Churros play key position in boosting J&J Snack’s income | 2019-07-31

PENNSAUKEN, NJ — Robust performances in foodservice, retail supermarkets and frozen drinks helped enhance third-quarter earnings for J&J Snack Meals Corp.

J&J Snack Meals web earnings for the quarter ended June 29 totaled $30,872,000, or $1.64 per frequent share, up 18% from $26,129,000, or 1, $40 per share, within the third quarter of the earlier yr. Internet gross sales elevated 7% from $306,239,000 to $326,701,000.

J&J Snack Meals’ foodservice working revenue elevated 7.5% within the third quarter, from $19,663,000 to $21,154,000. Gross sales elevated 4% from $191,701,000 to $198,571,000. Inside the foodservice division, baked items gross sales had been $95,299,000, up 2% from $93,082,000 within the prior quarter, whereas churros gross sales elevated 13 % to $18,888,000, and delicate pretzel gross sales elevated 4% to $55,867,000.

Commenting on the expansion of churros throughout a July 30 convention name with analysts, Gerald B. Shreiber, President and CEO, stated, “Just a few years in the past once we first began speaking about churros, individuals had been like, “What is that this? …Now everybody appears to know what a churro is, and increasingly clients and accounts are asking for this product. So we’ve seen continued development with this product. And now we’re in double-digit development in massive chains and stuff.

Within the grocery store retail section within the third quarter, working revenue was $3,651,000, up 14% from $3,203,000 within the third quarter a yr earlier. Gross sales fell 5% to $36,552,000 from $38,532,000. Within the grocery store retail section, delicate pretzel gross sales elevated from $7,332,000 to $7,294,000. Gross sales of frozen juices and teas fell 8% to $26,515,000, and gross sales of pocket gadgets rose 2% to $3,063,000.

Within the frozen drinks section, first-quarter working earnings elevated 19% to $14,237,000, and gross sales elevated 20% to $91,578,000.

Requested concerning the M&A atmosphere, Shreiber stated J&J Snack Meals continues to be searching for a great strategic match.

“We had a singular story of with the ability to discover little dusty pellets in there and polish them,” he stated. “As you recognize, typically these belongings have change into too costly, and typically they’re excessively costly. However we’ve sufficient religion and confidence in our talents to seek out these perhaps dusty-looking items…and see how they slot in with us and what we might do with them. I’d say it isn’t as profitable because it was 5 – 6 years in the past, however nonetheless, we’re specialised issues.

Firm-wide, web earnings for the 9 months ended June 29 was $68,752,000, or $3.66 per share on frequent inventory, down 14% from 80 $211,000, or $4.29 per share, on the similar interval final yr. 9-month web gross sales elevated 4% to $874,615,000 from $837,550,000.