Earnings release
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Exhibit 99.1 J & J Snack Foods Reports Fiscal 2026 First Quarter Results Announces new $50 million share repurchase authorization Mount Laurel, NJ. February 3, 2026 – J & J Snack Foods Corp. (Nasdaq: JJSF) today reported financial results for the first quarter ended December 27, 2025. First Quarter Actuals $ v. LY % v. LY Net Sales $343.8M $(18.8M) (5.2%) Gross Profit $96.0M $2.1M 2.2% Operating Income $0.6M ($5.6M) (89.8%) Net Earnings $0.9M ($4.3M) (82.8%) Earnings per Diluted Share $0.05 ($0.21) (80.8%) Adjusted Operating Income $8.0M ($0.2M) (2.4%) Adjusted EBITDA $27.0M $1.8M 7.0% Adjusted Earnings per Diluted Share $0.33 $0.00 0.0% This press release contains non-GAAP financial measures. Please refer to the Non-GAAP Financial Measures section below for reconciliations to the most comparable GAAP measures. "Our first quarter results reflect disciplined execution of our key priorities to drive profitability,” said Dan Fachner, J&J Snack Foods Chairman, President, and CEO. “We are pleased to deliver 7% year-over-year growth in adjusted EBITDA and a 200 basis point expansion in gross margin despite a 5.2% decline in sales and a $1 million expense for product disposal. Our results were enabled by our Project Apollo initiatives including strategic portfolio rationalization of lower margin products within our bakery business.” “We remain optimistic about our trajectory and have several exciting commercial initiatives underway. The momentum in our pretzel business from the second half of fiscal 2025 continued in the first quarter. We have several innovative product launches that will reach customers in the second quarter, including Dippin’ Dots products for retail, as well as pretzel and frozen novelty products centered around better-for-you attributes. Project Apollo, our business transformation program, is progressing and we are on track to deliver the $20 million of annualized savings we outlined last quarter. Underscoring our confidence in the future and our focus on driving long- term value, we repurchased $42 million of stock during the first quarter and today are announcing a new $50 million repurchase authorization." First Quarter Results Net sales decreased 5.2% from the prior year quarter to $343.8 million, with most of the decline attributable to our bakery business and strategic portfolio rationalization efforts. ● Food Service segment net sales decreased 8.3%
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● Retail Supermarket segment net sales increased 2.6% ● Frozen Beverage segment net sales were approximately flat Gross profit increased from $93.9 million in the prior year quarter to $96.0 million, while gross margin improved from 25.9% to 27.9%. The improvement in gross margin primarily reflects the early benefits of our Apollo transformation initiatives and favorable product mix, partially offset by $1.0 million in product disposal costs and approximately $0.6 million in tariff-related costs net of pricing offsets. Total operating expenses of $95.4 million included $6.1 million in non-recurring plant closure costs as well as other non-recurring impacts. ● Selling and Marketing expenses increased 9.9% to $31.5 million, or 9.2% of sales, up from 7.9% in the prior year quarter. Approximately 140 basis points of the increase was associated with higher commissions for retail vending sales, which is a growing component of our Dippin’ Dots business. Investments to support our brands in preparation for our peak summer season accounted for approximately 250 basis points of the increase. Higher depreciation associated with customer equipment accounted for approximately 190 basis points of the increase, with almost half of that associated with growth in Dippin’ Dots. ● Distribution expenses decreased 3.9% to $38.1 million, or 11.1% of sales up from 10.9% in the prior year quarter, primarily reflecting lower volume. ● Administrative expenses increased 7.8% to $20.4 million, or 5.9% of sales, up from 5.2% in the prior year quarter. Approximately 300 basis points of the increase was attributed to non-recurring restructuring and legal expenses. Operating income was $0.6 million, compared to $6.2 million in the prior year quarter, while adjusted operating income was $8.0 million, compared to $8.2 million in the prior year quarter. Earnings per diluted share were $0.05, compared to $0.26 in the prior year quarter, while adjusted earnings per diluted share were $0.33, flat with the prior year quarter. The effective tax rate was 27.0%, compared to 27.2% in the prior year quarter. Food Service Segment ● Net sales of $219.2 million, a year-over-year decrease of $19.7 million, or 8.3%. ● Bakery was down approximately 17% and accounted for $18 million of the decline in Food Service, reflecting ongoing efforts to improve profitability through portfolio rationalization. ● Pretzel sales increased approximately 6.9%, continuing the growth momentum from the second half of fiscal 2025, with share gains driven by Bavarian formula pretzels. ● Handheld sales declined approximately 22% on lower volumes and a contractual pricing true-up on lower costs of certain ingredients. ● Operating income increased 14.6% to $10.1 million. Retail Supermarket Segment ● Net sales of $45.9 million, a year-over-year increase of $1.2 million, or 2.6%. ● Handheld sales increased 35% as we lapped capacity constraints from the prior year facility fire. ● Sales within the remaining retail portfolio decreased $0.6 million, primarily driven by lower frozen novelty sales as growth in Dogsters and Dippin’ Dots at retail was more than offset by decreases in other frozen novelties. ● Operating income decreased 2.6% to $1.2 million.
