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J & J Snack Foods Corp. (the Company or J & J ) manufactures snack foods and distributes frozen beverages which it markets nationally to the foodservice and retail supermarket industries. The Company s principal snack food products are soft pretzels marketed primarily under the brand names SUPERPRETZEL, BRAUHAUS, FEDERAL PRETZEL, and BAVARIAN BAKERY, frozen novelties marketed primarily under th…
Operating margin is thin at 5.33%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 0.5%, essentially flat. Margins also contracted 2.1pp. This is a business that needs a catalyst.
Free cash flow declined 17% versus the prior year, cash generation momentum has weakened. ROIC dropped from 7.92% to 5.65%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$1.56B
▲ +0.5% YoY
Net Income (FY)
$66M
▼ -24.2% YoY
Op. Margin
5.18%
▼ -2.1pp YoY
ROIC
5.78%
▼ -2.3pp YoY
Cash Flow & Balance Sheet
FCF (FY)
$82M
▼ -17.3% YoY
Op. Cash Flow (FY)
$165M
▼ -4.6% YoY
Net Debt
$133M
Cash & Equiv.
$60M
5Y CAGR: +9.1%
5Y CAGR: +19.1%
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