JJSF - Earnings call transcript Q2 2021

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Operator

Welcome to the J&J Snack Foods Second Quarter Earnings Conference Call. My name is James, and I'll be your operator for today's call. [Operator Instructions] Also note this conference is being recorded. I'd now like to turn the call over to Daniel Fachner. Dan, you may begin.

Daniel Fachner

much. very you Thank everyone. morning, Good Daniel Fachner, just about Foods, we're J&J QX President excited to of so today Snack talk performance. and I'm to our you

and on see While opening, starting are capacity consumer venues improving lifted, environment some overall in being impacts continuing is all momentum see and more to restraints every positive getting business. we of lives, are are to the COVID-XX is people are the our real we changing business personal more vaccine, the confidence are month. The as

worked recover. year, Our continue profits J&J last hard, associates this challenges unprecedented in traffic in as so really proud manage Despite even our to our the our and we position to them have customers' year, past past remains so to strong, improve the challenged. position and we are as back liquidity, outlets great I'm over and of are through venues of bounce financial year retail and

Joining are Senior me Gerry President CEO; President Vice Roshkoff, Senior President Marjorie Bob Radano; today Plunk, Pape, and and Chairman Vice and Sales. CFO; in Vice Ken Counsel; Shreiber, Bob and Founder, of the General room

minutes statements. contained our cause certain forward-looking to a The forward-looking to results. differ statements results actual take me and uncertainties Let projected those herein the in few to subject could are review risks that materially from

that management's analysis to of arise circumstances update to not obligation cautioned to forward-looking or reflect as place undue which reliance only date. are the these events reflect forward-looking date You undertake revise these hereof. on the after publicly no We or statements statements,

and the these quarter, for businesses spring X%. improved season. accessibility Beverages to our Sales decrease sales Service of COVID-XX due venue consumer operations, results Food Both really So consumer by led the of Net confidence improving quarter Frozen about improving it. vaccine, a substantially trends. quarter, and to improved openings, the were during million $XXX.X the excited throughout

to decrease when hold million XX% sales in drive profitability cost year. continued margins to a quarter. was to again business Operating $X.X strong and volume strong, last on Improved at focus of compared the retail and gross Our improved quarter, $X.X compared efficiencies helped income last million the a growing for year.

as like our Now segments. improving an when casual QX the had XXXX Food XX% to the and X% theaters reopening, that Traffic versus and increased prior strong to each quarter, results of entertainment dining improve restaurants. the continues I'd the and compared review Food QSR declined Sales across business year. venues of decreased capacity customers to of Service. Service for only are trend growth

were and quarter, Soft products declined Pretzel Churros flat ICEE and increased X%. sales the XX%. sales decreased sales XX% of relatively and juices bakery frozen for

Supermarkets continue by That new million improved customers, Retail really segment Service for as product previously XXX%. Our handheld our business driving improved strong decreased to had was income quarter, exceeding by the product in sales margins last and in year one quarter, do the we for mix. Gross our discussed. driven a $X.X profitability of versus us. much or quarter, lower driven by developed a progressively Food $XX.X sales over million QX. a well wholesale club Operating

down Those Frozen were impacts by are in sales Beverage-related of sales increase consumers of and COVID-XX. continues sales though, juice a from an as XX% Beverage in of were declined higher key XX% quarter quarter, Frozen slower continued quarter. XX%, improving, with parks Service Beverage. driven well operating income business Machine up by sales our and returned in venues. than to from due $X These sales XX% quarter. XX%, near down increased declined XX%, XXX biscuits a the segment first of over our mainly for gallons led one to retailers decreased gallons maintenance cancellation increased theaters, quarter. COVID-XX our compared preventative Handheld year. points faced X%. of or XX% in Frozen in entirely period. the for better another the impacted decline revenue driven XX%, customers' to declined amusement were quarter. replacement business in retail XX% income sales decline perform and during Our and by the brand margins trends Sales ICEEs revenues XX% traffic primarily XX% as almost customer Operating the and basis million last were SUPERPRETZEL our expansion customer programs. from XX% as sales during the a

