Snack food company J&J Snack Foods (NASDAQ: JJSF) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 3.3% year on year to $454.3 million. Its non-GAAP profit of $2 per share was 13.4% above analysts’ consensus estimates.

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Dan Fachner, J&J Snack Foods Chairman, President, and CEO stated, “We delivered strong third quarter results, achieving record performance across key financial metrics, including net sales of $454.3 million and adjusted EBITDA of $72.0 million. These results reflect the resilience of our business, the strength of our diversified portfolio, the continued appeal of our brands, and our team’s relentless focus on disciplined execution in the face of a cautious consumer environment and weather-related headwinds.

Company Overview

Best known for its SuperPretzel soft pretzels and ICEE frozen drinks, J&J Snack Foods (NASDAQ: JJSF) produces a range of snacks and beverages and distributes them primarily to supermarket and food service customers.

Revenue Growth

A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.

With $1.6 billion in revenue over the past 12 months, J&J Snack Foods is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. On the bright side, it can grow faster because it has a longer list of untapped store chains to sell into.

As you can see below, J&J Snack Foods’s 7.1% annualized revenue growth over the last three years was decent. This shows its offerings generated slightly more demand than the average consumer staples company, a useful starting point for our analysis.

This quarter, J&J Snack Foods reported modest year-on-year revenue growth of 3.3% but beat Wall Street’s estimates by 2%.

Looking ahead, sell-side analysts expect revenue to grow 2.3% over the next 12 months, a deceleration versus the last three years. This projection doesn't excite us and indicates its products will face some demand challenges.

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Cash Is King

Although earnings are undoubtedly valuable for assessing company performance, we believe cash is king because you can’t use accounting profits to pay the bills.

J&J Snack Foods has shown decent cash profitability, giving it some flexibility to reinvest or return capital to investors. The company’s free cash flow margin averaged 5.4% over the last two years, slightly better than the broader consumer staples sector.

Key Takeaways from J&J Snack Foods’s Q2 Results

We were impressed by how significantly J&J Snack Foods blew past analysts’ EBITDA expectations this quarter. We were also happy its EPS outperformed Wall Street’s estimates. Zooming out, we think this was a good print with some key areas of upside. The stock remained flat at $115.21 immediately following the results.

Is J&J Snack Foods an attractive investment opportunity at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.