Tuesday, September 1, 2015

J&J: Looking for snack-makers to buy

Analyst Mitch Pinheiro says J&J Snack Foods, Pennsauken, is looking for smaller junk food makers to bjy

J&J: Looking for snack-makers to buy


J&J Snack Foods, Pennsauken-based maker of California Churros, frozen pretzels, fruit bars and other long-shelf-life junk food for Burger Kings, supermarkets and cafeterias, has piled up more than $100 million in cash reserves, and "we anticipate additional acquisitions in the intermediate-term," writes Janney Capital Markets analyst Mitchell Pinheiro in a report to clients today.

(Analysts doubt J&J will buy cash-poor neighbor Tasty Baking, which is looking for a financial angel, since J&J isn't in the fresh snack business, but the low-cost, long-shelf-life snack business.)

But basic food cost inflation will likely trim future J&J profits, Pinheiro warns: "Wheat costs are up 35% for the company's first quarter, butter is up 30%, eggs are up 13%." J&J reports last quarter's profits on Thursday.

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PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

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Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

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