Earnings release
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Exhibit 99.1 JySNACK FOODS CORR J & J Snack Foods Reports Fiscal 2026 Third Quarter Results Mount Laurel , NJ . August 5 , 2026 - J & J Snack Foods Corp. ( Nasdaq : JJSF ) today reported financial results for the third quarter ended June 27 , 2026 . Net Sales Gross Profit Operating Income Net Earnings Earnings per Diluted Share Adjusted Operating Income Adjusted EBITDA Adjusted Earnings per Diluted Share Third Quarter Actuals $ v . LY * % v . LY $ 426.0M ( $ 28.3M ) ( 6.2 % ) $ 151.0M $ 1.0M 0.6 % $ 46.3M ( $ 14.3M ) ( 23.6 % ) $ 35.3M ( $ 8.9M ) ( 20.1 % ) $ 1.88 ( $ 0.38 ) ( 16.8 % ) $ 48.1M ( $ 5.3M ) ( 9.9 % ) $ 67.4M ( $ 4.6M ) ( 6.4 % ) $ 1.96 ( $ 0.04 ) ( 2.0 % ) * Prior year reported results included a $ 9.1 million non - recurring net gain primarily related to the receipt of insurance proceeds . 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 . " Fiscal 2026 has been a year of disciplined transformation , and that work continued to pay off in the third quarter , " said Dan Fachner , President , and CEO of J & J Snack Foods . " We delivered Adjusted EBITDA of $ 67.4 million and Adjusted earnings per diluted share of $ 1.96 , even as freight and fuel costs increased approximately $ 4.7 million during the quarter . Most of the net sales decline in the third quarter was attributed to anticipated sales reductions in bakery , and lower machine and service sales in the Frozen Beverage segment . Gross margin expanded 240 basis points to 35.5 % , and Apollo - driven plant consolidation savings are running ahead of plan , giving us the confidence to raise our annualized plant savings target by $ 5 million to at least $ 20 million and the full program target to $ 25 million . Looking ahead , we expect the sales environment to improve in the fourth quarter as our pipeline fills for core products and recent headwinds diminish . We remain confident that the progress we have made repositioning this business will support durable earnings and a return to top - line growth in fiscal 2027. " Third Quarter Results Net sales decreased 6.2 % from the prior year quarter to $ 426.0 million . • Food Service segment net sales decreased 8.3 % • Retail Supermarket segment net sales increased 1.7 % • Frozen Beverage segment net sales decreased 5.8 %
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Gross profit increased from $150.0 million in the prior year quarter to $151.0 million, while gross margin improved from 33.0% to 35.5%. The improvement in gross margin primarily reflects our Apollo transformation initiatives and mix improvements. Total operating expenses of $104.7 million represented 24.6% of sales for the quarter, compared to 19.7% in the prior year quarter. The prior year quarter included a $9.1 million non-recurring net gain primarily related to insurance proceeds. ● Selling and Marketing expenses increased 2.3% to $34.6 million or 8.1% of sales, up from 7.5% in the prior year quarter. ● Distribution expenses increased 11.0% to $49.6 million or 11.6% of sales up from 9.8% in the prior year quarter. Distribution expenses included higher fuel and freight costs of approximately $5.0 million, excluding any fuel surcharge collections. ● Administrative expenses were materially flat in the quarter at $20.1 million or 4.7% of sales, up from 4.4% in the prior year quarter, reflecting the implementation of savings initiatives. Expenses included $0.6 million of non-recurring legal expenses. Operating income was $46.3 million, compared to $60.6 million in the prior year quarter, while adjusted operating income was $48.1 million, compared to $53.4 million in the prior year quarter. Results last year benefited from a $9.1 million non-recurring net gain primarily associated with the receipt of insurance proceeds. Earnings per diluted share were $1.88, compared to $2.26 in the prior year quarter, while adjusted earnings per diluted share were $1.96, compared to $2.00 in the prior year quarter. The effective tax rate was 23.2%, compared to 27.2% in the prior year quarter. Food Service Segment ● Net sales of $254.3 million, a year-over-year decrease of $22.9 million or 8.3%. ● Anticipated reductions in our bakery business represented approximately $16.0 million of the decline. ● Modest growth in pretzels and churros was more than offset by continued softness in cookies and handhelds, similar to the pattern we saw in the second quarter. ● Operating income increased $0.2 million to $28.1 million as higher distribution costs mostly offset improvements in gross profit. Retail Supermarket Segment ● Net sales of $64.9 million, a year-over-year increase of $1.1 million or 1.7%. ● We incurred a $2 million increase in slotting fees to support the rollout of recent innovation. ● Operating income decreased $3.5 million to $2.7 million, driven by the increase in slotting fees and higher distribution costs. Frozen Beverages Segment ● Net sales of $106.7 million, a year-over-year decrease of $6.5 million or 5.8%. ● Beverage sales were up $4.2 million while machine sales declined $7.3 million and service sales declined $3.4 million. ● Operating income decreased $0.9 million to $22.8 million.
