UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED SEPTEMBER 2430, ~~2022~~2023

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO

Commission File No. 000-14616

Registrant's telephone number, including area code: (856) 665-9533

J&J SNACK FOODS CORP.

(Exact name of registrant as specified in its charter)

New Jersey	~~22-1935537~~	22-1935537
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
(State or other jurisdiction of		(I.R.S. Employer Identification No.)
6000 Central Highway	08109
incorporation or organization)
Pennsauken, New Jersey	(Zip Code)
350 Fellowship Road		08054
(Address of principal executive offices)
Mt. Laurel, New Jersey		(Zip Code)
(Address of principal executive offices)

Securities Registered Pursuant to Section 12(b) of the Act:

Title of Each Class		Trading Symbols(s)		Name of Each Exchange on Which Registered
Common Stock, no par value		JJSF		The NASDAQ Global Select Market

Securities Registered Pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. Yes ☒ No ☐

~~Indicate~~If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the ~~registrant~~financial isstatements aof ~~shell~~the ~~company~~registrant ~~(as~~included ~~defined~~ in ~~Rule~~the ~~12b-2~~filing ofreflect the ~~Exchange~~correction ~~Act).~~of ~~Yes☐~~an ~~No☒~~error to previously issued financial statements. ☐

~~March~~Indicate ~~25,~~by ~~2022~~check ~~was~~mark ~~the~~whether ~~last~~any ~~business day~~ of ~~the~~those ~~registrant’s~~error ~~most~~corrections ~~recently~~are ~~completed~~restatements ~~second~~that ~~fiscal~~required ~~quarter.~~a ~~The~~recovery ~~aggregate~~analysis ~~market value~~ of ~~the registrant’s common stock held by non~~incentive-~~affiliates was $2,361,822,496~~ based oncompensation ~~the~~received ~~last~~by ~~sale~~any ~~price on March 25, 2022~~ of ~~$155.08~~the ~~per~~registrant’s ~~share.~~executive Asofficers ofduring ~~November 18, 2022, 19,221,033 shares of~~ the ~~registrant’s~~relevant ~~common~~recovery ~~stock~~period ~~were~~pursuant ~~issued~~to ~~and outstanding~~§240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

March 24, 2023 was the last business day of the registrant’s most recently completed second fiscal quarter. The aggregate market value of the registrant’s common stock held by non-affiliates was $2,198,173,802 based on the last sale price on March 24, 2023 of $145.96 per share. As of November 24, 2023, 19,342,344 shares of the registrant’s common stock were issued and outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s definitive proxy statement for its Annual Meeting of Shareholders scheduled for February 1413, ~~2023~~2024 are incorporated by reference into Part III of this report.

J & J SNACK FOODS CORP.

~~2022~~2023 FORM 10-K ANNUAL REPORT

TABLE OF CONTENTS

		Page
PART I
Note About Forward-Looking Statements		1
Item 1	Business	1
Item 1A	Risk Factors	79
Item 1B	Unresolved Staff Comments	1214
Item 2	Properties	1214
Item 3	Legal Proceedings	1415
Item 4	Mine Safety Disclosures	1415
PART II
Item 5	Market For Registrant’s Common Equity, Related Stockholder Matters And Issuer Purchases Of Equity Securities	1415
Item 6	[Reserved]	1416
Item 7	Management’s Discussion And Analysis Of Financial Condition And Results Of Operations	1516
Item 7A	Quantitative And Qualitative Disclosures About Market Risk	2732
Item 8	Financial Statements And Supplementary Data	2732
Item 9	Changes In And Disagreements With Accountants On Accounting And Financial Disclosure	2732
Item 9A	Controls and Procedures	2833
Item 9B	Other Information	2934
Item 9C	Disclosure Regarding Foreign Jurisdictions ~~that~~That Prevent Inspections	2934
PART III
Item 10	Directors, Executive Officers and Corporate Governance	2934
Item 11	Executive Compensation	3034
Item 12	Security Ownership Of Certain Beneficial Owners And Management And Related Stockholder Matters	3034
Item 13	Certain Relationships And Related Transactions, and Director Independence	3034
Item 14	Principal Accountant Fees and Service	3034
PART IV
Item 15	Exhibits, Financial Statement Schedules	3135
Item 16	Form 10-K Summary	3336

Note About Forward-Looking Statements

~~Statements~~This ~~made~~annual inreport ~~this~~on Form 10-K contains forward-looking statements. Statements that are not ~~historical~~historic or current facts are “forward-looking statements” made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements discuss goals, ~~that~~intentions ~~involve~~and ~~substantial~~expectations ~~risks~~as to future trends, plans, events, results of operations or ~~uncertainties.~~financial ~~These~~condition, ~~statements~~or ~~often~~state ~~can~~other beinformation ~~identified~~relating to us, based on our current beliefs as well as assumptions made by ~~the~~us ~~use~~and ofinformation ~~terms~~currently available to us. Forward-looking statements generally will be accompanied by words such as ~~“may~~"anticipate,”" ~~“will~~"if,”" ~~“expect~~"may,”" “"believe,”" ~~“anticipate~~"plan,”", “"goals," "estimate,”" ~~“projects~~"expect,”" ~~“seek~~"project,”" “"continue," "forecast," "intend,”" ~~“predict~~"may,”" ~~“approximate~~"could,”" or"should," ~~“continue~~"will,”" orand other similar ~~references to future periods or the negative thereof~~expressions. Statements addressing our future operating performance and statements addressing events and developments that we expect or anticipate will occur are also considered as forward-looking statements. WeThis ~~intend~~includes, ~~that~~without ~~such~~limitation, ~~forward-looking~~our statements beand ~~subject~~expectations toregarding ~~the safe harbors for such statements. We wish to caution readers not to place undue reliance on~~ any ~~such~~current ~~forward-looking~~or ~~statements,~~future ~~which~~recovery ~~speak~~in onour asindustry ofand the ~~date~~future ~~made.~~impact ~~Any~~of ~~forward-looking~~our ~~statements~~investments ~~represent~~in ~~management’s~~additional ~~best~~production ~~judgment~~capacity asand tologistics ~~what~~and ~~may~~warehousing ~~occur in the future~~operations. ~~However,~~Such forward-looking statements are ~~subject~~inherently ~~to risks~~uncertain, ~~uncertainties,~~ and ~~important~~readers ~~factors~~must ~~beyond~~recognize ~~our control~~ that ~~could cause~~ actual results ~~and~~may ~~events to~~ differ materially from ~~historical~~the ~~results~~expectations of ~~operations and events and those presently anticipated or projected~~management. Important Wefactors ~~disclaim~~that ~~any~~could ~~obligation~~cause ~~subsequently~~actual toresults ~~revise, update, add or~~ to ~~otherwise~~differ ~~correct,~~materially ~~any~~from ~~forward-looking statements to reflect events or circumstances after~~ the ~~date of such statement or to reflect the occurrence of anticipated or unanticipated events. Furthermore, all subsequent written and oral~~ forward-looking statements ~~attributable~~include, towithout uslimitation: ~~or persons acting on our behalf are expressly qualified in their entirety by~~ the ~~cautionary~~risks ~~statements~~described ~~contained~~ in ~~this~~Item 1A ~~report. The discussion~~ and ~~analysis of our financial condition and results of operations included~~ in Item 7A ~~7- Management’s Discussion and Analysis~~ of ~~Financial~~this ~~Condition~~annual ~~and~~report ~~Results~~on ~~of Operations should be read in conjunction with our consolidated financial statements and related notes included in Item 8 of this~~ Form 10-K.

We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak as of the date made. Any forward-looking statements represent management’s best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties, and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise, update, add or to otherwise correct, any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events. Furthermore, all subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained in this report. The discussion and analysis of our financial condition and results of operations included in Item 7- Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our consolidated financial statements and related notes included in Item 8 of this Form 10-K.

Part I

Item 1.

Business

General

J & J Snack Foods Corp. (the “Company” or “J & J”) manufactures snack foods and distributes frozen beverages which it markets nationally to the foodservice and retail supermarket industries. The Company’s principal snack food products are soft pretzels marketed primarily under the brand names SUPERPRETZEL, BRAUHAUS, AUNTIE ANNE’S* and BAVARIAN BAKERY, frozen novelties marketed primarily under the DIPPIN’ DOTS, LUIGI’S, WHOLE FRUIT, ICEE, DOGSTERS, PHILLY SWIRL, SOUR PATCH** and MINUTE MAID*** brand names, churros marketed primarily under the ~~TIO~~¡HOLA! ~~PEPE’S~~ and CALIFORNIA CHURROS brand names and bakery products sold primarily under the READI-BAKE, COUNTRY HOME, MARY B’S, DADDY RAY’S and HILL & VALLEY brand names as well as for private label and contract packing. J & J ~~believes it~~ is the largest manufacturer of soft pretzels in the United States. Other snack food products include funnel cake sold under THE FUNNEL CAKE FACTORY brand and handheld products sold under smaller brands. The Company’s principal frozen beverage products are the ICEE brand frozen carbonated beverage and the SLUSH PUPPIE brand frozen non-carbonated beverage.

The Company’s Food Service and Frozen Beverages sales are made primarily to foodservice customers including snack bar and food stand locations in leading chain, department, discount, warehouse club and convenience stores; malls and shopping centers; fast food and casual dining restaurants; stadiums and sports arenas; leisure and theme parks; movie theatres; independent retailers; and schools, colleges and other institutions. The Company’s retail supermarket customers are primarily supermarket chains.

* ~~AUNTIE~~Minute ~~ANNE’S~~Maid is a registered trademark of ~~Auntie~~the ~~Anne’s~~Coca-Cola ~~LLC~~Company

** SOUR PATCH is a registered trademark of Mondelēz International Group

*** Minute Maid is a registered trademark of the Coca-Cola Company

The Company was incorporated in 1971 under the laws of the State of New Jersey.

The Company operates in three business segments: Food Service, Retail Supermarkets and Frozen Beverages. These segments are described below.

The Chief Operating Decision Maker for Food Service, Retail Supermarkets and Frozen Beverages reviews detailed operating income statements and sales reports in order to assess performance and allocate resources to each individual segment. Sales and operating income are key variables monitored by the Chief Operating Decision Maker and management when determining each segment’s and the Company’s financial condition and operating performance. In addition, the Chief Operating Decision Maker reviews and evaluates depreciation, capital spending and assets of each segment on a quarterly basis to monitor cash flow and asset needs of each segment (see Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations and Item 8 – Financial Statements and Supplementary Data for financial information about segments).

Food Service

The primary products sold by the Food Service segment are soft pretzels, frozen novelties, churros, handheld products and baked goods. Our customers in the Food Service segment include snack bars and food stands in chain, department and discount stores; malls and shopping centers; ~~casual dining restaurants;~~ fast food and casual dining restaurants; stadiums and sports arenas; leisure and theme parks; convenience stores; movie theatres; warehouse club stores; schools, colleges and other institutions. Within the food service industry, our products are purchased by the consumer primarily for consumption at the point-of-sale or for take-away.

Retail Supermarkets

The primary products sold to the retail supermarket channel are soft pretzel products – including SUPERPRETZEL ~~and AUNTIE ANNE’S~~, frozen novelties including LUIGI’S Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, WHOLE FRUIT frozen fruit bars and sorbet, DOGSTERS ice cream style treats for dogs, PHILLY SWIRL cups and sticks, ~~SOUR PATCH sticks,~~ ICEE Squeeze-Up Tubes and handheld products. Within the retail supermarket channel, our frozen and prepackaged products are purchased by the consumer for consumption at home.

Frozen Beverages

We sell frozen beverages to the foodservice industry primarily under the names ICEE, SLUSH PUPPIE and PARROT ICE in the United States, Mexico and Canada. We also provide repair and maintenance services to customers for ~~customers’~~ customer-owned equipment.

Products

Soft Pretzels

The Company’s soft pretzels are sold under many brand names; some of which are: SUPERPRETZEL, ~~PRETZEL FILLERS, PRETZELFILS, GOURMET TWISTS, MR. TWISTER, SOFT PRETZEL BITES, SOFTSTIX, SOFT PRETZEL BUNS, TEXAS TWIST, BAVARIAN BAKERY,~~ SUPERPRETZEL BAVARIAN, NEW YORK PRETZEL, ~~KIM & SCOTT’S GOURMET PRETZELS, SERIOUSLY TWISTED!, BRAUHAUS~~ AND ~~AUNTIE ANNE’S~~BRAUHAUS; and, to a lesser extent, under private labels.

Soft pretzels are sold in the Food Service and Retail Supermarket segments. Soft pretzel sales amounted to 19% of the Company’s revenue in fiscal year ~~2022~~2023, ~~and 20~~19% in ~~both~~ fiscal year ~~2021~~2022, and 20% in fiscal year ~~2020~~2021.

Certain of the Company’s soft pretzels qualify under USDA regulations as the nutritional equivalent of bread for purposes of the USDA school lunch program, thereby enabling a participating school to obtain partial reimbursement of the cost of the Company’s soft pretzels from the USDA.

The Company’s soft pretzels are manufactured according to a proprietary formula. Soft pretzels, ranging in size from one to twenty-four ounces in weight, are shaped and formed by the Company’s twister machines. These soft pretzel tying machines are automated, high-speed machines for twisting dough into the traditional pretzel shape. Additionally, we make soft pretzels which are extruded or shaped by hand. Soft pretzels, after processing, are primarily quick-frozen in either raw or baked form and packaged for delivery.

The Company’s principal marketing program in the Food Service segment includes supplying ovens, mobile merchandisers, display cases, warmers and similar merchandising equipment to the retailer to prepare and promote the sale of soft pretzels. Some of this equipment is proprietary, including combination warmer and display cases that ~~reconstitute~~rebake frozen soft pretzels while displaying them, thus eliminating the need for an oven. The Company retains ownership of the equipment placed in customer locations, and as a result, customers are not required to make an investment in equipment.

Frozen Novelties

The Company’s frozen novelties are marketed primarily under the DIPPIN’DOTS, LUIGI’S, WHOLE FRUIT, DOGSTERS, PHILLY SWIRL, ~~SOUR PATCH,~~ ICEE and MINUTE MAID brand names. Frozen novelties are sold in the Food Service and Retail Supermarkets segments. Frozen novelties sales were 1417% of the Company’s revenue in fiscal year ~~2022~~2023, 1314% in fiscal year ~~2021~~2022, and 1213% in fiscal year ~~2020~~2021.

The Company’s school foodservice LUIGI’S and WHOLE FRUIT frozen juice bars and cups are produced in various flavors and contain three to four ounces of 100% ~~apple or pineapple~~ juice with no added sugar and 100% of the daily US FDA value of vitamin C. The juice bars are produced in various flavors and are packaged in a sealed push-up paper container referred to as the Milliken M-pak, which the Company believes has certain sanitary and safety advantages.

The Company’s DIPPIN’ DOTS’ frozen novelty products are cryogenically frozen beads of ice cream, created using liquid nitrogen at -320 degrees Fahrenheit. Product variations include ice cream (milk and cream based), flavored ice (water based) and frozen yogurt branded YoDots. The product is served to consumers by the cup, or via individual serving packages.

The balance of the Company’s frozen novelties products are manufactured from water, sweeteners and fruit juice concentrates in various flavors and packaging including cups, tubes, sticks, M-paks and pints. Several of the products contain ice cream and WHOLE FRUIT bars contains pieces of fruit.

Churros

The Company’s churros are sold primarily under the ~~TIO~~ ~~PEPE’S~~¡HOLA! and CALIFORNIA CHURROS brand names. Churros are sold to the Food Service and Retail Supermarkets segments. Churro sales were 67% of the Company’s sales in ~~both~~ fiscal ~~years~~year ~~2022~~2023 and ~~2021 and 5~~6% in both fiscal ~~year~~years ~~2020~~2022 and 2021. Churros are pastries in stick form which the Company produces in several sizes according to a proprietary formula. The churros are deep fried, frozen and packaged. At food service point-of-sale they are reheated and topped with a cinnamon sugar mixture. The Company also sells chocolate-filled, fruit-filled and crème-filled churros. The Company supplies churro merchandising equipment similar to that used for its soft pretzels.

Handheld Products

The Company's handheld products are ~~marketed~~sold ~~under~~primarily ~~the SUPREME STUFFERS and SWEET STUFFERS brand names and~~ under private ~~labels~~label names. Handheld products are sold to the Food Service and Retail Supermarket segments. Handheld product sales amounted to 76% of the Company’s sales in ~~both~~ fiscal ~~years~~year ~~2022~~2023 and ~~2021, and 5~~7% in both fiscal ~~year~~years ~~2020~~2022 and 2021.

Bakery Products

The Company’s bakery products are marketed under the MRS. GOODCOOKIE, READI-BAKE, COUNTRY HOME, MARY B’S, DADDY RAY’S and HILL & VALLEY brand names, and under private labels. Bakery products include primarily ~~biscuits,~~ fig and fruit bars, cookies, breads, rolls, crumb, muffins and donuts. Bakery products are sold to the Food Service segment. Bakery products sales amounted to 2926% of the Company’s sales in fiscal year ~~2022~~2023, 3229% in fiscal year ~~2021~~2022 and 3532% in fiscal year ~~2020~~2021.

Frozen Beverages

The Company markets frozen beverages primarily under the names ICEE, SLUSH PUPPIE and PARROT ICE which are sold primarily in the United States, Mexico and Canada. Frozen beverages are ~~sold~~reported in the Frozen Beverages segment.

Frozen beverage sales amounted to 1314% of the Company’s revenue in fiscal year ~~2022~~2023, 1113% in fiscal year ~~2021~~2022 and 1011% in fiscal year ~~2020~~2021.

Under the Company’s principal marketing program for frozen carbonated beverages, it installs frozen beverage dispensers for its ICEE brand at customer locations and thereafter services the machines, arranges to supply customers with ingredients required for production of the frozen beverages, and supports customer retail sales efforts with in-store promotions and point-of-sale materials. The Company sells frozen non-carbonated beverages under the SLUSH PUPPIE and PARROT ICE brands through a distributor network and through its own distribution network. The Company also provides repair and maintenance service to customers for customer-owned equipment and sells equipment in its Frozen Beverages segment. Revenue from equipment sales and repair and maintenance services totaled 9% of the Company’s sales in ~~both~~each of the fiscal years 2023, 2022 and 2021~~, and 11% in fiscal year 2020~~.

Each new frozen carbonated customer location requires a frozen beverage dispenser supplied by the Company or by the customer. Company-supplied frozen carbonated dispensers are purchased from outside vendors or rebuilt by the Company.

The Company provides managed service and/or products to approximately ~~128~~132,000 Company-owned and customer-owned dispensers.

The Company has the rights to market and distribute frozen beverages under the name ICEE and Slush Puppie to the entire continental United States as well as internationally.

Other Products

Other products sold by the Company include funnel cakes sold under the FUNNEL CAKE FACTORY brand name and smaller amounts of various other food products. These products are sold in the Food Service and Frozen Beverages segments.

Customers

The Company sells its products to two principal channels: foodservice and retail supermarkets. The primary products sold to the foodservice channel are soft pretzels, frozen beverages, frozen novelties, churros, handheld products and baked goods. The primary products sold to the retail supermarket channel are soft pretzels, frozen novelties and handheld products.

We have several large customers that account for a significant portion of our sales. Our top ten customers accounted for 43%, 43% and 43% of our sales during fiscal years ~~2022~~2023, ~~2021~~2022 and ~~2020~~2021, respectively, with our largest customer accounting for 89% of our sales in ~~2022~~fiscal 2023, 118% of our sales in ~~2021~~fiscal 2022 and 1311% of our sales in ~~2020~~fiscal 2021. ~~Six~~Five of the ten customers in ~~fiscal~~2023 ~~2022~~ are food distributors who sell our product to many end users. The loss of one or more of our large customers could adversely affect our results of operations. These customers typically do not enter into long-term contracts and make purchase decisions based on a combination of price, product quality, consumer demand and customer service performance. If our sales to one or more of these customers are reduced, this reduction may adversely affect our business. If receivables from one or more of these customers become uncollectible, our operating income would be adversely impacted.

The Food Service and the Frozen Beverages segments sell primarily to foodservice channels. The Retail Supermarkets segment sells primarily to the retail supermarket channel.

The Company’s customers in the ~~foodservice~~Food Service segment include snack bars and food stands in chain, department and mass merchandising stores, malls and shopping centers, fast food and casual dining restaurants, stadiums and sports arenas, leisure and theme parks, convenience stores, movie theatres, warehouse club stores, schools, colleges and other institutions, and independent retailers. Machines and machine parts are sold to other food and beverage companies. Within the food service industry, the Company’s products are purchased by the consumer primarily for consumption at the point-of-sale.

The Company sells its products to an estimated 85-90% of supermarkets in the United States. Products sold to retail supermarket customers are primarily soft pretzel products, including SUPERPRETZEL and AUNTIE ANNE’S, frozen novelties including LUIGI’S Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, WHOLE FRUIT frozen fruit bars, WHOLE FRUIT Sorbet, PHILLY SWIRL cups and sticks, MARY B’S biscuits and dumplings, DADDY RAY’S fig and fruit bars, HILL & VALLEY baked goods, and ICEE Squeeze-Up Tubes. Within the retail supermarket industry, the Company’s frozen and prepackaged products are purchased by the consumer for consumption at home.

Marketing and Distribution

The Company ~~has~~supports ~~developed~~its aportfolio ~~national~~of ~~marketing~~brands ~~program~~with ~~for~~national ~~its~~and ~~products~~regional marketing programs. For the Food Service and Frozen Beverages segments’ customers, ~~this~~these marketing ~~program~~programs includes providing ovens, mobile merchandisers, display cases, freezers, kiosks, warmers, frozen beverage dispensers and other merchandising equipment for the individual customer’s requirements and point-of-sale materials as well as participating in trade shows and in-store demonstrations. The Company’s ongoing advertising and promotional campaigns for its Retail Supermarket segment’s products include consumer advertising campaigns across traditional and digital channels, and print/digital media with value added shopper offers and promotions.

The Company develops and introduces new products on a routine basis. The Company evaluates the success of new product introductions on the basis of sales and profit levels.

The Company’s products are sold through a network of food brokers, independent sales distributors and the Company’s own direct sales force. For its snack food products, the Company maintains warehouse and distribution facilities in Pennsauken, Bellmawr and Bridgeport, New Jersey; Vernon (Los Angeles), Colton and Lancaster, California; Brooklyn, New York; Scranton and Hatfield, Pennsylvania; Carrollton (Dallas) and Terrell, Texas; Atlanta, Georgia; Moscow Mills (St. Louis), Missouri; Pensacola and Tampa, Florida; Solon, Ohio; Weston, Oregon; Holly Ridge, North Carolina; Rock Island, Illinois; and Paducah, Kentucky. Frozen beverages and machine parts are distributed from ~~181~~170 Company managed warehouse and distribution facilities located in 44 states, Mexico and Canada, which allow the Company to directly service its customers in the surrounding areas. The Company’s products are shipped in frozen and other vehicles from the Company’s manufacturing and warehouse facilities on a fleet of Company operated tractor-trailers, trucks and vans, as well as by independent carriers.

Seasonality

The Company’s sales are seasonal because frozen beverage sales and frozen novelties sales are generally higher during the warmer months.

Trademarks and Patents

The Company has ~~numerous~~a ~~trademarks~~significant trademark portfolio, the most important of which are SUPERPRETZEL, TEXAS TWIST, NEW YORK PRETZEL, BAVARIAN BAKERY, ~~MR. TWISTER, SOFT PRETZEL BITES,~~ SOFTSTIX, ~~PRETZEL FILLERS, PRETZELFILS~~ and BRAUHAUS for its pretzel products; DIPPIN’ DOTS, SHAPE-UPS, WHOLE FRUIT, PHILLY SWIRL and LUIGI’S for its frozen novelties; ~~TIO~~¡HOLA!, ~~PEPE’S~~ and CALIFORNIA CHURROS for its churros; ICEE, ARCTIC BLAST, SLUSH PUPPIE and PARROT ICE for its frozen beverages; FUNNEL CAKE FACTORY for its funnel cake products, and MRS. GOODCOOKIE, READI-BAKE, COUNTRY HOME, CAMDEN CREEK, MARY B’S, DADDY RAY’S and HILL & VALLEY for its bakery products.

