• Like a General Mills or Mondelez, but specialized in iconic snack foods, frozen desserts, and fun beverages for both grocery stores and entertainment venues like stadiums and movie theaters.
• Imagine a smaller Hershey's or Mars Wrigley (companies known for impulse treats), but with a broader 'fun food' portfolio including pretzels, frozen novelties, and specialty beverages, distributed across supermarkets and entertainment locations.

• Soft Pretzels: J&J Snack Foods offers a wide variety of soft pretzels, including traditional, filled, and bite-sized options, under numerous proprietary and licensed brands.
• Frozen Novelties: The company manufactures and distributes various frozen desserts and treats such as Italian ices, fruit bars, and sorbets.
• Churros: J&J Snack Foods provides classic fried-dough pastries under the TIO PEPE'S and CALIFORNIA CHURROS brands.
• Handheld Snacks: The company produces a line of savory and sweet stuffed handheld products.
• Bakery Products: J&J Snack Foods offers a diverse assortment of baked goods including biscuits, cookies, muffins, breads, and donuts under several brands and private labels.
• Frozen Beverages: The company manufactures and distributes branded frozen carbonated and non-carbonated beverages like ICEE and SLUSH PUPPIE.
• Funnel Cakes: J&J Snack Foods sells funnel cakes, a classic fried dough dessert, under the FUNNEL CAKE FACTORY brand.
• Food & Beverage Machines: The company also sells machines and machine parts to other food and beverage companies.

J&J Snack Foods (JJSF) primarily sells its products to other companies and institutions, operating on a business-to-business (B2B) model, rather than directly to individual consumers. The provided background information describes the categories of its major customers within the food service and retail supermarket industries, rather than listing specific named corporate entities.

Based on the company description, JJSF's major customer categories include:

• Retail Supermarket Industry: This category encompasses sales to major grocery store chains, mass merchandising stores, department stores (for both resale and in-store food service), and warehouse club stores. JJSF also supplies products under private labels to these customers.
• Food Service Industry: This broad category includes sales to various types of establishments and institutions:
  • Restaurants: Such as fast food and casual dining restaurants.
  • Entertainment and Leisure Venues: Including snack bars and food stand locations in malls and shopping centers, stadiums and sports arenas, leisure and theme parks, and movie theatres.
  • Institutional Clients: Such as schools, colleges, and other institutions.
  • Convenience Stores and Independent Retailers.

As the provided background information does not specify individual customer company names (e.g., "Walmart," "McDonald's," or "AMC Theatres"), corresponding stock symbols cannot be provided.

Daniel Fachner, Chairman, President and Chief Executive Officer

Daniel Fachner has served as the Chairman, President, and Chief Executive Officer of J&J Snack Foods. He was appointed President in May 2020, became CEO in May 2021, and assumed the role of Chairman of the Board in November 2023. Fachner began his career with The ICEE Company in 1979 and served as its President and CEO for 25 years, during which he expanded ICEE from a regional business into a nationally recognized brand.

Shawn Munsell, Senior Vice President, Chief Financial Officer

Shawn Munsell was appointed Senior Vice President and Chief Financial Officer of J&J Snack Foods, effective December 2, 2024. He brings over 15 years of finance and operating leadership experience from publicly listed companies in the food and agriculture sectors. Before joining J&J Snack Foods, Munsell served as CFO at Calavo Growers and spent seven years at Tyson Foods, where his roles included Senior Vice President of Finance and Accounting (Division CFO) for the poultry division and Vice President and Treasurer. He began his career at CF Industries.

Lynwood Mallard, Chief Marketing Officer

Lynwood Mallard holds the position of Chief Marketing Officer at J&J Snack Foods.

Michael Pollner, Senior Vice President, General Counsel and Secretary

Michael Pollner serves as the Senior Vice President, General Counsel, and Secretary for J&J Snack Foods.

Steve Every, Executive Vice President, Operations

Steve Every is the Executive Vice President of Operations at J&J Snack Foods.

The key risks to J&J Snack Foods (JJSF) include:

1. Economic and Consumer Uncertainty, and Input Cost Volatility: J&J Snack Foods faces significant threats from macroeconomic volatility, including inflation, fluctuating raw material costs (such as flour, sugar, dairy, and chocolate), and rising energy costs, which directly impact its cost structure and profitability. These pressures have led to gross margin declines. Additionally, economic uncertainty can alter consumer behavior, potentially leading to a shift towards private-label products and reduced sales volumes for JJSF.

2. Intense Competition and Shifting Consumer Preferences: The snack food and beverage industry is highly competitive, with J&J Snack Foods contending with large multinational corporations and numerous smaller niche companies, as well as private-label brands. This competitive environment pressures pricing, promotional activities, and market share. Furthermore, there is a pronounced and growing consumer trend towards healthier, "better-for-you" snacks that prioritize portion control, quality ingredients, and functional benefits like protein. This shift poses a challenge to JJSF's traditional indulgence-focused product portfolio, requiring continuous innovation to remain relevant.

