Revenue: As of FY2026 Q3, the actual value is USD 425.96 M, missing the estimate of USD 429.05 M.

EPS: As of FY2026 Q3, the actual value is USD 1.88.

EBIT: As of FY2026 Q3, the actual value is USD 46.56 M.

Financial Highlights (Third Quarter Fiscal 2026)

J&J Snack Foods Corp. reported net sales of $426.0 million, marking a decrease of -$28.3 million or -6.2% compared to the prior year quarter. Gross profit increased by $1.0 million to $151.0 million, leading to a gross margin of 35.5%, which is an expansion of 240 basis points from 33.0% in the prior year quarter. Operating income was $46.3 million, a decrease of -$14.3 million or -23.6% year-over-year, while adjusted operating income was $48.1 million, down -$5.3 million or -9.9%. Net earnings for the quarter were $35.3 million, a decrease of -$8.9 million or -20.1% compared to the prior year. Adjusted EBITDA was $67.4 million, a decrease of -$4.6 million or -6.4%. The effective tax rate for the quarter was 23.2%, down from 27.2% in the prior year quarter.

Operating Costs

Total operating expenses were $104.7 million, representing 24.6% of sales, compared to 19.7% in the prior year quarter, which included a $9.1 million non-recurring net gain from insurance proceeds. Selling and Marketing expenses increased 2.3% to $34.6 million, or 8.1% of sales, up from 7.5% in the prior year quarter. Distribution expenses rose 11.0% to $49.6 million, or 11.6% of sales, up from 9.8%, and included approximately $5.0 million in higher fuel and freight costs. Administrative expenses remained materially flat at $20.1 million, or 4.7% of sales, up from 4.4%, and included $0.6 million of non-recurring legal expenses.

Segment Revenue and Operating Income

• Food Service Segment: Net sales were $254.3 million, a year-over-year decrease of -$22.9 million or -8.3%, with anticipated reductions in the bakery business accounting for approximately $16.0 million of the decline. Operating income increased $0.2 million to $28.1 million.
• Retail Supermarket Segment: Net sales increased by $1.1 million or 1.7% year-over-year to $64.9 million. Operating income decreased -$3.5 million to $2.7 million, primarily due to a $2 million increase in slotting fees and higher distribution costs.
• Frozen Beverages Segment: Net sales decreased -$6.5 million or -5.8% year-over-year to $106.7 million, with beverage sales up $4.2 million, while machine sales declined -$7.3 million and service sales declined -$3.4 million. Operating income decreased -$0.9 million to $22.8 million.

Cash Flow (Nine Months Ended June 27, 2026)

Net cash provided by operating activities was $100,443 thousand, compared to $98,697 thousand in the prior year period. Net cash used in investing activities was -$52,067 thousand, including -$53,263 thousand for purchases of property, plant and equipment. Net cash used in financing activities was -$93,343 thousand, which included -$74,730 thousand for share repurchases and -$45,763 thousand for cash dividends. Cash and cash equivalents at the end of the period were $63,099 thousand.

Share Repurchases

During the quarter, J&J Snack Foods Corp. repurchased 135,852 shares of common stock for $10 million. As of June 27, 2026, $18 million remained under the $50 million share repurchase program.

Operational Metrics

Plant consolidation savings from Apollo-driven initiatives are ahead of schedule, prompting J&J Snack Foods Corp. to raise its annualized plant savings target by $5 million to at least $20 million, with the full program target set at $25 million.

Outlook

J&J Snack Foods Corp. anticipates an improvement in the sales environment during the fourth quarter as the pipeline for core products fills and recent headwinds diminish. The company is confident that ongoing progress in repositioning the business will lead to durable earnings and a return to top-line growth in fiscal 2027.