Connor Rattigan's questions to J & J Snack Foods Corp (JJSF) leadership • Q4 2024
Question
Connor Rattigan asked about the specific channels experiencing the greatest traffic pressure and the company's confidence that these headwinds will not persist into fiscal 2025. He also requested more detail on the Q4 margin pressure, particularly the mix headwind and any other factors like inflation or promotions.
Answer
CEO Daniel Fachner expressed confidence in a 2025 rebound, highlighting the theater channel's strong upcoming film slate and an expected post-election improvement in consumer sentiment. CFO Ken Plunk explained that the Q4 margin pressure was amplified by losing a peak sales week for high-margin products like pretzels and ICEE. He noted that a sales mix shift toward lower-margin bakery and handheld products accounted for an estimated 80 basis point negative impact on the margin rate for the quarter.