The Company markets frozen beverages under the trademark ICEE in all of the United States and in Mexico and Canada. Additionally, the Company has the international rights to the trademark ICEE.

The trademarks, when renewed and continuously used, have an indefinite term and are considered important to the Company as a means of identifying its products. The Company considers its trademarks important to the success of its business.

The Company has numerous patents related to the manufacturing and marketing of its products.

Suppliers

The Company’s manufactured products are produced from raw materials which are readily available from numerous sources. With the exception of the Company’s churro production equipment, funnel cake production equipment and soft pretzel twisting equipment, all of which are made for Jthe &Company J by independent third parties, and certain specialized packaging equipment, the Company’s manufacturing equipment is readily available from various sources. Syrup for frozen beverages is purchased primarily from The Coca-Cola Company, Keurig Dr. Pepper, Inc., the Pepsi Cola Company, and Jogue, Inc. Cups,. ~~straws~~Straws and lids are readily available from various suppliers. Parts for frozen beverage dispensing machines are purchased from several sources.

Competition

Snack food and bakery products markets are highly competitive. The Company’s principal products compete against similar and different food products manufactured and sold by numerous other companies, some of which are substantially larger and have greater resources than the Company. As the soft pretzel, frozen novelties, bakery products and related markets evolve, additional competitors and new competing products may enter the markets. Competitive factors in these markets include product quality, customer service, taste, price, identity and brand name awareness, method of distribution and sales promotions.

5 6

The Company believes it is the only national distributor of soft pretzels. However, there are numerous regional and local manufacturers of food service and retail supermarket soft pretzels as well as several chains of retail pretzel stores.

In Frozen Beverages, the Company competes directly with other frozen beverage companies. There are many other regional frozen beverage competitors throughout the country and one large retail chain which uses its own frozen beverage brand.

The Company competes with large soft drink manufacturers for counter and floor space for its frozen beverage dispensing machines at retail locations and with products which are more widely known than the ICEE, SLUSH PUPPIE and PARROT ICE frozen beverages.

The Company competes with several other companies in the frozen novelties and bakery products markets.

Risks Associated with Foreign Operations

Foreign operations ~~generally~~can involve greater risk than doing business in the United States. Foreign economies differ favorably or unfavorably from the United States’ economy in such respects as the level of inflation and debt, which may result in fluctuations in the value of the country’s currency and real property. Sales of our foreign operations were $4570.2 million, $2045.82 million and $1520.48 million in fiscal years ~~2022~~2023, ~~2021~~2022 and ~~2020~~2021, respectively. At September 2430, ~~2022~~2023, the total assets of our foreign operations were $4261.75 million or 34.58% of total assets. At September 2524, ~~2021~~2022, the total assets of our foreign operations were $2542.07 million or 23.25% of total assets.

Government Regulation and Food Safety

Our business operations are subject to regulation by various federal, state and local government entities and agencies. As a producer of food products for human consumption, our operations are subject to stringent production, packaging, quality, labeling and distribution standards, including regulations promulgated under the Federal Food, Drug and Cosmetic Act and the Food Safety Modernization Act. We are also subject to various federal, state and local environmental protection laws. ~~The~~Based upon available information, the cost of compliance with these laws and regulations did not have a material effect upon the level of capital expenditures, earnings or competitive position in fiscal ~~2022~~2023 and is not expected to have a material impact in fiscal ~~2023~~2024.

Our Food Safety & Quality (FSQA) personnel within our Compliance Department have broad, diverse academic and experience credentials and oversee all aspects of product safety & quality control across the Company. Our facilities are Global Food Safety Initiative (“GFSI”) certified and are audited annually by third -party certification bodies. Our “Food Safety & Quality Plans” are validated and verified to ensure product safety and quality. We have implemented Corporate Standards which are aligned with GFSI, and Regulatory standards and routinely conduct audits to ensure compliance. We provide bi-weekly support calls for FSQA and Plant Leadership and annual Food Safety Summit Meetings to develop and strengthen our facility teams. As part of the onboarding process, and throughout their careers, ~~FSQA~~ employees are engaged in food safety discussions and trainings to provide safe, high-quality products to customers and consumers.

Human Capital Management

Employees and Labor Relations

The Company has approximately 5,000 full and part-time employees and approximately ~~900~~800 workers employed by staffing agencies as of September 2430, ~~2022~~2023. About 1,~~300~~400 production and distribution employees throughout the Company are covered by collective bargaining agreements. The Company considers its culture and employee relations to be positive.

Employee Safety

We maintain a safety culture grounded on the premise of eliminating workplace incidents, risks and hazards. We have a team of dedicated Employee Health & Safety professionals within our Compliance Department who oversee all aspects of employee safety across the company. ToWe keep our employees safe, weby ~~focus on~~ ensuring all employees receive ongoing support and training. We have developed and implemented processes to identify and eliminate safety incidents by reducing their frequency and severity. We also closely review and monitor our safety performance. According to data from the U.S Bureau of Labor Statistics, the Company’s Total Recordable Incident Rate (“TRIR”) and Days Away, Restricted or Transferred (“DART”) incident rates were lower than food manufacturing averages. Our goal is to reduce Occupational Safety and Health Administration (“OSHA”) recordable incidents year over year.

Professional Development

We deploy a variety of training programs throughout the organization and go to great lengths to make learning and knowledge available to our employees. Programs such as tuition reimbursement, mentorships, internships and internal trainings are some of the ways in which we invest in our people and their knowledge. We know that these investments are not only beneficial for our employees, but they are also important for the future success of our business. We continue to see increases in internal promotions across all levels of the organization.

Diversity and Inclusion

We believe that having an inclusive and diverse culture strengthens our ability to recruit and develop talent and allows our employees to thrive and succeed. Diversity of input and perspectives is an essential part of our strategic plan to build a winning team and culture. We believe that one key to success is attracting and retaining a diverse workforce that reflects our consumers of today and tomorrow, and we strive to do so. We also strive to foster an inclusive and diverse workplace culture where colleagues feel a sense of belonging, and are included in discussions and valued for their contributions.

Compensation

We believe in equal pay for equal work and that compensation should match talent, experience and skill set of a person. ~~We regularly review our compensation practices and benchmark our performance to our peers within the industry to ensure we are fulfilling our obligations of fair pay.~~

Available Information

The Company’s internet address is www.jjsnack.com. On the investor relations section of its website, the Company provides free access to its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to these reports, as soon as reasonably practicable after such materials are electronically filed with, or furnished to, the Securities and Exchange Commission (“SEC”). The information on the website listed above is not and should not be considered part of this annual report on Form 10-K and is not incorporated by reference in this document.

Item 1A.

Risk Factors

Our business is subject to numerous risks and uncertainties. You should carefully consider the risks described below, together with all the other information included in this report, in considering our business and prospects. The risks and uncertainties described below are not the only ones facing us. Additional risks and uncertainties not presently known to us or that we currently deem insignificant or immaterial may also ~~impair~~materially and adversely affect our business, financial condition, results of operations or prospects. The following is a discussion of known potentially significant risks which could result in harm to our business, financial condition or results of operations.

Risks Related to COVID-19

The global COVID-19 pandemic of 2020 and 2021 significantly affected our operations. Approximately 2/3 of the Company’s sales are to venues and locations that previously shut down or sharply curtailed their food service operations as a result of COVID-19. While the majority of these venues have re-opened, the extent of the future impact of COVID-19 on our operations depends on future developments of the virus and its effects which is uncertain at this point in time. Furthermore any economic downturn caused by any pandemic, epidemic or other disease outbreak, comparable or similar to COVID-19, may also cause substantial changes in consumer behavior, adversely affecting results of operations and our financial position, some of which we may not be able to predict with certainty.

Risks of Shortages or Increased Cost of Raw Materials

We are exposed to ~~the~~ market risks arising from adverse changes in commodity prices, affecting the cost of our raw materials and energy. The raw materials and energy which we use for the production and distribution of our products are largely commodities that are subject to price volatility and fluctuations in availability caused by changes in global supply and demand, weather conditions, agricultural uncertainty or governmental controls. We purchase these materials and energy mainly in the open market. Our procurement practices are intended to reduce the risk of future price increases, but also may potentially limit the ability to benefit from possible price decreases. If commodity price changes result in increases in raw materials and energy costs, we may not be able to increase our prices to offset these increased costs without suffering reduced ~~volume,~~ revenue and operating income.

General Economic Risk

The willingness of our customers and consumers to purchase our products may depend in part on economic conditions. Worsening economic conditions or future challenges to economic growth could have a negative impact on consumer demand, which could adversely affect our business. Deterioration of national and global economic conditions could cause consumers to forego certain purchases during economic downturns that could result in decreased demand infor ~~the~~our ~~foodservice~~ business. The economic uncertainty may limit our ability to increase or maintain prices and reduce sales of higher margin products. In addition, changes in tax or interest rates, whether due to recession, efforts to combat inflation, financial and credit market disruptions or other reasons, could negatively impact us.

Risks Relating to Pandemics, Epidemics, or Other Disease Outbreaks

Pandemics, epidemics, or other disease outbreaks could significantly change consumption patterns for our products. These changes could force us to rapidly adapt to those new patterns, and, if we do not, our business could be materially and adversely affected. Additionally, pandemics, epidemics or other disease outbreaks may depress or otherwise impact demand for our products because quarantines may inhibit consumption or as the result of other factors. Restrictions on public gatherings or interactions may also limit the opportunity for our customers and consumers to purchase our products, especially in certain of our sales channels, such as food service. Any economc downturn caused by any pandemic, epidemic, or other disease outbreak may also cause substantial changes in consumer behavior and our supply chain operations, some of which may materially affect our operations and results of operations.

General Risks of the Food Industry

~~Food~~We ~~processors~~ are subject to the risks of adverse changes in general economic conditions; evolving consumer preferences and nutritional and health-related concerns; changes in food distribution channels; federal, state and local food processing controls or other mandates; changes in federal, state, local and international laws and regulations, or in the application of such laws and regulations; consumer product liability claims; risks of product tampering and contamination; and negative publicity surrounding actual or perceived product safety deficiencies. The increased buying power of large supermarket chains, other retail outlets and wholesale food vendors could result in greater resistance to price increases and could alter customer inventory levels and access to shelf space.

Risks of Shortages or Increased Costs of Labor

Our businesses operate in highly competitive markets. The labor market in the United States is very competitive. We depend on the skills, working relationships, and continued services of employees, including our experienced management team. We must hire, train and develop effective employees. We compete with other companies both within and outside of our industry for talented employees, and we may lose key personnel or fail to attract, train, and retain other talented personnel. In addition, our ability to achieve our operating goals depends on our ability to identify, hire, train, and retain qualified individuals. Any such loss or failure could adversely affect our product sales, financial condition, and operating results. Additionally, a shortage in the labor pool and other general inflationary pressures or changes, and applicable laws and regulations could increase labor costs, which could have a material adverse effect on our consolidated operating results or financial condition.

In addition, some of our associates are covered by collective bargaining agreements, and other associates may seek to be covered by collective bargaining agreements. Strikes or work stoppages or other business interruptions could occur if we are unable to renew these agreements on satisfactory terms or enter into new agreements on satisfactory terms or if we are unable to otherwise manage changes in, or that affect, our workforce, which could impair manufacturing or distribution of our products or result in a loss of sales, which could adversely impact our business, financial condition, or results of operations. The terms and conditions of existing, renegotiated or new collective bargaining agreements could also increase our costs or otherwise affect our ability to fully implement future operational changes to enhance our efficiency or adapt to changing business needs or strategy.

Environmental Risks

The disposal of solid and liquid waste material and the discharge of airborne pollutants resulting from the preparation and processing of foods is subject to various federal, state and local laws and regulations relating to the protection of the environment. Such laws and regulations have an important effect on the food processing industry as a whole, requiring substantially all firms in the industry to incur material expenditures for modification of existing processing facilities and for construction of upgraded or new waste treatment facilities.

We cannot predict what environmental legislation or regulations will be enacted in the future, how existing or future laws or regulations will be administered or interpreted or what environmental conditions may be found to exist. Enactment of more stringent laws or regulations or more strict interpretation of existing laws and regulations may require additional expenditure by us, some of which could behave ~~material~~a negative impact on our operations and financial condition. Additionally, the failure by any one or more of our suppliers to comply with applicable federal, state and local laws and regulations relating to the protection of the environment, or allegations of non-compliance, may disrupt their operations and could result in accompanying disruptions to our operations.

Risks Resulting from Customer Concentration

We have several large customers that account for a significant portion of our sales. Our top ten customers accounted for 43%, ~~43% and 43%~~ of our sales during fiscal years ~~2022~~2023, ~~2021~~2022 and ~~2020~~2021, respectively, with our largest customer accounting for 89% of our sales in ~~2022~~2023, 118% of our sales in ~~2021~~2022 and 1311% of our sales in ~~2020~~2021.

~~Six~~Five of the ten customers are food distributors who sell our product to many end users. The loss of one or more of our large customers could adversely affect our results of operations. These customers typically do not enter into long-term contracts and make purchase decisions based on a combination of price, product quality, consumer demand and customer service performance. If our sales to one or more of these customers are reduced, this reduction may adversely affect our business. If receivables from one or more of these customers become uncollectible, our operating income would be adversely impacted.

Risks Relating to Competition

Our businesses operate in highly competitive markets. We compete against national and regional manufacturers and distributors on the basis of price, quality, product variety, brand recognition and loyalty, and effective distribution. Many of our major competitors in the market are larger and have greater financial and marketing resources than we do. Increased competition ~~and~~from ~~anticipated actions by~~ our competitors could lead to downward pressure on prices and/or a decline in our market share, either of which could adversely affect our results. See “Competition” in Item 1 for more information about our competitors.

Risks Relating to Manufacturing and Distribution

Our ability to purchase, manufacture and distribute products is critical to our success. Because we source certain products from single manufacturing sites, it is possible that we could experience a production disruption that results in a reduction or elimination of the availability of some of our products. If we are not able to obtain alternate production capability in a timely manner, or on favorable terms, it could have a negative impact on our business, results of operations, financial condition and cash flows, including the potential for long-term loss of product placement with various customers. We are also subject to risks of other business disruptions associated with our dependence on production facilities and distribution systems. Natural disasters, terrorist activity, cyberattacks or other unforeseen events could interrupt production or distribution and have a material adverse effect on our business, results of operations, financial condition and cash flows, including the potential for long-term loss of product placement with our customers.

Risks Relating to the Availability and Costs of Transportation

Our ability to obtain adequate and reasonably priced methods of transportation to distribute our products, including refrigerated trailers for many of our products, is a key factor to our success. Delays in transportation, including weather-related delays, and carrier capacity limitations, could have a material adverse effect on our business and results of operations. Further, higher fuel costs and increased line haul costs due to industry capacity constraints, customer delivery requirements and a more restrictive regulatory environment could also negatively impact our financial results. We pay fuel surcharges that fluctuate with the price of diesel fuel to third-party transporters of our products, and such surcharges can be substantial. Any sudden or dramatic increases in the price of diesel fuel would serve to increase our fuel surcharges and our cost of goods sold. These higher costs could have a material adverse effect on our business, results of operations, financial condition and cash flows.

Risks Relating to Manufacturing Capacity Constraints

Our current manufacturing resources may be inadequate to meet significantly increased demand for some of our products. Our ability to increase our manufacturing capacity depends on many factors, including the costs and availability of equipment, the equipment delivery and construction lead-times, installation, qualification, regulatory permitting and regulatory requirements. A lack of sufficient manufacturing capacity to meet demand could cause our customer service levels to decrease, which may negatively affect customer demand for our products and customer relations generally, which in turn could have a material adverse effect on our business, results of operations, financial condition and cash flows. In addition, operating facilities at or near capacity may also increase production and distribution costs and negatively affect relations with our employees or contractors, which could result in disruptions in our operations.

Risks Relating to Acquisition Integration

From time to time, the Company undertakes acquisitions or divestitures. The success of any acquisition or divestiture depends on the Company’s ability to identify opportunities that help the Company meet its strategic objectives, consummate a transaction on favorable contractual terms, and achieve expected returns and other financial benefits.

Acquisitions, including future acquisitions, require us to efficiently integrate the acquired business or businesses, which involves a significant degree of difficulty, including the following:

integrating the operations and business cultures of the acquired businesses;

the possibility of faulty assumptions underlying our expectations regarding the prospects of the acquired businesses;

attracting and retaining the necessary personnel associated with the acquisitions;

creating uniform standards, controls, procedures, policies and information systems and controlling the costs associated with such matters; and

expectations about the performance of acquired trademarks and brands and the fair value of such trademarks and brands.

Divestitures have operational risks that may include impairment charges. Divestitures also present unique financial and operational risks, including diverting management attention from the existing core business, separating personnel and financial data and other systems, and adversely affecting existing business relationships with suppliers and customers.

In situations where acquisitions and divestitures are not successfully implemented or completed, or the expected benefits of such acquisitions or divestitures are not otherwise realized, the Company’s business or financial results could be negatively impacted.

New Jersey Law and Provisions of Our Amended and Restated Certificate of Incorporation and Bylaws May Inhibit a Change In Control

The New Jersey Shareholders' Protection Act, N.J.S.A. 14A:10A-1, et seq., may delay, deter or prevent a change in control by prohibiting the Company from engaging in a business combination transaction with an interested shareholder for a period of five years after the person becomes an interested stockholder, even if a majority of our shareholders believe a change in control would be in the best interests of the Company and its shareholders. In addition, our Amended and Restated Certificate of Incorporation and Bylaws contain provisions that may delay, deter or prevent a future acquisition of J & J Snack Foods Corp. not approved by our Board of Directors. This could occur even if our shareholders are offered an attractive value for their shares or if a substantial number or even a majority of our shareholders believe the takeover is in their best interest. These provisions are intended to encourage any person interested in acquiring us to negotiate with and obtain the approval of our Board of Directors in connection with the transaction. Provisions of our Amended and Restated Certificate of Incorporation and Bylaws that could delay, deter or prevent a future acquisition include the following:

a classified Board of Directors;

the requirement that our shareholders may only remove Directors for cause;

limitations on share holdings and voting of certain persons who exceed the “Voting Threshold” specified in the Amended and Restated Certificate of Incorporation;

special Director voting rights are granted to certain “Experienced Directors” only in the event of a “hostile change of Board control,” as such terms are defined in the Amended and Restated Certificate of Incorporation;

the ability of the Board of Directors to consider the interests of various constituencies, including our employees, customers, suppliers, creditors and the local communities in which we operate;

shareholders do not generally have the right to call special meetings or to act by written consent;

our Bylaws contain advance notice procedures for nominations of Directors or submission of shareholder proposals at an annual meeting; and

our Bylaws contain a forum selection clause providing that certain litigation against the Company can only be brought in New Jersey state or federal courts.

10 11

Risks Relating to Gerald B. Shreiber

Gerald B. Shreiber is the founder and ~~Chairman~~a ofDirector ~~the Board~~ of ~~Directors of~~ the Company. He is currently beneficial owner of 18approximately 20% of its outstanding common stock, held in a trust for his benefit. Our Amended and Restated Certificate of Incorporation provides Mr. Shreiber with certain special voting rights with respect to any matters to be voted on by the Board of Directors. As a result, as of the date of this Report, Mr. Shreiber is entitled to cast six (6) votes on all matters upon which the Board of Directors is entitled to vote.

Risk Related to Increases in our Health Insurance Costs

The costs of employee health care insurance have been increasing in recent years due to rising health care costs, legislative changes, and general economic conditions. Because of the breadth and complexity of health care regulations as well as other health care reform legislation considered by Congress and state legislatures, we cannot predict with certainty the future effect of these laws on us. A continued increase in health care costs or additional costs incurred as a result of new or existing health care reform laws or changes in enforcement policies could have a negative impact on our financial position and results of operations.

Risk Related to Product Changes

There are risks in the marketplace related to trade and consumer acceptance of product improvements, packing initiatives and new product introductions. We cannot be sure if our new products, product improvements, or packaging initiatives will be accepted by customers.

Risks Associated with Foreign Operations

Foreign ~~operations generally involve greater risk than doing business in the United States. Foreign~~ economies may differ favorably or unfavorably from the United States’ economy in such respects as the level of inflation and debt, which may result in fluctuations in the value of the country’s currency ~~and real property~~. Further, there may be less government regulation in various countries, and we may face difficulty in enforcing our legal rights outside the United States. Additionally, in some foreign countries, there is the possibility of expropriation or confiscatory taxation limitations on the removal of property or other assets, political or social instability or diplomatic developments which could affect the operations and assets of U.S. companies doing business in that country. Any such difficulties noted above could affect our business. Sales of our foreign operations were $4570.2 million, $2045.82 million and $1520.48 million in fiscal years ~~2022~~2023, ~~2021~~2022 and ~~2020~~2021, respectively. At September 2430, ~~2022~~2023, the total assets of our foreign operations were approximately $4261.75 million or 34.58% of total assets. At September 2524, ~~2021~~2022, the total assets of our foreign operations were $2542.07 million or 23.25% of total assets.

Risks Associated with our Information Technology Systems

The efficient operation of our business depends on our information technology systems. We rely on our information technology systems to effectively manage our business data, communications, supply chain, manufacturing, order entry and fulfillment, and other business processes. The failure of our information technology systems (including those provided to us by third parties) to perform as we anticipate could disrupt our business and could result in production, billing, collecting, and ordering errors, processing inefficiencies, and the loss of sales and customers, causing our business and results of operations to suffer.

Our information technology systems may be vulnerable to damage or interruption from circumstances beyond our control, including fire, natural disasters, systems failures, security breaches or intrusions (including those against our third-party providers and theft of customer, consumer or other confidential data), and viruses. Although we continue to monitor our information technology networks, if we are unable to prevent physical and electronic break-ins, cyber-attacks and other information security breaches, we may suffer material financial and reputational damage, be subject to litigation or incur significant remediation costs or penalties ~~because of the unauthorized disclosure of confidential information belonging to us or to our partners, customers, suppliers or employees~~.

Risks Associated with Real or Perceived Safety Issues Regarding our Food Products

We sell food products for human consumption, which involves risks such as product contamination or spoilage, product tampering, other adulteration of food products, mislabeling, and misbranding. We can be impacted by both real and unfounded claims regarding the safety of our operations, or concerns regarding mislabeled, adulterated, contaminated or spoiled food products. Any of these circumstances could necessitate a voluntary or mandatory recall due to a substantial product hazard, a need to change a product’s labeling or other consumer safety concerns. A pervasive product recall may result in significant loss due to the costs of a recall, related legal claims, including claims arising from bodily injury or illness caused by our products, the destruction of product inventory, or lost sales due to product unavailability or negative publicity. A highly publicized product recall, whether involving us or any related products made by third parties, also could result in a loss of customers or an unfavorable change in consumer sentiment regarding our products or any category in which we operate. In addition, an allegation of noncompliance with federal or state food laws and regulations could force us to cease production, stop selling our products or create significant adverse publicity that could harm our credibility and decrease market acceptance of our products. Any of these events could have a material adverse effect on our business, results of operations, financial condition and cash flows.

Risks Associated with our Intellectual Property Rights

We consider our intellectual property rights, particularly our trademarks, to be a significant and valuable aspect of our business. We protect our intellectual property rights through a combination of trademark, patent, copyright and trade secret protection, contractual agreements and policing of third-party misuses of our intellectual property in traditional retail and digital environments. Our failure to obtain or adequately protect our intellectual property or any change in law that lessens or removes the current legal protections of our intellectual property may diminish our competitiveness and adversely affect our business and financial results.

Competing intellectual property claims that impact our brands or products may arise unexpectedly. Any litigation or disputes regarding intellectual property may be costly and time consuming and may divert the attention of our management and key personnel from our business operations. We may also be subject to significant damages or injunctions against development, launch and sale of certain products. Any of these occurrences may harm our business and financial results.

