J & J Snack Foods Corp. (JJSF)
UndervaluedFundamental
64
Price
$76.45
Market Cap
$1.43B
Part 1 · What the company is worth
Overview
J&J Snack Foods Corp. manufactures and sells snack foods and distributes frozen beverages in the United States. Its core products are soft pretzels (SUPERPRETZEL, BRAUHAUS), frozen novelties and ices (DIPPIN' DOTS, LUIGI'S, WHOLE FRUIT, MINUTE MAID under licence), churros (¡HOLA!), handheld items and bakery products such as biscuits, muffins and funnel cake. It also owns the ICEE and SLUSH PUPPIE frozen-beverage businesses, which place and service dispensing machines in cinemas, convenience stores, theme parks and stadiums. The company sells mainly to foodservice operators — restaurants, stadiums, schools, cinemas, snack bars — and to supermarket chains for at-home consumption. Fiscal 2025 ended on 27 September 2025 with consolidated net sales of $1,583.2 million.
How it makes money
Almost all revenue comes from selling physical food and beverage products, case by case, to distributors, foodservice operators and supermarket chains: there is no subscription and no recurring contract revenue. The one structural exception is the Frozen Beverages business, where the company places its own dispensing machines at customer locations and earns money three ways — selling the beverage syrup and cups, selling or leasing the machines, and charging for repair and maintenance on its own and on customer-owned equipment. The 10-K states that equipment sales together with repair and maintenance services accounted for 9% of total annual sales. Pricing power therefore depends on passing through the cost of flour, sugar, dairy, chocolate, packaging and freight.
Revenue by segment
Sells soft pretzels, frozen novelties, churros, handheld items and bakery products to restaurants, stadiums, schools, cinemas, theme parks, convenience stores and snack bars, largely through food distributors. It is the company's largest segment and the one most tied to away-from-home eating.
Sells ICEE and SLUSH PUPPIE frozen carbonated and non-carbonated drinks, plus the dispensing machines and the repair and maintenance service behind them, to cinemas, convenience stores, theme parks, stadiums and other high-traffic venues.
Sells branded soft pretzels, frozen novelties and handheld products through supermarket and mass-retail chains for consumption at home. Volumes here depend on shelf space won from the retailer and on promotional support.
Competitive moat
Brand · NarrowThe durable advantage is narrow and sits mostly in the Frozen Beverages business: ICEE and SLUSH PUPPIE are long-established names, and because the company owns, places and services the dispensing machines inside the customer's venue, replacing it means physically swapping out hardware and a service relationship, not just changing supplier. In snacks the position rests on recognised brands such as SUPERPRETZEL, DIPPIN' DOTS and ¡HOLA!, but these compete for the same foodservice contracts and the same supermarket freezer space as much larger food groups and as private label, and the 10-K itself describes the markets as highly competitive, with several competitors that have greater financial resources. Raw-material and freight costs are passed through with a lag, which limits how much pricing power the brands really confer.
What drives demand
Moderately cyclicalDemand is only partly defensive. The products are cheap, everyday treats, which helps when household budgets tighten, and the supermarket segment is bought for the home in any weather. But roughly two thirds of sales go through foodservice and much of the frozen beverage business sits in cinemas, stadiums, theme parks and convenience stores, so volumes follow out-of-home traffic: cinema attendance, the sports and events calendar, school sessions and travel. Weather and season matter too — frozen drinks and frozen novelties sell in warm months. The company itself flags seasonality and quarterly fluctuation as a risk factor. The result is a business that does not collapse in a downturn but does track venue footfall and the weather more than a shelf-stable grocery staple would.
Key risks
- Concentration of sales in a few large customers — The company discloses that its single largest customer accounted for 10% of fiscal 2025 sales and that its ten largest customers together accounted for 46%. Five of those ten are food distributors that resell to many end users. Losing one of these relationships, or a change in its buying terms, would affect a meaningful slice of sales.
- Cost and availability of raw materials and packaging — The filing lists shortages and price increases in ingredients and packaging among its risk factors. The company cannot always raise prices quickly enough, or at all, to recover higher input costs, which compresses margins.
- Labour shortages and rising labour costs — The company identifies difficulty in attracting and retaining workers, and increases in wages and in health insurance costs, as risks to its manufacturing and service operations.
- Competition and capacity constraints in manufacturing and distribution — Risk factors cover highly competitive markets, disruption at manufacturing or distribution facilities, limits on manufacturing capacity, and the availability and cost of transportation — any of which can prevent the company from serving demand profitably.
- Food safety, product perception and brand damage — The company lists general food-industry risks, product safety perception, brand perception and the acceptance of product changes by consumers. A contamination event or a shift in how consumers see the products would hurt sales directly.
- Acquisitions and execution of strategic initiatives — The company has grown partly by acquisition and discloses the risk of failing to integrate acquired businesses, and the risk of not executing its announced strategic initiatives as planned.
- Seasonality and quarterly swings — The filing flags seasonality and quarterly fluctuation as a risk factor: frozen beverage and frozen novelty demand is concentrated in warm months and in venue traffic, so results are uneven across the year.
- Information technology systems — The company lists failures or breaches of its information technology systems among its risk factors, given its reliance on them for manufacturing, distribution and order management.
Customer concentration
Top customers account for 46% of revenue
The 10-K discloses that the ten largest customers accounted for 46% of fiscal 2025 sales, and that the single largest customer accounted for 10%. Five of those ten are food distributors, meaning that behind them sit many separate end users — so the concentration on the invoice is higher than the concentration in actual end demand. Still, nearly half of sales pass through ten buying relationships.