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Frozen Beverages Segment ● Net sales of $78.7 million were approximately flat with the prior year period. ● Beverage sales were up modestly, whereas service and machine sales combined were down modestly. ● Operating income decreased 13.7% to $4.0 million. Share Repurchases During the quarter, we repurchased approximately 458,467 shares of common stock for $42 million, completing our $50 million authorization. Including shares bought in fiscal 2025, we repurchased 525,243 shares for $50 million. Our Board of Directors has approved a new $50 million share repurchase authorization that is effective for approximately two years. The new authorization reflects our confidence in the company’s long-term value, as well as our strong balance sheet and liquidity position. Our approach to share repurchases will be opportunistic, and the extent of our repurchases and the timing will depend on market conditions, regulatory requirements and other factors. We may repurchase shares in the open market, through private transactions, or otherwise, including through Rule 10b5-1 trading plans. The authorization is consistent with our capital deployment discipline and focus on driving shareholder returns. Conference Call J&J Snack Foods Corp. will host a conference call to discuss results and business outlook on February 3, 2026, at 10:00 a.m. Eastern Time. Conference call participants should register by clicking on this Registration Link to receive the dial-in number and a personal PIN, which are required to access the conference call. A live audio webcast of the conference call will also be available on the Investors homepage at investors.jjsnack.com. About J & J Snack Foods Corp. J & J Snack Foods Corp. (Nasdaq: JJSF) is a leader and innovator in the snack food and frozen beverage industry. For over fifty years, the company has specialized in delicious snack and beverage brands for the foodservice and retail segments, serving up fun across the U.S. market. J & J Snack Foods’ core brands include SUPERPRETZEL, the #1 soft pretzel brand, ICEE and SLUSH PUPPIE frozen beverages, and Dippin’ Dots, the original beaded ice cream. The company’s broad brand portfolio also includes LUIGI’S Real Italian Ice, MINUTE MAID* frozen ices, WHOLE FRUIT frozen fruit bars, DOGSTERS ice cream style treats for dogs, ¡Hola! Churros, THE FUNNEL CAKE FACTORY funnel cakes and fries, and bakery brands including MARY B’S, DADDY RAY’S, COUNTRY HOME BAKERS, and HILL & VALLEY. For more information, please visit http://www.jjsnack.com. *MINUTE MAID is a registered trademark of The Coca-Cola Company.
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Cautionary Statement Regarding Forward-Looking Information This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding the Company’s expected future financial position, results of operations, revenue growth and profit levels, cash flows, business strategy, budgets, projected costs, capital expenditures, products, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as “anticipate,” “if,” “believe,” “plan,” “goals,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will,” and other similar expressions are forward-looking statements. This includes, without limitation, our statements, and expectations regarding any current or future recovery in our industry and the future impact of our operational efficiency projects. Such forward-looking statements are inherently uncertain, and readers must recognize that actual results may differ materially from the expectations of management. We do not undertake a duty to update such forward-looking statements. Factors that may cause actual results to differ materially from those in the forward-looking statements include consumer spending, price competition, acceptance of new products, the pricing and availability of raw materials, transportation costs, changes in the competitive marketplace the uncertainty and ultimate economic impact of the COVID-19 pandemic or similar health outbreaks, and other risks identified in our annual report on Form 10-K, and our other filings with the Securities and Exchange Commission. Many of these factors are outside of the Company’s control. Non-GAAP Financial Measures Adjusted EBITDA consists of net earnings adjusted to exclude: income taxes (benefit); investment income; interest expense; depreciation and amortization; share-based compensation expense; net (gain) loss on sale or disposal of assets; impairment charges, restructuring costs, merger and acquisition costs, acquisition related inventory adjustments, strategic business transformation costs, integration costs, non-recurring legal fee expenses and gain on insurance proceeds received for damage to property, plant and equipment. Adjusted Operating Income consists of operating income adjusted to exclude: impairment charges, restructuring costs, merger and acquisition costs, acquisition related amortization expenses and inventory adjustments, strategic