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Jun 29, 2024
J&J Snack Foods Q3 2024 Earnings Report
J&J Snack Foods reported record revenue driven by higher volumes and strong new business performance, partially offset by challenges in the theater channel.
Key Takeaways
J&J Snack Foods reported record fiscal third quarter revenue of $440.0 million. Gross margin was 33.6%, leading to net earnings of $36.3 million, and EPS of $1.87 and adjusted EPS of $1.98.
Net sales increased 3.3% to $440.0 million.
Food Service segment sales increased 3.7% to $264.4 million.
Retail segment sales increased 12.4% to $68.7 million.
Frozen Beverage segment sales declined 2.6% to 106.8 million.
J&J Snack Foods
J&J Snack Foods
J&J Snack Foods Revenue by Segment
Revenue by Segment
Food Service Revenue
CapyFin.comFrozen Beverages Revenue
CapyFin.com Forward Guidance
The company expects the 2024 fiscal fourth quarter results to be impacted by one less sales week versus the comparable prior year period. The company's strategies to maximize sales across customer channels and improve operating efficiencies are working.
Positive Outlook
- Strong portfolio of beloved products and brands.
- Tremendous growth opportunities ahead.
- Robust balance sheet and liquidity position.
- World-class team.
- Ability to deliver long-term value to employees, partners, and shareholders.
Challenges Ahead
- 2024 fiscal fourth quarter results to be impacted by one less sales week versus the comparable prior year period.
- Effect of the 2023 actors strike on this summer’s film slate resulted in a significant year-over-year decline in movie theater attendance, impacting fiscal third quarter sales of frozen beverages, soft pretzels and churros.
- The theater industry expects significant improvement in the back half of the calendar year and next year as the schedule of new releases is much stronger.
- Churros sales were relatively flat, down 0.7% to $30.3 million reflecting lower theater and club channel sales, partially offset by new business growth with a major QSR customer.
- Beverage sales were down 1.1%, or $0.8 million below Q3’23 led by weakness across the theater channel as the industry recovers from the impacts of last years actors strike which led to fewer strong releases and lower attendance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income