Risks Associated with the Favorable Perception of our Brands

We have a number of iconic brands with significant value. Maintaining and continually enhancing the value of these brands is critical to the success of our business. Brand value is primarily based on consumer perceptions. Success in promoting and enhancing brand value depends in large part on our ability to provide high-quality products. Brand value could diminish significantly due to a number of factors, including consumer perception that we have acted in an irresponsible manner, adverse publicity about our products, packaging, ingredients, our environmental, social, human capital or governance practices, our failure to maintain the quality of our products, the failure of our products to deliver consistently positive consumer experiences, or the products becoming unavailable to consumers. The growing use of social and digital media by consumers increases the speed and extent that information and opinions can be shared. Negative posts or comments about us, our brands, products or packaging on social or digital media could seriously damage our brands and reputation. In addition, we might fail to appropriately target our marketing efforts, anticipate consumer preferences, or invest sufficiently in maintaining our brand image. If we do not maintain the favorable perception of our brands, our results could be adversely impacted.

Risk Associated with Generating Anticipated Cost Savings and/or Operating Efficiencies Associated with our Strategic Initiatives

Our future success and earnings growth depend in part on our ability to achieve the appropriate cost structure and operate efficiently in the highly competitive food industry, particularly in an environment of volatile cost inputs. We continuously pursue initiatives to reduce costs and increase effectiveness. We also regularly pursue cost productivity initiatives in procurement, manufacturing and logistics. Any failure or delay in implementing our initiatives in accordance with our plans could adversely affect our ability to meet our long-term growth and profitability expectations and could adversely affect our business. If we do not continue to effectively manage costs and achieve additional efficiencies, our competitiveness and profitability could decrease.

Seasonality and Quarterly Fluctuations

Our sales are affected by the seasonal demand for our products. Demand is greater during the summer months primarily as a result of the warm weather demand for our ICEE and frozen novelties products. Because of seasonal fluctuations, there can be no assurance that the results of any particular quarter will be indicative of results for the full year or for future years.

Item 1B.

Unresolved Staff Comments

We have no unresolved SEC staff comments to report.

Item 2.

Properties

The Company’s primary east coast manufacturing facility is located in Pennsauken, New Jersey in a 70,000 square foot building on a two-acre lot. Soft pretzels, churros, and funnel cake are manufactured at this Company-owned facility ~~which also serves as the Company’s corporate headquarters~~. The Company owns a 128,000 square foot building adjacent to this manufacturing facility which contains a large freezer for warehousing and distribution purposes. The Company also owns a 43,000 square foot office and warehouse building in the same complex. Additionally, the Company leases, through July 2025, 30,000 square feet of office space in Mt. Laurel, New Jersey which serves as the Company’s headquarters.

The Company owns a 150,000 square foot building on eight acres in Bellmawr, New Jersey. The facility is used by the Company to manufacture soft pretzels and various lines of baked goods.

The Company’s primary west coast manufacturing facility is located in Vernon (Los Angeles), California. It consists of a 137,000 square foot facility in which soft pretzels, churros and various lines of baked goods are produced and warehoused. Included in the 137,000 square foot facility is a 30,000 square foot freezer used for warehousing and distribution purposes. The facility is leased through November 2030. The Company leases an additional 80,000 square feet of office and warehouse space, adjacent to its manufacturing facility, through November 2030.

The Company leases a 22,000 square foot soft pretzel manufacturing facility located in Brooklyn, New York. The lease runs through ~~August~~September ~~2023~~2027.

The Company leases through June 2030 a 45,000 square foot churros and funnel cake manufacturing facility located in Colton, California.

The Company leases an 85,000 square foot bakery manufacturing facility located in Atlanta, Georgia. The lease runs through December ~~2023~~2024 with an option to extend to December 2026.

The Company leases a 129,000 square foot bakery manufacturing facility located in Rock Island, Illinois. The lease runs through ~~December~~February ~~2034~~2025.

The Company owns a 46,000 square foot frozen novelties manufacturing facility and a 42,000 square foot dry storage warehouse located on six acres in Scranton, Pennsylvania.

The Company leases a 29,600 square foot soft pretzel manufacturing facility located in Hatfield, Pennsylvania. The lease runs through June 2032.

The Company leases a 48,000 square foot soft pretzel manufacturing facility located in Carrollton, Texas. The lease runs through April 2026. The Company leases an additional property containing a 6,500 square foot storage freezer across the street from the manufacturing facility, which expires March 2030.

The Company’s fresh bakery products manufacturing facility and offices are located in Bridgeport, New Jersey in three buildings totaling 133,000 square feet. The buildings are leased through December 2025.

The Company owns a 165,000 square foot fig and fruit bar manufacturing facility located on 9-1/2 acres in Moscow Mills (St. Louis), Missouri.

The Company owns an 84,000 square foot handheld products manufacturing facility in Holly Ridge, North Carolina.

The Company leases a 70,000 square foot handheld products manufacturing facility in Weston, Oregon which is leased through June 30, 2031. The Company leases an additional 11,300 square foot freezer storage facility in Weston, Oregon which expires May 2023.14

The Company leases 84,000 square feet of office space in LaVergne (Nashville), Tennessee through February 2035 for its ICEE headquarters.

The Company leases a 3944,000 square foot frozen novelties manufacturing facility in Tampa, Florida which is leased through ~~September~~November ~~2023~~2030.

The Company owns two industrial buildings totaling 107,000 square feet, as well as a 76,000 square foot parcel of land in Paducah, Kentucky. Additionally, the Company leases ~~ten~~three buildings totaling 8234,000 square feet in Paducah, Kentucky, with lease end dates ranging from December 2022 through February 2027.

The Company leases ~~three~~two frozen novelties warehouse facilities in Lancaster, California, totaling 1723,000 square feet. These properties are leased through March 2026.

The Company also leases approximately ~~181~~170 smaller warehouse and distribution facilities in 44 states, Mexico, Canada, Australia and China.

13 The Company leases a 117,000 square foot cold storage facility in Terrell, Texas which is leased through November 2043.

Item 3.

Legal Proceedings

The Company has no material pending legal proceedings, other than ordinary routine litigation incidental to the business, to which the Company or any of its subsidiaries is a party or of which any of their property is subject.

Item 4.

Mine Safety Disclosures

Not Applicable

PART II

Item 5.

Market For Registrant’s Common Equity, Related Stockholder Matters And Issuer Purchases Of Equity Securities

The Company’s common stock is traded on the NASDAQ Global Select Market under the symbol “JJSF.”

As of September 2430, ~~2022~~2023, we had approximately 7975 stockholders of record of our common stock.

We did not purchase any shares of our common stock in our fiscal ~~years~~fourth ~~ended~~quarter, ~~September~~and ~~25,~~no ~~2021~~shares ~~and~~were ~~September~~withheld ~~24,~~in ~~2022~~our fiscal fourth quarter to cover taxes associated with the vesting of certain restricted stock units held by officers and employees.

A plan to purchase 500,000 shares was announced on ~~November 8, 2012. 500,000 shares were purchased under this plan with the last purchase in~~ August ~~2017. A plan to purchase 500,000 shares was announced on August~~ 4, 2017 with no expiration date. 318,858 shares remain to be purchased under this plan.

For information on the Company’s Equity Compensation Plans, please see Item 12 herein.

The following graph shows a five-year comparison of cumulative total returns for our stock, the Nasdaq Composite Index and our peer group, the Standard & Poor’s (“S&P”) Packaged Foods & Meats Index.

Item 6.

[ RESERVED ]

Item 7.

Management’s Discussion And Analysis Of Financial Condition And Results Of Operations

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to provide a reader of our financial statements with a narrative from the perspective of our management regarding our financial condition and results of operations, liquidity and certain other factors that may affect our future results. The following discussion should be read in conjunction with the consolidated financial statements and accompanying notes included in Item 8 of this Form 10-K. Refer to the Company’s Annual Report on Form 10-K for the fiscal year ended September 25, 2021 for additional information related to the discussion and analysis of our financial condition and results of operations for the fiscal year ended September 25, 2021 compared to the fiscal year ended September 26, 2020.Objective

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to provide a reader of our financial statements with a narrative from the perspective of our management regarding our financial condition and results of operations, liquidity and certain other factors that may affect our future results. The following discussion should be read in conjunction with the consolidated financial statements and accompanying notes included in Item 8 of this Form 10-K. Refer to the Company’s Annual Report on Form 10-K for the fiscal year ended September 24, 2022 for additional information related to the discussion and analysis of our financial condition and results of operations for the fiscal year ended September 24, 2022 compared to the fiscal year ended September 25, 2021.

Business Overview

The Company manufactures snack foods and distributes frozen beverages which it markets nationally to the foodservice and retail supermarket industries. The Company’s principal snack food products are soft pretzels, frozen novelties, churros and bakery products. We ~~believe we~~ are the largest manufacturer of soft pretzels in the United States. Other snack food products include funnel cake and handheld products. The Company’s principal frozen beverage products are the ICEE brand frozen carbonated beverage and the SLUSH PUPPIE brand frozen non-carbonated beverage.

Business Trends

COVID-19

Dating back to the onset of the COVID-19 pandemic in fiscal 2020, the effects of COVID-19 on consumer behavior have impacted the relevant demand for our Food Service, Retail, and Frozen Beverage segments. In fiscal 2020, we saw a shift in demand towards increased at-home food consumption, which benefited our Retail segment, and away from in-restaurant dining, and experience driven activities, which negatively impacted our Food Service and Frozen Beverage segments. This shift in demand proved inconsistent and volatile over the course of the pandemic. In fiscal 2021 and fiscal 2022, as part of the pandemic economy that ~~impact~~impacted our operations opened, sales in our Food Service and Frozen Beverages segments improved.

The aforementioned shift, and overall volatility in demand, has had a significant impact on the operating results of each of our three segments over the past three fiscal years. Additional impacts from the pandemic have caused us to experience higher hourly wage rates paid to our front-line employees, increased costs for personal protective equipment, increased complexity and uncertainty around production planning and forecasting, and overall lower levels of efficiency in our production and distribution network, all of which has unfavorably impacted our operating results. In fiscal 2023, our operating environment became more predictable and stable, and the majority of the volatility and shifts in demand that had been more present in fiscal 2021 and 2022, somewhat subsided.

Inflation

We continued to experience cost inflation through fiscal 2023, although the impact was significantly less than it had been in fiscal 2022, primarily tied to a smaller group of raw materials and packaging, and materially offset by the benefit of the pricing actions that had been taken in fiscal 2022. The inflationary cost environment we experienced during fiscal 2022 resulted in significantly higher input costs for our business. During fiscal 2022, we experienced unprecedented inflationary pressures on commodities such as flour, oils, eggs, meats and dairy, in addition to notably higher costs for packaging, freight and warehousing, and labor. To help offset these cost headwinds, we implemented a series of pricing actions throughout fiscal 2022.

15 Fiscal Period

The Company’s fiscal year is the 52- or 53- week period that ends on the last Saturday of September. An additional week is included in the last fiscal quarter every five or six years to realign the Company’s fiscal quarters with calendar quarters, which occurred in the Company’s fourth quarter of fiscal 2023. The Company’s fiscal year 2023 spanned 53 weeks, whereas fiscal years 2022 and 2021 spanned 52 weeks each.

RESULTS OF OPERATIONS:

Fiscal Year 2023 (53 weeks) Compared to Fiscal Year 2022 (52 weeks)

Results of Consolidated Operations

The following discussion provides a review of results for the fiscal year ended September 30, 2023 as compared with the fiscal year ended September 24, 2022.

Summary of Results	Fiscal year ended
	September 30,			September 24,
	2023			2022
	(53 weeks)			(52 weeks)			% Change
	(in thousands)

Net Sales	$	1,558,829		$	1,380,656			12.9	%

Cost of goods sold		1,088,964			1,011,014			7.7	%
Gross Profit		469,865			369,642			27.1	%

Operating expenses
Marketing		110,258			91,636			20.3	%
Distribution		172,804			159,637			8.2	%
Administrative		75,425			55,189			36.7	%
Intangible asset impairment charges		1,678			1,010
Other general expense		182			371			(50.9	)%
Total Operating Expenses		360,347			307,843			17.1	%

Operating Income		109,518			61,799			77.2	%

Other income (expense)
Investment income		2,743			980			179.9	%
Interest expense		(4,747	)		(1,025	)		363.1	%

Earnings before income taxes		107,514			61,754			74.1	%

Income tax expense		28,608			14,519			97.0	%

NET EARNINGS	$	78,906		$	47,235			67.0	%

Comparisons as a Percentage of Net Sales	Fiscal year ended
	September 30,			September 24,
	2023			2022			Basis Pt Chg
Gross profit		30.1	%		26.8	%		330
Marketing		7.1	%		6.6	%		50
Distribution		11.1	%		11.6	%		(50	)
Administrative		4.8	%		4.0	%		80
Operating income		7.0	%		4.5	%		250
Earnings before income taxes		6.9	%		4.5	%		240
Net earnings		5.1	%		3.4	%		170

NET SALES

Net sales increased by $178.2 million, or 13%, to $1,558.8 million in fiscal 2023. Fiscal 2023 net sales include $96.0 million of net sales from Dippin’ Dots, an increase of $62.2 million from prior fiscal year with the increase primarily attributable to the timing of the acquisition in prior year results. Organic sales growth was driven by growth across all three of the Company’s business segments, led by our core products including soft pretzels, churros, frozen novelties and frozen beverages. The organic sales growth was largely driven by improved marketing, new customers, additional product placement, as well as the benefit of our pricing actions that had been taken throughout fiscal 2022. To a lesser extent, fiscal 2023 net sales were benefited by the extra week in the fiscal year.

GROSS PROFIT

Gross profit increased by $100.2 million, or 27%, to $469.9 million in fiscal 2023. Gross profit as a percentage of sales increased to 30.1% in fiscal 2023 from 26.8% in fiscal 2022. The increase in gross profit as a percentage of sales was driven by enhanced production efficiencies and the benefit of our fiscal 2022 pricing actions and a better product mix, along with the stabilization of inflationary pressures on the back of historic highs in fiscal 2022. The cost of key ingredients including flour, oils, dairy and meats either declined, or remained materially flat, though double-digit increases were seen in sugar/sweeteners and mixes, which continued to negatively impact margins on certain products including frozen novelties and churros.

OPERATING EXPENSES

Total operating expenses increased by $52.5 million, or 17%, to $360.3 million in fiscal 2023 and increased as a percentage of sales to 23.1% in fiscal 2023 compared with 22.3% in fiscal 2022. The increase reflects the impact of inflationary pressures across the majority of our cost line items including industry-wide freight and distribution cost increases and wage increases that more heavily impacted the Company’s comparative results in the first and second fiscal quarters, offset somewhat by the benefits seen from our strategic initiatives to improve logistics management and increase efficiency across our distribution network and supply chain. The increase also reflects the full year impact of a higher expense Dippin’ Dots business in fiscal 2023 results.

Operating expenses included intangible asset impairment charges of $1.7 million in fiscal 2023 and $1.0 million in fiscal 2022. As a percentage of sales, marketing and selling expenses as a percentage of sales increased from 6.6% in fiscal 2022 to 7.1% in fiscal 2023, with the increase driven by the additional investment in marketing spend associated with new product launches and the promotion of our core brands. Distribution expenses as a percentage of sales decreased to 11.1% in fiscal 2023 from 11.6% in fiscal 2022, with the decrease driven by the benefits of our strategic initiatives to improve logistics management and increase efficiency across our distribution network and supply chain. Administrative expenses as a percentage of sales increased from 4.0% in fiscal 2022 to 4.8% in fiscal 2023, with the increase largely attributable to higher performance-based bonus payments and continued investments in capability.

OTHER INCOME AND EXPENSE

Investment income increased by $1.8 million, or 180%, to $2.7 million in fiscal 2023 due to the improving interest rate environment in fiscal 2023.

Interest expense increased by $3.7 million, or 363%, to $4.7 million in fiscal 2023 due to the Company’s outstanding borrowings under the Amended Credit Agreement.

INCOME TAX EXPENSE

Our effective tax rate in fiscal 2023 was 26.6%. Our effective tax rate in fiscal 2022 year was 23.5%.

NET EARNINGS

Net earnings increased $31.7 million, or 67%, in fiscal 2023 to $78.9 million, or $4.08 per diluted share, from $47.2 million or $2.46 per diluted share, in fiscal 2022 as a result of the aforementioned items.

There are many factors which can impact our net earnings from year to year, among which are the supply and cost of raw materials and labor, insurance costs, factors impacting sales as noted above, the continuing consolidation of our customers, our ability to manage our manufacturing, marketing and distribution activities, our ability to make and integrate acquisitions and changes in tax laws and interest rates.

Results of Operations - Segments

We have three reportable segments, as disclosed in the accompanying notes to the consolidated financial statements: Food Service, Retail Supermarkets and Frozen Beverages.

The Chief Operating Decision Maker for Food Service, Retail Supermarkets and Frozen Beverages reviews monthly detailed operating income statements and sales reports in order to assess performance and allocate resources to each individual segment. Sales and operating income are the key variables monitored by the Chief Operating Decision Maker and management when determining each segment’s and the Company’s financial condition and operating performance. In addition, the Chief Operating Decision Maker reviews and evaluates depreciation, capital spending and assets of each segment on a quarterly basis to monitor cash flow and asset needs of each segment.

The following table is a summary of sales and operating income, which is how we measure segment profit.

	Fiscal year ended
	September 30,		September 24,
	2023		2022
	(53 weeks)		(52 weeks)		% Change
	(in thousands)
Net Sales
Food Service	$	981,840	$	872,687		12.5	%
Retail Supermarket		215,428		197,943		8.8	%
Frozen Beverages		361,561		310,026		16.6	%
Total Sales	$	1,558,829	$	1,380,656		12.9	%

	Fiscal year ended
	September 30,		September 24,
	2023		2022
	(53 weeks)		(52 weeks)		% Change
	(in thousands)
Operating Income
Food Service	$	49,778	$	18,512		168.9	%
Retail Supermarket		9,375		9,487		(1.2	)%
Frozen Beverages		50,365		33,800		49.0	%
Total Operating Income	$	109,518	$	61,799		77.2	%

FOOD SERVICE SEGMENT RESULTS

	Fiscal year ended
	September 30,		September 24,
	2023		2022
	(53 weeks)		(52 weeks)		% Change
	(in thousands)
Food Service Sales to External Customers
Soft pretzels	$	235,572	$	205,752		14.5	%
Frozen novelties		145,425		78,183		86.0	%
Churros		108,927		88,242		23.4	%
Handhelds		82,292		92,130		(10.7	)%
Bakery		378,149		381,526		(0.9	)%
Other		31,475		26,854		17.2	%
Total Food Service	$	981,840	$	872,687		12.5	%

Food Service Operating Income	$	49,778	$	18,512		168.9	%

Sales to food service customers increased $109.2 million, or 13%, to $981.8 million in fiscal 2023, which included an increase of $62.2 million in sales from Dippin’ Dots. Soft pretzel sales to the food service market increased 14% to $235.6 million for the year, led by the continued increase in sales of our core pretzel products. Frozen novelties sales increased $67.2 million, or 86%, to $145.4 million for the year, with the increase largely driven by incremental Dippin’ Dots sales during fiscal 2023. Churro sales to food service customers were up 23% to $108.9 million for the year led by customer expansion and growing menu penetration. Sales of bakery products decreased $3.4 million, or 1%, to $378.1 million for the year, with the decrease attributable to the rationalization of certain lower margin Stock Keeping Units (“SKU”)’s. Handheld sales to food service customers decreased 11% to $82.3 million in fiscal 2023, with the decrease largely attributable to pricing declines related to the contractual pricing true-up of costing on certain raw material ingredients, as well as some volume declines amongst certain customers in the product category. Sales of funnel cake increased $4.6 million, or 17%, to $31.5 million.

Sales of new products in the first twelve months since their introduction were approximately $0.3 million for the fiscal year. The benefit of the wrap of prior year price increases favorably impacted sales in the fiscal year, and more than offset some volume declines seen in certain product categories.

Operating income in our Food Service segment increased from $18.5 million in fiscal 2022 to $49.8 million in fiscal 2023, largely driven by the benefit seen from the incremental Dippin’ Dots sales, as well as by improved gross margin performance and improving distribution expenses.

RETAIL SUPERMARKETS SEGMENT RESULTS

	Fiscal year ended
	September 30,			September 24,
	2023			2022
	(53 weeks)			(52 weeks)			% Change
	(in thousands)
Retail Supermarket Sales to External Customers
Soft pretzels	$	60,272		$	61,925			(2.7	)%
Frozen novelties		115,807			108,911			6.3	%
Biscuits		25,074			24,695			1.5	%
Handhelds		16,655			5,640			195.3	%
Coupon redemption		(2,561	)		(3,713	)		(31.0	)%
Other		181			485			(62.7	)%
Total Retail Supermarket	$	215,428		$	197,943			8.8	%

Retail Supermarket Operating Income	$	9,375		$	9,487			(1.2	)%

Sales of products to retail supermarkets increased $17.5 million, or 9%, to $215.4 million in fiscal year 2023. Soft pretzel sales to retail supermarkets were $60.3 million, a decrease of $1.7 million, or 3%, from sales in fiscal 2022. Soft pretzel sales to retail supermarkets were impacted by a softer consumer environment as retailers and grocery chains reported lower traffic in stores and smaller baskets at certain points during fiscal 2023. Sales of frozen novelties increased $6.9 million, or 6%, to $115.8 million in fiscal 2023. Sales of biscuits and dumplings increased 2% to $25.1 million in fiscal 2023. Handheld sales to retail supermarket customers increased 195% to $16.7 million in fiscal 2023, with the increase largely driven by expansion with a major retailer.

Sales of new products in the first twelve months since their introduction in retail supermarkets were approximately $0.6 million in fiscal 2023. Operating income in our Retail Supermarkets segment remained relatively flat in fiscal 2023 as compared with fiscal 2022, with a decrease of $0.1 million, or 1%. The relatively comparative flat operating income was the result of gross margin challenges earlier in fiscal 2023 due to higher promotions and allowances, as well as inflationary pressures on raw material costs, offset by stronger comparative performance in the fiscal third and fourth quarters of 2023, largely driven by improved gross margin and lower distribution expenses.

FROZEN BEVERAGES SEGMENT RESULTS

	Fiscal year ended
	September 30,		September 24,
	2023		2022
	(53 weeks)		(52 weeks)		% Change
	(in thousands)
Frozen Beverages
Beverages	$	224,655	$	184,063		22.1	%
Repair and maintenance service		95,941		89,840		6.8	%
Machines revenue		37,933		33,601		12.9	%
Other		3,032		2,522		20.2	%
Total Frozen Beverages	$	361,561	$	310,026		16.6	%

Frozen Beverages Operating Income	$	50,365	$	33,800		49.0	%

Total frozen beverage segment sales increased $51.5 million or 17% to $361.6 million in fiscal 2023. Beverage sales increased 22%, or $40.6 million, in fiscal 2023. Gallon sales increased 10% from the prior fiscal year. The increase in gallon sales reflects the strong momentum in theaters, along with continued growth in amusement parks, convenience, restaurants, and retail venues. Service revenue increased 7% to $95.9 million in fiscal 2023 and machines revenue, primarily sales of frozen beverage machines, increased from $33.6 million in fiscal 2022 to $37.9 million in fiscal 2023 due to growing installations with new customers.

The estimated number of Company-owned frozen beverage dispensers was 23,000 and 22,000 at September 30, 2023 and September 24, 2022, respectively. Operating income in our Frozen Beverage segment increased 49%, or $16.6 million, in fiscal 2023, with the increase primarily a result of higher beverage sales volume which drove leverage across the business.

RESULTS OF OPERATIONS:

Fiscal Year 2022 (52 weeks) Compared to Fiscal Year 2021 (52 weeks)

Results of Consolidated Operations

The following discussion provides a review of results for the fiscal year ended September 24, 2022 as compared with the fiscal year ended September 25, 2021.

