J&J Snack Foods (JJSF) owns Icee, Dippin’ Dots, The Funnel Cake Factory, SuperPretzel, and many more. Basically, anything that you might find at a carnival sugared or salted. “We are everywhere the fun is!” its website announces.

It distributes almost everywhere: schools, universities, convenience stores, restaurants, recreation spaces like bowling alleys, in-store bakeries and delis, and even hospitals. It even licenses premium brands like Mondelez’s (MDLZ) Oreo for Oreo Churros, as well as innovations with Coca-Cola’s (KO) MinuteMaid.

The boom in Ozempic and other GLP-1 drugs, which suppress appetite and cravings, has threatened a swath of the snack market. That, along with the K-shaped economy pressuring a heavy swath of consumers, could be hitting demand. The stock is down over 40% year-to-date, and over 45% since last year, though it has seen a bounce since its last earnings report despite missing estimates.

CEO Dan Fachner joined Market On Close, saying they see strength into 2026 and discussing a cost savings plan. In its 3Q25 report, adjusted EPS of $1.58 beat Street estimates, but GAAP EPS of $0.58 and revenue of $410.24 million missed. Both the top and bottom line shrank year over year.

Food service sales increased 4.8%, with pretzels increasing 12.8%. Fachner excitedly highlights their “Bavarian-style pretzel” as part of the double-digit growth. On the other hand, churro sales fell 13%.

Their retail segment revenue fell by 7.1%, which Fachner says is due to “the decline in frozen novelty and handheld sales.” Part of this is due to continued capacity constraints due to a fire last year. Dippin’ Dots “continues to grow,” he adds. Additionally, frozen beverage sales grew by 6.1%

On the earnings call, Fachner cited unfavorable summer weather as part of their difficulties, but a “meaningful rebound in theater traffic helped to compensate.” The Minecraft movie helped drive box office sales growth up almost 40%.

Fachner emphasizes innovation in luring consumers back. JJSF is chasing trends: protein in pretzels, for example, or “clean label” products that promise to be “better-for-you.” JJSF is planning new Dippin’ Dots flavors, rolling out an updated SUPERPRETZEL recipe, and testing churro recipes and ICEE products with “major QSR” customers.

Their cost savings plan, aka Project Apollo, is still in the “first phase,” he says. They’ve shut down three plants, consolidating their production and supply chains.

Novelty and health seem to be the gold standards for snack makers the last few years, and JJSF is watching carefully. “We continue to see our products sell well,” Fachner says, but notes that with the pressures on consumers, they have to spend more on marketing and promotion. Tariffs are another concern, but he seems hopeful that there will be exemptions in their industry.

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