MOUNT LAUREL, N.J. – J&J Snack Foods Corp. (NASDAQ: JJSF), known for its popular snack brands, has announced the acquisition of the cookie company Thinsters, as part of its strategy to expand its snack portfolio. Thinsters, recognized for its thin, crunchy cookies made from simple ingredients, joins a lineup that includes well-known treats like SUPERPRETZEL and DIPPIN’ DOTS.
Thinsters has carved out a niche in the snack market with its commitment to using real butter and sugar, as well as avoiding artificial ingredients, GMOs, corn syrup, and processed oils. The acquisition is expected to benefit both companies, with J&J Snack Foods planning to use its sales, marketing, and innovation capabilities to increase Thinsters’ distribution and reach.
Dan Fachner, President & CEO of J&J Snack Foods, expressed enthusiasm about the acquisition, stating that Thinsters aligns with their customer base’s preference for high-quality, wholesome ingredients. He also emphasized the company’s history of successful integrations, which have transformed niche brands into nationally beloved snacks.
The acquisition of Thinsters is seen as a significant move in J&J Snack Foods’ long-term strategy to offer a diverse range of snacks. This transaction follows the company’s acquisition of DIPPIN’ DOTS in June 2022.
J&J Snack Foods has been a prominent player in the snack food and frozen beverage industry for over fifty years, with a portfolio that includes favorites like ICEE and SLUSH PUPPIE, as well as a variety of bakery and frozen treat brands.
The financial terms of the deal have not been disclosed.
This news is based on a press release statement from J&J Snack Foods Corp.
InvestingPro Insights
In light of J&J Snack Foods Corp.’s (NASDAQ: JJSF) recent acquisition of Thinsters, investors are closely watching the company’s financial health and market performance. Here are some key insights from InvestingPro that might interest those following the company’s strategic moves.
Despite a challenging market, JJSF has demonstrated a commitment to shareholder returns, having raised its dividend for 20 consecutive years. This is a testament to the company’s financial discipline and its ability to generate consistent cash flows, which have also been able to sufficiently cover interest payments. Moreover, JJSF’s liquid assets exceed its short-term obligations, indicating a strong liquidity position.
From a valuation perspective, JJSF is trading at a low P/E ratio relative to near-term earnings growth, with a P/E ratio of 33.91 and a more adjusted figure of 33.42 for the last twelve months as of Q1 2024. This could suggest that the stock is undervalued compared to its growth potential. Additionally, the company’s PEG Ratio for the same period stands at 0.4, which might appeal to growth-oriented investors seeking value.
InvestingPro Tips highlight that while JJSF is currently trading near its 52-week low, analysts predict the company will be profitable this year, which could present a buying opportunity for long-term investors. For those looking to delve deeper into the company’s prospects, there are over 10 additional InvestingPro Tips available, which provide further analysis on JJSF’s market performance and financial health.
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