J & J Snack Foods (JJSF) AI Stock Analysis

• Market Cap: $1.87B
• Dividend Yield: 3.27%
• Average Volume (3M): 148.56K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.31
• Revenue Growth: 0.50%
• EPS Growth: -4.46%
• Country: US
• Employees: 5,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 2.00
• Shares Outstanding: 19,467,716
• 10 Day Avg. Volume: 199,672
• 30 Day Avg. Volume: 148,558
• PEG Ratio: 4.36
• Price to Book (P/B): 3.46
• Price to Sales (P/S): 2.10
• P/FCF Ratio: 33.29
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 1.42
• Enterprise Value/Gross Profit: 4.78
• Enterprise Value/Ebitda: 12.06
• 1Y Price Target: $131.33
• Price Target Upside: 33.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 68 Neutral
• Price Target: $122.00 ▲(24.08% Upside)

J & J Snack Foods' overall stock score reflects a solid financial foundation and positive earnings call highlights. However, technical indicators and recent corporate events suggest caution. The company's valuation is moderate, and while strategic changes may yield future benefits, they present short-term challenges.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates prudent financial leverage, providing J & J Snack Foods with stability and flexibility to invest in growth opportunities.

Product Innovation

Innovative products with health-focused attributes can capture consumer interest and drive long-term growth by aligning with evolving dietary trends.

Strategic Partnerships

The partnership with Urban Air expands Dippin’ Dots' market presence, potentially increasing revenue and brand visibility in the family entertainment sector.

Negative Factors

Revenue Decline

A decline in net sales indicates challenges in maintaining growth momentum, which can impact long-term profitability and market competitiveness.

Gross Margin Reduction

Reduced gross margins suggest increased cost pressures, which can erode profitability and limit the company's ability to invest in growth initiatives.

Input Cost Inflation

Rising input costs, particularly in key ingredients, can compress margins and challenge the company's ability to maintain competitive pricing.

J & J Snack Foods Business Overview & Revenue Model

Company Description

J&J Snack Foods Corp. manufactures, markets, and distributes nutritional snack foods and beverages to the food service and retail supermarket industries in the United States, Mexico, and Canada. It operates in three segments: Food Service, Retail Supermarkets, and Frozen Beverages. The company offers soft pretzels under the SUPERPRETZEL, PRETZEL FILLERS, PRETZELFILS, GOURMET TWISTS, MR. TWISTER, SOFT PRETZEL BITES, SOFTSTIX, SOFT PRETZEL BUNS, TEXAS TWIST, BAVARIAN BAKERY, SUPERPRETZEL BAVARIAN, NEW YORK PRETZEL, KIM & SCOTT'S GOURMET PRETZELS, SERIOUSLY TWISTED!, BRAUHAUS, AUNTIE ANNE'S, and LABRIOLA, as well as under the private labels. It also provides frozen novelty under the LUIGI'S, WHOLE FRUIT, PHILLY SWIRL, SOUR PATCH, ICEE, and MINUTE MAID brands; churros under the TIO PEPE'S and CALIFORNIA CHURROS brands; and handheld products under the SUPREME STUFFERS and SWEET STUFFERS brands. In addition, the company offers bakery products, including biscuits, fig and fruit bars, cookies, breads, rolls, crumbs, muffins, and donuts under the MRS. GOODCOOKIE, READI-BAKE, COUNTRY HOME, MARY B'S, DADDY RAY'S, and HILL & VALLEY brands, as well as under private labels; and frozen beverages under the ICEE, SLUSH PUPPIE, and PARROT ICE brands. Further, it provides funnel cakes under the FUNNEL CAKE FACTORY brand, as well as various other food products; and sells machines and machine parts to other food and beverage companies. The company sells its products through a network of food brokers, independent sales distributors, and direct sales force. It serves snack bars and food stand locations in chain, department and mass merchandising stores, malls and shopping centers, fast food and casual dining restaurants, stadiums and sports arenas, leisure and theme parks, convenience stores, movie theatres, warehouse club stores, schools, colleges and other institutions, and independent retailers. The company was incorporated in 1971 and is headquartered in Pennsauken, New Jersey.