Summary of Results	Fiscal year ended
	September 24,			September 25,
	2022			2021
	(52 weeks)			(52 weeks)			% Change
	(in thousands)
Net Sales	$	1,380,656		$	1,144,579			20.6	%

Cost of goods sold		1,011,014			845,651			19.6	%
Gross Profit		369,642			298,928			23.7	%

Operating expenses
Marketing		91,636			77,922			17.6	%
Distribution		159,637			108,297			47.4	%
Administrative		55,189			40,538			36.1	%
Intangible asset impairment charges		1,010			1,273
Other general expense (income)		371			(320	)		(215.9	)%
Total Operating Expenses		307,843			227,710			35.2	%

Operating Income		61,799			71,218			(13.2	)%

Other income (expense)
Investment income		980			2,815			(65.2	)%
Interest expense		(1,025	)		(7	)		n.m.	%

Earnings before income taxes		61,754			74,026			(16.6	)%

Income tax expense		14,519			18,419			(21.2	)%

NET EARNINGS	$	47,235		$	55,607			(15.1	)%

Comparisons as a Percentage of Net Sales	Fiscal year ended
	September 24,			September 25,
	2022			2021			Basis Pt Chg
Gross profit		26.8	%		26.1	%		70
Marketing		6.6	%		6.8	%		(20	)
Distribution		11.6	%		9.5	%		210
Administrative		4.0	%		3.5	%		50
Operating income		4.5	%		6.2	%		(170	)
Earnings before income taxes		4.5	%		6.5	%		(200	)
Net earnings		3.4	%		4.9	%		(150	)

NET SALES

Net sales increased $236.1 million, or 21%, to $1,380.7 million in fiscal 2022 from $1,144.6 million in fiscal 2021. The sales growth was largely driven by improved marketing, new customers, additional product placement, as well as a positive pricing environment. Additional benefits were seen from our recent acquisition, and to a lessor extent, from the comparative impact of the COVID-19 pandemic on fiscal 2022 sales compared with fiscal 2021 sales, with most of the latter comparative benefit reflected in our first quarter of fiscal 2022.

GROSS PROFIT

Gross profit as a percentage of sales increased to 26.8% in fiscal 2022 from 26.1% in fiscal 2021. Inflation continued to build over the year which significantly pressured margins. The impact was especially pronounced in key raw material purchases like flour, eggs, dairy, chocolates and meats, as well as packaging and fuel. Pricing actions that were implemented during fiscal 2022 helped to offset some of these significant cost pressures. Comparatively, the increase in gross profit percentage was largely attributable to the benefit of increased sales, as well as favorable product mix.

OPERATING EXPENSES

Total operating expenses increased $80.1 million to $307.8 million in fiscal 2022 and increased as a percentage of sales to 22.3% of sales from 19.9% in fiscal 2021. The increase reflects the significant impact of inflationary pressures across the majority of our cost line items including industry-wide freight and distribution cost increases, wage increases, and overall administrative expense increases.

Operating expenses included intangible asset impairment charges of $1.0 million in fiscal 2022 and $1.3 million in fiscal 2021. Marketing and selling expenses decreased to 6.6% this year from 6.8% of sales in fiscal 2021 driven by effective investment of marketing dollars aligned with sales recovery. Distribution expenses as a ~~percent~~percentage of sales increased to 11.6% from 9.5% in fiscal 2021 due to rising freight and fuel costs. Administrative expenses were 4.0% and 3.5% of sales in fiscal 2022 and fiscal 2021, respectively.

~~Operating~~OTHER ~~income~~INCOME ~~decreased~~AND ~~$9.4 million or 13% to $61.8 million in fiscal year 2022 as a result of the aforementioned items.~~EXPENSE

Our investments generated before tax income of $1.0 million in fiscal 2022, down from $2.8 million in fiscal 2021 due to decreases in the amount of investments.

Interest expense increased by $1.0 million in fiscal 2023 due to the Company’s outstanding borrowings on the Amended Credit Agreement.

INCOME TAX EXPENSE

Our effective tax rate in fiscal 2022 was 23.5%. Our effective tax rate in fiscal 2021 year was 24.9%.

~~Net~~NET earnings decreased $8.4 million or 15%, in fiscal 2022 to $47.2 million, or $2.46 per diluted share, from $55.6 million or $2.91 per diluted share, in fiscal 2021 as a result of the aforementioned items.EARNINGS

~~There~~Net ~~are many factors which can impact our net~~ earnings ~~from~~decreased ~~year~~$8.4 ~~to year and in the long run~~million, ~~among~~or ~~which are the supply and cost of raw materials and labor~~15%, ~~insurance~~in ~~costs,~~fiscal ~~factors~~2022 ~~impacting~~to ~~sales~~$47.2 ~~as noted above~~million, ~~the~~or ~~continuing~~$2.46 ~~consolidation~~per ofdiluted ~~our customers~~share, ~~our~~from ~~ability~~$55.6 tomillion ~~manage~~or ~~our~~$2.91 ~~manufacturing,~~per ~~marketing~~diluted ~~and distribution activities~~share, ~~our~~in ~~ability~~fiscal to2021 ~~make~~as ~~and~~a ~~integrate~~result ~~acquisitions~~of ~~and~~the ~~changes~~aforementioned ~~in tax laws and interest rates~~items.

Results of Operations - Segments

WeThe ~~have~~following ~~three~~table ~~reportable~~is ~~segments,~~a assummary ~~disclosed~~of insales ~~the~~and ~~accompanying~~operating ~~notes~~income, towhich ~~the~~is ~~consolidated~~how ~~financial~~we ~~statements:~~measure ~~Food~~segment ~~Service, Retail Supermarkets and Frozen Beverages~~profit.

	Fiscal year ended
	September 24,		September 25,
	2022		2021
	(52 weeks)		(52 weeks)		% Change
	(in thousands)
Net Sales
Food Service	$	872,687	$	724,983		20.4	%
Retail Supermarket		197,943		184,897		7.1	%
Frozen Beverages		310,026		234,699		32.1	%
Total Sales	$	1,380,656	$	1,144,579		20.6	%

	Fiscal year ended
	September 24,		September 25,
	2022		2021
	(52 weeks)		(52 weeks)		% Change
	(in thousands)
Operating Income
Food Service	$	18,512	$	39,172		(52.7	)%
Retail Supermarket		9,487		25,914		(63.4	)%
Frozen Beverages		33,800		6,132		451.2	%
Total Operating Income	$	61,799	$	71,218		(13.2	)%

FOOD SERVICE SEGMENT RESULTS

Sales to food service customers increased $147.7 million, or 20%, to $872.7 million in fiscal 2022. Soft pretzel sales to the food service market increased 18% to $205.8 million for the year. Frozen novelties sales increased $33.6 million, or 75%, to $78.2 million for the year, which included the benefit of the Company’s recent acquisition. Churro sales to food service customers were up 36% to $88.2 million for the year. Sales of bakery products increased $38.9 million, or 11%, to $381.5 million for the year. Handheld sales to food service customers were up 22% to $92.1 million in fiscal 2022. Sales of funnel cake increased $4.6 million, or 21% to $26.9 million.

	Fiscal year ended
	September 24,		September 25,
	2022		2021
	(52 weeks)		(52 weeks)		% Change
	(in thousands)
Food Service Sales to External Customers
Soft pretzels	$	205,752	$	174,977		17.6	%
Frozen novelties		78,183		44,605		75.3	%
Churros		88,242		64,916		35.9	%
Handhelds		92,130		75,627		21.8	%
Bakery		381,526		342,609		11.4	%
Other		26,854		22,249		20.7	%
Total Food Service	$	872,687	$	724,983		20.4	%

Food Service Operating Income	$	18,512	$	39,172		(52.7	)%

Sales ~~were~~to upfood ~~across~~service ~~most~~customers ~~product~~increased ~~lines~~$147.7 asmillion, ~~many~~or of20%, ~~the~~to ~~venues~~$872.7 ~~and~~million ~~locations~~in ~~where~~fiscal ~~our~~2022. ~~products~~Soft ~~are~~pretzel ~~sold~~sales ~~that~~to ~~were~~the ~~previously~~food ~~shut~~service ~~down~~market orincreased ~~operating~~18% atto ~~reduced~~$205.8 ~~capacity~~million infor ~~fiscal~~the ~~2021~~year. ~~have~~Frozen ~~mostly~~novelties ~~fully~~sales ~~re-opened~~increased in$33.6 ~~fiscal~~million, ~~2022~~or 75%, to $78.2 ~~Theaters~~million ~~and~~for ~~outdoor~~the ~~venues~~year, ~~including~~which ~~stadiums~~included ~~and~~the ~~amusement~~benefit ~~parks,~~of asthe ~~well~~Company’s asrecent ~~schools,~~acquisition. ~~restaurants~~Churro ~~and~~sales ~~strategic~~to ~~accounts~~food ~~continued~~service tocustomers ~~experience~~were anup ~~increase~~36% into ~~visitation~~$88.2 ~~that~~million ~~drove~~for ~~strong~~the ~~sales~~year. inSales ~~our~~of ~~core~~bakery products increased $38.9 ~~Additionally~~million, ~~sales~~or ~~across~~11%, ~~all~~to of$381.5 ~~our~~million ~~product~~for ~~lines~~the year. Handheld sales to food service customers were ~~favorably~~up ~~impacted~~22% byto ~~the~~$92.1 ~~positive~~million ~~pricing~~in ~~environment,~~fiscal ~~and~~2022. ~~frozen~~Sales ~~novelties~~of ~~sales~~funnel ~~were~~cake ~~also~~increased ~~favorably~~$4.6 ~~impacted~~million, byor ~~our~~21%, ~~recent~~to ~~acquisition~~$26.9 million.

Sales ofwere ~~new~~up ~~products~~across inmost ~~the~~product ~~first~~lines ~~twelve~~as ~~months~~many ~~since~~of ~~their~~the ~~introduction~~venues ~~were~~and ~~approximately~~locations ~~$4.6~~where ~~million~~our ~~for~~products ~~the~~are ~~year.~~sold ~~Operating~~that ~~income~~were inpreviously ~~our~~shut ~~Food~~down ~~Service~~or ~~segment~~operating ~~decreased~~at ~~from~~reduced ~~$39.2~~capacity ~~million~~ in fiscal 2021 tohad ~~$18.5~~mostly ~~million~~or fully re-opened in fiscal 2022. ~~The~~Theaters ~~decrease~~and inoutdoor ~~operating~~venues, ~~income~~including ~~was~~stadiums ~~primarily~~and ~~due~~amusement parks, as well as schools, restaurants and strategic accounts continued to ~~the~~experience ~~significant~~an increase in ~~ingredients,~~visitation ~~production~~that ~~and~~drove ~~distribution~~strong ~~costs~~sales ~~year~~in ~~over~~our ~~year~~core products. Additionally, assales ~~well~~across asall of our ~~ERP~~product ~~implementation~~lines ~~which~~were ~~previously~~favorably impacted ~~our~~by ~~results~~the inpositive ~~the~~pricing ~~fiscal~~environment, ~~second~~and ~~quarter~~frozen novelties sales were also favorably impacted by our recent acquisition.

~~RETAIL~~Sales ~~SUPERMARKETS~~of new products in the first twelve months since their introduction were approximately $4.6 million for the year. Operating income in our Food Service segment decreased from $39.2 million in fiscal 2021 to $18.5 million in fiscal 2022. The decrease in operating income was primarily due to the significant increase in ingredients, production and distribution costs year over year, as well as our ERP implementation which previously impacted our results in the fiscal second quarter of 2022.

Sales of products to retail supermarkets increased $13.0 million or 7% to $197.9 million in fiscal year 2022. Soft pretzel sales to retail supermarkets were $61.9 million, an increase of $6.9 million, or 13%, from sales in fiscal 2021. Sales of frozen novelties increased $8.9 million or 9% to $108.9 million. Sales of biscuits and dumplings increased 2% to $24~~.7 million for the year. Handheld sales to retail supermarket customers decreased 26% to $5.6 million for the year.~~

RETAIL SUPERMARKETS SEGMENT RESULTS

	Fiscal year ended
	September 24,			September 25,
	2022			2021
	(52 weeks)			(52 weeks)			% Change
	(in thousands)
Retail Supermarket Sales to External Customers
Soft pretzels	$	61,925		$	54,990			12.6	%
Frozen novelties		108,911			100,059			8.8	%
Biscuits		24,695			24,197			2.1	%
Handhelds		5,640			7,574			(25.5	)%
Coupon redemption		(3,713	)		(3,689	)		0.7	%
Other		485			1,766			(72.5	)%
Total Retail Supermarket	$	197,943		$	184,897			7.1	%

Retail Supermarket Operating Income	$	9,487		$	25,914			(63.4	)%

Sales of products to retail supermarkets increased $13.0 million, or 7%, to $197.9 million in fiscal year 2022. Soft pretzel sales to retail supermarkets were $61.9 million, an increase of $6.9 million, or 13%, from sales in fiscal 2021. Sales of frozen novelties increased $8.9 million, or 9%, to $108.9 million. Sales of biscuits and dumplings increased 2% to $24.7 million for the year. Handheld sales to retail supermarket customers decreased 26% to $5.6 million for the year.

Sales of new products in the first twelve months since their introduction were approximately $0.9 million in fiscal year 2022. Operating income in our Retail Supermarkets segment decreased from $25.9 million to $9.5 million for the year. The decreases in operating income were primarily attributable to higher cost of goods sold as well as higher shipping and distribution related costs.

FROZEN BEVERAGES SEGMENT RESULTS

Total frozen beverage segment sales increased 32% to $310.0 million in fiscal 2022 and beverage sales increased 48% or $59.6 million for the year. Gallon sales increased 39% from last year. The increase in gallon sales reflects the strong demand across theaters, amusement parks, convenience and restaurants. In the amusement parks channel, we continue to see strong growth as both domestic and international visitation numbers continue to recover, and exceed, pre-COVID-19 levels. Theater sales continue on their upward trajectory as movie goers indulge in their favorite snacks and view highly anticipated movie releases. Service revenue increased 10% to $89.8 million for the year led by an acceleration in maintenance calls and additional growth in one of our larger customers, earlier in the fiscal year. Machines revenue, primarily sales of machines, increased from $27.0 million in fiscal 2021 to $33.6 million in fiscal 2022 driven mainly by growth from large quick service restaurant (QSR) and convenience customers.

	Fiscal year ended
	September 24,		September 25,
	2022		2021
	(52 weeks)		(52 weeks)		% Change
	(in thousands)
Frozen Beverages
Beverages	$	184,063	$	124,498		47.8	%
Repair and maintenance service		89,840		81,305		10.5	%
Machines revenue		33,601		26,953		24.7	%
Other		2,522		1,943		29.8	%
Total Frozen Beverages	$	310,026	$	234,699		32.1	%

Frozen Beverages Operating Income	$	33,800	$	6,132		451.2	%

Total frozen beverage segment sales increased 32% to $310.0 million in fiscal 2022 and beverage sales increased 48%, or $59.6 million, for the year. Gallon sales increased 39% from last year. The increase in gallon sales reflects the strong demand across theaters, amusement parks, convenience and restaurants. In the amusement parks channel, we continued to see strong growth as both domestic and international visitation numbers continued to recover, and exceeded, pre-COVID-19 levels. Theater sales continued on an upward trajectory as movie goers indulged in their favorite snacks and view highly anticipated movie releases. Service revenue increased 10% to $89.8 million in fiscal 2022 led by an acceleration in maintenance calls and additional growth in one of our larger customers, earlier in fiscal 2022. Machines revenue, primarily sales of machines, increased from $27.0 million in fiscal 2021 to $33.6 million in fiscal 2022 driven mainly by growth from large quick service restaurant (QSR) and convenience customers.

The estimated number of Company-owned frozen beverage dispensers was 22,000 and 19,000 at September 24, 2022 and September 25, 2021, respectively. Our Frozen Beverage segment had operating income of $33.8 million in fiscal 2022 compared to $6.1 million in fiscal 2021 primarily a result of higher beverage sales volume which drove leverage across the business.

RESULTS OF OPERATIONS:

Fiscal Year 2021 (52 weeks) Compared to Fiscal Year 2020 (52 weeks)

Net sales increased $122.5 million, or 12%, to $1,144.6 million in fiscal 2021 from $1,022.0 million in fiscal 2020. As parts of the economy that impact our operations continued to open, sales for the year improved from a year ago. Approximately 2/3 of the Company’s sales are to venues and locations that previously shut down or sharply curtailed their foodservice operations as a result of COVID-19.

FOOD SERVICE

Sales to food service customers increased $106.1 million, or 17%, to $725.0 million in fiscal 2021. Soft pretzel sales to the food service market increased 16% to $175.0 million for the year. Frozen novelties sales increased $9.4 million, or 27%, to $44.6 million for the year. Churro sales to food service customers were up 38% to $64.9 million for the year. Sales of bakery products increased $10.1 million, or 3%, to $342.6 million for the year. Handheld sales to food service customers were up 110% to $75.6 million in 2021. Sales of funnel cake increased $4.9 million, or 29% to $21.5 million. Sales were up across all product lines as many of the venues and locations where our products are sold that were previously shut down or operating at reduced capacity in 2020 have partially or fully re-opened in 2021.

Sales of new products in the first twelve months since their introduction were approximately $39 million for the year. Operating income in our Food Service segment increased from $6.5 million in 2020 to $39.2 million in 2021. The increase in operating income was primarily due to the increase in sales which improved margin efficiencies and expense leverage.

RETAIL SUPERMARKETS

Sales of products to retail supermarkets increased $7.7 million or 4% to $184.9 million in fiscal year 2021. Soft pretzel sales to retail supermarkets were $55.0 million, an increase of $5.8 million, or 12%, from sales in 2020. Sales of frozen novelties increased $11.3 million or 13% to $100.1 million. Sales of biscuits and dumplings decreased 15% to $24.2 million for the year. Handheld sales to retail supermarket customers decreased 38% to $7.6 million for the year.

Sales of new products in the first twelve months since their introduction were approximately $1 million in fiscal year 2021. Operating income in our Retail Supermarkets segment increased from $23.2 million to $25.9 million for the year primarily due to higher volume.

FROZEN BEVERAGES

Total frozen beverage segment sales increased 4% to $234.7 million in fiscal 2021 and beverage sales increased 16% or $17.5 million for the year. Gallon sales increased 16% from last year. Service revenue decreased 3% to $81.3 million for the year primarily due to the loss of a major customer in October 2020. Machines revenue, primarily sales of machines, decreased from $34.0 million in 2020 to $27.0 million in 2021 due to lower sales volumes with a major customer. Overall, sales in the frozen beverage segment grew as key amusement, convenience, restaurants, and retail venues returned to pre-COVID capacity in the second half of the year, which offset a slower recovery in the theater channel.

The estimated number of Company-owned frozen beverage dispensers was 19,000 and 27,000 at September 25, 2021 and September 26, 2020, respectively. Our Frozen Beverage segment had operating income of $6.1 million in 2021 compared to an operating loss of $12.5 million in 2020 primarily as a result of higher beverage sales volume due to COVID-19 recovery during 2021.

CONSOLIDATED

Other than as commented upon above by segment, there are no material specific reasons for the reported sales increases or decreases. Sales levels can be impacted by the appeal of our products to our customers and consumers and their changing tastes, competitive and pricing pressures, sales execution, marketing programs, seasonal weather, customer stability and general economic conditions.

Gross profit as a percentage of sales increased to 26.1% in 2021 from 23.3% in 2020. The increase is largely attributable to the benefit of increased sales, favorable product mix and corresponding margin efficiencies.

Total operating expenses increased $6.5 million to $227.7 million in fiscal 2021 but as a percentage of sales decreased to 19.9% of sales from 21.6% in 2020. Operating expenses this year included $1.3 million of intangible asset impairment charges and operating expenses in 2020 included $6.4 million of plant shutdown impairment costs for the shutdown of one of our manufacturing plants. Marketing and selling expenses decreased to 6.8% this year from 8.3% of sales in 2020 driven by effective investment of marketing dollars aligned with sales recovery. Distribution expenses as a percent of sales increased to 9.5% from 9.1% in 2020 due to rising freight and fuel costs. Administrative expenses were 3.5% and 3.6% of sales in 2021 and 2020, respectively.

Operating income increased $54.0 million or 314% to $71.2 million in fiscal year 2021 as a result of the aforementioned items.

Our investments generated before tax income of $2.8 million this year, down from $4.4 million last year due to decreases in the amount of investments and lower interest rates.

Our effective tax rate in our fiscal 2021 year was 24.9%. Net earnings for the 2020 year benefited from a reduction in income tax expense related to state deferred taxes of approximately $2.2 million. Excluding this adjustment, our effective tax rate in our fiscal 2020 year was 25.0%.

Net earnings increased $37.3 million or 204%, in fiscal 2021 to $55.6 million, or $2.91 per diluted share, from $18.3 million or $0.96 per diluted share, in fiscal 2020 as a result of the aforementioned items.

There are many factors which can impact our net earnings from year to year and in the long run, among which are the supply and cost of raw materials and labor, insurance costs, factors impacting sales as noted above, the continuing consolidation of our customers, our ability to manage our manufacturing, marketing and distribution activities, our ability to make and integrate acquisitions and changes in tax laws and interest rates.

ACQUISITIONS

On ~~October~~June 121, ~~2019~~2022, weJ ~~acquired~~& ~~the~~J ~~assets~~Snack ofFoods ~~ICEE~~Corp. ~~Distributors~~and ~~LLC,~~its ~~based~~wholly-owned ~~in Bossier City~~subsidiary, ~~Louisiana~~DD ~~for~~Acquisition ~~approximately~~Holdings, ~~$45~~LLC, ~~million.~~completed ~~ICEE~~the ~~Distributors~~acquisition ~~does~~of ~~business~~one inhundred ~~Arkansas,~~percent ~~Louisiana~~(100%) ~~and~~of ~~Texas.~~the ~~Sales~~equity ~~and~~interests ~~operating income~~ of ~~ICEE~~Dippin’ ~~Distributors~~Dots ~~were~~Holding, $9L.~~7 million and $2~~L.4C. ~~million~~(“Dippin’ ~~for~~Dots”) ~~the~~which, ~~year~~through ~~ended~~its ~~September~~wholly-owned 25subsidiaries, ~~2021.~~owns ~~Sales~~ and ~~operating~~operates ~~income~~the ofDippin’ ~~ICEE~~Dots ~~Distributors~~and ~~were~~Doc ~~$11~~Popcorn businesses.4 ~~million~~The ~~and~~purchase price was approximately $3223.6 million, ~~for~~consisting ~~the~~entirely ~~year~~of ~~ended September 26, 2020~~cash.

On February 4, 2020, we acquired the assets of BAMA ICEE, based in Birmingham, Alabama for approximately $12 million. BAMA ICEE does business in Alabama and Georgia. Sales and operating income of BAMA ICEE were $1.8 million and $0.5 million for the year ended September 25, 2021. Sales and operating income of BAMA ICEE were $1.7 million and $0.6 million for the year ended September 26, 2020.

On June 21, 2022, J & J Snack Foods Corp. and its wholly-owned subsidiary, DD Acquisition Holdings, LLC, completed the acquisition of one hundred percent (100%) of the equity interests of Dippin’ Dots Holding, L.L.C. (“Dippin’ Dots”) which, through its wholly-owned subsidiaries, owns and operates the Dippin’ Dots and Doc Popcorn businesses. The purchase price was approximately $223.6 million, consisting entirely of cash, and may be modified for certain customary post-closing purchase price adjustments.

Dippin’ Dots is a leading producer of flash-frozen beaded ice cream treats, and the acquisition will leverage synergies in entertainment and amusement locations, theaters, and convenience to continue to expand our business. The acquisition also includes the Doc Popcorn business operated by Dippin’ Dots.

~~These~~The ~~acquisitions~~acquisition ~~were~~was accounted for under the purchase method of accounting, and ~~their~~its operations are included in the accompanying consolidated financial statements from their respective acquisition dates.

19 25

LIQUIDITY AND CAPITAL RESOURCES

Although there are many factors that could impact our operating cash flow, most notably net earnings, we believe that our future operating cash flow, along with our borrowing capacity, our current cash and cash equivalent balances and our investment securities is sufficient to satisfy our cash requirements over the next twelve months and beyond, as well as fund future growth and expansion.

