Shares of J&J Snack Meals (NASDAQ: JJSF), the maker of SuperPretzels and different occasion snack staples, jumped in the present day after the corporate delivered a robust second-quarter earnings report.
The inventory completed in the present day’s session up 16.4%.
J&J Snack Meals shines
J&J reported income progress of 6.5% to $359.7 million, beating estimates at $341.1 million.
The corporate mentioned top-line progress was pushed by larger volumes in core merchandise and types, in addition to sturdy efficiency with new enterprise within the meals service and retail channels. Foodservice gross sales had been up 5.4%, whereas retail gross sales jumped 14.1%.
It is starting to appreciate the good thing about growing manufacturing capability in churros and pretzels, which helped margins surge within the quarter.
Gross margin rose 330 foundation factors to 30.1%, and adjusted working earnings jumped 81% to $21.8 million. On the underside line, adjusted earnings per share rose 95% to $0.84, which was effectively forward of the analyst consensus at $0.61.
J&J additionally opened its third regional distribution channel within the quarter, in Arizona, which is able to improve its provide chain capabilities.
CEO Dan Fachner mentioned, “In abstract, our second-quarter efficiency, along with our strong steadiness sheet and liquidity place, has us effectively positioned to proceed driving progress throughout our model portfolio and buyer channels.”
What’s subsequent for J&J
The corporate did not give steerage in its press launch however mentioned it was poised to construct momentum into the second half of fiscal 2024 because it enters the height summer season months.
Although the inventory would not get a whole lot of consideration, it was a long-term outperformer earlier than the pandemic. After making some key investments, J&J may very well be set to get again to its profitable methods.
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