Key Points – Fiscal Q3 results weakened: Net sales fell 6.2% to $426 million, adjusted EBITDA declined 6.4% to $67.4 million, and adjusted EPS slipped to $1.96.
Higher freight and fuel costs increased distribution expenses by roughly $5 million, although gross margin improved to 35.5% through Project Apollo savings and favorable sales mix. – Segment performance was mixed: Foodservice sales dropped 8.3%, largely due to planned bakery SKU reductions and weakness in cookies and handheld products, while retail sales rose 1.7% on brand momentum and product launches
Frozen beverage sales fell 5.8% as beverage growth was offset by declines in service and machine sales. – Management raised its cost-savings target and expects growth to resume: Annualized Project Apollo savings are now expected to reach at least $25 million, including $20 million from plant consolidation. Management expects bakery headwinds to ease in Q4 but is more likely to return to organic growth in fiscal Q1 2027. – Near 52-Week Lows, These 3 Mid-Cap Stocks Are Worth a Look J & J Snack Foods (NASDAQ:JJSF) reported lower fiscal third-quarter sales and adjusted earnings as freight and fuel costs rose, though the company said margin gains from its transformation program helped offset some of those pressures. Net sales for the quarter totaled $426 million, down 6.2% from a year earlier.
Adjusted EBITDA fell 6.4% to $67.4 million, while adjusted earnings per share were $1.96, compared with $2.00 in the prior-year period. Reported diluted earnings per share were $1.88, versus $2.26 a year ago; the earlier period included a $9.1 million non-recurring net gain primarily related to insurance proceeds. – 3 Unstoppable Stocks To Cushion A VIX Spike, In One Sector Chief Executive Officer Dan Fachner said the company improved gross profit by about $1 million to $151 million, while gross margin expanded 240 basis points to 35.5%. He attributed the improvement to Project Apollo cost-saving initiatives and sales mix…