Vending

J&J Snack Foods lifts Q4 2022 sales, earnings slide

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January 31, 2023

J&J Snack Foods Corp. lifted its Q4 2022 sales while earnings declined, according to an earnings report. Highlights include:

• Net sales increased 10.3% from $318.5 million in Q4 2021 to $351.3 million in the quarter ending Dec. 24, 2022.
• Net earnings fell 40.2% from $11.09 million to $6.63 million.
• Diluted EPS fell 41.4% from 58 cents to 34 cents, while basic EPS fell from 58 cents to 35 cents.
• Adjusted earnings per diluted share fell 26.3% from 57 cents to 42 cents.
• Foodservice sales rose from $211.7 million to $238.3 million.
• Retail supermarket sales rose from $42.7 million to $43.07 million.
• Frozen beverage segment sales rose from $64.06 million to $69.9 million.
• Sales included approximately $13.4 million in revenue from Dippin' Dots in the frozen novelty category.
• Organic sales growth was driven by growth across all three business segments, led by core products including pretzels, churros, frozen novelties and frozen beverages.

Shares traded at $149.12 Monday against a 52-week range of $117.45 to $165.90.

The $351 million in quarterly revenue missed analyst expectations by $9.7 million while the non-GAAP EPS of 42 cents missed expectations by 5 cents, according to Seeking Alpha.

"We are pleased to report the seventh consecutive quarter of double-digit top-line growth and remain confident in our plans to continue growing sales," Dan Fachner, president and CEO, said in the press release. "We have hit the ground running with our Dippin' Dots business, having already gained placement at Regal Theaters, the second largest movie theater chain in the United States. In fact, we increased unit sales in our Dippin' Dots business over 14% in the first quarter. Also, we recently launched the Hola! Churros brand and are seeing strong momentum, including over 30% sales growth in the first quarter."