J&J Snack Foods CEO Dan Fachner says the company is emerging from a transition year as a leaner business poised to return to growth, with its Project Apollo efficiency initiative now expected to deliver $25 million in annualized savings, up from an earlier $20 million target. Despite a 6.2% drop in fiscal third-quarter sales to $426 million, gross profit rose about $1 million to $151 million and gross margin expanded 240 basis points to 35.5%, even amid higher material, fuel, and freight costs. Planned bakery volume reductions are winding down in the fourth quarter and should be largely behind the company entering fiscal 2027, while retail sales rose 1.7% in the quarter, a figure the CEO says understates strength after excluding slotting fee increases tied to innovation rollouts. Smaller brands are outperforming, with Dogsters retail sales up more than 30% in tracked channels, Luigi's up over 20%, and Dippin' Dots' retail launch generating nearly $4 million in measured sales, up more than 100%. Frozen beverage net sales increased 5.9%, and the company has returned roughly $120 million to shareholders this year through dividends and buybacks while continuing to evaluate synergistic acquisitions.
J & J Snack Foods CorpProject Apollo savings raised to $25M and gross margin expanded 240bps despite sales decline.
Johnson & Johnson