04-$172.60.

Operating income decreased 97% from $21.7 million last year to $578,000 in the recent quarter. It was impacted by approximately $730,000 of COVID-19 related costs.

Traffic in key foodservice venues that comprise two-thirds of sales continued to operate at substantially reduced and limited capacity. This was especially pronounced during the Christmas holiday season where many venues rely on seasonally higher traffic and sales.

Performance in the recent quarter showed some improvement compared to the 2020 fourth quarter when sales were 19% below last year.

"Consumers continue to stay at home which has driven strong growth in our retail segment, but closures and limited capacity foodservice venues are challenging sales in other parts of our business," Dan Fachner, company president, said in the release. "Our balance sheet is strong, and we will continue to focus on driving cost efficiencies across our operations. We continue to be optimistic and remain confident that we are well positioned for future growth."

For an update on how the coronavirus pandemic is affecting the convenience services industry, click here.