business transformation costs, integration costs, non-recurring legal fee expenses, and gain on insurance proceeds received for damage to property, plant and equipment. Adjusted Earnings per Diluted Share consists of net earnings adjusted to exclude: impairment charges, restructuring costs, merger and acquisition costs, acquisition related amortization expenses and inventory adjustment, strategic business transformation costs, integration costs, non-recurring legal fee expenses, and gain on insurance proceeds received for damage to property, plant and equipment. For purposes of comparability, the income tax effect of pre-tax adjustments is determined using statutory tax rates. This press release contains certain non-GAAP financial measures; Adjusted EBITDA, Adjusted Operating Income, and Adjusted Earnings per Diluted Share. A "non-GAAP financial measure" is a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP") in the statements of income, balance sheets, or statements of cash flow of the company. Pursuant to applicable reporting requirements, the company has provided reconciliations below of non-GAAP financial measures to the most directly comparable GAAP measure. The non-GAAP financial measures presented within the Company's earnings release are not indicators of our financial performance under GAAP and should not be considered as an alternative to the applicable GAAP measure. These non-GAAP measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. In addition, in evaluating these non-GAAP measures, you should be aware that in the future we may incur income, expenses, gains and losses, similar to the adjustments in this press release. Our presentation of these non-GAAP measures should not be construed as an inference that our future results will be unaffected by unusual or infrequent items. We compensate for these limitations by providing equal prominence to our GAAP results and using non- GAAP measures only as supplemental presentations. The non-GAAP measures presented are utilized by management to evaluate the Company's business performance and profitability by excluding certain items that may not be indicative of our recurring core business operating results. The Company believes that these measures provide additional clarity for investors by excluding specific income, expenses, gains, and losses, in an effort to show comparable business operating results for the periods presented. Similarly, Management believes these adjusted measures are useful performance measures because certain items included in the calculations may either mask or exaggerate trends in the Company’s ongoing operating performance. See the reconciliation of Non-GAAP Financial Measures below. Investor Contact: Reed Anderson, ICR (646) 277-1260 reed.anderson@icrinc.com
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J & J SNACK FOODS CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (in thousands, except per share amounts) Three months ended December 27, December 28, 2025 2024 Net sales $ 343,778 $ 362,598 Cost of goods sold 247,766 268,697 Gross profit 96,012 93,901 Operating expenses Selling and Marketing 31,499 28,669 Distribution 38,056 39,610 Administrative 20,377 18,903 Gain on insurance proceeds received for damage to property, plant, and equipment (800) - Plant closure expense 6,113 - Other general expense 130 480 Total operating expenses 95,375 87,662 Operating income 637 6,239 Other income (expense) Investment income 712 1,037 Interest expense (139) (212) Earnings before income taxes 1,210 7,064 Income tax expense 327 1,921 NET EARNINGS $ 883 $ 5,143 Earnings per diluted share $ 0.05 $ 0.26 Weighted average number of diluted shares 19,428 19,563 Earnings per basic share $ 0.05 $ 0.26 Weighted average number of basic shares 19,316 19,471
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J & J SNACK FOODS CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share amounts) December 27, September 27, 2025 2025 Assets Current assets Cash and cash equivalents $ 66,761 $ 105,893 Accounts receivable, net 161,440 184,069 Inventories 172,050 175,173 Prepaid expenses and other 12,266 13,197 Total current assets 412,517 478,332 Property, plant and equipment, at cost 1,026,153 1,009,463 Less accumulated depreciation and amortization 634,625 619,310 Property, plant and equipment, net 391,528 390,153 Other assets Goodwill 185,070 185,070 Trade name intangible assets, net 105,920 105,920 Other intangible assets, net 65,287 66,730 Operating lease right-of-use assets 149,094 151,538 Other 3,858 3,758 Total other assets 509,229 513,016 Total Assets $ 1,313,274 $ 1,381,501 Liabilities and Stockholders' Equity Current Liabilities Current finance lease liabilities $ 609 $ 563 Accounts payable 80,592 82,405 Accrued insurance liability 16,628 16,441 Accrued liabilities 10,994 12,606 Current operating lease liabilities 21,906 21,624 Accrued compensation expense 17,988 26,475 Dividends payable 15,208 15,552 Total current liabilities 163,925 175,666 Long-term debt - - Noncurrent finance lease liabilities 1,254 1,355 Noncurrent operating lease liabilities 137,599 140,021 Deferred income taxes 91,345 91,703 Other long-term liabilities 6,293 6,061 Stockholders' Equity Preferred stock, $1 par value; authorized 10,000,000 shares; none issued - - Common stock, no par value; authorized, 50,000,000 shares; issued and outstanding 18,996,000 as of December 27, 2025 and 19,440,000 as of September 27, 2025 97,912 139,118 Accumulated other comprehensive loss (10,953) (12,647) Retained Earnings 825,899 840,224 Total stockholders' equity 912,858 966,695 Total Liabilities and Stockholders' Equity $ 1,313,274 $ 1,381,501
