J&J Snack Foods Corp. (JJSF) saw its shares plummet 10.53% during intraday trading on Wednesday, following the release of its fiscal 2026 second-quarter financial results.
The snack foods maker reported adjusted earnings of $0.40 per share for the quarter, missing the analyst consensus estimate of $0.41. Quarterly sales of $344.82 million also fell short of expectations, declining 3.2% year-over-year. The company's net earnings dropped 65.2% to $1.7 million, with operating income falling 70.1% due to non-recurring costs related to plant closures and other items.
Most of the sales decline was attributed to anticipated reductions in the company's lower-margin bakery business. While gross margin improved due to transformation initiatives, the significant earnings miss and sales shortfall weighed heavily on investor sentiment during the trading session.