Entering text into the input field will update the search result below

J&J Snack Foods FY 2014 Earnings: Consumers Love Their Soft Pretzels

William Bias profile picture
William Bias


  • Soft Pretzels and frozen beverages gave J&J Snack Foods a boost.
  • A rock solid balance sheet will help J&J Snack Foods self-finance product innovation, acquisitions, and operations during lean times.
  • Investors can enjoy a solid dividend while waiting for capital gains.

On Nov. 6, snack food manufacturer J&J Snack Foods (NASDAQ: NASDAQ:JJSF) came out with its FY 2014 earnings announcement. The company had a robust year and fortified its already excellent fundamentals. Let's take a look to see what's going on with it.

Robust fundamental expansion

J&J Snack Foods saw its FY 2014 revenue, net income, and free cash flow increase 6%, 12%, and 33% respectively. Without acquisitions, revenue increases would still have been a respectable 4%. The company enjoys a diverse product portfolio selling snacks such as soft pretzels, frozen beverages, frozen snacks, and churros. The popularity of its soft pretzel products contributed 38.5% of its total revenue gain. Moreover, frozen juices, beverages and ice snacks in the food service and retail supermarket segments contributed to 33.6% of the overall revenue gain due in part to the acquisition of Philly Swirl in May 2014. Churros and handhelds served as a minor drag on revenue growth.

J&J Snack Foods' food service and retail supermarket segment contributed to the expansion in operating income which filtered down to net income. Its frozen beverage segment, which caters to machines in convenience stores selling frozen beverages such as the Icee brand, served as a slight drag on operating income growth due to lower gallons sold and extraordinary medical insurance claims.

J&J Snack Food's operating cash flow expanded 23% which overcame a miniscule 9% increase in capital expenditures. Sales of plant, property, and equipment also gained 31% and contributed to J&J Snack Foods' expansion in free cash flow for FY 2014.

Excellent balance sheet

J&J Snack Foods sports an excellent balance sheet. Its cash and investments equated to an incredible 40% of stockholder's equity at the end of fiscal year. Nearly 59% of this balance is comprised of marketable securities. This amount of liquidity should help the company through any difficult

This article was written by

William Bias profile picture
I have been analyzing stocks since 1992 and a freelance writer since 2012.

Analyst’s Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (2)

Michael Hooper profile picture
Interesting article William. I will keep my eye on this one. I really like the snack business, it is non-cyclical, people eat this stuff every day, whether it is good for them or not.
William Bias profile picture
Yeah its nice to find a company with solid fundamentals from time to time.

Thanks for reading Michael.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About JJSF

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on JJSF

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.