JJSF - J&J Snack Foods: The Soft Pretzel King Is Expensive

• JJSF is a $2.5b consumer staples company that is the market leader in soft pretzels.
• It has grown dividends for 18 consecutive years.
• However, it is trading at 35x PE with a 2% dividend yield. With stagnating revenues and decreasing margins, forward returns do not seem attractive.
• Investors should expect multiple compression, especially if the company cannot grow or raise prices to combat continued inflationary pressures.

For further details see: