What Happened?
Shares of snack food company J&J Snack Foods (NASDAQ: JJSF) fell 12.1% in the afternoon session after the company reported weak first quarter 2025 results which saw revenue, gross margin, EPS, and EBITDA all fall short of Wall Street's estimates. A drop in volume across big segments like churros and pretzels, dragged sales and caused a sharp fall in gross profit. Also, slower theater traffic and the end of a one-time churro promo hurt sales, while price hikes didn't land fast enough to offset rising costs. Overall, this was a weaker quarter.
The shares closed the day at $116, down 12.2% from previous close.
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What The Market Is Telling Us
J&J Snack Foods’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. Moves this big are rare for J&J Snack Foods and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 12 months ago when the stock gained 15.2% on the news that the company reported strong first-quarter 2024 results, which blew past analysts' EPS expectations. Its revenue outperformed Wall Street's estimates as it produced higher sales volumes than anticipated. Specifically, its new churros product led the way with 24% year-on-year growth and represented $30.8 million in revenue, a large chunk of which came from its partnership with the fast-food restaurant chain Subway. Zooming out, we think this was an impressive quarter that should delight shareholders.
J&J Snack Foods is down 23.9% since the beginning of the year, and at $117 per share, it is trading 34.6% below its 52-week high of $179.02 from November 2024. Investors who bought $1,000 worth of J&J Snack Foods’s shares 5 years ago would now be looking at an investment worth $991.11.
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