J+J SNACK FOODS

J&J Snack Foods is going through a transition year: third-quarter revenue fell 6.2% to $426 million, but gross profit rose to $151 million and gross margin improved 240 basis points to 35.5%. The efficiency initiative “Project Apollo” is expected to save about $25 million annually and has helped protect margins. Volume declines in the bakery segment are likely to largely ease by fiscal 2027, while products such as Dippin’ Dots, ICEE and frozen beverages are showing growth. Higher freight and fuel costs remain a risk but can be partly offset by price surcharges, minimum order quantities and efficiency gains; the company also retains room for investments, share buybacks and targeted acquisitions. » Altro su de.investing.com

J & J Snack Foods beat third‑quarter earnings expectations with adjusted EPS of $1.96 versus a consensus of $1.80, although revenue fell to $426 million. Gross margin widened by 240 basis points to 35.5% thanks to cost cuts from “Project Apollo” and a more favorable product mix, and the Apollo savings target was raised to $25 million. The company repurchased about $10 million of stock, and Jefferies upgraded the stock from hold to buy and raised its price target from $81 to $101. Together, the margin improvement, the analyst upgrade and the buybacks pushed the share price higher and raised hopes for a return to organic growth in fiscal 2027. » Altro su de.investing.com

J & J Snack Foods reported fiscal Q3 net sales down 6.2% to $426 million, adjusted EBITDA down 6.4% to $67.4 million and adjusted EPS of $1.96, citing about $5 million of higher freight and fuel costs. Gross margin improved to 35.5% driven by Project Apollo cost savings and favorable sales mix, and management raised the program's annualized run-rate target to at least $25 million, including $20 million from plant consolidation. Foodservice sales fell mainly from planned bakery SKU reductions while retail and some brands showed momentum; frozen beverage volume gains were offset by lower service and machine sales. The company expects bakery headwinds to ease and anticipates a return to organic growth more likely in fiscal Q1 2027; it generated $48.8 million in operating cash flow and returned $25 million to shareholders in the quarter. » Altro su finance.yahoo.com