Fiscal ~~2022~~2023 Compared to Fiscal ~~2021~~2022

	September 24,			September 25,
	September 30,			September 24,
	2022			2021
	2023			2022
	(in thousands)
Cash flows from operating activities
Net earnings	$	4778,~~235~~906		$	5547,~~607~~235
Non-cash items in net income:
Depreciation of fixed assets		4956,~~669~~616			4649,~~781~~669
Amortization of intangibles and deferred costs		36,~~454~~525			23,~~610~~454
Intangible asset impairment charges		1,~~010~~678			1,~~273~~010
Losses (Gains) from disposals of property & equipment		220			(231	)
(Gains) Losses from disposals of property & equipment		(409	)		220
Share-based compensation		45,~~269~~318			4,~~199~~269
Deferred income taxes		810,~~829~~935			(28,~~896~~829	)
Loss (Gain) on marketable securities		315			(1,026	)
(Gain) Loss on marketable securities		(8	)		315
Other		~~(95~~323	)		77(95	)
Changes in assets and liabilities, net of effects from purchase of companies		~~(88~~12,~~844~~395	)		(488,~~895~~844	)
Net cash provided by operating activities	$	26,062		$	101,499
Net cash by operating activities	$	172,279		$	26,062

-● The increase in ~~deferred~~depreciation ~~income~~of ~~taxes~~fixed assets was ~~primarily~~largely ~~related~~due to ~~increased~~prior ~~deferred~~year ~~tax~~purchases ~~liabilities~~of ~~which~~property, ~~arose~~plant inand ~~connection~~equipment, ~~with~~as ~~overall~~well as depreciation expense related ~~temporary~~to ~~differences,~~assets acquired in the fiscal ~~year~~ 2022 Dippin’ Dots acquisition.

-● ~~Cash~~The ~~flows~~increase ~~associated with changes~~ in ~~assets~~amortization ~~and liabilities, net effects from purchase~~ of ~~companies~~intangibles ~~decreased in fiscal year 2022 largely due to the increase in accounts receivable, inventory,~~ and ~~prepaid~~deferred ~~balances.~~costs ~~The~~was ~~accounts~~related ~~receivable balance increased primarily due~~ to ~~the~~intangible ~~overall~~assets ~~increase~~acquired in ~~sales~~the ~~in our fourth quarter of~~ fiscal 2022 ~~compared~~Dippin’ ~~with~~Dots ~~fiscal 2021~~acquisition. The inventory balance increased primarily due to inflationary pressures seen during fiscal 2022, as well as strategic decisions to store more finished goods. The prepaid balance increased primarily due to an increase in prepaid income taxes.

20 ● The increase in deferred income taxes was primarily related to increased deferred tax liabilities which arose in connection with overall depreciation related temporary differences in fiscal year 2023.

	September 24,			September 25,
	2022			2021
	(in thousands)
Cash flows from investing activities
Payments for purchases of companies, net of cash acquired		(221,301	)		-
Purchases of property, plant and equipment		(87,291	)		(53,578	)
Proceeds from redemption and sales of marketable securities		12,026			60,891
Proceeds from disposal of property and equipment		399			2,435
Other		-			191
Net cash (used in) provided by investing activities	$	(296,167	)	$	9,939

●

Cash flows associated with changes in assets and liabilities, net effects from purchase of companies, generated approximately $12.4 million of cash in fiscal 2023 compared with a usage of $88.8 million of cash in fiscal 2022. The generation of cash in fiscal 2023 was largely the result of an improved collections environment, as well as a strategic push to lower our investment in inventory related working capital balances. In fiscal 2022, the usage of cash was primarily due to the increase in accounts receivable, inventory, and prepaid balances. The fiscal 2022 accounts receivable balance increased primarily due to the overall increase in sales in our fourth quarter of fiscal 2022 compared with fiscal 2021. The fiscal 2022 inventory balance increased primarily due to inflationary pressures seen during fiscal 2022, as well as strategic decisions to store more finished goods. The fiscal 2022 prepaid balance increased primarily due to an increase in prepaid income taxes.

~~- Payments for purchases of companies, net of cash acquired, in fiscal 2022 related to the Dippin’ Dots acquisition.~~26

- Purchases of property, plant and equipment include spending for production growth, in addition to acquiring new equipment, infrastructure replacements, and upgrades to maintain competitive standing and position us for future opportunities. The increase in fiscal 2022 was primarily due to increased spend for new lines at various plants aimed at increasing capacity.

	September 30,			September 24,
	2023			2022
	(in thousands)
Cash flows from investing activities
Payments for purchases of companies, net of cash acquired		-			(221,301	)
Purchases of property, plant and equipment		(104,737	)		(87,291	)
Proceeds from redemption and sales of marketable securities		9,716			12,026
Proceeds from disposal of property and equipment		1,781			399
Net cash (used in) by investing activities	$	(93,240	)	$	(296,167	)

-● ~~Proceeds~~In ~~from redemption and sales of marketable securities decreased in~~ fiscal 2022 ~~as in prior years~~, wethe ~~strategically~~payments ~~chose~~for topurchases noof ~~longer~~companies, ~~re-invest~~net ~~redeemed~~of ~~proceeds~~cash ~~into~~acquired, ~~marketable~~related ~~securities~~to ~~given~~ the ~~low~~Dippin’ ~~interest~~Dots ~~rate environment~~acquisition.

	September 24,			September 25,
	2022			2021
	(in thousands)
Cash flows from financing activities
Proceeds from issuance of stock		16,160			20,256
Borrowings under credit facility		125,000			-
Repayment of borrowings under credit facility		(70,000	)		-
Payments for debt issuance costs		(225	)		-
Payments on finance lease obligations		(279	)		(144	)
Payment of cash dividends		(48,437	)		(44,785	)
Net cash provided by (used in) financing activities	$	22,219		$	(24,673	)

●

Purchases of property, plant and equipment include spending for production growth, in addition to acquiring new equipment, infrastructure replacements, and upgrades to maintain competitive standing and position us for future opportunities. The increase in fiscal 2023 was primarily due to increased spend for new lines at various plants aimed at increasing capacity.

-● ~~Borrowings~~Proceeds ~~under~~from ~~credit~~redemption ~~facility~~and sales of marketable securities decreased in fiscal ~~2022~~2023 ~~related~~as toin ~~funding~~prior ~~used~~years, we strategically chose to ~~supplement~~no ~~available~~longer ~~cash~~re-invest ~~balances~~redeemed ~~for~~proceeds into marketable securities given the ~~Dippin’~~low ~~Dots~~interest ~~acquisition~~rate environment.

- Repayment of borrowings under credit facility in fiscal 2022 related to the cash paydown of borrowings, primarily resulting from the generation of operating cash subsequent to the acquisition.

	September 30,			September 24,
	2023			2022
	(in thousands)
Cash flows from financing activities
Proceeds from issuance of stock		15,212			16,160
Borrowings under credit facility		114,000			125,000
Repayment of borrowings under credit facility		(142,000	)		(70,000	)
Payments for debt issuance costs		-			(225	)
Payments on finance lease obligations		(180	)		(279	)
Payment of cash dividends		(53,877	)		(48,437	)
Net cash (used in) provided by financing activities	$	(66,845	)	$	22,219

-● ~~Dividends~~Borrowings ~~paid~~under ~~during~~credit ~~fiscal~~facility ~~2022~~and ~~increased~~repayment of borrowings under credit facility relate to the Company’s cash draws and repayments made to primarily fund working capital needs, as ~~our~~well ~~quarterly~~as ~~dividend~~the ~~was~~initial ~~raised~~draw ~~during~~made in fiscal 2022 to fund the Dippin’ Dots acquisition.

21 ● Dividends paid during fiscal 2023 increased as our quarterly dividend was raised during fiscal 2023.

Liquidity

As of September 2430, ~~2022~~2023, we had $3549.26 million of cash and cash equivalents~~, and $9~~.~~7 million of marketable securities.~~

In December 2021, the Company entered into an amended and restated loan agreement (the “Credit Agreement”) with our existing banks which provided for up to a $50 million revolving credit facility repayable in December 2026.

On June 21, 2022, the Company entered into an amendment to the Credit Agreement, the “Amended Credit Agreement” which provided for an incremental increase of $175 million in available borrowings. The Amended Credit Agreement also includes an option to increase the size of the revolving credit facility by up to an amount not to exceed in the aggregate the greater of $225 million or, $50 million plus the Consolidated EBITDA of the Borrowers, subject to the satisfaction of certain terms and conditions.

Interest accrues, at the Company’s election at (i) the BSBY Rate (as defined in the Credit Agreement), plus an applicable margin, based upon the Consolidated Net Leverage Ratio, as defined in the Credit Agreement, or (ii) the Alternate Base Rate (a rate based on the higher of (a) the prime rate announced from time-to-time by the Administrative Agent, (b) the Federal Reserve System’s federal funds rate, plus 0.50% or (c) the Daily BSBY Rate, plus an applicable margin). The Alternate Base Rate is defined in the Credit Agreement.

The Credit Agreement requires the Company to comply with various affirmative and negative covenants, including without limitation (i) covenants to maintain a minimum specified interest coverage ratio and maximum specified net leverage ratio, and (ii) subject to certain exceptions, covenants that prevent or restrict the Company’s ability to pay dividends, engage in certain mergers or acquisitions, make certain investments or loans, incur future indebtedness, alter its capital structure or line of business, prepay subordinated indebtedness, engage in certain transactions with affiliates, or amend its organizational documents. As of September 24, 2022, the Company is in compliance with all financial covenants of the Credit Agreement.27

AsThe ofCredit ~~September~~Agreement 24requires the Company to comply with various affirmative and negative covenants, ~~2022~~including without limitation (i) covenants to maintain a minimum specified interest coverage ratio and maximum specified net leverage ratio, weand ~~had~~(ii) ~~$55.0~~subject ~~million~~to ofcertain ~~outstanding~~exceptions, ~~borrowings~~covenants ~~drawn~~that onprevent or restrict the ~~Amended~~Company’s ~~Credit~~ability ~~Agreement.~~to Aspay ofdividends, ~~September~~engage 24in certain mergers or acquisitions, ~~2022~~make certain investments or loans, weincur ~~had~~future ~~$160.2~~indebtedness, ~~million~~alter its capital structure or line of ~~additional~~business, ~~borrowing~~prepay ~~capacity~~subordinated indebtedness, ~~after~~engage ~~giving~~in ~~effect~~certain totransactions ~~the~~with $9affiliates, or amend its organizational documents.8 ~~million~~As of ~~letters~~September 30, 2023, the Company is in compliance with all financial covenants of ~~credit~~the ~~outstanding~~Credit Agreement.

As of September 30, 2023, we had $27.0 million of outstanding borrowings drawn on the Amended Credit Agreement. As of September 24, 2022, we had $188.2 million of additional borrowing capacity, after giving effect to the $9.8 million of letters of credit outstanding.

The Company’s material cash requirements include the following contractual and other obligations:

Purchase Commitments

Our most significant raw material requirements include flour, packaging, shortening, corn syrup, sugar, juice, cheese, chocolate, and a variety of nuts. We attempt to minimize the effect of future price fluctuations related to the purchase of raw materials primarily through forward purchasing to cover future manufacturing requirements, generally for periods from 1 to 12 months. As of September 2430, ~~2022~~2023, we have approximately $~~130~~125 million of such commitments. The purchase commitments do not exceed our projected requirements over the related terms and are in the normal course of business.

Leases

We have operating leases with initial noncancelable lease terms in excess of one year covering the rental of various facilities and equipment. Our operating leases include leases for real estate from some of our office, distribution and manufacturing facilities as well as manufacturing and non-manufacturing equipment used in our business. As of September 2430, ~~2022~~2023, we have operating lease payment obligations of $5694.21 million, with $1316.5 million payable within 12 months.

Off –Balance Sheet Arrangements

The Company has off-balance sheet arrangements for purchase commitments as of September 2430, ~~2022~~2023.

Critical Accounting Policies, Judgments and Estimates

We prepare our financial statements in conformity with accounting principles generally accepted in the United States of America. The preparation of such financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of those financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The Company discloses its significant accounting policies in the accompanying notes to its audited consolidated financial statements.

Judgments and estimates of uncertainties are required in applying the Company’s accounting policies in certain areas. Following are some of the areas requiring significant judgments and estimates: revenue recognition, allowance for ~~doubtful~~estimated ~~receivables~~credit losses, valuation of goodwill and long-lived and intangible assets, insurance reserves, and income taxes and business combinations.

Revenue Recognition

The singular performance obligation of our customer contracts for product and machine sales is determined by each individual purchase order and the respective products ordered, with revenue being recognized at a point-in-time when the obligation under the terms of the agreement is satisfied and product control is transferred to our customer. Specifically, control transfers to our customers when the product is delivered to, installed, or picked up by our customers based upon applicable shipping terms, as our customers can direct the use and obtain substantially all of the remaining benefits from the product at this point in time. The performance obligations in our customer contracts for product are generally satisfied within 30 days.

The singular performance obligation of our customer contracts for time and material repair and maintenance equipment service is the performance of the repair and maintenance with revenue being recognized at a point-in-time when the repair and maintenance is completed.

The singular performance obligation of our customer repair and maintenance equipment service contracts is the performance of the repair and maintenance with revenue being recognized over the time the service is expected to be performed. Our customers are billed for service contracts in advance of performance and therefore we have contract liability on our balance sheet.

Revenue is measured by the transaction price, which is defined as the amount of consideration we expect to receive in exchange for satisfying the performance obligations noted above. The transaction price is adjusted for estimates of known or expected variable consideration which includes sales discounts, trade promotions and certain other sales and customer incentives, including rebates and coupon redemptions. Variable consideration related to these programs is recorded as a reduction to revenue when the related revenue is recognized, and is recorded using the most likely amount method, with updates to estimates and related accruals of variable consideration occurring each period based on historical experience, changes in circumstances and other factors, including review of contractual pricing and rebate arrangements with customers.

We do not believe that there is a reasonable likelihood that there will be material change in the estimates or assumptions used to recognize revenue. As noted above, estimates are made based on historical experience and other factors. However, if the level of redemption rates or performance was to vary significantly from estimates, we may be exposed to gains or losses that could be material. We have not made any material changes in the accounting methodology used to recognize revenue during the past three fiscal years.

23 Allowance for Estimated Credit Losses

~~Allowance~~We provide an allowance for ~~Doubtful~~estimated ~~Receivables~~credit losses after taking into consideration historical experience and other factors. On September 27, 2020, the Company adopted guidance issued by the FASB in ASU 2016-13 Measurement of Credit Losses on Financial Instruments, which requires companies to recognize an allowance that reflects a current estimate of credit losses expected to be incurred over the life of the asset. The Company continuously monitors collections and payments from its customers and maintains a provision for estimated credit losses. The allowance for estimated credit losses considers a number of factors including the age of receivable balances, the history of losses, expectations of future credit losses and the customers’ ability to pay off obligations.

We provide an allowance for doubtful receivables after taking into consideration historical experience and other factors. On September 27, 2020, the Company adopted guidance issued by the FASB in ASU 2016-13 Measurement of Credit Losses on Financial Instruments, which requires companies to recognize an allowance that reflects a current estimate of credit losses expected to be incurred over the life of the asset. The Company continuously monitors collections and payments from its customers and maintains a provision for estimated credit losses. The allowance for doubtful accounts considers a number of factors including the age of receivable balances, the history of losses, expectations of future credit losses and the customers’ ability to pay off obligations.

We do not believe that there is a reasonable likelihood that there will be a material change in the estimates or assumptions used to value our accounts receivable. Since adoption of the new guidance on September 27, 2020, we have not made any material changes in the accounting methodology used to value accounts receivable.

Valuation of Goodwill

We have three reporting units with goodwill. Goodwill is evaluated annually by the Company for impairment. We perform impairment tests at year end for our reporting units, which are also the operating segment levels with recorded goodwill utilizing primarily the discounted cash flow method. This methodology used to estimate the fair value of the total Company and its reporting units requires inputs and assumptions (i.e. revenue growth, operating profit margins, capital spending requirements and discount rates) that reflect current market conditions. The estimated fair value of each reporting unit is compared to the carrying value of the reporting unit. If the carrying value of the reporting unit exceeds its fair value, the goodwill of the reporting unit is potentially impaired, and the Company then determines the implied fair value of goodwill, which is compared to the carrying value of goodwill to determine if impairment exists. Our tests at September 2430, ~~2022~~2023 show that the fair value of each of our reporting units with goodwill exceeded its carrying value by at least 50%. Therefore, no further analysis was required.

The inputs and assumptions used involve considerable management judgment and are based upon assumptions about expected future operating performance. Assumptions used in these forecasts are consistent with internal planning. The actual performance of the reporting units could differ from management’s estimates due to changes in business conditions, operating performance, economic conditions, competition, and consumer preferences. We have not made any material changes in the accounting methodology used to value goodwill during the past three fiscal years.

Valuation of Long-Lived Assets and Other Intangible Assets

We record an impairment charge to property, plant and equipment and amortizing intangible assets in accordance with the applicable accounting standards, when, based on certain indicators of impairment, we believe such assets have experienced a decline in value that is other than temporary. Future adverse changes in market conditions or poor operating results of these underlying assets could result in losses or an inability to recover the carrying value of the asset that may not be reflected in the asset’s current carrying value, thereby possibly requiring impairment charges in the future.

Indefinite lived intangibles are reviewed annually for impairment. The fair value of our indefinite lived intangible assets is calculated ~~principally~~ using either a relief from royalty valuation approach, or the excess earnings method. We are required to make estimates and assumptions about sales growth, royalty rates, and discount rates based on budgets, business plans, economic projections, and marketplace data. Our impairment analysis contains uncertainties due to uncontrollable events that could positively or negatively impact the future economic and operating conditions.

We have not made any material changes in the accounting methodology used to evaluate impairment of long-lived assets and other intangibles during the last three fiscal years. While we believe we have made reasonable estimates and assumptions to calculate fair value of these assets, it is possible a material change could occur. If our actual results are not consistent with our estimates and assumptions used to calculate fair value, it could result in a material impairment of our long-lived assets and other intangibles.

Insurance Reserves

We have a self-insured medical plan which covers approximately 1,~~700~~800 of our employees. We record a liability for incurred but not yet reported or paid claims based on our historical experience of claims payments and a calculated lag time period. We maintain a spreadsheet that includes claims payments made each month according to the date the claim was incurred. This enables us to have an historical record of claims incurred but not yet paid at any point in the past. We then compare our accrued liability to the more recent claims incurred but not yet paid amounts and adjust our recorded liability up or down accordingly. Considering that we have stop loss coverage of $225,000 for each individual plan subscriber, the general consistency of claims payments and the short time lag, we believe that there is not a material exposure for this liability.

We self-insure, up to loss limits, workers’ compensation, automobile and general liability claims. ~~Accruals~~Insurance ~~for~~reserves ~~claims under our self-insurance program~~ are ~~recorded~~calculated on a ~~claims-incurred~~combination ~~basis.~~of Wean ~~estimate~~undiscounted ~~the~~basis ~~liability~~ based on ~~total~~actual ~~incurred~~ claims data and ~~paid~~estimates ~~claims~~of ~~adjusting~~incurred ~~for~~but ~~loss~~not ~~development~~reported ~~factors~~claims ~~which~~developed ~~account~~utilizing ~~for~~historical ~~the development of open~~ claims ~~over time~~trends. WeProjected ~~estimate~~settlements ~~the~~of ~~amounts we expect to pay for some insurance years by multiplying~~ incurred ~~losses~~but bynot areported ~~loss~~claims ~~development~~are ~~factor~~estimated ~~which is~~ based on ~~insurance~~pending ~~industry averages and the age of the incurred~~ claims; our estimated liability is then the difference between the amounts we expect to pay and the amounts we have already paid for those years. Loss development factors that we use range from 1.0 to 2.0. However, ~~for~~historical ~~some years~~trends, ~~the~~industry ~~estimated~~trends ~~liability~~related isto ~~the~~expected ~~difference~~losses ~~between the amounts we have already paid for that year~~ and ~~the~~actual ~~maximum~~reported ~~we could pay under the program in effect for that particular year because the calculated amount we expect to pay is higher than the maximum. For other years~~losses, ~~where there are few claims open, the estimated liability we record is the amount the insurance company has reserved for those claims. We evaluate our estimated liability on a continuing basis~~ and ~~adjust~~key ~~it accordingly. Due to the multi-year length of these insurance programs~~assumptions, ~~there~~including isloss ~~exposure~~development tofactors ~~claims coming in lower or higher than anticipated; however, due to constant monitoring~~ and ~~stop~~expected loss ~~coverage of $350,000 on individual claims, we believe our exposure is not material~~rates. ~~Because of the foregoing, we do not engage a third-party actuary to assist in this analysis.~~

We have not made any material changes in the accounting methodology used to establish our self-insurance liability during the past three fiscal years. We do not believe that there is a reasonable likelihood that there will be a material change in the estimate or assumptions used to calculate our self-insurance liability. However, if actual results are not consistent with our estimates or assumptions, we may be exposed to gains or losses that could be material.

Income Taxes

The annual tax rate is based on our income and statutory tax rates. Changes in statutory rates and tax laws in jurisdictions in which we operate may have a material effect on our annual tax rate. The effect of these changes, if any, would be recognized as a discrete item upon enactment.

Deferred income taxes arise from temporary differences between the tax and financial statement recognition of revenues and expenses. Deferred tax assets and liabilities are measured based on the enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid.

We have not made any material changes in the accounting methodology used to account for income taxes during the past three fiscal years. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. Other than those potential impacts, we do not believe there is a reasonable likelihood that there will be a material change in tax related balances.

25 30

Business Combinations

We use assumptions and estimates in determining the fair value of assets acquired and liabilities assumed in a business combination. We use various models to value assets acquired and liabilities assumed, such as the net realizable value method to value inventory, and the cost method and market approach to value property, plant and equipment. The determination of the fair value of intangible assets, which can represent a significant portion of the purchase price of our acquisitions, requires the use of significant judgement with regard to the fair value, and whether such intangibles are amortizable or non-amortizable and, if the former, the period and method by which the intangible will be amortized. We estimate the fair value of acquisition-related intangibles either through the relief of royalty method or multi-period excess earnings method, or based on projections of cash flows that will arise from identifiable intangible assets of acquired businesses, which includes estimate of customer attrition. The projected cash flows are discounted to determine the present value of the assets at the date of acquisition. For significant acquisitions, we may use independent third-party valuation specialists to assist us in determining the fair value of assets acquired and liabilities assumed.

We have not made any material changes in the accounting methodology used to account for business combinations during the past three fiscal years. We do not believe that there is a reasonable likelihood that there will be a material change in the estimate or assumptions used to determine the fair value of assets acquired or liabilities assumed in a business combination. However, if actual results are not consistent with our estimates or assumptions, we may be exposed to impairment charges that could be material.

26 31

Item 7A.

Quantitative And Qualitative Disclosures About Market Risk

The following is the Company’s quantitative and qualitative analysis of its financial market risk:

Interest Rate Sensitivity

The Company has in the past entered into interest rate swaps to limit its exposure to interest rate risk and may do so in the future if the Board of Directors feels that such non-trading ~~purpose~~hedging is in the best interest of the Company and its shareholders. As of September 2430, ~~2022~~2023, the Company had no interest rate swap contracts.

Interest Rate Risk

At September 2430, ~~2022~~2023, the Company had variable rate debt of $5527.0 million with a weighted average interest rate of 36.8748%. If borrowing rates were to increase 1% above the current rates, it would increase interest expense by $0.63 million on an annual basis.

Purchasing Risk

The Company’s most significant raw material requirements include flour, shortening, corn syrup, sugar, juice, cheese, chocolate, and a variety of nuts. The Company attempts to minimize the effect of future price fluctuations related to the purchase of raw materials primarily through forward purchasing to cover future manufacturing requirements, generally for periods from 1 to 12 months. Future contracts are not used in combination with forward purchasing of these raw materials. The Company’s procurement practices are intended to reduce the risk of future price increases, but also may potentially limit the ability to benefit from possible price decreases.

Foreign Exchange Rate Risk

The Company has not entered into any forward exchange contracts to hedge its foreign currency rate risk as of September 2430, ~~2022~~2023, because it does not believe its foreign exchange exposure is significant.

Item 8.

Financial Statements And Supplementary Data

The financial statements of the Company are filed under this Item 8, beginning on page F-1 of this report.

Item 9.

Changes In And Disagreements With Accountants On Accounting And Financial Disclosure

None.

