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.