an segment of sales. COVID-XX loss the pressure restrictions incurred continued million Our Frozen the to for $X.X quarter Beverage operating as

a percentage these were Consolidated Gross and profit as profits challenges sales XX year, year's the previously to percentage diligent million of compared from below Net operating percentage year. over accomplishment gross in $X.X continue Total as million, the was $X.X impact last XX.X% a XX.X% points Food margin proud Frozen While Really do. and for improved QX. operations. last Beverage sales our expense our in mix XX.X%. quarter to when Service margins steadily Total through on quarter, and earnings of we improved was that sales of were able was million because expenses Gross last efficiency, decreased of XX.X% COVID-XX expenses basis operating mentioned across leveraging sales the to down management compared of down segments. $X this million, the last profit and to quarter, $X.X pressure variable from and quarter, some year. what

flow. Our capital spending cash and

September an $XXX $X XXXX, investment and million XX, our was as year-end. million cash from of increase securities March of Our balance

balance We challenging liquidity positive COVID-XX sheet in and strong continue this cash remains and drive to flow, our environment.

back and focused efficiency growing plant months capital continue XX, look We years. We the a $X.XXX didn't spent dividend X of stock with to declared continue any acquisitions We estimate XX, through share our $XX of about million business. our as growth buy March the our we of year cash in business. by April A spending in and shares paid and long-term was remain Directors Board and for of for expenditures on our invest quarter. XXXX. ended to XXXX, our the prior consistent be to during We opportunities on our

million, million Our was this second prior improved greater than income quarter year $X $X.X conditions. year's investment due to market

Snack you rest are and you much. by in anticipation any forward and the look We very encouraged this your interest really We to will want for the quarter now it continued to for answers. with open J&J year. I Thank great up Foods, of and questions thank

Operator

Ryan question [Operator Instructions] from comes Our first Bell.

Ryan Bell

Frozen highlighted improvements Business comments. your quarter? give Service performance trajectory some You've the of then of throughout in where Beverage Could stands the that you current month? in provide some and the details about And maybe the Food indication of for the an

Daniel Fachner

to take But Sure. questions crack continued the the quarter that, went as quarter. of as I'll Ryan, throughout and at then a some the well. let we answer I'll Plunk grow Ken

So take starting January see really next and started through to that the we're March to the and February were same, pretty quarter. continue off, much but

we through that the On as forward the quarter we business, Frozen year. X. business, even from as saw profit rest really in Beverage of X QX business a ended increase the we side of And the quarter Beverage look was which business, encouraging Frozen with great saw we the to a

Ken Plunk

I progress I how quarter. your say did Ken question think kind Service, quarter-to-date, the it of Ryan, through Plunk considerably is just would things look still of you add, if here. February the would better than at months I QX. Food was particularly

a improvement I think probably over QX. February at So we XX% through ended quarter-to-date

well, opened things up, March, number back as into when in X%. certainly Service You down March just add Food we when driving being spring ultimately to season, helped that got

So on it that. played March gain healthy was bigger impact wasn't the -- just month, a but but a It March. certainly throughout

are March expanding when around, turn increasing; up; California that we business is York open; Frozen, announcing open; really For was amusement New are parks started is theater capacity. they're the opening saw capacities

Robert Pape

think we had period during ago. venues have essentially, a that up opened of I year March we thousands of through And didn't that January that

Daniel Fachner

peak during March We the month. did really

Ken Plunk

confidence business the going to a So spring, we as to QX really the leave as that rebound. we're into what do April business from Frozen see really with lot benefited and quarter of we and in

Ryan Bell

that shipments, relevant? or selling openings? anything a expecting to -- very Frozen maybe in help timing the That's it Service, terms be Beverages, Great. for up economy there Or in more Food bit of helpful. just of of little And as should we part not rebuild is is that as inventories is

Ken Plunk

Can you your make elaborate Ryan, question on sure a answer little to we bit that. more,

Ryan Bell

we other some the of the Beverage of due just say Service that shipments demand seeing Food the wanted improvements, the on Frozen see business in I timing the to shipments, and side. that business, the were was than if rather to Sure.

reopening to need imagine, or build and up some to are businesses their I up being would from more going closed fully inventories. locations they opening As

