Overview

* J & J Snack Foods ( JJSF ) 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

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Sales Miss $410.24 $419.09

mln mln (4

Analysts

)

Q4 Beat $1.58 $1.19 (2

Adjusted Analysts

EPS )

Q4 EPS $0.58

Q4 Net $11.38

Earnings mln

Q4 Gross $130.23

Profit mln

Q4 $11.47

Operatin mln

g Income

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 ( JJSF ) 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:

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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.)