| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 425.96 | 23.5% | 6.2% |
| Total Income | 425.96 | 23.5% | 6.2% |
| Expenditure | 379.68 | 10.7% | 3.6% |
| PBT | 45.99 | 1873.8% | 24.3% |
| Net Profit | 35.33 | 2003.0% | 20.2% |
| OPM | 10.86% | 10.34pp | 2.47pp |
| NPM | 8.29% | 7.81pp | 1.45pp |
| EPS | 1.89 | 2000.0% | 16.7% |
J & J Snack Foods Reports Q3 2026 Results
05 Aug 2026 · 5 Aug, 4:37 pm
Summary
J & J Snack Foods reported third quarter net sales of $426.0 million, a 6.2% decrease year-over-year, attributed to anticipated sales reductions in bakery and lower machine/service sales in the Frozen Beverage segment. Despite increased freight and fuel costs, gross margin expanded by 240 basis points to 35.5%, driven by transformation initiatives and mix improvements. The company raised its plant savings target and expressed confidence in an improving sales environment for the fourth quarter, expecting a return to top-line growth in fiscal 2027.
Key Highlights
- 1
J & J Snack Foods reported third quarter net sales of $426.0 million, a decrease of 6.2% compared to the prior year quarter.
- 2
Gross profit for the third quarter increased to $151.0 million, with gross margin expanding 240 basis points to 35.5%.
- 3
Operating income for the third quarter was $46.3 million, down from $60.6 million in the prior year quarter.
- 4
Net earnings for the third quarter were $35.3 million, a decrease of 20.1% compared to the prior year quarter.
- 5
Earnings per diluted share for the third quarter were $1.88, down 16.8% from $2.26 in the prior year quarter.
- 6
Adjusted EBITDA for the third quarter was $67.4 million, a decrease of 6.4% year-over-year.
- 7
The company raised its annualized plant savings target by $5 million to at least $20 million, with the full program target now at $25 million.
Management Comments
Dan Fachner
Fiscal 2026 has been a year of disciplined transformation, and that work continued to pay off in the third quarter. We delivered Adjusted EBITDA of $67.4 million and Adjusted earnings per diluted share of $1.96, even as freight and fuel costs increased approximately $4.7 million during the quarter. Most of the net sales decline in the third quarter was attributed to anticipated sales reductions in bakery, and lower machine and service sales in the Frozen Beverage segment. Gross margin expanded 240 basis points to 35.5%, and Apollo-driven plant consolidation savings are running ahead of plan, giving us the confidence to raise our annualized plant savings target by $5 million to at least $20 million and the full program target to $25 million. Looking ahead, we expect the sales environment to improve in the fourth quarter as our pipeline fills for core products and recent headwinds diminish. We remain confident that the progress we have made repositioning this business will support durable earnings and a return to top-line growth in fiscal 2027.
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