J&J Snack Foods Reports 3.3% Net Sales Increase to $454.3 Million in Latest Quarter

J&J Snack Foods Corp. reported a net sales increase of 3.3% for the three months ended June 28, 2025, reaching $454.3 million, compared to $439.9 million in the same period last year. For the nine months, sales rose by 2.2% to $1.173 billion from $1.148 billion. The company’s gross profit for the quarter was $150.0 million, a 1.5% increase from $147.8 million, although the gross profit margin slightly decreased from 33.6% to 33.0%. The increase in gross profit was attributed to higher sales, while the margin decline was influenced by a higher proportion of lower-margin machine sales in the frozen beverages segment and foreign exchange headwinds.

Operating expenses decreased by 8.4% to $89.4 million for the three months, primarily due to a non-recurring gain of $10.6 million from insurance proceeds related to a fire at the Holly Ridge plant. This was partially offset by a $1.5 million intangible asset impairment charge. The operating income for the quarter increased by 20.9% to $60.6 million, while net earnings rose by 21.9% to $44.2 million. However, for the nine-month period, net earnings decreased by 4.7% to $54.2 million, reflecting challenges in maintaining margins amid rising raw material costs.

Strategically, J&J Snack Foods completed the acquisition of the Thinsters cookie business from Hain Celestial Group for approximately $7 million in April 2024, enhancing its product portfolio. The company has also focused on operational efficiencies, including the opening of three regional distribution centers and the addition of six new production lines to meet growth opportunities. The company’s employee headcount remains stable, with no significant changes reported in the latest filing.

In terms of segment performance, the Food Service segment saw a 4.8% increase in sales to $277.2 million, driven by strong demand for soft pretzels and bakery products. Conversely, the Retail Supermarket segment experienced a 7.1% decline in sales to $63.9 million, primarily due to lower volumes in frozen novelties. The Frozen Beverages segment reported a 6.1% increase in sales to $113.3 million, with significant growth in machine revenue. Looking ahead, J&J Snack Foods anticipates continued challenges from inflation and changing consumer behavior but remains focused on leveraging its operational improvements and product innovations to drive future growth.