Daniel Fachner

remain and to Ryan. high demand we're supplies this And March we was that demand backlog of ensure see April there some as continued can seeing some at we are but were time, left, into a enter here. we're encouraged Well, by

Ken Plunk

the I as it's I would peaked, think, asking terms go was should improvement, quarter, the but pulled not anything for I second sales I up into the expect that but where certainly steadily of marginal. of March see being much you, sales don't I be material throughout demand in would you sudden. picked consistent don't Ryan, a think you're number have mean of a forward there's quarter. there we -- all pulled and I into same as say

Ryan Bell

we lost business will I and anything away way That's Is for incremental that of last we question about home? towards think potentially Retail shifts Is some should the that from And perform the anything pandemic? continues demand Perfect. Okay. me. business there helpful. that tougher of after frame as -- stay compares the that there some any the well. then to

Daniel Fachner

see elaborate want start that we X sales had and months last Bob, increases Well, in little April biggest to May But good on in in do retail time. going that that continuing to bit? you certainly good we're business. of see We're to continuing area. that are to to a the year that momentum cycle

Bob Pape

Yes.

promotional product virtue our to will with QX QX. that distribution that to you'll some we've start also think strong of business be secured bear get planning and and I customers new as continue into see that we the by fruit our

Operator

Anderson. question Jon Next from

Jon Andersen

news of Congratulations good the in on quarter. the some

Daniel Fachner

excited very you momentum. Thank about much. the it. about We're We're excited

Jon Andersen

could, I of I if and to maybe questions, Ryan's one just Ken. for revisit it's wanted

were portion Beverage like down? be level? we the March year-over-year would business, Frozen of of to it performance the Frozen kind you Were still helpful the what I kind if improvement it that you of back been how kind of basis? still of business, think there's exit we kind to a sounded trend it Beverage understand, we or trying about On have March on March, exited and Were to seeing in really know sequentially, sense but business. At in rate? trend real what of the accelerated in some like

Ken Plunk

the months Jon, you, first good our was it for in Yes, profitability. example, Thank of and in Frozen question. Yes. month business, many March,

as Sales, month of FY at for month with So by you 'XX. it of sales look of Proud and the probably think itself, was where margin. roughly struggled we've a XX% March profitable frozen, March. we're I

So not the call while more probably margin, you're run was would base. Frozen it around kind starting for or of gross XXX at our of business to And bit XX%. the to I that a kind basis of within see entirely points back what of back XXX rate then consider even

Jon Andersen

additional That's that appreciate super color. helpful. do I

Okay.

different, business the do a So on a on maybe forward? could periphery forward put it's perspective, that some several the or changes, kind you for how organization thought months little in benefit the areas there's certain any even Dan to can new you've I'm of had you on whether If So the going things an could anything new think on curious emphasis surveyed or bit are that the look you we let's eyes Maybe maybe new forward the in spot. as you the about business? margin of going see. aggregate to you've think in Dan, from structural if now, But that business. there but not your kind maybe -- role, with

Daniel Fachner

know, Thank Yes. this Well, has a been as for Jon. you long time. business a you, great

as And with you it well, I things exciting this mentioned so some to do to coming before. eyes I fresh able some once think into new and

of of CMO, Coca-Cola, ways with XX fresh experience some We have brand had years stretch kind we're ICEE new to SUPERPRETZEL do a with our both marketing. on And looking around strong come and ideas he's hired those now brands and in a and to brands, out ways finding at sales-wise. expand who with

we're and exciting some things side, distribution at to looking to a at doing little looking different. that On there. bit we're the We're do transportation operations centers, ways and maybe

really think some savings that. and the there, there alignment going some We and group tremendous some really growth be some but that efficiencies. we going R&D the might that also in side, ways sales the energy We've great have procurement organized cost got in around

ICEE, ICEE. outside mentioned You And at really on about we've groups, we the success. good had of think I theater of call talked our some some last diversification and on

rollouts couple right going chain the now, both on picking that and rock. every a and in a of have group We down Southeast. in We're up QSR

think I that being we picking able We're what I improve think once to and in margins had you the every said before. to rock up future.

little quarter. will It showed that bit continue to show. a think I this

on all and quarter I even quite greater I next like into hitting we frankly. feel think it show are cylinders, will X. continue quarter to

in different and better what uncovered leadership to it's great a have been this it's make place think team and along. areas company got I even a of company all been, we've lots good than

I encouraged, great just So think question, and a Jon. I'm it's really

Jon Andersen

me be you on to to the just anything demand? the continuing just retail agree. to with of kind mean kind to continue great normal? business, same experienced Food to of question been the reverse growing The it a -- might meet great levels mean to you've feeling there over in being service -- last I continuing -- look I grow. your year. and, for -- last are this Is with well, back what time, is the demand is already demand be. forward to I That's and both you're and as coming interesting But to to about how do for cut it's meet many obviously, you're Beverages the ability and seeing years of kind forward high your going It's begin -- return able at hear back Service so away-from-home of both Frozen things improvement, supply segments, company

Daniel Fachner

Yes.

is I of one focused and a is question, think great that heavily areas we're it that the on.

started with and can really said, off picking the ways like and you it improve rock we at margin every role grow Just looking sales. that up

we're to doing think our way on that. well I

that shortage this have we deal we're nationwide Now to labor having with.

that with through. going at each that to and can we get And there, peak evaluating keep and demand ways so it looking we're plant the we sure make up closely that finding this labor in we're so

Jon Andersen

may Maybe I'll tag one it. be on to that thinking about because you

for talk broadly, Talk countermeasure. your be So this price and or cost and pricing, about to inflation could ability desire to price.

big about think a going becoming forward we should how that a Just because it's lot point for companies? talking different of obviously

Daniel Fachner

cups, Yes, it like and certain us coming really and like some areas plastic is. costing and And in we flower to are some things chocolates oil that. seeing

the well. food from that and it time implemented we And the in have as that Frozen passed on by in business on are we of Hope that midst quarter. the get probably we -- some so pricing business, the Beverage evaluating on snack are impact the that fourth see of we can the side we

Operator

Todd question Brooks. is from Our next

Todd Brooks

recovery the the Congratulations start just visceral year. on of

Daniel Fachner

Yes, really a sure. time It's good on exciting. the for it call, be is to

Todd Brooks

Absolutely.

covered Just of few lot questions. a a Ryan Jon and mine.

your at and you Food look come? or much still base fully you Service reopened the quantify base, with that maybe customer If how to closed is capacity of still restrictions reopening can

Daniel Fachner

by piece you to anyway? that quantify you could I tell open piece. it's continuing is What would Bob,

the well opening So slowly. for side back. at the are the side quarter. some of XX% really, QSR first or us, coming through back them restaurant coming The are second about They're is is advanced. doing Certainly, the a theaters really and

as still and slow hearing The somewhat XX% school the happen fall. in schools, many the high the really back in in XX%, We that be but fall. there to that action range will might in XX%, encouraged what as and K-XX is is college expect during to that business QX we're open, campuses, then Everything QX. the XX% to jump of reading

to you anything add? And have Bob, so do that. encouraged we're more by really

Bob Pape

Yes. going capacities side, and very we as Also we've the results there seen to that's by increased. and against we've on entertainment sports been continue are S&E, encouraged anticipate the

Daniel Fachner

think, March, he parks. up talking. we amusement that and continue the feel we XX%, to range will year made just all Yes. And that well, through. way strong was more, expect the amusement really, in XXX% were in The XX%, have sector, we one amusement really a like in to me parks, And the

Ken Plunk

I And outside. listed Yes. would talking And news relieving on requirements about they just to a -- basically mask this want morning. were

Faci in be if as particularly seeing the sports are vaccine, a mask, these and vaccines feather there Dr. -- another the experts as you parts expect just So entertainment, and our use as say you're had type the particularly getting can out recover. outside that you've the we of channel part be and hat, without

