At 48 consecutive years of sales growth and healthy dividend payouts, J&J Snack Foods Corp is one of the best food and beverage stocks to buy right now. The company is well-known for selling famous packaged food products under brands like Minute Maid, Icee, Super Pretzel, Luigi’s, and Slush Puppie. J&J Snack Foods Corp sells its products through supermarket outlets, convenience stores, movie theatres, universities, theme parks, and restaurants. What’s more, the stock has grown by more than 250% since 2010. All that while, dividends have gone from $0.44 per share to $2.08 per share.
What Makes JJSF One Of The Top Food And Beverage Stocks To Buy Right Now
J&J Snack Foods Corp has grown its revenue from $697 million to over $1 billion over the last decade. While maintaining steady growth, the business has been able to maintain gross margins close to 30% with remarkable consistency. Operating margins have remained steady at around 10% while dividends have increased at a steady rate. The earnings per share have almost doubled from $2.59 in 2010 to $5 in 2019. The dividend payout ratio has also not gone beyond 40%, leaving enough free cash flow for growth and capex purposes. It is highly likely that the stock continues this financial performance as food products are relatively recession-resistant.
Company Announced Its Q42020 Earnings Results
On 5th November 2020, J&J Snack Foods Corp announced its Q42020 earnings results. Sales decreased by 19% on a year-on-year basis to $252 million. Net earnings decreased substantially from $26.1 million in Q42019 to $6.6 million in Q42020. J&J Snack Foods Corp president Dan Fachner said, “Our business continues to recover from the pandemic that has affected our world. We experienced sustained growth in the retail side of our business as well as improved sales as we closed the quarter in both Food Service and ICEE. The Company has also enjoyed some new business sales growth that will extend into this coming year. We feel a sense of recovery as we close our 2020 year and like our future growth opportunities but we continue to face the uncertainty that all of us face from prolonged COVID-19 impacts.”