3. Supply Chain Vulnerabilities and Operational Challenges: J&J Snack Foods is susceptible to supply chain disruptions due to its reliance on various raw material ingredients. The company has experienced operational hurdles, including a fire at one of its facilities that impacted handheld product sales. More significantly, the implementation of a new enterprise resource planning (ERP) system in early 2023 led to considerable supply chain disruption, including order delays, fulfillment issues, and production challenges, particularly in frozen goods and handheld products. These issues resulted in increased operating expenses and an estimated revenue loss. The company is actively addressing these issues through a supply chain transformation initiative called "Project Apollo," which includes plant consolidations.

1. The accelerating consumer trend towards healthier eating, lower sugar intake, and less processed foods poses a clear threat to demand for many of JJSF's core indulgent products, such as sugary frozen novelties, soft pretzels, churros, and bakery items, which are often high in sugar, carbohydrates, or calories.

2. The structural decline in foot traffic and changes in traditional business models for key food service venues, including movie theaters, malls, and certain sports/entertainment venues, represents an emerging threat to JJSF's Food Service segment, as these locations are primary channels for their impulse-purchase snack foods and beverages.

J&J Snack Foods (JJSF) operates within several significant addressable markets across North America, including soft pretzels, frozen novelties, churros, bakery products, and frozen beverages. While specific market sizes for all individual product lines are not uniformly available, data for broader categories provides insights into their potential reach.

Addressable Markets for J&J Snack Foods' Main Products:

• Soft Pretzels: The North America pretzel market, which includes both soft and hard pretzels, was valued at approximately USD 1.90 billion in 2025 and is projected to reach USD 2.50 billion by 2034. Soft pretzels represent about 28% of the global pretzel market share. The soft pretzel segment within North America is an emerging and fast-growing category.
• Frozen Novelties: The frozen novelty market in North America was valued at USD 10 billion in 2024 and is projected to increase to USD 14 billion by 2035. North America is the leading region in frozen novelty consumption.
• Churros: The North America churros market was valued at USD 1,016.81 million in 2024 and is expected to reach USD 2,997.06 million by 2032. The United States accounted for the highest share of 71.20% within the North American churros market in 2024.
• Bakery Products (including biscuits, cookies, breads, rolls, muffins, and donuts): The North America bakery products market size was valued at USD 107.31 billion in 2024 and is projected to grow to USD 174.79 billion by 2033. The United States held 87.80% of the market share in North America.
• Frozen Beverages (including ICEE, SLUSH PUPPIE, and PARROT ICE): The North America frozen drinks market was estimated at USD 15,405.68 million in 2024. North America is a dominant region in the global frozen drinks market.
• Funnel Cakes: Null

J&J Snack Foods (JJSF) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Expansion and Innovation within Core Brands: The company is focused on the continued expansion of its established brands, such as SUPERPRETZEL products, into the retail segment, which has shown significant growth. Additionally, J&J Snack Foods aims for a 7-10% annual increase in ICEE machine placements, targeting over 10,000 new placements in fiscal year 2025. Innovation also plays a role, with new product development including reduced-sugar ICEE options and whole-grain, protein-rich pretzel varieties designed to appeal to a broader, health-aware demographic.
2. Strategic Acquisitions and Partnerships: J&J Snack Foods has a stated strategy of pursuing strategic acquisitions, exemplified by its 2022 acquisition of Dippin' Dots, which expanded its distribution into theme parks, stadiums, and convenience stores. The company actively seeks acquisitions in the $50 million to $150 million range to augment its frozen dessert and bakery portfolios. Furthermore, new partnerships, such as the collaboration for Taco Bell churros, are expected to contribute incremental growth.
3. Expansion into New Channels and International Markets: The company is expanding its foodservice reach through its HandsOn Foods division, targeting non-traditional venues like universities and healthcare facilities, with a goal to grow this segment's revenue by over 15% year-over-year through 2026. Internationally, J&J Snack Foods projects that the expansion of ICEE into markets such as Mexico and Western Europe will meaningfully contribute to revenue by 2027.
4. Strategic Pricing Initiatives: J&J Snack Foods is benefiting from strategic pricing actions, including "more line pricing," which is contributing to gross margin expansion and overall financial results. Price realization has also been identified as a factor in achieving record net sales, approaching $1.7 billion on an annualized basis in 2025.

Share Repurchases

• J&J Snack Foods' Board of Directors approved a new $50 million share repurchase authorization on February 3, 2026, which is effective for approximately two years.
• During fiscal year 2025, the company repurchased 525,243 shares of common stock for $50 million, completing a previously authorized buyback program.
• In the fourth quarter of 2025 alone (September 28, 2025, to December 27, 2025), approximately 458,467 shares were repurchased for $42 million.

Share Issuance

• The number of shares outstanding for J&J Snack Foods has remained relatively stable over the last few years, with 19.45 million shares outstanding at the end of 2025, 19.47 million in 2024, and 19.34 million in 2023, indicating no significant share issuances.

Outbound Investments

• J&J Snack Foods leverages strategic acquisitions as a component of its growth strategy to expand its diversified food company portfolio.

Capital Expenditures

• Capital expenditures for fiscal year 2025 significantly increased to $82.9 million.
• In prior fiscal years, capital expenditures were $19.1 million in 2024, $19.9 million in 2023, and $30.9 million in 2022.
• These investments are typically focused on maintaining and expanding the company's manufacturing capabilities, distribution networks, and supporting product development for its snack foods and beverages.