Todd Brooks

theaters great. the that how menus. now. I'm wondering more up? we and you menu, J&J the thinking speak. a a to to That's the Is opening slots, And That a streamlined guys then of in so condensed of restaurants, I'm operators earlier have are didn't content foodservice a lot channels especially in with and stadiums, that be as that on theaters, pandemic, may in lose lot get reopening any maybe a and it's And that the of benefiting of higher spoken reality like they're percentage J&J that parks, amusement the a had of lot but still you your

Daniel Fachner

of -- Very limited sitting that have all where it. have of and much and so. and Beverage sides withstand J&J can Both in they is, really Frozen the part it's think almost side. done favor, in both our cases have that. been today, the SKUs, played There here It are Todd, a I they that

in that's XX%. the continuing the bar, really club, side from the have think success, head there. is the menu, the information we're stayed some of in when and snack locations, cents them getting a up you about people wholesale other has smaller spend, to like measure but in. big products And still they ICEE the you per back So the a the some and pretzel think both are I'm When our coming theaters, about where maybe it's about

that's So into they have limited of kind it, our favor. played but

Todd Brooks

Okay. final then And a Great. one.

kind sort and what an expecting people of the your kind new that to travel will Again, categories And and in living explosion that channel, car with bringing distribution as by forward others am out gains just get to vacation. looking of be of again. I c-store any Just summertime partners and they products on start Update penetration, additional that channel? to on you're front? are

Daniel Fachner

C-stores back have years a really, paid some continue for Yes. to a really do continued J&J together that to after benefits for the that. team well had And we really go us. real to see and of C-store, us. couple has put

We the opportunities some continue see Frozen Beverage to on side.

that I business. market really As a right all couple large the a we'll now, good for us year. conversations see as growth we market that think speak continue sides growth with before expansion and on of C-stores to see end of the the we in in we're of this be a some And

Marjorie Roshkoff

Hello?

Operator

Yes, I thought I'm I sorry. he was him go. so let finished,

Daniel Fachner

James? Is Yes. this

Operator

it Yes, is.

Daniel Fachner

Let's just real quick. he finished was make sure

him. ask Let's

Operator

Here, Instructions] [Operator ahead, we're. Go Todd.

Todd Brooks

No finished. everybody Congrats, on congrats the to worries. momentum. was I

Daniel Fachner

following Really forward up appreciate So it. very thank you. you with to much. Look

Operator

is Our Rob. from next question

Daniel Fachner

Rob Dickerson? Is this

Rob Dickerson

Rob is Jefferies. Dickerson This form

So of line. the a questions just Food couple on Service

in of of your last QX were than some the of Hope right? get to now. to year, is saw prayer or speaking bit the relative as I'm thought handheld And obviously, got the alluded a Food business right? that of kind great, business really to you may so to incremental. which we support, In $X levels, declined to though Service fiscal through right? So revenue just still at kind parts that 'XX, quarter, less Dan, of heard has revenues able lower helped approximately hope, QX, even million quarter, or you That's say back be pre-pandemic last revenue kind and and I maybe least, you kind I was,

of half 'XX. QX of So relative in at the up have higher say, in the I putting your million to of back given But QX to kind would in seasonality side I'm year. then that I progression first what question assuming year. forecasting kind look from business, if usually, only levels $X you're back continue, I frankly, still asked the the because, QX 'XX revenue think just is, QX consensus sequentially potential the of kind you're of right? well, be of and relative half half back of is could of And lower kind this I the that under

So fiscal as through happened we of clarify if kind prior those you Would as versus this to of you can expect kind you the maybe what kind year? pre-pandemic through comments just you in could get move of QX levels get back year?

Daniel Fachner

see were And January, continuing the March those Well, different we've that Rob, that get or right? way those with little after as a and from encouraged March. to it up I to do was was what that right? believe, finished, we Todd, the love up it to able mix we we're was. strong. really still QX that is really be really March once And Now February, than levels we'll QX. said, strong. -- then really again,

of pre of not on the sure. still. We some the needs so the we on end up but Food the on And a year, we'll growth to to side the side, love Service on still believe continue happen the be will what I'm by believe retail tough couple Whether really that grow Frozen levels retail although up we're the Beverage seeing to have grow get months, that that that we'll able to side. we're and side

time that So can more those to get get a a quarter prayer levels I'm Mix think by be but difference, where year. I end ago, had and a we and the might maybe to we a that feeling slight I more up levels. those up confident the can hope we

