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Mar 28, 2020
J&J Snack Foods Q2 2020 Earnings Report
J&J Snack Foods' sales and earnings decreased due to COVID-19 impact.
Key Takeaways
J&J Snack Foods reported a decrease in sales and earnings for the second quarter ended March 28, 2020, primarily due to the impact of COVID-19. Sales decreased by 2% to $272.0 million, and net earnings decreased by 64% to $7.3 million.
Sales decreased by 2% to $272.0 million compared to the previous year.
Net earnings decreased by 64% to $7.3 million.
Earnings per diluted share decreased by 65% to $0.38.
Operating income decreased by 56% to $11.0 million.
Revenue by Segment
Forward Guidance
The Company anticipates COVID-19 will continue to have a negative impact on its business. Sales for the first 4 weeks of its third quarter that will end June 27, 2020 were down approximately 45% from a year ago and the Company said that it might have an operating loss in the quarter.
Positive Outlook
- Good management in place
- Strong brands
- Broad base of highly respected customers
- Monitoring and adjusting costs and expenses
- Careful not to reduce costs so much that we won’t be able service our customers when they return
Challenges Ahead
- Sales for the first 4 weeks of the third quarter were down approximately 45% from a year ago.
- Approximately 2/3 of the Company’s sales are to venues and locations that have shut down or sharply curtailed their foodservice operations
- Estimate that it may have an operating loss in the third quarter
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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