Fourth quarter Operating Income of $11.5 million and Adjusted Operating Income of $37.7 million

Fourth quarter Net Earnings of $11.4 million and Adjusted EBITDA of $57.4 million

Fourth quarter EPS of $0.58 and Adjusted EPS of $1.58

MOUNT LAUREL, N.J., Nov. 17, 2025 (GLOBE NEWSWIRE) -- J & J Snack Foods Corp. (Nasdaq: JJSF) (the “Company”) today reported financial results for the fourth quarter and full year ended September 27, 2025.

_{This press release contains non-GAAP financial measures. Please refer to the Non-GAAP Financial Measures section below for reconciliations to the most comparable GAAP measures.}

"We are pleased with our fourth quarter performance, delivering Adjusted EBITDA of $57.4 million on sales of $410.2 million despite some challenges during the summer. Both sales and adjusted EBITDA were down about 4% as compared to the prior year quarter," stated Dan Fachner, Chairman, President, and CEO. "The breadth of our portfolio remains a core competitive advantage and helped to mitigate the expected headwinds we faced in our Frozen Beverage business during the fourth quarter as we lapped strong volumes from a major movie release last year. Our pretzel business delivered outstanding results, with sales rising in both the Retail and Foodservice segments for consecutive quarters, and growth continued to be led by our Bavarian varieties.

“Looking ahead, we have several major commercial programs launching in fiscal 2026 and our innovation pipeline remains robust, with a significant emphasis on better-for-you attributes. In addition, we have initiated a comprehensive business transformation program designed to generate at least $20 million of annualized operating income once all initiatives are implemented. The plant consolidation component of the program is underway and resulted in approximately $24 million of non-recurring charges in the fourth quarter. With our strong balance sheet, including $106 million in cash and no debt, we are exceptionally well positioned to drive sustainable growth and create long-term value for our shareholders while navigating the evolving consumer environment. We see compelling value in our shares and expect to execute aggressively against our repurchase authorization.”

Fourth Quarter Highlights

Net sales decreased 3.9% from the prior year quarter to $410.2 million.   Over half of the sales decline was associated with our Frozen Beverage business as we lapped strong volumes from the Inside Out 2 movie last year.

• Food Service segment sales decreased 1.1%
• Retail Supermarket segment sales decreased 8.1%
• Frozen Beverage segment sales decreased 8.3%
  

Gross profit was $130.2 million compared to $135.5 million in the year-earlier period and gross margin was 31.7% versus 31.8%. The slight decline in gross margin primarily reflected lower margins in Frozen Beverage due to a lower mix of product sales along with incremental tariff costs. These impacts were partially offset by cost savings related to plant consolidation and insurance proceeds for business interruption costs associated with the handheld capacity outage.

Total operating expenses of $118.8 million, which included $0.8 million of intangible asset impairment charges and $24.1 million of plant closure charges, represented 29.0% of sales for the quarter, compared to 22.4% in the prior year quarter.   Plant closure charges predominately reflected non-cash asset write-downs and write-offs totaling approximately $21 million. We expect additional plant closure and other non-recurring charges associated with our business transformation program of $3 million to $5 million in fiscal 2026.

• Marketing and selling expenses increased 4.8% versus the prior year period to $32.6 million or 7.9% of sales, up from 7.3% in the prior year quarter. The increase included spending on new sponsorships and other promotional activities.
• Distribution expenses decreased 8.3% versus the prior year period to $42.2 million or 10.3% of sales, down from 10.8% in the prior year quarter. Distribution cost improvements were driven by lower volumes and continued efficiency gains.
• Administrative expenses increased 5.1% versus the prior year period to $19.1 million or 4.7% of sales compared to 4.3% in the prior year quarter. The increase primarily reflects higher compensation expenses.
  

Operating income was $11.5 million compared to $39.8 million in the prior year quarter, while adjusted operating income was $37.7 million compared to $42.0 million in the prior year quarter. Earnings per diluted share were $0.58 compared to $1.52 in the prior year quarter, while adjusted earnings per diluted share were $1.58 compared to $1.60 in the prior year quarter. The effective tax rate was 4.8% compared to 26.8% in the prior year quarter. The lower effective tax rate in the quarter primarily reflects a change in estimate on our blended state tax rate, and the corresponding impact on the valuation of our net deferred tax liabilities.

Food Service Segment Fourth Quarter Highlights

• Food Service sales decreased 1.1% to $259.3 million.  
• Pretzel sales increased 3.6% led by continued growth in our Bavarian varieties.
• Churro sales declined 16.2%, reflecting the wind-down of a limited time offer program in the prior year.
• Sales of new products and added placement with new customers were approximately $7.6 million in the quarter, driven primarily by the addition of frozen novelties and churro related products, as well as new distribution of cookies.
• Operating income increased by $1.3 million.
  

Retail Supermarket Segment Fourth Quarter Highlights

• Retail sales decreased 8.1% to $51.4 million
• Soft pretzel sales increased 9.0% reflecting continued momentum from the third quarter.
• Frozen novelties sales decreased 16.0%. We are taking action to support our frozen novelty business with shopper marketing and trade spend. Although frozen novelty sales declined in total, Dogsters and Dippin’ Dots Sundaes continued to deliver sales growth in the quarter.
• Retail handheld sales declined 10.9% from continued capacity constraints from the fire at our North Carolina facility last year.
• Sales of new products and added placement with new customers were approximately $3.8 million in the quarter, driven by the recent launch of our Dippin’ Dots Sundaes as well as additional distribution of frozen novelties and soft pretzels.
• Operating income decreased by $1.7 million.