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J & J SNACK FOODS CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) Three months ended December 27, December 28, 2025 2024 Operating activities: Net earnings $ 883 $ 5,143 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation of fixed assets 17,241 15,814 Amortization of intangibles and deferred costs 1,443 1,930 Losses from disposals of property & equipment 343 146 Non-cash plant shutdown expenses 1,781 - Share-based compensation 1,479 1,125 Deferred income taxes (325) (158) Gain on insurance proceeds received for damage to property, plant, and equipment (800) - Other (100) (93) Changes in assets and liabilities, net of effects from purchase of companies Decrease in accounts receivable 22,872 24,987 Decrease in inventories 1,916 3,164 Net changes in other operating assets and liabilities (10,770) (16,896) Net cash provided by operating activities 35,963 35,162 Investing activities: Purchases of property, plant and equipment (19,003) (19,065) Proceeds from disposal of property and equipment 57 131 Proceeds from insurance for fixed assets 800 - Net cash (used in) investing activities (18,146) (18,934) Financing activities: Payments to repurchase common stock (42,000) - Proceeds from issuance of stock - 1,924 Purchase of vested employee service share units and performance share units (685) (552) Borrowings under credit facility 10,000 15,000 Repayment of borrowings under credit facility (10,000) (15,000) Payments on finance lease obligations (117) (42) Payment of cash dividend (15,552) (15,178) Net cash (used in) financing activities (58,354) (13,848) Effect of exchange rates on cash and cash equivalents 1,405 (2,212) Net increase in cash and cash equivalents (39,132) 168 Cash and cash equivalents at beginning of period 105,893 73,394 Cash and cash equivalents at end of period $ 66,761 $ 73,562
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J & J SNACK FOODS CORP. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands) Three months ended December 27, December 28, 2025 2024 Sales to external customers: Food Service $ 219,156 $ 238,883 Retail Supermarket 45,882 44,717 Frozen Beverages 78,740 78,998 Consolidated sales to external customers $ 343,778 $ 362,598 Operating Income: Food Service $ 10,099 $ 8,814 Retail Supermarket 1,160 1,191 Frozen Beverages 4,049 4,691 Total Segment Operating Income 15,308 14,696 General corporate expenses 9,358 8,457 Gain on insurance proceeds received for damage to property, plant and equipment (800) - Plant closure expense 6,113 - Total Unallocated Operating Expenses (net) 14,671 8,457 Total Operating Income $ 637 $ 6,239
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J & J SNACK FOODS CORP. AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES (Unaudited) (in thousands) Three months ended December 27, December 28, 2025 2024 Reconciliation of GAAP Net Earnings to Adjusted EBITDA Net Earnings $ 883 $ 5,143 Income Taxes 327 1,921 Investment Income (712) (1,037) Interest Expense 139 212 Depreciation and Amortization 18,684 17,744 Share-Based Compensation 1,479 1,125 Gain on insurance proceeds received for damage to property, plant, and equipment (800) - Restructuring Costs 257 - Non-recurring Legal Expenses 319 - Net Loss on Sale or Disposal of Assets 343 146 Plant closure expense 6,113 - Adjusted EBITDA $ 27,032 $ 25,254 Reconciliation of GAAP Operating Income to Adjusted Operating Income Operating Income $ 637 $ 6,239 Gain on insurance proceeds received for damage to property, plant, and equipment (800) - Restructuring Costs 257 - Non-recurring Legal Expenses 319 - Acquisition Related Amortization Expenses 1,443 1,930 Plant closure expense 6,113 - Adjusted Operating Income $ 7,969 $ 8,169 Reconciliation of GAAP Earnings per Diluted Share to Adjusted Earnings per Diluted Share Earnings per Diluted Share $ 0.05 $ 0.26 Gain on insurance proceeds received for damage to property, plant, and equipment (0.04) - Restructuring Costs 0.01 - Non-recurring Legal Expenses 0.02 - Acquisition Related Amortization Expenses 0.07 0.10 Plant closure expense 0.32 - Tax Effect of Non-GAAP Adjustments (1) (0.10) (0.03) Adjusted Earnings per Diluted Share $ 0.33 $ 0.33 (1) Income taxes associated with pre-tax adjustments determined using statutory tax rates