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Share Repurchases During the quarter, we repurchased 135,852 shares of common stock for $10 million. As of June 27, 2026, there was $18 million remaining under the $50 million share repurchase program approved by the Board of Directors. Conference Call J&J Snack Foods Corp. will host a conference call to discuss results and business outlook today, August 5, 2026, at 10:00 a.m. Eastern Time. Investors interested in participating in the live call can pre-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. The live audio webcast will be accessible on the Company’s investor relations website at https://www.jjsnack.com/investors/ or directly at here. 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. 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, 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.
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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 settlements, gain on insurance proceeds received for damage to property, plant and equipment, and plant closure expenses. 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 settlements, gain on insurance proceeds received for damage to property, plant and equipment, and plant closure expenses. 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 settlements, gain on insurance proceeds received for damage to property, plant and equipment, and plant closure expenses. 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 Nine months ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 Net sales $ 425,957 $ 454,293 $ 1,114,554 $ 1,172,990 Cost of goods sold 274,941 304,248 768,234 833,341 Gross profit 151,016 150,045 346,320 339,649 Operating expenses Marketing and selling 34,627 33,847 96,209 91,023 Distribution 49,621 44,685 129,414 126,128 Administrative 20,068 20,028 61,629 58,685 Intangible asset impairment charges - 1,500 - 1,500 Gain on insurance proceeds received for damage to property, plant and equipment - (10,622) (800) (10,622) Plant closure expenses (recoveries) (155) - 10,714 - Other general expense 581 10 440 76 Total operating expenses 104,742 89,448 297,606 266,790 Operating income 46,274 60,597 48,714 72,859 Other income (expense) Investment income 680 622 2,224 2,348 Interest expense (965) (441) (1,406) (738) Earnings before income taxes 45,989 60,778 49,532 74,469 Income tax expense 10,657 16,531 11,640 20,255 NET EARNINGS $ 35,332 $ 44,247 $ 37,892 $ 54,214 Earnings per diluted share $ 1.88 $ 2.26 $ 1.99 $ 2.77 Weighted average number of diluted shares 18,746 19,537 19,001 19,554 Earnings per basic share $ 1.89 $ 2.27 $ 2.00 $ 2.78 Weighted average number of basic shares 18,715 19,455 18,977 19,471
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J & J SNACK FOODS CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share amounts) June 27, September 27, 2026 2025 Assets Current assets Cash and cash equivalents $ 63,099 $ 105,893 Accounts receivable, net 210,539 184,069 Inventories 171,411 175,173 Prepaid expenses and other 17,211 13,197 Total current assets 462,260 478,332 Property, plant and equipment, at cost 1,034,948 1,009,463 Less accumulated depreciation and amortization 650,776 619,310 Property, plant and equipment, net 384,172 390,153 Other assets Goodwill 185,070 185,070 Trade name intangible assets, net 105,920 105,920 Other intangible assets, net 62,512 66,730 Operating lease right-of-use assets 152,172 151,538 Other 3,779 3,758 Total other assets 509,453 513,016 Total Assets $ 1,355,885 $ 1,381,501 Liabilities and Stockholders' Equity Current Liabilities Current finance lease liabilities $ 602 $ 563 Accounts payable 97,611 82,405 Accrued insurance liability 15,608 16,441 Accrued liabilities 18,075 12,606 Current operating lease liabilities 23,742 21,624 Accrued compensation expense 26,758 26,475 Dividends payable 14,926 15,552 Total current liabilities 197,322 175,666 Long-term debt 28,000 - Noncurrent finance lease liabilities 978 1,355 Noncurrent operating lease liabilities 138,584 140,021 Deferred income taxes 92,156 91,703 Other long-term liabilities 6,768 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 18,628,000 and 19,440,000 respectively 69,142 139,118 Accumulated other comprehensive loss (10,044) (12,647) Retained Earnings 832,979 840,224 Total stockholders' equity 892,077 966,695 Total Liabilities and Stockholders' Equity $ 1,355,885 $ 1,381,501
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J & J SNACK FOODS CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) Nine months ended June 27, June 28, 2026 2025 Operating activities: Net earnings $ 37,892 $ 54,214 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation of fixed assets 52,167 48,296 Amortization of intangibles and deferred costs 4,218 5,871 Intangible asset impairment charges - 1,500 Losses (Gains) from disposals of property & equipment 522 (394) Non-cash plant closure expenses 4,529 - Non-cash impairment charge 850 - Share-based compensation 4,684 4,580 Deferred income taxes 515 127 Gain on insurance proceeds received for damage to property, plant, and equipment (800) (10,622) Gain on insurance proceeds received in excess of operating losses recognized - (799) Other 546 212 Changes in assets and liabilities, net of effects from purchase of companies (Increase) in accounts receivable (26,014) (16,491) Decrease (Increase) in inventories 2,274 (21,634) Net changes in other operating assets and liabilities 19,060 33,837 Net cash provided by operating activities 100,443 98,697 Investing activities: Purchases of property, plant and equipment (53,263) (61,264) Proceeds from disposal of property and equipment 396 1,413 Proceeds from insurance for fixed assets 800 11,421 Net cash (used in) investing activities (52,067) (48,430) Financing activities: Payments to repurchase common stock (74,730) (5,000) Proceeds from issuance of stock 1,160 3,104 Purchase of vested employee service share units and performance share units (1,090) - Borrowings under credit facility 119,000 40,000 Repayment of borrowings under credit facility (91,000) (40,000) Payments for debt issuance costs (567) - Payments on finance lease obligations (353) (182) Payment of cash dividend (45,763) (45,575) Net cash (used in) financing activities (93,343) (47,653) Effect of exchange rates on cash and cash equivalents 2,173 1,369 Net (decrease) increase in cash and cash equivalents (42,794) 3,983 Cash and cash equivalents at beginning of period 105,893 73,394 Cash and cash equivalents at end of period $ 63,099 $ 77,377 The accompanying notes are an integral part of these statements.