Frozen Beverages Segment Fourth Quarter Highlights      

• Frozen beverage segment sales decreased 8.3% to $99.6 million.
• Beverage sales declined 12.9%, primarily due to lower theater volumes as we lapped the success of the Inside Out 2 movie last year
• North American box office sales are estimated to have declined 11% in the quarter
• Operating income decreased by $3.2 million

Conference Call
J&J Snack Foods Corp. will host a conference call to discuss results and business outlook on November 17, 2025, at 10:00 a.m. Eastern Time. Conference call participants should register by clicking on this Registration Link to receive the dial-in number and a personal PIN, which are required to access the conference call. A live audio webcast of the conference call will also be available on the Investors homepage at investors.jjsnack.com.

About J & J Snack Foods Corp.

J & J Snack Foods Corp. (NASDAQ: JJSF) is a leader and innovator in the snack food industry, providing innovative, niche, and affordable branded snack foods and beverages to foodservice and retail supermarket outlets. Manufactured and distributed nationwide, our principal products include SUPERPRETZEL, the #1 soft pretzel brand in the world, as well as internationally known ICEE and SLUSH PUPPIE frozen beverages, DIPPIN’ DOTS ice cream, LUIGI’S Real Italian Ice, MINUTE MAID* frozen ices, WHOLE FRUIT sorbet and frozen fruit bars, HOLA! CHURROS, and THE FUNNEL CAKE FACTORY funnel cakes and several bakery brands within DADDY RAY’S, COUNTRY HOME BAKERS and HILL & VALLEY. For more information, please visit http://www.jjsnack.com.

*MINUTE MAID is a registered trademark of The Coca-Cola Company.

Cautionary Statement Regarding Forward-Looking Information
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding the Company’s expected future financial position, results of operations, revenue growth and profit levels, cash flows, business strategy, budgets, projected costs, capital expenditures, products, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as “anticipate,” “if,” “believe,” “plan,” “goals,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will,” and other similar expressions are forward-looking statements. This includes, without limitation, our statements, and expectations regarding any current or future recovery in our industry and the future impact of our operational efficiency projects. Such forward-looking statements are inherently uncertain, and readers must recognize that actual results may differ materially from the expectations of management. We do not undertake a duty to update such forward-looking statements. Factors that may cause actual results to differ materially from those in the forward-looking statements include consumer spending, price competition, acceptance of new products, the pricing and availability of raw materials, transportation costs, changes in the competitive marketplace the uncertainty and ultimate economic impact of the COVID-19 pandemic or similar health outbreaks, and other risks identified in our annual report on Form 10-K, and our other filings with the Securities and Exchange Commission. Many of these factors are outside of the Company’s control.

Non-GAAP Financial Measures
Adjusted EBITDA consists of net earnings adjusted to exclude: income taxes (benefit); investment income; interest expense; depreciation and amortization; share-based compensation expense; net (gain) loss on sale or disposal of assets; impairment charges, restructuring costs, merger and acquisition costs, acquisition related inventory adjustments, strategic business transformation costs, integration costs, non-recurring legal fee settlements, gain on insurance proceeds received for damage to property, plant and equipment, and plant closure expenses.

Adjusted Operating Income consists of operating income adjusted to exclude: impairment charges, restructuring costs, merger and acquisition costs, acquisition related amortization expenses and inventory adjustments, strategic business transformation costs, integration costs, non-recurring legal fee settlements, gain on insurance proceeds received for damage to property, plant and equipment, and plant closure expenses.

Adjusted Earnings per Diluted Share consists of net earnings adjusted to exclude: impairment charges, restructuring costs, merger and acquisition costs, acquisition related amortization expenses and inventory adjustment, strategic business transformation costs, integration costs, non-recurring legal fee settlements, gain on insurance proceeds received for damage to property, plant and equipment, and plant closure expenses. For purposes of comparability, the income tax effect of pre-tax adjustments is determined using statutory tax rates.

This press release contains certain non-GAAP financial measures; Adjusted EBITDA, Adjusted Operating Income, and Adjusted Earnings per Diluted Share. A "non-GAAP financial measure" is a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP") in the statements of income, balance sheets, or statements of cash flow of the company. Pursuant to applicable reporting requirements, the company has provided reconciliations below of non-GAAP financial measures to the most directly comparable GAAP measure.

The non-GAAP financial measures presented within the Company's earnings release are not indicators of our financial performance under GAAP and should not be considered as an alternative to the applicable GAAP measure. These non-GAAP measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. In addition, in evaluating these non-GAAP measures, you should be aware that in the future we may incur income, expenses, gains and losses similar to the adjustments in this press release. Our presentation of these non-GAAP measures should not be construed as an inference that our future results will be unaffected by unusual or infrequent items. We compensate for these limitations by providing equal prominence to our GAAP results and using non-GAAP measures only as supplemental presentations.

The non-GAAP measures presented are utilized by management to evaluate the Company's business performance and profitability by excluding certain items that may not be indicative of our recurring core business operating results. The Company believes that these measures provide additional clarity for investors by excluding specific income, expenses, gains, and losses, in an effort to show comparable business operating results for the periods presented. Similarly, Management believes these adjusted measures are useful performance measures because certain items included in the calculations may either mask or exaggerate trends in the Company’s ongoing operating performance. See the reconciliation of Non-GAAP Financial Measures below.

Investor Contact:

Reed Anderson
ICR
(646) 277-1260
JJSF@icrinc.com

Retail operating income for Q4 includes a brand impairment charge of $757. Food service operating income for fiscal 2025 includes a brand impairment charge of $1,500.

Segment reporting has been modified starting in the fiscal fourth quarter to reflect unallocated corporate expenses. This change in presentation has been applied to our historical results.