J&J Snack Foods Corp. (NASDAQ:JJSF) Q1 2023 Earnings Call Transcript

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Dan Fachner: We believe it can continue to be accelerated. We’re putting a lot of push behind it. Much like what we’ve talked about separately, all of the churros are really come of age. We love the new brand. We love the opportunity sale there, not just with large customers out there, but even through the distribution network. And we’re, you know, we’ve got a lot of marketing behind it. We feel really good about it. So I think it can continue to build momentum throughout the year although —

Todd Brooks: Was it available for the full quarter Dan or did it rollout over the quarter?

Dan Fachner: It really rolled out throughout the quarter, but it would have been started early. And so you know, it would have been, it would have been early in the quarter. So I’m not sure how to guide you on that. Was a good quarter we had 32% increase and 30 plus, 30% increase. So it’s a good quarter. I expect the same thing, if not greater, the coming quarter.

Todd Brooks: Okay, great thanks.

Ken Plunk: Yes – there is even stronger promotional plans around that brand. I wouldn’t say we’ve kind of, you know, really hit and executed every part of our marketing plan around that. There’s more to come and we’re really excited about it Todd.

Dan Fachner: And we got some really good things in tests of it as well.

Todd Brooks: Excellent, thanks, guys.

Dan Fachner: Thank you, Todd.

Operator: Thank you. Our next question or comment comes from the line of Connor Rattigan from Consumer Edge. Mr. Rattigan, your line is now open.

Connor Rattigan: Hi guys, good morning.

Dan Fachner: Good morning, Connor.

Connor Rattigan: So just quickly on Dippin’ Dots, it sounds like this $13.4 million in sales generated – were decently ahead of your expectations. So by my math, it’s about 13% of historical sales in the first quarter that puts the brand on about $100 million sort of run rate or about 10% higher than last quarter. Could you guys maybe quantify your expectations for the brand over the year just trying to get a sense of how big we should expect this thing to be given planned distribution rollouts?

Ken Plunk: I think your math is good, Connor good job with that.

Connor Rattigan: Thank you.

Ken Plunk: Nothing to be – like exact number, but I think our expectations are in that ballpark that you just came out with. We feel really, really good about what we’re doing with Dippin’ Dots. And we just mentioned one example, in the release in the script, but operationally things we’re doing other things in the pipeline. So yes, we’re aligned with you on kind of what we think we can do with that business this year.

Dan Fachner: We are that good math in your part and really excited about that team and what they’re doing. In fact, the whole sales team is here in the office this week at a sales meeting. And we’re just really thrilled with the way that they’re responding.

Connor Rattigan: Awesome, that’s great guys. And then also just quickly on some of the efficiency efforts that you mentioned. So that $4 million figure, is that expected to be – fully realized this year or is that more of a fiscal ’24 goal? And also on the automation efforts, just to be clear, are these fully new automated lines replacing manual lines or are these just purely incremental capacity?

Dan Fachner: Do you want to go first?

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