27 32

Item 9A.

Controls And Procedures

Disclosure Controls and Procedures

We carried out an evaluation under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the ~~Securities~~ Exchange Act ~~of 1934 (the "Exchange Act"), as amended~~ for financial reporting, as of September 2430, ~~2022~~2023. Based on that evaluation, our chief executive officer and chief financial officer concluded that these controls and procedures are effective at a reasonable assurance level.

Our disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in the rules and forms of the SEC. These disclosure controls and procedures include, among other things, controls and procedures designed to provide reasonable assurance that information required to be disclosed by us in the reports that we file under the Exchange Act is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure.

Management’s Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act as a process designed by, or under the supervision of, the chief executive officer and chief financial officer and effected by the board of directors and management to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

●

Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;

●

Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of our management and board of directors;

●

Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management assessed the effectiveness of our internal control over financial reporting as of September 2430, ~~2022~~2023. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in the 2013 Internal Control-Integrated Framework.

Based on our assessment, our management believes that, as of September 2430, ~~2022~~2023, our internal control over financial reporting is effective. There have been no changes that occurred during our fourth quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. During the third quarter of 2022, the Company completed the acquisition of Dippin’ Dots. In accordance with guidance issued by the SEC, recently acquired businesses may be excluded from management’s assessment of the effectiveness of the Company’s internal control over financial reporting in the year of acquisition. Accordingly, management excluded the Dippin’ Dots acquisition from management’s assessment of the effectiveness of the Company’s internal control over financial reporting from the June 21, 2022 acquisition date, which excluded total assets and total net revenues representing approximately 5% and 3%, respectively, of the Company’s related consolidated financial statement amounts as of and for the year ended September 24, 2022.

Our independent registered public accounting firm, Grant Thornton LLP, audited our internal control over financial reporting as of September 2430, ~~2022~~2023. Their report, dated November 2228, ~~2022~~2023, expressed an unqualified opinion on our internal control over financial reporting. That report appears in Item 15 of Part IV of this Annual Report on Form 10-K and is incorporated by reference to this Item 9A.

28 33

Item 9B.

Other Information

None of our directors or executive officers adopted, modified or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement” as defined in Item 408(c) of Regulation S-K

There was no information required on Form 8-K during the quarter that was not reported.

Item 9C.

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Not applicable.

PART III

Item 10.

Directors, Executive Officers and Corporate Governance

The information required relating to directors, director nominees and executive officers of the registrant is incorporated by reference from the information under the captions “Election of Directors,” “Biographical Information about the Nominees and Directors,” “Board Committees” and “Executive Officers” contained in our Proxy Statement for our Annual Meeting of Shareholders to be held on February 1413, ~~2023~~2024 (the “Proxy Statement”).

The information relating to the identification of the audit committee, audit committee financial expert and director nomination procedures of the registrant is incorporated by reference from the information under the captions “The Audit Committee” and “The Nominating Committee” contained in the Proxy Statement.

The information concerning Section 16(a) Compliance appearing under the caption “Delinquent Section 16(a) Reports” in the Proxy Statement is incorporated herein by reference.

The Company has adopted a Code of Ethics pursuant to Section 406 of the Sarbanes-Oxley Act of 2002, which applies to the Company’s principal executive officer and senior financial officers. The Company has also adopted a Code of Business Conduct and Ethics which applies to all employees. The Company will furnish any person, without charge, a copy of the Code of Ethics upon written request to J & J Snack Foods Corp., ~~6000~~350 ~~Central~~Fellowship ~~Highway~~Rd., ~~Pennsauken~~Mt. Laurel, New Jersey ~~08109~~08054, Attn: ~~Michael A. Pollner, Senior Vice President, General Counsel and~~ Secretary. A copy of the Code of Ethics can also be found on our website at www.jjsnack.com. Any waiver of any provision of the Code of Ethics granted to the principal executive officer or senior financial officer may only be granted by a majority of the Company’s disinterested directors. If a waiver is granted, information concerning the waiver will be posted on our website www.jjsnack.com for a period of 12 months.

Item 11.

Executive Compensation

Information concerning executive compensation appearing in the ~~Company’s 2022~~ Proxy Statement under the caption “Executive Compensation” is incorporated herein by reference.

Item 12.

Security Ownership Of Certain Beneficial Owners And Management And Related Stockholder Matters

Information concerning the security ownership of certain beneficial owners and management and the information concerning equity compensation plans appearing in the Proxy Statement under the captions “Security Ownership of Certain Beneficial Owners and Management” and “Equity Compensation Plan Information” is incorporated herein by reference.

Item 13.

Certain Relationships And Related Transactions, and Director Independence

The information set forth in the Proxy Statement under the captions “Certain Relationships” and “Director Independence” is incorporated herein by reference.

Item 14.

Principal Accountant Fees And Services

The information set forth in the Proxy Statement under the captions “Ratification of Independent Registered Public Accounting Firm” and “Fees of Independent Registered Public Accounting Firm” is incorporated herein by reference.

30 34

PART IV

Item 15.

Exhibits, Financial Statement Schedules

(a) The following documents are filed as part of this Report:

(1) Financial Statements The financial statements filed as part of this report are listed on the Index to Consolidated Financial Statements and Financial Statements Schedule on page F-1.

~~The~~(2) ~~financial~~Financial ~~statements~~Statement ~~filed~~Schedule as– ~~part~~Page ofS-1 ~~this~~Schedule ~~report~~II – Valuation and Qualifying Accounts All other schedules are ~~listed~~omitted oneither ~~the~~because ~~Index~~they toare ~~Consolidated~~not ~~Financial~~applicable ~~Statements~~or ~~and~~because ~~Financial~~the ~~Statements~~information ~~Schedule~~required onis ~~page~~contained ~~F-1~~in the financial statements or notes thereto.

(2b) ~~Financial Statement Schedule – Page S-1~~Exhibits

Schedule II – Valuation and Qualifying Accounts

All other schedules are omitted either because they are not applicable or because the information required is contained in the financial statements or notes thereto.

(b) Exhibits

2.1

Securities Purchase Agreement, by and among the Company, DD Acquisition Holdings, LLC, Dippin’ Dots Holding, L.L.C., Fischer Industries, L.L.C, Stephen Scott Fischer Revocable Trust, Stephen Scott Fischer Exempt Trust, Mark A. Fischer 1994 Trust, Susan L. Fischer 1994 Trust, Christy Fischer Speakes Exempt Trust, Mark A. Fischer, as the Seller Representative, and Cryogenics Processors, LLC (Incorporated by reference from the Company’s Form 8-K filed May 20, 2022).

3.1**

Amended and Restated Certificate of Incorporation of J & J Snack Foods Corp. (Incorporated by reference from the Company’s Form 10-K filed November 22, 2022).

3.2

Certificate of Amendment to the Amended and Restated Certificate of Incorporation (Incorporated by reference from the Company’s Form 8-K filed June 24, 2022).

3.3

Revised Bylaws adopted November 1915, ~~2013~~2023 (Incorporated by reference from the Company’s Form 108-K ~~dated~~filed November 2621, ~~2013~~2023).

4.3

Amended and Restated Loan Agreement dated December 1, 2006 by and among J & J Snack Foods Corp. and Certain of its Subsidiaries and Citizens Bank of Pennsylvania, as Agent (Incorporated by reference from the Company’s Form 10-K dated December 6, 2006).

4.4 First Amendment and Modification to Amended and Restated Loan Agreement (Incorporated by reference from the Company’s Form 10-K dated December 7, 2011).

4.5 Fourth Amendment and Modification to Amended and Restated Loan Agreement (Incorporated by reference from the Company’s Form 10-K dated November 21, 2016).

4.6

Second Amended and Restated Credit Agreement (Incorporated by reference from the Company’s Form 10-Q dated February 2, 2022).

4.7

Amendment No. 1 to the Second Amended and Restated Credit Agreement (Incorporated by reference to the Company’s Form 8-K filed on June 24, 2022).

4.8**

Description of Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 (Incorporated by reference from the Company’s Form 10-K filed November 22, 2022).

10.1*
J & J Snack Foods Corp. Amended and Restated Long-Term Incentive Plan (Incorporated by referenced from the Company’s Form 8-K filed on February 12, 2021).

~~10.2* J & J Snack Foods Corp. Stock Option Plan (Incorporated by reference from the Company’s Definitive Proxy Statement dated December 22, 2017).~~35

10.3*
Inducement Restricted Stock Award Agreement (Incorporated by reference from the Company’s Form 8-K filed on October 26, 2020).

10.4*

Form of Performance Share Unit Agreement (Incorporated by reference from the Company’s Form 8-K filed on January 26, 2022).

10.5*

Form of Service Share Unit Agreement (Incorporated by reference from the Company’s Form 8-K filed on January 26, 2022).

10.6*

J & J Snack Foods Corp. 2022 Long-Term Incentive Plan (Incorporated by reference from the Company’s Form 8-K filed on February 14, 2023).

10.7*

Executive Employment Agreement dated February 14, 2023 between J & J Snack Foods Corp. and Daniel Fachner (Incorporated by reference from the Company’s Form 8-K filed on February 17, 2023).

10.8* **

Form of Performance-Based Restricted Stock Unit Award Agreement

10.9* **

Form of Restricted Stock Unit Award Agreement

21.1**

Subsidiaries of J & J Snack Foods Corp.

23.1**

Consent of Independent Registered Public Accounting Firm.

31.1**

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2**

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1**

Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 Of The Sarbanes-Oxley Act of 2002.

32.2**

Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 Of The Sarbanes-Oxley Act of 2002.

101**

The following financial information from J&J Snack Foods Corp.'s Form 10-K for the year ended September 2430, ~~2022~~2023, formatted in iXBRL (Inline extensible Business Reporting Language):

(i)

Consolidated Balance Sheets,

(ii)

Consolidated Statements of Earnings,

(iii)

Consolidated Statements of Comprehensive Income,

(iv)

Consolidated Statements of Cash Flows,

(v)

Consolidated Statement of Changes in Stockholders' Equity and

(vi)

The Notes to the Consolidated Financial Statements

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

_____________

*Compensatory Plan

**Filed Herewith

Item 16. Form 10-K Summary

Not applicable.

33 36

SIGNATURES

Pursuant to the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused report to be signed on its behalf by the undersigned, thereunto duly authorized.

	J & J SNACK FOODS CORP.
November 22, 2022	By:	/s/ Dan Fachner
		Dan Fachner,
		Chief Executive Officer
		and President
		(Principal Executive Officer)

J & J SNACK FOODS CORP.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

November 28, 2023	By:	/s/ Dan Fachner
		Dan Fachner,
		Chief Executive Officer,
		President and Director
		(Principal Executive Officer)

November 22, 2022	/s/ Dan Fachner
	Dan Fachner,
	Chief Executive Officer, President and Director
	(Principal Executive Officer)
November 22, 2022	/s/ Ken A. Plunk
	Ken A. Plunk, Senior Vice
	President and Chief Financial Officer
	(Principal Financial Officer)
	(Principal Accounting Officer)
November 22, 2022
	Gerald B. Shreiber, Chairman of the Board and Director
November 22, 2022	/s/ Sidney R. Brown
	Sidney R. Brown, Director
November 22, 2022	/s/ Peter G. Stanley
	Peter G. Stanley, Director
November 22, 2022	/s/ Vincent A. Melchiorre
	Vincent A. Melchiorre, Director

November 28, 2023		/s/ Dan Fachner
		Dan Fachner,
		Chief Executive Officer
		and President and Director
		(Principal Executive Officer)

November 28, 2023		/s/ Ken A. Plunk
		Ken A. Plunk, Senior Vice
		President and Chief Financial
		Officer
		(Principal Financial Officer)
		(Principal Accounting Officer)

November 28, 2023		/s/ Gerald B. Shreiber
		Gerald B. Shreiber, Director

November 28, 2023		/s/ Sidney R. Brown
		Sidney R. Brown, Director

November 28, 2023		/s/ Peter G. Stanley
		Peter G. Stanley, Director

November 28, 2023		/s/ Vincent A. Melchiorre
		Vincent A. Melchiorre, Director

November 28, 2023		/s/ Marjorie S. Roshkoff
		Marjorie S. Roshkoff, Director

November 28, 2023		/s/ Roy C. Jackson
		Roy C. Jackson, Director

November 28, 2023		/s/ Mary M. Meder
		Mary M. Meder, Director

November 22, 2022	/s/ Marjorie S. Roshkoff
	Marjorie S. Roshkoff, Director
November 22, 2022	/s/ Roy C. Jackson
	Roy C. Jackson, Director
November 22, 2022	/s/ Mary M. Meder
	Mary M. Meder, Director

35 J & J SNACK FOODS CORP.

JINDEX &TO JCONSOLIDATED ~~SNACK~~FINANCIAL ~~FOODS CORP.~~STATEMENTS

~~INDEX~~AND ~~TO CONSOLIDATED~~ FINANCIAL ~~STATEMENTS~~STATEMENT SCHEDULE

AND FINANCIAL STATEMENT SCHEDULE

Financial Statements:

Report of Independent Registered Public Accounting Firm (PCAOB ID 248)	F-2

Opinion of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting	F-4

Consolidated Balance Sheets as of September 30, 2023 and September 24, 2022	F-5

Consolidated Statements of Earnings for the fiscal years ended September 30, 2023, September 24, 2022 and September 25, 2021	F-6

Consolidated Statements of Comprehensive Income for the fiscal years ended September 30, 2023, September 24, 2022 and September 25, 2021	F-7

Consolidated Statement of Changes in Stockholders’ Equity for the fiscal years ended September 30, 2023, September 24, 2022 and September 25, 2021	F-8

Consolidated Statements of Cash Flows for the fiscal years ended September 30, 2023, September 24, 2022 and September 25, 2021	F-9

Notes to Consolidated Financial Statements	F-10

Financial Statement Schedule:

Schedule II – Valuation and Qualifying Accounts	S-1

Financial Statements:
Report of Independent Registered Public Accounting Firm (PCAOB ID 248)	F-2
Opinion of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting (PCAOB ID 248)	F-4
Consolidated Balance Sheets as of September 24, 2022 and September 25, 2021	F-5
Consolidated Statements of Earnings for the fiscal years ended September 24, 2022, September 25, 2021 and September 26, 2020	F-6
Consolidated Statements of Comprehensive Income for the fiscal years ended September 24, 2022, September 25, 2021 and September 26, 2020	F-7
Consolidated Statement of Changes in Stockholders’ Equity for the fiscal years ended September 24, 2022, September 25, 2021 and September 26, 2020	F-8
Consolidated Statements of Cash Flows for the fiscal years ended September 24, 2022, September 25, 2021 and September 26, 2020	F-9
Notes to Consolidated Financial Statements	F-10
Financial Statement Schedule:
Schedule II – Valuation and Qualifying Accounts	S-1

F - 1

~~F-1~~ REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

~~REPORT~~Board OFof ~~INDEPENDENT~~Directors ~~REGISTERED~~and ~~PUBLIC ACCOUNTING FIRM~~Shareholders

~~Board~~J&J ofSnack ~~Directors~~Foods Corp. and ~~Shareholders~~Subsidiaries

~~J&J~~Opinion ~~Snack~~on ~~Food~~the ~~Corp.~~financial ~~and~~statements ~~Subsidiaries~~

~~Opinion~~We onhave audited the accompanying consolidated balance sheets of J&J Snack Foods Corp. (a New Jersey corporation) and subsidiaries (the “Company”) as of September 30, 2023 and September 24, 2022, the related consolidated statements of earnings, comprehensive income, changes in stockholders’ equity, and cash flows for each of the three years in the period ended September 30, 2023, and the related notes and financial statement schedule included under Item 15(a) (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2023 and September 24, 2022, and the results of its operations and its cash flows for each of the three years in the period ended September 30, 2023, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, ~~the~~in ~~accompanying~~accordance ~~consolidated~~with ~~balance~~the ~~sheets~~standards of ~~J&J~~the ~~Snack~~Public ~~Foods~~Company ~~Corp.~~Accounting (aOversight ~~New~~Board ~~Jersey~~(United ~~corporation~~States) ~~and subsidiaries~~ (~~the~~ “~~Company~~PCAOB”) ~~as of September 24~~, ~~2022~~the ~~and~~Company’s ~~September~~internal ~~25,~~control ~~2021,~~over ~~the~~financial ~~related~~reporting ~~consolidated~~as ~~statements~~ of ~~earnings,~~December ~~comprehensive income~~31, ~~changes in shareholders’ equity~~20X2, ~~and~~based ~~cash~~on ~~flows~~criteria ~~for~~established ~~each of the three years~~ in the ~~period~~2013 ~~ended~~Internal ~~September~~Control—Integrated ~~24,~~Framework ~~2022,~~issued ~~and~~by the ~~related~~Committee ~~notes~~of ~~and~~Sponsoring ~~financial~~Organizations ~~statement~~of ~~schedule~~the ~~included~~Treadway ~~under~~Commission ~~Item 15~~(~~a) (collectively referred to as the~~ “~~financial statements~~COSO”)~~. In our opinion~~, ~~the financial statements present fairly, in all material respects, the financial position of the Company as of September 24, 2022~~ and ~~September~~our 25report ~~2021,~~dated ~~and~~November ~~the results of its operations and its cash flows for each of the three years in the period ended September 24~~28, ~~2022,~~2023 inexpressed ~~conformity~~an ~~with~~unqualified ~~accounting principles generally accepted in the United States of America~~opinion.

WeBasis ~~also~~for have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of September 24, 2022, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated November 22, 2022 expressed an unqualified opinion.

~~Basis~~These ~~for~~financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

~~These~~We ~~financial~~conducted ~~statements~~our ~~are~~audits in accordance with the ~~responsibility~~standards of the ~~Company’s management~~PCAOB. ~~Our~~Those ~~responsibility~~standards isrequire tothat ~~express~~we anplan ~~opinion~~and onperform the ~~Company’s~~audit to obtain reasonable assurance about whether the financial statements ~~based~~are onfree ~~our~~of ~~audits~~material misstatement, whether due to error or fraud. WeOur ~~are~~audits aincluded ~~public~~performing ~~accounting~~procedures ~~firm~~to ~~registered~~assess ~~with~~the risks of material misstatement of the ~~PCAOB~~financial ~~and~~statements, ~~are~~whether ~~required~~due to beerror ~~independent~~or ~~with~~fraud, ~~respect~~and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the ~~Company~~amounts inand ~~accordance~~disclosures ~~with~~in the Ufinancial statements.S. ~~federal~~Our ~~securities~~audits ~~laws~~also ~~and~~included evaluating the ~~applicable~~accounting ~~rules~~principles used and ~~regulations~~significant estimates made by management, as well as evaluating the overall presentation of the ~~Securities~~financial ~~and~~statements. ~~Exchange~~We ~~Commission~~believe ~~and~~that ~~the~~our ~~PCAOB~~audits provide a reasonable basis for our opinion.

WeCritical ~~conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the~~ audit tomatter obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

F-The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2 ) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

~~Critical~~Net ~~audit~~Revenue ~~matter~~Adjustments

~~The~~As ~~critical~~described ~~audit~~in ~~matter~~Note ~~communicated~~A ~~below~~to ~~is a matter arising from~~ the ~~current~~consolidated ~~period audit of the~~ financial statements, ~~that~~contracts ~~was~~with ~~communicated~~customers orinclude ~~required~~some toform beof ~~communicated~~variable toconsideration, ~~the~~including ~~audit~~sales ~~committee~~discounts, ~~and~~trade ~~that:~~promotions ~~(1)~~and ~~relates~~certain toother ~~accounts~~sales ~~or disclosures that are material to the financial statements~~ and ~~(2)~~consumer ~~involved our especially challenging~~incentives, ~~subjective,~~including ~~or complex judgments~~rebates. ~~The~~Variable ~~communication~~consideration ofis ~~critical~~treated ~~audit~~as ~~matters~~a ~~does~~reduction ~~not alter~~ in ~~any~~revenue ~~way~~when ~~our opinion on~~ the ~~financial~~related ~~statements,~~revenue ~~taken~~is ~~as a whole~~recognized, and weis ~~are~~recorded ~~not,~~using ~~by communicating~~ the ~~critical~~most ~~audit~~likely ~~matter~~amount ~~below~~method, ~~providing~~with aupdates ~~separate~~to ~~opinion~~estimates onand ~~the~~related ~~critical~~accruals ~~audit~~of ~~matter~~variable orconsideration onoccurring ~~the~~each ~~accounts~~period orbased ~~disclosures~~on tohistorical ~~which~~experience itand ~~relates~~changes in circumstances.

~~Net~~We ~~Revenue~~identified ~~Adjustments~~the estimation of certain subsidiaries’ reserves for these net revenue adjustments by management as a critical audit matter because the inputs and assumptions utilized by management in estimating these reserves, including consistency of historical data and estimates of future customer credits, require significant judgment and create a high degree of estimation uncertainty. Consequently, auditing these assumptions require subjective auditor judgment.

AsF ~~described~~- in Note A to the consolidated financial statements, contracts with customers include some form of variable consideration, including sales discounts, trade promotions and certain other sales and consumer incentives, including rebates. Variable consideration is treated as a reduction in revenue when the related revenue is recognized, and is recorded using the most likely amount method, with updates to estimates and related accruals of variable consideration occurring each period based on historical experience and changes in circumstances.2

WeOur ~~identified~~audit procedures related to the estimation of ~~certain~~the ~~subsidiaries’~~ reserves ~~for~~included ~~these net revenue adjustments by management as a critical audit matter because~~ the ~~inputs and assumptions utilized by management in estimating these reserves~~following, ~~including~~among consistency of historical data and estimates of future customer credits, require significant judgment and create a high degree of estimation uncertainty. Consequently, auditing these assumptions require subjective auditor judgment.others:

~~Our~~● ~~audit~~We ~~procedures~~obtained ~~related~~an tounderstanding, evaluated the ~~estimation~~design, and tested the operating effectiveness of key controls relating to management’s calculation of the reserves ~~included~~for ~~the~~net ~~following~~revenue adjustments, ~~among~~including ~~others:~~understanding relevant inputs and assumptions of key management review controls over the period-end accrual of allowances and end-user pricing adjustments.

● We ~~obtained~~re-performed ~~an understanding of~~ management’s ~~processes~~process ~~and~~for ~~controls over~~ calculating the reserves for net revenue adjustments~~, including understanding relevant inputs and assumptions~~.

● We evaluated key inputs relevant to the ~~design~~net revenue adjustments, including contractual pricing and ~~tested~~rebate ~~the~~arrangements ~~operating~~with ~~effectiveness~~customers ofand ~~key~~historical ~~controls~~allowance ~~relating~~data, which were compared to ~~the~~source ~~calculation~~documents. ofWe ~~the~~evaluated ~~reserves~~key ~~for~~assumptions relevant to net revenue adjustments, including ~~key~~the ~~management~~consistency ~~review~~of ~~controls~~historical ~~over~~data ~~the~~and ~~period-end~~estimates ~~accrual~~ of ~~allowances~~future ~~and~~customer ~~end-user pricing adjustments~~credits.

● We ~~re-performed~~evaluated ~~management’s~~transactions ~~process~~subsequent ~~for~~to ~~calculating~~year end, which involved inspecting customer credits and relevant source documents submitted by customers in conjunction with the ~~reserves~~allowance, ~~for~~including ~~net~~end-user ~~revenue~~pricing adjustments.

●/s/GRANT WeTHORNTON evaluated key inputs relevant to the net revenue adjustments, including contractual pricing and rebate arrangements with customers and historical allowance data, which were compared to source documents. We evaluated key assumptions relevant to net revenue adjustments, including the consistency of historical data and estimates of future customer credits.LLP

● We ~~considered~~have ~~transactions~~served ~~subsequent~~as ~~to year end occurring up to~~ the ~~date of our auditor~~Company’s ~~opinion,~~auditor ~~which~~since ~~involved inspecting customer credits and relevant source documents submitted by customers in conjunction with the allowance, including end-user pricing adjustments~~1984.

