Thursday, August 28, 2014
Inquirer Daily News

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.

Joseph N. DiStefano
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PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

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

Joseph N. DiStefano
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