MOUNT LAUREL, N.J. - J & J Snack Foods Corp. (NASDAQ: JJSF), known for its portfolio of popular snack brands, has announced an increase in its quarterly cash dividend. Shareholders are set to receive $0.78 per share, marking a 6% rise from the previous dividend of $0.735 per share. This upcoming dividend is payable on October 8, 2024, to shareholders on record as of September 17, 2024.
The company, which produces and markets well-known products such as SUPERPRETZEL, ICEE, and SLUSH PUPPIE, stated that the dividend payout is contingent upon various factors. These include J & J Snack Foods' net income, financial standing, cash on hand, and other considerations that the Board of Directors deems pertinent.
The decision to increase the dividend reflects the company's financial health and its commitment to returning value to its shareholders. J & J Snack Foods Corp. has a diverse product range that extends beyond pretzels and frozen treats to include DIPPIN' DOTS ice cream and LUIGI'S Real Italian Ice, among others.
In other recent news, J&J Snack Foods has seen notable changes and developments. The company reported a record second-quarter revenue of $360 million, a 7% year-over-year increase, surpassing the consensus estimate of $341 million. Gross margins reached a strong 30.1%, exceeding consensus estimates by 220 basis points. Further, adjusted earnings per share stood at $0.84, a significant 95% increase compared to the same quarter the previous year, outperforming the consensus estimate of $0.59.
Benchmark reduced its price target on J&J Snack Foods shares to $200 from $205 due to a weaker-than-expected performance in the movie theatre sector, which contributes significantly to the company's revenue. Despite this, Benchmark maintains a Buy rating on the stock. J&J Snack Foods' CFO, Ken Plunk, also announced his retirement at the end of 2024, marking a significant change in the company's executive team.
InvestingPro Insights
J & J Snack Foods Corp. (NASDAQ: JJSF) has demonstrated a strong commitment to shareholder returns, as evidenced by the recent increase in its quarterly cash dividend. This decision is backed by a history of consistent dividend growth, with the company having raised its dividend for 21 consecutive years. This is a testament to J & J Snack Foods' financial resilience and reliability as an income-generating investment for shareholders.
Analyzing the company's financial metrics, J & J Snack Foods sports a market capitalization of $3.21 billion and maintains a high price-to-earnings (P/E) ratio of 36.83. While this might suggest a premium valuation, it's important to consider the company's profitability. With a healthy gross profit margin of 31.18% over the last twelve months as of Q3 2024, the company's ability to maintain strong margins underscores its pricing power and operational efficiency.
InvestingPro Tips further reveal that analysts are optimistic about the company's earnings, with two analysts having revised their earnings estimates upwards for the upcoming period. This could indicate potential for continued financial performance and possibly further dividend increases in the future. For investors interested in more detailed financial analysis and additional insights, there are 9 more InvestingPro Tips available at https://www.investing.com/pro/JJSF.
With a dividend yield of 1.74% and a recent history of positive price total returns, J & J Snack Foods remains an attractive option for investors seeking both growth and income. The company's next earnings date is set for November 7, 2024, which will provide further clarity on its performance and outlook.
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