Rob Dickerson

it. Got

to So earlier, just a a Service lower -- more Food guess, more profits answer. of and I but on almost margin bit $XX guess seem the revenue right? the back side, Good on usually in is right, the a QX, seasonality bit operating lower food Like little profit given basis higher then in And than kind to service total like the I in be Great. company, your again, the side, half. business. I of $X business, directed million Okay. said of little again, quickly this million on kind but revenues the inflecting are. margin And is

better, So January -- just maybe number catches back increasingly up in the the there that profitability are it roll the I'm half as on cost curious, said maybe feel relative off back year? clear. a March get the And like costs margin of we inflation side timing potential trying Or year, kind more to Hopefully, lastly through was just specific like in pricing I'm February, top of the in a kind COVID-related more to the to the just Service line? half as the of recovery and Food of on that's of get you one? year? could is a little bit in

Daniel Fachner

Yes.

I think do -- you Ken, so tackle to want it?

Ken Plunk

I'm Similar gotten question. to Frozen, gross Food month over better Service quarter. saying the great of about Rob, Yes. the steadily what than it's margin,

February at XXX quarter, basis the than you look quarter, gross than better look the March, was margin. points XX it the in the gross was And each margin of gross months you at QX. points margin improved. just better if each If month, basis

up. start going creep see as products with margins leverage volumes like we and pretzels expenses more mix the So sales back and those engine got better, in churros, we get to of to we higher-margin to and

we'll improvement you month it, FY our call 'XX So expect month you to with sales can somewhere if back up in, think base I after to notch see continue get we that to of, level, where call kind base. more think to

is, by the that. I And way role question to new but mix of then get will of I think much expect plays all there get as sure, the in Not to closer products that a the end well. year? the we us

just see how kind plays that of We out. have to

my a that side bit On quarter when less to COVID COVID-related the COVID year. costs QX. $XXX,XXX maybe compared That against expect spend number, spending be and started little spend we're I we in expect we still on will number to to probably the expenses, do the to in of a material don't last of against do we're because plant way keep to don't have safe. off head, need top balance that have continue going a X, to but the I of what impact those our to folks either

Rob Dickerson

Got it.

some like fair means, unless a on bit whatever So like, material lower. kind I it change a hopefully, mean, COVID probably and the gets over that Is steady that broad holds front, that whenever there's assumption? for then probably time, of

Daniel Fachner

Yes.

think Dan. this I -- is

testing every through, some some making that's for of scanning that, a work safe group as take at We closely. might coming safe. need the continuing past at Rob. and to to really us new and keeping is do evaluate them to We're it machines safe and to think together keep ways day. I statement, that, a to which looking had employees get people about where comfortable down. or the about we're monthly in do talk and and some what now employees we the come But We're year to so, we've have stations costs looking key that feel our each

Rob Dickerson

fair. Yes,

then just Okay, last cool. And question.

got cash well mean, the the on Just say through again, side, on I it look, pandemic, just very the side. you cash

congrats So strong. that. doing now Cash is position

So X quick questions.

CapEx. I maybe had in second an guidance right, in then there year, that CapEx ideal Maybe like few color some about before, the it. acquisition. right, needs to think plants. keep terms like, looking make? quick you're in follow-up just what ideal the long you kind world, any Last you Is in don't higher? little as at some bit see just spending might to CapEx and of would there's a acquisition is, kind about of acquisitions, you think I So $XX years, you a a term. know like million of And hypothetically, I of for be said CapEx

Daniel Fachner

Yes.

