JJSF - J&J Snack Foods sheds 5% after earnings fall short of expectations

J&J Snack Foods Corp. ( NASDAQ: JJSF ) saw sales rise 10.3% in FQ1 despite some industry challenges with traffic and volume. The food distributor struggle more on the bottom line with EPS down 26% from a year ago and adjusted EBITDA coming in 8.3% lower.

Organic sales growth during FQ1 was driven by growth across all three business segments, led by core products including pretzels, churros, frozen novelties and frozen beverages. Food service sales rose 12.5% year-over-year during the quarter, retail segment sales were up 0.9%, and frozen beverage segment sales were 9.2% higher. Of note, the Dippin' Dots business was a contributor during the quarter. In terms of profitability, the company noted it had to continue to manage through cost pressures on the expense side during the quarter, most notably distribution expenses.

Looking ahead, JJSG said it has taken aggressive measures to offset challenges and position itself for long-term success. "In addition to the sales strategies mentioned above, we are focused on improving operational efficiencies and capacity through initiatives like adding seven new, more automated production lines," updated CEO Dan Fachner.

Shares of J&J Snack Foods ( JJSF ) fell 5.00% in postmarket action following the double miss.

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