MOUNT LAUREL, N.J. - J&J (NYSE:JNJ) Snack Foods Corp. (NASDAQ:JJSF) reported fourth quarter earnings that fell short of analyst estimates, as sales declined compared to the same period last year.
The snack food manufacturer posted adjusted earnings per share of $1.60 for the quarter ended September 28, missing the analyst consensus of $1.86. Revenue came in at $426.8 million, below estimates of $429.93 million and down 3.9% YoY.
The company said the revenue decline was primarily due to having one fewer week in the quarter compared to last year. On a normalized basis accounting for the extra week, sales increased 3.9%.
"I am pleased with our ability to grow sales on a normalized basis given the challenging consumer environment across many of our key customer channels including amusement, convenience, restaurants, and retail," said Dan Fachner, J&J Snack Foods Chairman, President and CEO.
However, Fachner noted that softer consumer trends and fewer sales days negatively impacted sales of core products like soft pretzels, churros, frozen beverages, frozen novelties, and Dippin' Dots. This led to a decline in gross margin to 31.8% from 32.9% in the year-ago quarter.
Looking ahead, the company expressed confidence in growth potential for core products and new launches. It highlighted plans to expand Dippin' Dots distribution in theaters and launch the brand in retail.
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