I around might we've we'll side on couple mix a different. out a be CapEx side, we CapEx thing little J&J the that previous rolling months probably the be of the in side. a think the said little same change on might new bit as That in have little programs We're and ICEE what we're years. in that is spending about next lighter heavier a ICEE on although the spending

be We really, in it our CapEx together leaders, people continue closely. doing to team right things at looking and with watch that the cross-functional are making today plants and not but on good a put just sure to that We future. the we really the

stated around a we'll be what the And I if bit the than we've same stretch even little were so higher guessing, stated. is amount. we might what have CapEx But

value On be and to I want continuing weekly, that front, things find what We're something the range and with my us limiting $XX careful the We look, I'm If are million, in fits today, thing. to we had that to be Ken want sure. in probably range. but that future. $XX and not to either. right do would world, what I perfect company that we we're the M&A reviewing something adds at looking the that in for million in But

careful choices also but we that active, make there. we're right being cautious being to sure make we're and So the

Ken Plunk

innovation, strategic spend of would to that that. is add just that more sort I in thing. it, Rob, majority driving efficiencies on, of the CapEx, plants, CapEx call the

that we're spending, CapEx areas the about strategic being drive that majority focused is the on of return. think So

Rob Dickerson

fair thing. I I my wasn't is That's model mean enough. just right. bad I all. make sure a it's because want to asked Yes, the question think

Daniel Fachner

Thank you.

Operator

is from Hamilton. Our Ryan next question

Ryan Hamilton

in Being already answered. last I rebound. my most questions Congrats line, on of been think the have

momentum the about side inflation. talked slow could potentially? cost logistical that on Anything labor and down this You

Daniel Fachner

about, -- We're Well, right? gone things. side are the into taking now, on freight hit continuing and certainly, increases But to those we're Retail and Food Service consideration. And talked be doing as evaluating right headwinds. side some we'll the we're has we we that up,

I that mentioned think I transportation think the though us there, earlier save has too, potential has around gone we to money cost of even transportation the up. some

And grow sure we margins we hard so really working that of we're the kind maintain make and that have. to

Ryan Hamilton

you were survive think that argue shape. anyone don't fortunate? are really can companies from the months last share I good. Sounds indications in early Any good that less J&J XX guys taking market didn't that

Daniel Fachner

But that and And that. always we because have don't right? think we Well, like would we competitive there I and that want if and are nature go sure we're know us be think are the bold think would are you, to our that. I future. might exact that, we in on are, make to just would like facts will always we we that to but tell out think us we want

Ryan Hamilton

guys So can that or seeing it's you Are that there no? are share. Not you good. that indicators that any displays

Daniel Fachner

we you. Yes. Nothing with we Ryan, can have, that that share

Operator

Costello. [Operator Instructions] question A from Robert

Robert Costello

industry the do than, Historically, restaurant the the in to recovery Just anything the the X for that recovery Food customer Service. technology differently with that's or or say, X an industry, question to with area new in the last the going And now? growth. you're to right the there selling on years is been regards with products

Daniel Fachner

last had week. Robert, I don't a a leadership today anything about we being at really new or what call of today. do focus well. had what do of Yes. Honestly, different, doing really, except lot well better Lot just know we that a conversations, We've conversations there's on greater

And so we're way have maybe you? but know a just new would don't doing that in we greater focus. that the it, anything Bob, I

Bob Pape

Yes.

who help customer company. have I our with a go going of we grow to want where products our we then our and base to are continue think partners us products, are strategic idea the to

Robert Costello

innovate that Food customer that? going to with and new to was product? you with used -- to had you market trying you're do the the to end area expand on Service Or restaurants an fries Burger King. waffle the you that beyond with continue So are Is

Daniel Fachner

Yes.

do to said side us. for as And We well note, doing is earlier, continue the really, I QSR a will this channel really that. just

have strong in tests and as are future right we now to the that grow really well. some continue hopeful in We place there

So we places. come will continue to some to specialty do exactly that with kinds of for those items up

Operator

looks It our like Instructions] have [Operator answered. questions all we

Daniel Fachner

momentum we to X quarter opportunity with the we seeing. about the Great. excited inside as close now very it. months the are for to much doing really you the out and you We and hopeful momentum that Well, we're that thank get the see today. excited together on appreciate the call the We're business that about back have from really being things second we're and

a day. time we great today. for look Have very you to forward the with much Bye-bye. thank you So And talking us soon. with spending

Operator

Thank you. you this today's Ladies participating. concludes gentlemen, for and conference. Thank

disconnect. now You may

J&J Snack Foods (JJSF) 27 Apr 212021 Q2 Earnings call transcript