How the Company Makes Money

J & J Snack Foods generates revenue through multiple key streams, primarily by selling its various snack food products to a wide array of customers across different channels. The company operates through two main segments: the Food Service segment and the Retail segment. In the Food Service segment, JJSF distributes products to restaurants, convenience stores, and vending operators, while the Retail segment focuses on selling directly to grocery and retail outlets. Significant revenue is derived from partnerships with major retailers and food service operators, enabling JJSF to secure shelf space and distribution agreements. Additionally, the company benefits from brand recognition and consumer loyalty, which help drive sales volume. The diverse product line and strategic marketing efforts also contribute to its earnings, allowing JJSF to adapt to changing consumer preferences and trends in the snack food market.

J & J Snack Foods Financial Statement Overview

Summary

J & J Snack Foods demonstrates solid financial performance with consistent revenue growth and a strong balance sheet. However, challenges in cash flow management, particularly in sustaining free cash flow levels, slightly dampen the overall financial health.

Income Statement

J & J Snack Foods shows a solid performance in its income statement with a consistent revenue growth trend, highlighted by a TTM revenue growth rate of 0.904%. The gross profit margin is stable at around 30%, and the net profit margin is reasonable at 4.79%. However, there is a slight decline in EBIT and EBITDA margins compared to the previous year, indicating some pressure on operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.18, indicating prudent financial leverage. The return on equity is healthy at 8.81%, reflecting effective use of equity capital. The equity ratio stands at a robust level, showcasing financial stability and a solid asset base.

Cash Flow

Cash flow analysis reveals a mixed picture. While the operating cash flow to net income ratio is strong at 0.87, indicating good cash generation relative to net income, the free cash flow growth rate is negative at -20.17%, suggesting challenges in maintaining free cash flow levels. The free cash flow to net income ratio is moderate at 0.52, showing some room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.60B	1.57B	1.56B	1.38B	1.14B	1.02B
Gross Profit	475.18M	486.13M	469.87M	369.64M	298.93M	238.43M
EBITDA	188.40M	191.37M	174.34M	119.03M	121.88M	74.58M
Net Income	83.86M	86.55M	78.91M	47.23M	55.61M	18.30M
Balance Sheet
Total Assets	1.41B	1.37B	1.28B	1.22B	1.12B	1.06B
Cash, Cash Equivalents and Short-Term Investments	77.38M	73.39M	49.58M	39.19M	291.17M	246.96M
Total Debt	167.19M	160.50M	121.91M	111.56M	60.53M	61.58M
Total Liabilities	444.00M	408.13M	365.72M	353.80M	276.56M	247.06M
Stockholders Equity	969.92M	956.97M	911.52M	863.17M	845.65M	809.50M
Cash Flow
Free Cash Flow	66.56M	99.50M	67.54M	-61.23M	47.92M	34.33M
Operating Cash Flow	145.02M	173.07M	172.28M	26.06M	101.50M	92.14M
Investing Cash Flow	-63.20M	-77.67M	-93.24M	-296.17M	9.94M	-44.46M
Financing Cash Flow	-67.86M	-68.37M	-66.84M	22.22M	-24.67M	-43.46M

J & J Snack Foods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 98.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JJSF, the sentiment is Negative. The current price of 98.32 is below the 20-day moving average (MA) of 101.99, below the 50-day MA of 108.47, and below the 200-day MA of 122.99, indicating a bearish trend. The MACD of -3.86 indicates Positive momentum. The RSI at 28.85 is Positive, neither overbought nor oversold. The STOCH value of 15.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JJSF.

J & J Snack Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMPL	71 Outperform	$2.50B	17.36	7.89%	―	14.22%	-1.81%
NOMD	69 Neutral	$2.05B	8.93	8.25%	4.94%	0.87%	8.59%
JJSF	68 Neutral	$1.87B	22.34	8.79%	3.27%	0.50%	-4.46%
FLO	63 Neutral	$2.76B	12.61	15.37%	7.45%	-0.61%	70.09%
UTZ	59 Neutral	$1.74B	59.12	2.27%	2.07%	-0.09%	316.21%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

J & J Snack Foods Corporate Events

J & J Snack Foods Announces Strategic Manufacturing Changes

On August 28, 2025, J & J Snack Foods Corp. announced a strategic plan to optimize its manufacturing footprint, which includes closing certain manufacturing plants. This decision will result in asset write-downs, severance costs, and other exit expenses, with pre-tax charges expected between $12 million and $20 million in the fiscal fourth quarter of 2025 and into 2026. The company anticipates completing the closures in fiscal year 2026, aiming for annualized pre-tax cost savings of approximately $15 million as part of its transformation program.