Optimistic momentum continues at J&J Snack Meals | 2021-07-27

PENNSAUKEN, NJ. – J&J Snack Meals Corp. is beginning to profit from an financial system that’s transferring nearer to pre-COVID exercise, Daniel Fachner, president and chief government, stated in a July 27 name with analysts to debate third-quarter outcomes.

“Shoppers are seizing the alternatives they’ve missed over the previous yr, whether or not it is having fun with a Superpretzel on the recreation or sipping an ICEE on the seashore with their household,” he stated. .

J&J Snack Meals’ web revenue for the third quarter ended June 26 totaled $28.9 million, or $1.51 per share on frequent inventory, in contrast with a lack of $12.6 million, or 67¢ per share. share, on the identical interval a yr in the past. Web gross sales elevated 51% from $214.6 million to $324.3 million.

The corporate noticed enhancements in its foodservice and retail segments, in addition to its frozen drinks phase, led by its important classes of sentimental pretzels, churros, ICEE and frozen novelties. The foodservice and retail segments returned to pre-COVID gross sales quantity, beating fiscal yr 2019 gross sales by 1% and 30%, respectively.

Restaurant working revenue was $17.64 million within the third quarter as gross sales rose 68% to $196.48 million. Inside the restaurant division, baked items gross sales elevated 24% to $85.71 million, and comfortable pretzel gross sales elevated 138% to $50.9 million. Handheld gross sales elevated 155% to $18.97 million and churros gross sales elevated 174% to $20.1 million.

“Gross sales accelerated by means of our core channels, led by colleges, leisure and recreation, eating places and C-stores,” Fachner stated.

Shoppers spending extra at many of those venues led to improved common ticket gross sales, he added.

“The amusement park chain is de facto sturdy,” he stated. “The place we promote at amusement parks, the ticket worth is up. The place we promote in cinemas, the value per ticket is up. And even in ballparks as they arrive again, we’re seeing the typical ticket worth go up.

Within the retail grocery store phase, working revenue elevated by 15% from $7.91 million to $9.08 million. Gross sales have been $57.5 million, down 6% from the identical interval a yr in the past.

“Gross sales for the quarter have been 30% greater than the identical quarter of 2019, which might be a greater comparability of precise efficiency,” Fachner stated.

Within the grocery store retail phase, gross sales of sentimental pretzels fell 12% to $11.19 million. Biscuit gross sales fell 44% to $36.9 million and handheld merchandise gross sales fell 63% to $1.19 million.

Within the frozen drinks enterprise, working revenue was $11.42 million, in comparison with a lack of $9.09 million in the identical interval a yr in the past. Gross sales elevated 83% to $74.01 million, however remained barely beneath pre-COVID 2019 ranges.

Within the frozen beverage phase, the amusement park chain noticed gross sales above pre-COVID 2019 ranges. Huge field shops and QSRs additionally noticed a big enhance in site visitors. The cinema chain has improved from earlier quarters, however nonetheless trails 2019 gross sales by greater than 50%.

“Most all different channels are again to regular ranges for us,” Fachner stated. “The most important chunk we’re anticipating is the theater enterprise.”