~~/s/~~Philadelphia, ~~GRANT THORNTON LLP~~Pennsylvania

WeNovember ~~have~~28, ~~served as the Company’s auditor since 1984.~~2023

~~Philadelphia,~~F ~~Pennsylvania~~- 3

~~November~~REPORT ~~22,~~OF ~~2022~~INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

~~F-3~~ Board of Directors and Shareholders

~~REPORT~~J&J OFSnack ~~INDEPENDENT~~Foods ~~REGISTERED~~Corp. ~~PUBLIC~~and ~~ACCOUNTING FIRM~~Subsidiaries

~~Board~~Opinion ofon ~~Directors~~internal ~~and~~control ~~Shareholders~~over financial reporting

We have audited the internal control over financial reporting of J&J Snack Foods Corp. (a New Jersey corporation) and ~~Subsidiaries~~subsidiaries (the “Company”) as of September 30, 2023, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of September 30, 2023, based on criteria established in the 2013 Internal Control—Integrated Framework issued by COSO.

~~Opinion~~We onalso ~~internal~~have ~~control~~audited, ~~over~~in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial ~~reporting~~statements of the Company as of and for the year ended September 30, 2023, and our report dated November 28, 2023 expressed an unqualified opinion on those financial statements.

WeBasis ~~have~~for audited the internal control over financial reporting of J&J Snack Foods Corp. (a New Jersey Corporation) and subsidiaries (the “Company”) as of September 24, 2022, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of September 24, 2022, based on criteria established in the 2013 Internal Control—Integrated Framework issued by COSO.

WeThe ~~also~~Company’s ~~have~~management ~~audited,~~is inresponsible ~~accordance~~for ~~with~~maintaining ~~the~~effective ~~standards~~internal control over financial reporting and for its assessment of the ~~Public~~effectiveness ~~Company~~of ~~Accounting~~internal ~~Oversight~~control ~~Board~~over ~~(United~~financial ~~States) (“PCAOB”)~~reporting, included in the ~~consolidated~~accompanying ~~financial~~Management’s ~~statements~~Report ofon Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s asinternal ofcontrol over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and ~~for~~are required to be independent with respect to the ~~year~~Company ~~ended~~in ~~September~~accordance ~~24,~~with ~~2022,~~the U.S. federal securities laws and ~~our~~the ~~report~~applicable ~~dated~~rules ~~November~~and ~~22,~~regulations ~~2022~~of ~~expressed~~the anSecurities ~~unqualified~~and ~~opinion~~Exchange onCommission ~~those~~and ~~financial~~the ~~statements~~PCAOB.

~~Basis~~We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

~~The~~Definition ~~Company’s management is responsible for maintaining effective internal control over financial reporting~~ and ~~for~~limitations ~~its assessment~~ of ~~the effectiveness of~~ internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

WeA ~~conducted~~company’s ~~our~~internal ~~audit~~control inover ~~accordance~~financial ~~with~~reporting is a process designed to provide reasonable assurance regarding the ~~standards~~reliability of ~~the~~financial ~~PCAOB.~~reporting ~~Those~~and ~~standards~~the ~~require~~preparation ~~that~~of wefinancial ~~plan~~statements ~~and~~for ~~perform~~external ~~the~~purposes ~~audit~~in toaccordance ~~obtain~~with ~~reasonable~~generally ~~assurance~~accepted ~~about~~accounting ~~whether~~principles. ~~effective~~A company’s internal control over financial reporting ~~was~~includes ~~maintained~~those inpolicies ~~all~~and ~~material~~procedures ~~respects.~~that ~~Our~~(1) ~~audit~~pertain ~~included~~to ~~obtaining~~the anmaintenance ~~understanding~~ of ~~internal~~records ~~control~~that, ~~over~~in ~~financial~~reasonable ~~reporting~~detail, ~~assessing~~accurately and fairly reflect the ~~risk~~transactions and dispositions of the assets of the company; (2) provide reasonable assurance that atransactions ~~material~~are ~~weakness~~recorded ~~exists~~as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, ~~testing~~and that receipts and ~~evaluating~~expenditures of the ~~design~~company ~~and~~are ~~operating~~being ~~effectiveness~~made only in accordance with authorizations of ~~internal~~management ~~control~~and ~~based~~directors onof the ~~assessed~~company; ~~risk,~~ and ~~performing~~(3) ~~such~~provide ~~other~~reasonable ~~procedures~~assurance asregarding weprevention ~~considered~~or ~~necessary~~timely indetection ~~the~~of ~~circumstances.~~unauthorized Weacquisition, ~~believe~~use, ~~that~~or ~~our~~disposition ~~audit~~of ~~provides~~the company’s assets that could have a ~~reasonable~~material ~~basis~~effect ~~for~~on ~~our~~the ~~opinion~~financial statements.

~~Our~~Because ~~audit~~ of, ~~and~~its ~~opinion~~inherent onlimitations, ~~the Company’s~~ internal control over financial reporting ~~does~~may not ~~include~~prevent ~~the~~or ~~internal~~detect ~~control~~misstatements. ~~over~~Also, ~~financial~~projections ~~reporting~~ of ~~Dippin’~~any ~~Dots~~evaluation ~~Holding,~~of ~~LLC,~~effectiveness ato ~~wholly-owned~~future ~~subsidiary,~~periods ~~whose~~are ~~financial~~subject ~~statements~~to ~~reflect~~the ~~total~~risk ~~assets~~that ~~and~~controls ~~revenues~~may ~~constituting~~become 5%inadequate ~~and~~because ~~3% percent, respectively,~~ of ~~the~~changes ~~related consolidated financial statement amounts as of and for the year ended September 24, 2022. As indicated~~ in ~~Management’s Report~~conditions, ~~Dippin’~~or ~~Dots~~that ~~Holding, LLC was acquired during 2022. Management’s assertion on~~ the ~~effectiveness~~degree of ~~the~~compliance ~~Company’s~~with ~~internal~~the ~~control~~policies ~~over~~or ~~financial~~procedures ~~reporting~~may ~~excluded internal control over financial reporting of Dippin’ Dots Holdings, LLC~~deteriorate.

~~Definition~~/s/ ~~and~~GRANT ~~limitations~~THORNTON ~~of internal control over financial reporting~~LLP

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records thatPhiladelphia, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.Pennsylvania

~~Because~~November ~~of its inherent limitations~~28, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.2023

~~/s/~~F ~~GRANT~~- ~~THORNTON LLP~~4

~~Philadelphia,~~Item ~~Pennsylvania~~8. Financial Statements And Supplementary Data

~~November~~J ~~22,~~& ~~2022~~J SNACK FOODS CORP. AND SUBSIDIARIES

~~F-4~~ CONSOLIDATED BALANCE SHEETS

~~J & J SNACK FOODS CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS~~ (in thousands, except share amounts)

	September 24,			September 25,
	September 30,			September 24,
	2022			2021
	2023			2022
Assets
Current assets
Cash and cash equivalents	$	3549,~~181~~581		$	~~283~~35,~~192~~181
Marketable securities held to maturity		~~4,011~~-			74,~~980~~011
Accounts receivable, net		~~208~~198,~~178~~129			~~162~~208,~~939~~178
Inventories		~~180~~171,~~473~~539			~~123~~180,~~160~~473
Prepaid expenses and other		1610,~~794~~963			716,~~498~~794
Total current assets		~~444~~430,~~637~~212			~~584~~444,~~769~~637
Property, plant and equipment, at cost		~~860~~960,~~050~~198			~~757~~860,~~242~~050
Less accumulated depreciation and amortization		~~524~~574,~~683~~295			~~490~~524,~~055~~683
Property, plant and equipment, net		~~335~~385,~~367~~903			~~267~~335,~~187~~367
Other assets
Goodwill		~~184~~185,~~420~~070			~~121~~184,~~833~~420
Other intangible assets, net		~~191~~183,~~732~~529			77191,~~776~~732
Marketable securities held to maturity		-			4,047
Marketable securities available for sale		-			5,708
Marketable securities available for sale		5,708			10,084
Operating lease right-of-use assets		88,868			51,137
Operating lease right-of-use assets		51,137			54,555
Other		3,654			3,965
Other		3,965			1,968
Total other assets		461,121			436,962
Total other assets		436,962			270,263
Total Assets	$	1,277,236		$	1,216,966
Total Assets	$	1,216,966		$	1,122,219
Liabilities and Stockholders' Equity
Current Liabilities
Current finance lease liabilities	$	~~124~~201		$	~~182~~124
Accounts payable		~~108~~90,~~146~~758			96108,~~789~~146
Accrued insurance liability		15,~~678~~743			1615,~~260~~678
Accrued liabilities		914,214			109,~~955~~214
Current operating lease liabilities		1316,~~524~~478			13,~~395~~524
Accrued compensation expense		2123,~~700~~341			1721,~~968~~700
Dividends payable		1314,~~453~~209			1213,~~080~~453
Total current liabilities		~~181~~174,~~839~~944			~~167~~181,~~629~~839
Long-term debt		5527,000			-55,000
Noncurrent finance lease liabilities		~~254~~600			~~392~~254
Noncurrent operating lease liabilities		4277,~~660~~631			4642,~~557~~660
Deferred income taxes		7081,~~407~~310			6170,~~578~~407
Other long-term liabilities		34,~~637~~233			~~409~~3,637
Commitments and Contingencies (Note I)
Stockholders' Equity
Preferred stock, $1 par value; authorized 10,000,000 shares; none issued		-			-
Common stock, no par value; authorized, 50,000,000 shares; issued and outstanding 19,219,000 and 19,084,000 respectively		94,026			73,597
Common stock, no par value; authorized, 50,000,000 shares; issued and outstanding 19,332,000 and 19,219,000 respectively		114,556			94,026
Accumulated other comprehensive loss		(1310,~~713~~166	)		(13,~~383~~713	)
Retained Earnings		~~782~~807,~~856~~128			~~785~~782,~~440~~856
Total stockholders' equity		~~863~~911,~~169~~518			~~845~~863,~~654~~169
Total Liabilities and Stockholders' Equity	$	1,~~216~~277,~~966~~236		$	1,~~122~~216,~~219~~966

The accompanying notes are an integral part of these statements.

F - 5

J & J SNACK FOODS CORP. AND SUBSIDIARIES ~~CONSOLIDATED STATEMENTS OF EARNINGS (in thousands, except per share information)~~

Fiscal Year Ended
	September 24,			September 25,			September 26,
	2022			2021			2020
	(52 weeks)			(52 weeks)			(52 weeks)
Net Sales	$	1,380,656		$	1,144,579		$	1,022,038
Cost of goods sold		1,011,014			845,651			783,611
Gross Profit		369,642			298,928			238,427
Operating expenses
Marketing and selling		91,636			77,922			84,977
Distribution		159,637			108,297			92,759
Administrative		55,189			40,538			36,747
Intangible asset impairment charges		1,010			1,273			-
Plant shutdown impairment costs		-			-			6,387
Other expense		371			(320	)		363
Total operating expenses		307,843			227,710			221,233
Operating Income		61,799			71,218			17,194
Other income (expenses)
Investment income		980			2,815			4,356
Interest expense & other		(1,025	)		(7	)		(84	)
Earnings before income taxes		61,754			74,026			21,466
Income taxes		14,519			18,419			3,161
NET EARNINGS	$	47,235		$	55,607		$	18,305
Earnings per diluted share	$	2.46		$	2.91		$	0.96
Weighted average number of diluted shares		19,213			19,133			19,032
Earnings per basic share	$	2.47		$	2.92		$	0.97
Weighted average number of basic shares		19,148			19,013			18,901

CONSOLIDATED STATEMENTS OF EARNINGS

~~The~~(in ~~accompanying~~thousands, ~~notes~~except ~~are~~per anshare ~~integral part of these statements.~~information)

F-6

	Fiscal year ended
	September 30,			September 24,			September 25,
	2023			2022			2021
	(53 weeks)			(52 weeks)			(52 weeks)

Net Sales	$	1,558,829		$	1,380,656		$	1,144,579
Cost of goods sold		1,088,964			1,011,014			845,651
Gross Profit		469,865			369,642			298,928

Operating expenses
Marketingand selling		110,258			91,636			77,922
Distribution		172,804			159,637			108,297
Administrative		75,425			55,189			40,538
Intangible asset impairment charges		1,678			1,010			1,273
Other expense (income)		182			371			(320	)
Total operating expenses		360,347			307,843			227,710
Operating Income		109,518			61,799			71,218

Other income (expenses)
Investment income		2,743			980			2,815
Interest expense		(4,747	)		(1,025	)		(7	)

Earnings before income taxes		107,514			61,754			74,026

Income taxes		28,608			14,519			18,419

NET EARNINGS	$	78,906		$	47,235		$	55,607

Earnings per diluted share	$	4.08		$	2.46		$	2.91

Weighted average number of diluted shares		19,324			19,213			19,133

Earnings per basic share	$	4.10		$	2.47		$	2.92

Weighted average number of basic shares		19,257			19,148			19,013

~~J&J~~The ~~SNACK~~accompanying ~~FOODS~~notes ~~CORP.~~are ~~AND~~an ~~SUBSIDIARIES~~integral ~~CONSOLIDATED~~part ~~STATEMENTS~~of OFthese ~~COMPREHENSIVE INCOME (in thousands)~~statements.

	Fiscal Year Ended
	September 24,			September 25,		September 26,
	2022			2021		2020
	(52 weeks)			(52 weeks)		(52 weeks)
Net Earnings	$	47,235		$	55,607	$	18,305
Foreign currency translation adjustments		(330	)		2,204		(2,599	)
Total Other Comprehensive (Loss) Income, net of tax		(330	)		2,204		(2,599	)
Comprehensive Income	$	46,905		$	57,811	$	15,706

F - 6

~~The~~J&J ~~accompanying~~SNACK ~~notes~~FOODS ~~are~~CORP. anAND ~~integral part of these statements.~~SUBSIDIARIES

~~F-7~~ CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

~~J & J SNACK FOODS CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY~~ (in thousands)

							Accumulated
	Fiscal year ended
							Other
	September 30,			September 24,			September 25,
	Common Stock						Comprehensive			Retained
	2023			2022			2021
	Shares			Amount			Loss			Earnings			Total
	(53 weeks)			(52 weeks)			(52 weeks)
Balance at September 28, 2019		18,895		$	45,744		$	(12,988	)	$	800,995		$	833,751
Net Earnings	$	78,906		$	47,235		$	55,607
Issuance of common stock upon exercise of stock options		73			6,406			-			-			6,406
Foreign currency translation adjustments		3,547			(330	)		2,204
Issuance of common stock for employee stock purchase plan		12			1,495			-			-			1,495
Total other comprehensive income (loss), net of tax		3,547			(330	)		2,204
Foreign currency translation adjustment		-			-			(2,599	)		-			(2,599	)
Comprehensive Income	$	82,453		$	46,905		$	57,811
Issuance of common stock under deferred stock plan		1			91			-			-			91
Dividends declared		-			-			-			(43,483	)		(43,483	)
Share-based compensation		-			4,504			-			-			4,504
Repurchase of common stock		(66	)		(8,972	)		-			-			(8,972	)
Net earnings		-			-			-			18,305			18,305
Balance as September 26, 2020		18,915		$	49,268		$	(15,587	)	$	775,817		$	809,498
Issuance of common stock upon exercise of stock options		158			18,739			-			-			18,739
Issuance of common stock for employee stock purchase plan		11			1,391			-			-			1,391
Foreign currency translation adjustment		-			-			2,204			-			2,204
Dividends declared		-			-			-			(45,984	)		(45,984	)
Share-based compensation		-			4,199			-			-			4,199
Net earnings		-			-			-			55,607			55,607
Balance as September 25, 2021		19,084		$	73,597		$	(13,383	)	$	785,440		$	845,654
Issuance of common stock upon exercise of stock options		119			14,124			-			-			14,124
Issuance of common stock for employee stock purchase plan		16			2,036			-			-			2,036
Foreign currency translation adjustment		-			-			(330	)		-			(330	)
Dividends declared		-			-			-			(49,819	)		(49,819	)
Share-based compensation		-			4,269			-			-			4,269
Net earnings		-			-			-			47,235			47,235
Balance as September 24, 2022		19,219		$	94,026		$	(13,713	)	$	782,856		$	863,169

The accompanying notes are an integral part of these statements.

F -8 7

J & J SNACK FOODS CORP. AND SUBSIDIARIES ~~CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)~~

	Fiscal Year Ended
	September 24,			September 25,			September 26,
	2022			2021			2020
	(52 weeks)			(52 weeks)			(52 weeks)
Operating activities:
Net earnings	$	47,235		$	55,607		$	18,305
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation of fixed assets		49,669			46,781			49,830
Amortization of intangibles and deferred costs		3,454			2,610			3,218
Intangible asset impairment charges		1,010			1,273			-
Losses (Gains) from disposals of property & equipment		220			(231	)		(303	)
Plant shutdown impairment costs		-			-			6,387
Share-based compensation		4,269			4,199			4,595
Deferred income taxes		8,829			(2,896	)		2,622
Loss (Gain) on marketable securities		315			(1,026	)		882
Other		(95	)		77			296
Changes in assets and liabilities, net of effects from purchase of companies
(Increase) decrease in accounts receivable		(32,778	)		(35,755	)		14,580
(Increase) decrease in inventories		(49,431	)		(14,155	)		7,877
(Increase) decrease in prepaid expenses		(9,343	)		9,629			(11,366	)
Increase (decrease) in accounts payable and accrued		2,708			35,386			(4,780	)
Net cash provided by operating activities		26,062			101,499			92,143
Investing activities:
Payments for purchases of companies, net of cash acquired		(221,301	)		-			(57,212	)
Purchases of property, plant and equipment		(87,291	)		(53,578	)		(57,817	)
Purchases of marketable securities		-			-			(6,103	)
Proceeds from redemption and sales of marketable securities		12,026			60,891			73,226
Proceeds from disposal of property and equipment		399			2,435			3,593
Other		-			191			(150	)
Net cash (used in) provided by investing activities		(296,167	)		9,939			(44,463	)
Financing activities:
Payments to repurchase common stock		-			-			(8,972	)
Proceeds from issuance of stock		16,160			20,256			7,901
Borrowings under credit facility		125,000			-			-
Repayment of borrowings under credit facility		(70,000	)		-			-
Payments for debt issuance costs		(225	)		-			-
Payments on finance lease obligations		(279	)		(144	)		(340	)
Payment of cash dividends		(48,437	)		(44,785	)		(42,053	)
Net cash provided by (used in) financing activities		22,219			(24,673	)		(43,464	)
Effect of exchange rates on cash and cash equivalents		(125	)		618			(802	)
Net (decrease) increase in cash and cash equivalents		(248,011	)		87,383			3,414
Cash and cash equivalents at beginning of period		283,192			195,809			192,395
Cash and cash equivalents at end of period	$	35,181		$	283,192		$	195,809

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

~~The~~(in ~~accompanying notes are an integral part of these statements.~~thousands)

F-9

				Accumulated
	Common			Other
	Stock			Comprehensive			Retained
	Shares	Amount		Loss			Earnings			Total

Balance as September 26, 2020	18,915	$	49,268	$	(15,587	)	$	775,817		$	809,498

Issuance of common stock upon exercise of stock options	158		18,739		-			-			18,739
Issuance of common stock for employee stock purchase plan	11		1,391		-			-			1,391
Foreign currency translation adjustment	-		-		2,204			-			2,204
Dividends declared	-		-		-			(45,984	)		(45,984	)
Share-based compensation	-		4,199		-			-			4,199
Net earnings	-		-		-			55,607			55,607
Balance as September 25, 2021	19,084	$	73,597	$	(13,383	)	$	785,440		$	845,654

Issuance of common stock upon exercise of stock options	119		14,124		-			-			14,124
Issuance of common stock for employee stock purchase plan	16		2,036		-			-			2,036
Foreign currency translation adjustment	-		-		(330	)		-			(330	)
Dividends declared	-		-		-			(49,819	)		(49,819	)
Share-based compensation	-		4,269		-			-			4,269
Net earnings	-		-		-			47,235			47,235
Balance as September 24, 2022	19,219	$	94,026	$	(13,713	)	$	782,856		$	863,169

Issuance of common stock upon exercise of stock options	96		13,111		-			-			13,111
Issuance of common stock for employee stock purchase plan	17		2,101		-			-			2,101
Foreign currency translation adjustment	-		-		3,547			-			3,547
Dividends declared	-		-		-			(54,634	)		(54,634	)
Share-based compensation	-		5,318		-			-			5,318
Net earnings	-		-		-			78,906			78,906
Balance as September 30, 2023	19,332	$	114,556	$	(10,166	)	$	807,128		$	911,518

JThe &accompanying Jnotes ~~SNACK~~are ~~FOODS~~an ~~CORP.~~integral ~~AND~~part ~~SUBSIDIARIES~~of these statements.

~~NOTES~~F TO- ~~CONSOLIDATED FINANCIAL STATEMENTS~~8

~~NOTE~~J A& –J ~~SUMMARY~~SNACK OFFOODS ~~SIGNIFICANT~~CORP. ~~ACCOUNTING~~AND ~~POLICIES~~SUBSIDIARIES

JCONSOLIDATED &STATEMENTS JOF ~~Snack~~CASH Foods Corp. and Subsidiaries (the Company) manufactures, markets and distributes a variety of nutritional snack foods and beverages to the food service and retail supermarket industries. A summary of the significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows. Our fiscal years 2022, 2021 and 2020 comprise 52 weeks.FLOWS

1.(in ~~Principles of Consolidation~~thousands)

The consolidated financial statements were prepared in accordance with U.S. GAAP. These financial statements include the accounts of J & J Snack Foods Corp. and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in the consolidated financial statements.

	Fiscal year ended
	September 30,			September 24,			September 25,
	2023			2022			2021
	(53 weeks)			(52 weeks)			(52 weeks)

Operating activities:
Net earnings	$	78,906		$	47,235		$	55,607
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation of fixed assets		56,616			49,669			46,781
Amortization of intangibles and deferred costs		6,525			3,454			2,610
Intangible asset impairment charges		1,678			1,010			1,273
(Gains) Losses from disposals of property & equipment		(409	)		220			(231	)
Share-based compensation		5,318			4,269			4,199
Deferred income taxes		10,935			8,829			(2,896	)
(Gain) Loss on marketable securities		(8	)		315			(1,026	)
Other		323			(95	)		77
Changes in assets and liabilities, net of effects from purchase of companies
Decrease (Increase) in accounts receivable		11,399			(32,778	)		(35,755	)
Decrease (Increase) in inventories		9,475			(49,431	)		(14,155	)
Decrease (Increase) in prepaid expenses		5,924			(9,343	)		9,629
(Decrease) Increase in accounts payable and accrued liabilities		(14,403	)		2,708			35,386
Net cash provided by operating activities		172,279			26,062			101,499

Investing activities:
Payments for purchases of companies, net of cash acquired		-			(221,301	)		-
Purchases of property, plant and equipment		(104,737	)		(87,291	)		(53,578	)
Proceeds from redemption and sales of marketable securities		9,716			12,026			60,891
Proceeds from disposal of property and equipment		1,781			399			2,435
Other		-			-			191
Net cash (used in) provided by investing activities		(93,240	)		(296,167	)		9,939

Financing activities:
Proceeds from issuance of stock		15,212			16,160			20,256
Borrowings under credit facility		114,000			125,000			-
Repayment of borrowings under credit facility		(142,000	)		(70,000	)		-
Payments for debt issuance costs		-			(225	)		-
Payments on finance lease obligations		(180	)		(279	)		(144	)
Payment of cash dividend		(53,877	)		(48,437	)		(44,785	)
Net cash (used in) provided by financing activities		(66,845	)		22,219			(24,673	)

Effect of exchange rates on cash and cash equivalents		2,206			(125	)		618

Net increase (decrease) in cash and cash equivalents		14,400			(248,011	)		87,383

Cash and cash equivalents at beginning of period		35,181			283,192			195,809

Cash and cash equivalents at end of period	$	49,581		$	35,181		$	283,192

2.The ~~Revenue~~accompanying ~~Recognition~~notes are an integral part of these statements.