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J & J SNACK FOODS CORP. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands) Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 Sales to external customers: Food Service $ 254,288 $ 277,169 $ 688,109 $ 742,105 Retail Supermarket 64,932 63,860 162,434 162,425 Frozen Beverages 106,737 113,264 264,011 268,460 Consolidated sales to external customers $ 425,957 $ 454,293 $ 1,114,554 $ 1,172,990 Operating Income: Food Service $ 28,079 $ 27,896 $ 49,033 $ 44,175 Retail Supermarket 2,660 6,185 3,435 10,888 Frozen Beverages 22,815 23,703 31,500 30,916 Total Segment Operating Income 53,554 57,784 83,968 85,979 General corporate expenses 7,435 6,309 25,340 22,242 Intangible asset impairment charge - 1,500 - 1,500 Gain on insurance proceeds received for damage to property, plant and equipment - (10,622) (800) (10,622) Plant closure expense (155) - 10,714 - Total Unallocated Operating Expenses (net) 7,280 (2,813) 35,254 13,120 Total Operating Income $ 46,274 $ 60,597 $ 48,714 $ 72,859
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J & J SNACK FOODS CORP. AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES (Unaudited) (in thousands) Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 2026 2026 Reconciliation of GAAP Net Earnings to Adjusted EBITDA Net Earnings $ 35,332 $ 44,247 $ 37,892 $ 54,214 Income Taxes 10,657 16,531 11,640 20,255 Investment Income (680) (622) (2,224) (2,348) Interest Expense 965 441 1,406 738 Depreciation and Amortization 18,786 18,657 56,385 54,167 Share-Based Compensation 1,553 1,828 4,684 4,580 Gain on insurance proceeds received for damage to property, plant and equipment - (10,622) (800) (10,622) Restructuring Costs - - 1,501 260 Non-recurring Legal Expenses 586 - 1,388 591 Net Loss /(Gain)on Sale or Disposal of Assets 354 72 522 149 Impairment Costs - 1,500 - 1,500 Plant closure expenses/(recoveries) (155) - 10,714 - Adjusted EBITDA $ 67,398 $ 72,032 $ 123,108 $ 123,484 Reconciliation of GAAP Operating Income to Adjusted Operating Income Operating Income $ 46,274 $ 60,597 $ 48,714 $ 72,859 Gain on insurance proceeds received for damage to property, plant and equipment - (10,622) (800) (10,622) Restructuring Costs - - 1,501 260 Non-recurring Legal Expenses 586 - 1,388 591 Acquisition Related Amortization Expenses 1,418 1,946 4,218 5,871 Impairment Costs - 1,500 - 1,500 Plant closure expenses/(recoveries) (155) - 10,714 - Adjusted Operating Income $ 48,123 $ 53,421 $ 65,735 $ 70,459 Reconciliation of GAAP Earnings per Diluted Share to Adjusted Earnings per Diluted Share Earnings per Diluted Share $ 1.88 $ 2.26 $ 1.99 $ 2.77 Gain on insurance proceeds received for damage to property, plant and equipment - (0.54) (0.04) (0.54) Restructuring Costs - - 0.08 0.01 Non-recurring Legal Expenses 0.03 - 0.07 0.03 Acquisition Related Amortization Expenses 0.08 0.10 0.22 0.30 Impairment Costs - 0.08 - 0.08 Plant closure expenses/(recoveries) (0.01) - 0.56 - Tax Effect of Non-GAAP Adjustments (1) (0.02) 0.10 (0.23) 0.03 Adjusted Earnings per Diluted Share $ 1.96 $ 2.00 $ 2.65 $ 2.68 (1) Income taxes associated with pre-tax adjustments determined using statutory tax rates