Vending

J&J Snack Foods boosts Q3 2021 sales, earnings

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July 27, 2021

Sales for J&J Snack Foods Corp. increased 51% from $214.6 million in last year's third quarter to $324.3 million for the quarter ending June 26, 2021, according to an earnings report.

Net earnings rose from a $12.6 million loss in last year's third quarter to $28.9 million in the current quarter, while earnings per diluted share jumped from a 67-cent loss in last year's quarter to $1.51 for the current third quarter. Operating income increased to $38.1 million in the current quarter versus a $19.4 million loss last year.

The sales environment improved significantly across all three segments. Foodservice venues are approaching pre-COVID capacity levels and more confident consumers are getting out of the house and spending more as the market normalizes.

The foodservice segment rebounded with 68% growth versus last year and exceeded fiscal 2019 sales by 1% led by strength in soft pretzels, churros, handhelds and bakery.

Retail sales were just 6% below last year despite lapping a 38% growth in the prior year. Benchmarked against a pre-COVID fiscal 2019, retail sales grew 29% even as consumer trends shift out of the home.

The frozen beverages business was 83% above the prior year's quarter, a significant improvement when compared to Q2 of this year when sales were still 32% below the prior year. This growth was led by the amusement, c-store and mass merchandise channels.

The $324.3 million in revenue for the quarter beat analyst expectations by $13.39 million, while the GAAP EPS of $1.51 beat expectations by 73 cents, according to Seeking Alpha.

Shares traded at $174.19 Monday against a 52-week range of $113.25-$181.06.

"Our business performance is starting to benefit from an economy that is moving much closer to pre-COVID activities," Dan Fachner, president, said in the release.

For the nine months ended June 26, 2021, sales were $821.5 million, a 7% increase from the same period last year when sales were $769.5 million.

Net earnings for the nine month period were $36.7 million compared to $11.7 million last year.

Earnings per diluted share jumped from 62 cents last year to $1.92 for the nine-month period this year.

Operating income increased 246% to $46 million this year from $13.3 million last year. Operating income was impacted by $2.1 million of COVID-19 related costs during this nine-month period.

For an update on how the coronavirus pandemic has affected convenience services, click here.