NASDAQ$JJSF

J&J Snack Foods Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported a revenue increase of 10.3% with significant growth in Food Service sales and Frozen Beverage segment.

J&J Snack Foods Corp. reported a 10.3% increase in net sales to $351.3 million for the first quarter of fiscal 2023. The company experienced growth across all three business segments, driven by core products like pretzels, churros, frozen novelties, and frozen beverages. However, inflationary pressures and a softening consumer environment impacted bottom-line results, leading to a decrease in net earnings and operating income compared to the prior year period.

  • Net sales increased by 10.3% to $351.3 million, driven by growth across all business segments.
  • Food Service sales increased by 12.5%, Retail segment sales increased by 0.9%, and Frozen Beverage segment sales increased by 9.2%.
  • Gross profit as a percentage of sales was 25.9%, compared to 24.9% in the prior year period.
  • Operating income decreased by 37.2% to $9.3 million due to inflationary pressures and increased operating expenses.

Headline financials

Total Revenue

$351M

Previous: $318M+10.3%
EPS (adj)

$0.42

Previous: $0.58-27.6%
Capital Expenditures

-$30.9M

Previous: -$16.1M-92.0%
Free Cash Flow

-$24.3M

Previous: -$5.01M-384.7%
Net Income

$6.63M

Previous: $11.1M-40.2%
Operating Income

$9.33M

Previous: $14.8M-37.2%
Gross Profit

$90.9M

Previous: $79.4M+14.5%
Cash & Equivalents

$54.9M

Previous: $268M-79.6%
Total Assets

$1.23B

Previous: $1.11B+10.4%
Stock-Based Comp

$1.24M

Previous: $1.08M+14.4%

Revenue & EPS history

J&J Snack Foods · Revenue · Quarterly

$351M

Q1 2023+10.3%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

J&J Snack Foods · $308M total across 2 segments · Q1 2023

  • Food Service
    $238M
  • Frozen Beverages
    $70M

Forward guidance

The company expects to continue growing its top line and sees benefits from various initiatives throughout the balance of fiscal 2023. They anticipate improved gross margins due to pricing actions and improved mix, and expect strategic and operational initiatives to improve logistics management and increase efficiency across the distribution network and supply chain.

Tailwinds

  • Momentum remains strong as core brands and new products continue to resonate with consumers.
  • Strategic initiatives are expected to drive improved gross margins.
  • Operational efficiencies and capacity improvements are being implemented through new production lines and optimized distribution networks.
  • Price increases are expected to continue to drive improved gross margins.
  • Dippin' Dots business is expected to drive the majority of its profitability in the second half of the year.

Headwinds

  • Ongoing inflationary pressures and the softening consumer environment impacted year-over-year bottom-line results.
  • The industry experienced some declines in traffic and volume in the first quarter.
  • Distribution expenses continue to be a cost pressure.
  • Dippin' Dots negatively impacts results in the first quarter due to its seasonality.
  • The company is managing through cost pressures on the expense side, most notably distribution expenses.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.2%

Avg return

Earnings day

-0.8%

Avg return

5 days after

+1.0%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+16.1%

Q2 2024

Best reaction

-15.4%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+0.2%-16.9%-10.9%
Q1 2026-15.4%-13.3%-10.1%
Q4 2025+1.1%+9.3%+13.9%
Q2 2025-11.8%-11.8%-13.8%
Q1 2025-6.5%-7.8%+4.0%
Q4 2024-4.8%-5.5%-4.0%
Q3 2024+1.7%+1.5%+2.4%
Q2 2024+16.1%+18.2%+18.0%
Q1 2024-9.6%-7.5%-10.1%
Q4 2023+2.9%+3.7%+4.1%
Q3 2023+7.8%+9.3%+3.2%
Q2 2023+3.2%+6.3%+0.5%
Q1 2023-4.2%-5.6%-6.1%
Q4 2022+7.8%+11.2%+11.0%
Q3 2022+0.0%+3.5%+7.9%
Q2 2022-11.4%-17.4%-15.9%
Q1 2022-1.0%-0.3%+8.8%
Q4 2021-1.8%-6.7%-2.3%
Q3 2021-0.0%-1.4%-2.9%
Q2 2021-2.5%-1.1%+4.1%
Q1 2021+7.7%-0.3%+2.1%
Q4 2020-1.5%+14.8%+3.2%
Q3 2020-1.9%-4.2%+3.1%
Q2 2020+7.3%+4.8%+17.0%
Q1 2020-11.5%-11.0%-7.9%
Q4 2019-4.9%-4.5%-0.8%
Q3 2019+13.0%+11.1%+15.4%
Q2 2019+0.8%+3.5%+2.7%
Q1 2019+8.5%+7.1%+5.7%
Q4 2018-1.3%-2.6%-2.2%
Q3 2018-5.5%-7.8%-6.4%
Q2 2018-5.0%-4.6%+3.3%
Q1 2018-6.5%-7.9%-9.7%
Q4 2017+4.2%+8.5%+14.6%
Q3 2017-5.3%-4.6%-7.3%
Q2 2017+1.3%+0.1%-1.3%
Q1 2017+0.6%+1.4%+2.5%
Q4 2016-3.4%-1.7%+2.0%
Q3 2016+0.4%+0.4%+0.2%
Q2 2016-0.1%
Q1 2016-1.2%
Q4 2015-7.3%
Q3 2015+5.4%
Q2 2015+2.9%
Q1 2015-14.0%
Q4 2014+0.2%
Q3 2014+2.5%
Q2 2014-2.1%
Q1 2014+8.4%
Q4 2013-2.8%
Q3 2013-1.4%
Q2 2013+2.4%
Q1 2013+3.5%
Q4 2012+2.1%
Q3 2012-1.1%
Q2 2012+10.3%
Q1 2011-4.9%
Q1 2012-4.9%
Q4 2009+2.7%
Q2 2011+2.7%
Q4 2011+2.7%
Q3 2011+3.8%
Q3 2010+3.8%
Q4 2010+3.8%
Q2 2010+1.6%

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