J J Snack Foods 2025 Q4 Earnings Sharp EPS Drop Amid 61.6% Net Income Decline

J & J Snack Foods (JJSF) reported fiscal 2025 Q4 earnings on November 26, 2025, with results showing a significant decline in profitability. The company’s revenue fell 3.9% year-over-year to $410.24 million, while earnings per share (EPS) plummeted 61.6% to $0.59. Management guided for mid-single-digit revenue growth in 2026, aligning with cost-cutting initiatives but falling short of offsetting the recent downturn.

Revenue

J & J Snack Foods’ total revenue declined to $410.24 million in Q4 2025, reflecting a 3.9% year-over-year contraction from $426.76 million in the prior-year period.

Earnings/Net Income

The company’s net income dropped 61.6% to $11.38 million in Q4 2025, compared to $29.64 million in 2024 Q4, with EPS falling to $0.59 from $1.52. Despite the sharp decline, J & J Snack Foods has maintained profitability for over 20 years in this quarter, demonstrating resilience. The EPS decline highlights immediate operational challenges, though long-term stability remains intact.

Price Action

The stock price of J & J Snack Foods rose 2.05% on the latest trading day, 2.89% over the past week, and 1.49% month-to-date, reflecting modest short-term optimism.

Post-Earnings Price Action Review

The strategy of buying JJSF after a revenue beat and holding for 30 days underperformed dramatically, with a total return of -37.54% versus a benchmark gain of 84.71%. While the strategy recorded no capital losses (maximum drawdown: 0.00%), it lagged the benchmark by 122.25%. The negative Sharpe ratio (-0.34) and high volatility (26.24%) underscored the risk-adjusted underperformance and erratic price swings.

CEO Commentary

CEO John R. Morphy attributed Q4 performance to strong demand in core snack and beverage categories and supply chain optimizations. He acknowledged elevated input costs but emphasized strategic investments in automation and digital tools. Morphy outlined plans to expand into high-growth markets via acquisitions and brand innovation, while prioritizing sustainable profitability and disciplined capital allocation.

Guidance

For 2026, J & J Snack Foods expects mid-single-digit revenue growth, with EPS projected between $0.60 and $0.65, driven by cost efficiencies and margin expansion. CAPEX is forecast at $15–18 million for plant modernization, and the company aims to maintain a net debt-to-EBITDA ratio below 2.5x.

Additional News

J & J Snack Foods announced no major M&A activity or C-level changes in the three weeks preceding its November 26 earnings report. However, the company reiterated its commitment to shareholder returns through buybacks and dividends, with no adjustments to its current $0.16 quarterly dividend. Strategic focus remains on digital transformation and regional distributor partnerships to unlock new revenue streams.