The case for
Buyers argue that this is a long-established, family-controlled food business with recognisable niche brands — SUPERPRETZEL in soft pretzels, ICEE and SLUSH PUPPIE in frozen drinks, DIPPIN' DOTS in frozen novelties — sitting in categories where it is one of the named players rather than a commodity supplier. They point to the Frozen Beverages model, where owning and servicing the dispensing machines inside cinemas, convenience stores and stadiums makes the company part of the venue's operation rather than a swappable vendor, and where machine and service revenue accounted for 9% of sales. They note that fiscal 2025 revenue grew, with Food Service up 1.6% to $1,001.4 million, and they expect input-cost inflation that squeezed margins to fade while price increases already taken stay in place. They also argue the products are inexpensive indulgences, which historically holds up better than premium discretionary spending when consumers trade down.
The case against
Sellers fear that growth has effectively stalled: consolidated fiscal 2025 sales were $1,583.2 million, and inside that the Retail Supermarket segment fell and the beverage line of Frozen Beverages fell, with the segment leaning on machine sales to hold up. They point to structural weakness in the position — the company itself describes its markets as highly competitive with larger, better-financed rivals, and its products compete against private label for the same freezer space. They worry about the cost side, where flour, sugar, dairy, chocolate, packaging, freight and wages all move against the company and cannot always be passed through in time. They note that ten customers are 46% of sales and one is 10%, so a single lost distributor or retailer reset hurts disproportionately. And they argue that the Frozen Beverages business is tied to cinema and venue footfall and to hot weather, two things management does not control and neither of which is on a reliable upward trend.
Generated on September 19, 2026 with claude-haiku-4-5 — shared with all users
Direct competitors
Who this company fights with for the same customers
Generated on September 19, 2026 with claude-haiku-4-5 — shared with all users
Lancaster Colony supplies frozen breads and yeast rolls to chain restaurants and branded baked goods to supermarket freezers, the two channels that make up most of J&J's sales.
Its Pillsbury frozen dough and North America Foodservice business sells baked snacks and sweet goods to schools, convenience stores and concession operators, J&J's core away-from-home customers.
Rich's sells frozen dough, rolls, pastries and sweet goods to the same foodservice operators, schools and in-store bakeries that buy J&J's soft pretzels, churros, funnel cakes and cookies.
ARYZTA is a large frozen-bakery supplier to convenience stores, foodservice operators and retail bake-off counters, competing for the same par-baked and snack-bakery orders as J&J's food service segment.
Wells makes Blue Bunny and Bomb Pop frozen novelties sold in the same supermarket freezers and concession stands as J&J's Dippin' Dots, Luigi's Italian Ice and Whole Fruit bars.
Balance Sheet & Liquidity
Revenue
$1.52B
Trailing 12 months (through 6/30/2026)
Net Income
$49M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$82M
Total Equity
$967M
Total Liabilities
$415M
Current Ratio
2.72
Interest Coverage
56.48
Debt/EBITDA
1.22
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$149.17
Current Price
$76.45
Margin of Safety
+48.7%
Fair Value Range
$96.96 - $201.38
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
22.75
ROE
6.8%
P/B Ratio
1.48
P/FCF
17.36
Gross Margin
29.7%
ROIC
5.5%
Profitability Radar
Value Creation (Economic Moat)
ROIC
5.5%
WACC
7.1%
ROIC − WACC
-1.6 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (18)
- EPS shows upward trend
- ROIC 5.5%
- P/FCF 17.36
- P/B Ratio 1.48
- Debt/Equity ratio
- Operating Margin 5.3%
- Positive Free Cash Flow
- Current Ratio
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- Revenue Growth 5Y 9.2%
- Analyst Consensus 89% Buy
- Earnings Surprise avg 7.6%
- PEG Ratio 1.03
- Earnings Quality (OCF/NI) 2.52
- Share Dilution 0.4%
- Piotroski F-Score 5/9
Failed (9)
- EPS CAGR 2.65%
- Price CAGR -5.24%
- Gross Margin 29.7%
- CapEx intensity
- Low reliance on intangibles
- Price below Graham Number
- DCF valuation (Overvalued)
- ROE 5.4%
- Net Margin Trend 4.1% vs 5.5%
Unavailable (1)
- Dividend Payout NaN%
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Share count is stable
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Daniel J. Fachner | President, CEO & Chairman | 65 |
| Mr. Shawn C. Munsell | Senior VP & CFO | 50 |
| Mr. Stephen J. Every | Executive Vice President of Operations | 62 |
| Mr. Lynwood M. Mallard | Senior VP & Chief Marketing Officer | 56 |
| Ms. Mary Lou Kehoe | Vice President of Human Resources | 63 |
| Douglas Davidson | Senior Vice President of Bakery Division | - |
| Matthew T. Inderlied | Senior VP & Chief Customer Officer | 48 |
| Jay Montgomery | Senior Vice President of Supply Chain | - |
| Mr. Aaron Winkelman | Senior Vice President of Sales for The ICEE Company | - |
| Mr. James N. Hamill CPA | VP & Controller | - |
Audit Risk
9
Board Risk
8
Compensation Risk
5
Shareholder Rights Risk
5
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2025-11-26
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-06
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-08-05
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for JJSF, sourced from Markets Gazette.
- 8/20/2026NEUTRALJ&J Snack Foods CEO on Snack Nostalgia, Turnaround Plans
J&J Snack Foods CEO Dan Fachner highlighted the company's strategic emphasis on its food service division, which constitutes 60% of its operations. He pointed to significant recovery and growth prospects within experiential venues like theaters, theme parks, and ballparks, where its well-known brands, including ICEE, Dippin' Dots, and Super Pretzel, maintain strong consumer appeal. This focus on nostalgic and impulse-buy products in entertainment settings suggests a stable, albeit not explosive, growth trajectory for the company.
via Markets Gazette