Corporate Profiles - 2024 - 78

COMPANY overview
J&J Snack Foods Corp.
Thinsters acquisition, Subway partnership
open new growth avenues
A
new partnership with Subway and the
May acquisition of Thinsters have set the
stage for new avenues of sales growth for
Pennsauken, NJ-based J&J Snack Foods Corp.
The company kicked off 2024 with a partnership
with Subway to manufacture a footlong
churro for all the quick-service restaurant
chain's US locations. In February, Daniel
Fachner, president and chief executive officer
of J&J Snack Foods, said the churro rollout was
" exceeding expectations. " The partnership with
Subway came on the heels of a similar deal for
churros with a major food distributor that began
in September 2023.
Then, in May, J&J Snack Foods acquired specialty
cookie brand Thinsters from The Hain Celestial
Group Inc. Thinsters bakes thin, bite-size
cookies using clean ingredients.
Fachner said the acquisition of Thinsters provides
J&J Snack Foods " with strong brand and
2024, net income at J&J Snack Foods totaled
$36.23 million, equal to $1.87 per share on the
common stock, up 3.8% from $34.98 million,
or $1.82 per share, during the same period a
year ago.
Net sales in the third quarter ended June 29
totaled $439.96 million, a 3.3% increase from
$425.77 million.
During
the
August third-quarter
earnings
conference call, Fachner said the company's
SuperPretzel brand is " outperforming " the snack
category and continues to provide opportunities
for growth, new product extensions and new
points of sale.
" We are expanding across retail, led by the
launch of Bavarian sticks, which remains the No.
2 seller in the SuperPretzel portfolio, reaching an
ACV now of 28% and growing, " he said.
Regarding operations, J&J Snack Foods this
year opened three distribution centers in Carroll,
Texas; Woolridge, NJ; and Glendale, Ariz.
The openings will allow the company to continue
driving productivity improvements in its supply
chain. Furthermore, J&J Snack Foods added six
production lines, allowing the company to expand
capacity and meet growth opportunities
across pretzels, churros and frozen novelties.
" The expanded capacity has created production
efficiencies and higher output metrics
through
better automation,
Chief executive officer -
Daniel Fachner
quality product to add to our cookie portfolio. "
" Thinsters are predominantly sold in the club
and retail channels, servicing existing customers
of ours, " Fachner said. " We have been producing
this product for the previous owner, so this will
be a seamless integration and a quality brand
that we can build across both retail and foodservice.
Our team is relentlessly focused on innovation
and creating new selling opportunities. "
Through the first three quarters of fiscal
78 \ October 2024
which
improves
product margins, decrease in overtime and provides
the flexibility to respond to new sales opportunities, "
Fachner said during the August call
with analysts. " Fill rates have reached 98.5%, a
high point for ... business and high relative to
the overall industry trend. "
Late in 2023 J&J Snack Foods hired an international
business development leader to identify
opportunities to expand products and brands like
Superpretzel, Hola! Churros and Dippin' Dots
into new markets, Fachner said.
" I don't see that being impactful to our 2024
year, " he said of international growth. " I think it
will build over a period of time, and we have
enough experience to be careful about how we
do that. " CP
2022
2021
$47
$56
Source: J&J Snack Foods, Inc.
J&J Snack Foods, Inc.
net income
(fiscal years ended in September)
in millions
2023
$78
J&J Snack Foods, Inc.
net sales
(fiscal years ended in September)
in millions
2023
2022
2021
$1,558
$1,381
$1,145
Source: J&J Snack Foods, Inc.
J&J Snack Foods, Inc.
share price
$128
$142
$156
$170
$184
Sept. 4, 2024 = $170.39
HIGH =
Aug. 21, 2024
= $173.59
LOW =
April 17, 2024
= $133.63
Sept. Nov.
2023
Jan.
2024
March May
Source: New York Stock Exchange
J&J SNACK FOODS, INC.
July
Sept.
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Corporate Profiles - 2024

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