WeF ~~recognize~~- ~~revenue in accordance with ASC 606, “Revenue from Contracts with Customers.”~~9

~~When~~J ~~Performance~~& ~~Obligations~~J ~~Are~~SNACK ~~Satisfied~~FOODS CORP. AND SUBSIDIARIES

ANOTES ~~performance~~TO ~~obligation~~CONSOLIDATED isFINANCIAL a promise in a contract to transfer a distinct good or service to the customer and is the unit of account for revenue recognition. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied.STATEMENTS

~~The~~NOTE ~~singular~~A ~~performance~~– ~~obligation~~SUMMARY ofOF ~~our~~SIGNIFICANT ~~customer~~ACCOUNTING contracts for product and machine sales is determined by each individual purchase order and the respective products ordered, with revenue being recognized at a point-in-time when the obligation under the terms of the agreement is satisfied and product control is transferred to our customer. Specifically, control transfers to our customers when the product is delivered to, installed or picked up by our customers based upon applicable shipping terms, as our customers can direct the use and obtain substantially all of the remaining benefits from the product at this point in time. The performance obligations in our customer contracts for product are generally satisfied within 30 days.POLICIES

~~The~~J ~~singular~~& ~~performance~~J ~~obligation~~Snack ofFoods ~~our~~Corp. ~~customer~~and ~~contracts~~Subsidiaries ~~for~~(“the ~~time~~Company”) manufactures, markets and ~~material~~distributes ~~repair~~a variety of nutritional snack foods and ~~maintenance~~beverages ~~equipment~~to ~~service~~the isfoodservice and retail supermarket industries. A summary of the ~~performance~~significant accounting policies consistently applied in the preparation of the ~~repair~~accompanying ~~and~~consolidated ~~maintenance~~financial ~~with~~statements ~~revenue~~follows. ~~being~~Our ~~recognized~~2023 atfiscal ayear ~~point~~comprises 53 weeks. All references to 2023 fiscal year refer to that 53-~~in-time~~week ~~when~~period. ~~the~~Fiscal ~~repair~~years 2022 and ~~maintenance~~2021 iscomprised ~~completed~~52 weeks.

~~F- 10~~ 1. Principles of Consolidation

The consolidated financial statements were prepared in accordance with U.S. GAAP. These financial statements include the accounts of J & J ~~SNACK~~Snack ~~FOODS~~Foods ~~CORP~~Corp. ~~AND~~and ~~SUBSIDIARIES~~its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in the consolidated financial statements.

~~NOTES~~2. TORevenue ~~CONSOLIDATED FINANCIAL STATEMENTS~~Recognition

~~The~~We ~~singular~~recognize ~~performance obligation of our customer repair and maintenance equipment service contracts is the performance of the repair and maintenance with~~ revenue ~~being recognized over the time the service is expected to be performed. Our customers are billed for service contracts~~ in ~~advance~~accordance ofwith ~~performance~~ASC ~~and~~606, ~~therefore~~“Revenue wefrom ~~have~~Contracts ~~contract~~with ~~liability on our balance sheet~~Customers.”

~~Significant~~When ~~Payment~~Performance ~~Terms~~Obligations Are Satisfied

InA ~~general,~~performance ~~within~~obligation ~~our~~is ~~customer~~a ~~contracts,~~promise ~~the~~in ~~purchase~~a ~~order~~contract ~~identifies~~to ~~the~~transfer ~~product,~~a ~~quantity,~~distinct ~~price,~~good ~~pick-up~~or ~~allowances,~~service ~~payment~~to ~~terms~~the customer and ~~final~~is ~~delivery terms. Although some payment terms may be more extended, presently~~ the ~~majority~~unit of ~~our~~account ~~payment~~for ~~terms~~revenue ~~are 30 days~~recognition. AsA acontract’s ~~result,~~transaction weprice ~~have~~is ~~used~~allocated ~~the~~to ~~available~~each ~~practical~~distinct ~~expedient~~performance obligation and, ~~consequently,~~recognized doas ~~not~~revenue ~~adjust~~when, ~~our~~or ~~revenues~~as, ~~for~~ the ~~effects~~performance ofobligation ais ~~significant financing component~~satisfied.

~~Shipping~~The singular performance obligation of our customer contracts for product and machine sales is determined by each individual purchase order and the respective products ordered, with revenue being recognized at a point-in-time when the obligation under the terms of the agreement is satisfied and product control is transferred to our customer. Specifically, control transfers to our customers when the product is delivered to, installed or picked up by our customers based upon applicable shipping terms, as our customers can direct the use and obtain substantially all of the remaining benefits from the product at this point in time. The performance obligations in our customer contracts for product are generally satisfied within 30 days.

~~All~~The ~~amounts~~singular ~~billed~~performance toobligation ~~customers~~of ~~related~~our tocustomer ~~shipping~~contracts ~~and~~for ~~handling~~time ~~are~~and ~~classified~~material asrepair ~~revenues; therefore, we recognize revenue for shipping~~ and ~~handling~~maintenance ~~fees~~equipment atservice ~~the~~is ~~time~~ the ~~products~~performance ~~are shipped or when services are performed. The cost~~ of ~~shipping~~the ~~products~~repair toand ~~the~~maintenance ~~customer~~with isrevenue being recognized at ~~the~~a point-in-time ~~the~~when ~~products are shipped to~~ the ~~customer~~repair and ~~our~~maintenance ~~policy~~ is ~~to classify them as Distribution expenses~~completed.

~~Variable~~The ~~Consideration~~singular performance obligation of our customer repair and maintenance equipment service contracts is the performance of the repair and maintenance with revenue being recognized over the time the service is expected to be performed. Our customers are billed for service contracts in advance of performance and therefore we have a contract liability on our balance sheet.

InSignificant ~~addition~~Payment to fixed contract consideration, our contracts include some form of variable consideration, including sales discounts, trade promotions and certain other sales and consumer incentives, including rebates and coupon redemptions. In general, variable consideration is treated as a reduction in revenue when the related revenue is recognized. Depending on the specific type of variable consideration, we use the most likely amount method to determine the variable consideration. We believe there will be no significant changes to our estimates of variable consideration when any related uncertainties are resolved with our customers. We review and update our estimates and related accruals of variable consideration each period based on historical experience. Our recorded liability for allowances, end-user pricing adjustments and trade spending was approximately $14.7 million at September 24, 2022 and $14.6 million at September 25, 2021.Terms

~~Warranties~~In &general, ~~Returns~~within our customer contracts, the purchase order identifies the product, quantity, price, pick-up allowances, payment terms and final delivery terms. Although some payment terms may be more extended, presently the majority of our payment terms are 30 days. As a result, we have used the available practical expedient and, consequently, do not adjust our revenues for the effects of a significant financing component.

WeF ~~provide all customers with a standard or assurance type warranty. Either stated or implied, we provide assurance the related products will comply with all agreed~~-~~upon~~ ~~specifications and other warranties provided under the law. No services beyond an assurance warranty are provided to our customers.~~10

~~F- 11~~ J & J SNACK FOODS CORP. AND SUBSIDIARIES

JNOTES &TO JCONSOLIDATED ~~SNACK~~FINANCIAL ~~FOODS CORP. AND SUBSIDIARIES~~STATEMENTS

~~NOTES~~Shipping ~~TO CONSOLIDATED FINANCIAL STATEMENTS~~

WeAll doamounts ~~not~~billed ~~grant~~to acustomers ~~general~~related ~~right~~to ofshipping ~~return.~~and ~~However~~handling are classified as revenues; therefore, ~~customers may~~we ~~return~~recognize ~~defective~~revenue orfor ~~non-conforming~~shipping ~~products.~~and ~~Customer~~handling ~~remedies may~~fees ~~include~~at ~~either~~the atime ~~cash~~the ~~refund~~products are shipped or anwhen ~~exchange~~services are performed. The cost of ~~the~~shipping ~~product.~~products Weto dothe ~~not~~customer ~~estimate~~is arecognized ~~right~~at ofthe ~~return~~time ~~and~~the ~~related~~products ~~refund~~are ~~liability~~shipped asto ~~returns~~the ofcustomer and our ~~products~~policy ~~are~~is ~~rare~~to classify them as Distribution expenses.

~~Contract~~Variable ~~Balances~~Consideration

~~Our~~In ~~customers~~addition ~~are~~to ~~billed~~fixed ~~for~~contract ~~service~~consideration, our contracts ininclude ~~advance~~some form of ~~performance~~variable consideration, including sales discounts, trade promotions and ~~therefore~~certain weother ~~have~~sales ~~contract~~and ~~liability~~consumer incentives, including rebates and coupon redemptions. In general, variable consideration is treated as a reduction in revenue when the related revenue is recognized. Depending on the specific type of variable consideration, we use the most likely amount method to determine the variable consideration. We believe there will be no significant changes to our ~~balance~~estimates ~~sheet~~of asvariable ~~follows:~~consideration when any related uncertainties are resolved with our customers. We review and update our estimates and related accruals of variable consideration each period based on historical experience. Our recorded liability for allowances, end-user pricing adjustments and trade spending was approximately $18.9 million at September 30, 2023 and $14.7 million at September 24, 2022.

	Fiscal Year Ended
	September 24,			September 25,
	2022			2021
	(in thousands)
Beginning Balance	$	1,097		$	1,327
Additions to contract liability		9,163			5,544
Amounts recognized as revenue		(5,334	)		(5,774	)
Ending Balance	$	4,926		$	1,097

Warranties & Returns

~~Disaggregation~~We ofprovide ~~Revenue~~all customers with a standard or assurance type warranty. Either stated or implied, we provide assurance the related products will comply with all agreed-upon specifications and other warranties provided under the law. No services beyond an assurance warranty are provided to our customers.

~~See~~We ~~Note~~do Nnot ~~for~~grant ~~disaggregation~~a general right of ~~our~~return. ~~net~~However, ~~sales~~customers bymay ~~class~~return defective or non-conforming products. Customer remedies may include either a cash refund or an exchange of ~~similar~~the product. We do not estimate a right of return and ~~type~~related refund liability as returns of ~~customer~~our products are rare.

~~Allowance~~Contract ~~for Doubtful Receivables~~ Balances

~~The~~Our ~~Company continuously monitors collections and payments from its~~ customers ~~and~~are ~~maintains~~billed ~~a provision~~ for ~~estimated~~service ~~credit~~contracts ~~losses.~~in ~~The~~advance ~~allowance for doubtful accounts considers a number~~ of ~~factors~~performance ~~including the age of receivable balances, the history of losses, expectations of future credit losses~~ and ~~the~~therefore ~~customers’~~we ~~ability~~have toa ~~pay~~contract ~~off~~liability ~~obligations. The allowance for doubtful receivables was $2.2 million and $1.4 million~~ on ~~September~~ ~~24,~~our ~~2022~~balance ~~and September~~sheet ~~25,~~as ~~2021, respectively.~~follows:

3. Foreign Currency

	Fiscal year ended
	September 30,			September 24,
	2023			2022
	(in thousands)

Beginning Balance	$	4,926		$	1,097
Additions to contract liability		6,802			9,163
Amounts recognized as revenue		(6,422	)		(5,334	)
Ending Balance	$	5,306		$	4,926

~~Assets~~Disaggregation ~~and liabilities in foreign currencies are translated into U.S. dollars at the rate~~ of exchange prevailing at the balance sheet date. Revenues and expenses are translated at the average rate of exchange for the period. The cumulative translation adjustment is recorded as a separate component of stockholders’ equity and changes to such are included in comprehensive income.Revenue

~~F- 12~~ See Note N for disaggregation of our net sales by class of similar product and type of customer.

JF &- ~~J SNACK FOODS CORP. AND SUBSIDIARIES~~11

~~NOTES~~J TO& ~~CONSOLIDATED~~J ~~FINANCIAL~~SNACK ~~STATEMENTS~~FOODS CORP. AND SUBSIDIARIES

4.NOTES ~~Use~~TO ofCONSOLIDATED ~~Estimates~~FINANCIAL STATEMENTS

InAllowance ~~preparing~~for ~~financial~~Estimated ~~statements~~Credit inLosses conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

5The Company continuously monitors collections and payments from its customers and maintains a provision for estimated credit losses. ~~Cash~~The ~~Equivalents~~allowance for estimated credit losses considers a number of factors including the age of receivable balances, the history of losses, expectations of future credit losses and the customers’ ability to pay off obligations. The allowance for estimated credit losses was $3.2 million and $2.2 million on September 30, 2023 and September 24, 2022, respectively.

~~Cash~~3. ~~equivalents~~Foreign ~~are short-term, highly liquid investments with original maturities of three months or less.~~Currency

6Assets and liabilities in foreign currencies are translated into U.S. ~~Concentrations~~dollars at the rate of exchange prevailing at the balance sheet date. Revenues and ~~related~~expenses ~~risks~~are translated at the average rate of exchange for the period. The cumulative translation adjustment is recorded as a separate component of stockholders’ equity and changes to such are included in comprehensive income.

~~We maintain cash balances at financial institutions located in various states~~4. WeUse ~~have cash balances at six banks totaling approximately $13 million that is in excess~~ of ~~federally insured limits.~~Estimates

~~Financial~~In ~~instruments~~preparing ~~that~~financial ~~could~~statements ~~potentially~~in ~~subject~~conformity uswith toaccounting ~~concentrations~~principles ofgenerally ~~credit~~accepted ~~risk~~in ~~are~~the ~~trade~~United ~~accounts~~States ~~receivable;~~of ~~however~~America, ~~such~~management ~~risks~~is ~~are~~required ~~limited~~to ~~due~~make toestimates ~~the~~and ~~large~~assumptions ~~number~~that ofaffect ~~customers~~the ~~comprising~~reported ~~our~~amounts ~~customer~~of ~~base~~assets and ~~their~~liabilities, ~~dispersion~~the ~~across~~disclosure ~~geographic~~of ~~regions.~~contingent Weassets ~~have~~and ~~approximately~~liabilities 33at ~~customers~~the ~~with~~date ~~accounts receivable balances~~ of ~~between~~the $1financial ~~million~~statements, and ~~$10~~the ~~million~~reported ~~and~~amounts ~~five~~of ~~customers~~revenues ~~with~~and aexpenses ~~balance~~during ~~greater~~the ~~than~~reporting ~~$10~~period. ~~million,~~Actual ~~with~~results ~~the~~could ~~largest~~differ ~~being~~from ~~approximately~~those ~~$23 million~~estimates.

~~We have several large customers that account for a significant portion of our sales~~5. ~~Our~~Cash top ten customers accounted for 43%, 43% and 43% of our sales during fiscal years 2022, 2021 and 2020, respectively, with our largest customer accounting for 8% of our sales in 2022, 11% of our sales in 2021 and 13% of our sales in 2020. Six of the ten customers are food distributors who sell our product to many end users.Equivalents

~~About~~Cash ~~26%~~equivalents ofare ~~our~~short-term, ~~employees~~highly ~~are~~liquid ~~covered~~investments bywith ~~collective~~original ~~bargaining~~maturities ~~agreements~~of three months or less.

~~None~~6. ofConcentrations ~~our vendors supplied more than 10% of our ingredients~~ and ~~packaging~~related ~~in 2022, 2021 or 2020.~~risks

~~Virtually~~We ~~all~~maintain ofcash ~~our~~balances ~~accounts~~at ~~receivable are due from trade customers. Credit is extended based on evaluation of our customers’~~ financial ~~condition~~institutions ~~and~~located ~~collateral~~in isvarious ~~not required~~states. ~~Accounts~~We ~~receivable~~have ~~payment~~cash ~~terms~~balances ~~vary and are stated in the financial statements~~ at ~~amounts~~six ~~due~~banks ~~from~~totaling ~~customers~~approximately ~~net of an allowance for doubtful accounts. At September 24, 2022 and September 25, 2021, our accounts receivables were~~ $~~208.2~~14 million ~~and~~that ~~$162.9~~is ~~million,~~in ~~net~~excess of anfederally ~~allowance~~insured ~~for doubtful accounts of $2~~limits.2 million and $1.4 million. Accounts receivable outstanding longer than the payment terms are considered past due. We determine our allowance by considering a number of factors, including the length of time trade accounts receivable are past due, our previous loss history, customers’ current ability to pay their obligations to us, and the condition of the general economy and the industry as a whole. We write off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts.

7Financial instruments that could potentially subject us to concentrations of credit risk are trade accounts receivable; however, such risks are limited due to the large number of customers comprising our customer base and their dispersion across geographic regions. ~~Inventories~~We have approximately 31 customers with accounts receivable balances of between $1 million and $10 million and five customers with a balance greater than $10 million, with the largest being approximately $24 million.

~~Inventories~~We ~~are~~have ~~valued~~several atlarge ~~the~~customers ~~lower~~that ofaccount ~~cost~~for ~~(determined~~a bysignificant ~~the~~portion ~~first-in,~~of ~~first-out~~our ~~method) or net realizable value~~sales. WeOur ~~recognize~~top ~~abnormal~~ten ~~amounts~~customers ofaccounted ~~idle~~for ~~facilities~~43%, ~~freight,~~43% ~~handling costs,~~ and ~~spoilage as~~43% ~~charges~~ of ~~the current period. Additionally, we allocate fixed production overhead to inventories based on the normal capacity of~~ our ~~production~~sales ~~facilities.~~during Wefiscal ~~calculate~~years ~~normal~~2023, ~~capacity~~2022 asand ~~the~~2021, ~~production expected to be achieved over a number of periods or seasons under normal circumstances~~respectively, ~~taking~~with ~~into~~our ~~account~~largest ~~the~~customer ~~loss~~accounting offor ~~capacity~~9% ~~resulting from planned maintenance. This requires us to use judgment to determine when production is outside the range~~ of ~~expected~~our ~~variation~~sales in ~~production~~2023, ~~(either~~8% ~~abnormally low or abnormally high). In periods~~ of ~~abnormally~~our ~~low~~sales ~~production (for example, periods~~ in ~~which~~2022 ~~there is significantly lower demand, labor~~ and ~~material~~11% ~~shortages exist, or there is unplanned equipment downtime) the amount~~ of ~~fixed~~our ~~overhead~~sales ~~allocated~~in ~~to each unit of production is not increased~~2021. ~~However,~~Five ~~in periods~~ of ~~abnormally high production~~ the ~~amount~~ten ofcustomers ~~fixed~~are ~~overhead~~food ~~allocated~~distributors towho ~~each~~sell ~~unit~~our ofproduct ~~production is decreased~~ to ~~assure~~many ~~inventories~~end ~~are not measured above cost~~users.

~~F- 13~~ About 28% of our employees are covered by collective bargaining agreements.

JNone &of Jour ~~SNACK~~vendors ~~FOODS~~supplied ~~CORP.~~more ~~AND~~than ~~SUBSIDIARIES~~10% of our ingredients and packaging in 2023, 2022 or 2021.

~~NOTES~~F TO- ~~CONSOLIDATED FINANCIAL STATEMENTS~~12

8J & J SNACK FOODS CORP. ~~Investment~~AND ~~Securities~~SUBSIDIARIES

WeNOTES ~~classify~~TO ~~our~~CONSOLIDATED ~~investment~~FINANCIAL securities in one of three categories: held to maturity, trading, or available for sale. Our investment portfolio at September 24, 2022 consists of investments classified as held to maturity and available for sale. The securities that we have the positive intent and ability to hold to maturity are classified as held to maturity and are stated at amortized cost. Investments classified as available for sale are reported at fair market value with unrealized gains and losses related to the changes in fair value of the securities recognized in investment income. The mutual funds and preferred stock in our available for sale portfolio do not have contractual maturities; however, we classify them as long-term assets as it is our intent to hold them for a period of over one year, although we may sell some or all of them depending on presently unanticipated needs for liquidity or market conditions. See Note C for further information on our holdings of investment securities.STATEMENTS

9Virtually all of our accounts receivable are due from trade customers. ~~Depreciation~~Credit is extended based on evaluation of our customers’ financial condition and ~~Amortization~~collateral is not required. Accounts receivable payment terms vary and are stated in the financial statements at amounts due from customers net of an allowance for estimated credit losses. At September 30, 2023 and September 24, 2022, our accounts receivables were $198.1 million and $208.2 million, net of an allowance for estimated credit losses of $3.2 million and $2.2 million. Accounts receivable outstanding longer than the payment terms are considered past due. We determine our allowance by considering a number of factors, including the length of time trade accounts receivable are past due, our previous loss history, customers’ current ability to pay their obligations to us, and the condition of the general economy and the industry as a whole. We write off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for estimated credit losses.

~~Depreciation of equipment and buildings is provided for by the straight-line method over the assets’ estimated useful lives~~7. ~~We review our equipment and buildings to ensure that they provide economic benefit and are not impaired.~~Inventories

~~Amortization~~Inventories ofare ~~leasehold~~valued ~~improvements~~at isthe ~~provided~~lower ~~for~~of cost (determined by the ~~straight~~first-~~line~~in, first-out method) ~~over~~or net realizable value. We recognize abnormal amounts of idle facilities, freight, handling costs, and spoilage as charges of the ~~term~~current period. Additionally, we allocate fixed production overhead to inventories based on the normal capacity of our production facilities. We calculate normal capacity as the ~~lease~~production expected to be achieved over a number of periods or seasons under normal circumstances, taking into account the ~~assets’~~loss ~~estimated~~of ~~useful~~capacity ~~lives,~~resulting ~~whichever~~from planned maintenance. This requires us to use judgment to determine when production is ~~shorter~~outside the range of expected variation in production (either abnormally low or abnormally high). ~~Licenses~~In ~~and~~periods ~~rights,~~of ~~customer~~abnormally ~~relationships,~~low ~~technology~~production (for example, ~~non-compete~~periods ~~agreements~~in which there is significantly lower demand, labor and ~~franchise~~material ~~agreements~~shortages ~~and~~exist, ~~certain~~or ~~tradenames~~there ~~are~~is ~~being~~unplanned ~~amortized~~equipment bydowntime) the ~~straight-line~~amount ~~method~~of ~~over~~fixed overhead allocated to each unit of production is not increased. However, in periods ~~ranging~~of ~~from~~abnormally 2high toproduction 20the ~~years~~amount ~~and~~of ~~amortization~~fixed ~~expense~~overhead allocated to each unit of production is ~~reflected~~decreased ~~throughout~~to ~~operating~~assure ~~expenses~~inventories are not measured above cost.

Long-lived assets, including fixed assets and amortizing intangibles, are reviewed for impairment as events or changes in circumstances occur indicating that the carrying amount of the asset may not be recoverable8. ~~Indefinite~~Investment lived intangibles are reviewed annually for impairment. Cash flow and sales analyses are used to assess impairment. The estimates of future cash flows and sales involve considerable management judgment and are based upon assumptions about expected future operating performance. Assumptions used in these forecasts are consistent with internal planning. The actual cash flows and sales could differ from management’s estimates due to changes in business conditions, operating performance, economic conditions, competition, and consumer preferences.Securities

10We classify our investment securities in one of three categories: held to maturity, trading, or available for sale. ~~Fair~~We ~~Value~~held no investment securities at September 30, 2023. Our investment portfolio at September 24, 2022 consisted of ~~Financial~~investments ~~Instruments~~classified as held to maturity and available for sale. The securities that we have the positive intent and ability to hold to maturity are classified as held to maturity and are stated at amortized cost. Investments classified as available for sale are reported at fair market value with unrealized gains and losses related to the changes in fair value of the securities recognized in investment income. The mutual funds and preferred stock in our available for sale portfolio do not have contractual maturities; however, we classify them as long-term assets as it is our intent to hold them for a period of over one year, although we may sell some or all of them depending on presently unanticipated needs for liquidity or market conditions. See Note C for further information on our holdings of investment securities.

~~The~~9. ~~carrying~~Depreciation ~~value of our short-term financial instruments, such as accounts receivables~~ and ~~accounts payable, approximate their fair values, based on the short-term maturities of these instruments.~~Amortization

FDepreciation of equipment and buildings is provided for by the straight- 14 line method over the assets’ estimated useful lives. We review our equipment and buildings to ensure that they provide economic benefit and are not impaired.

JAmortization &of Jleasehold ~~SNACK~~improvements ~~FOODS~~is ~~CORP~~provided for by the straight-line method over the term of the lease or the assets’ estimated useful lives, whichever is shorter. ~~AND~~Licenses ~~SUBSIDIARIES~~and rights, customer relationships, technology, non-compete agreements, and franchise agreements and certain tradenames are being amortized by the straight-line method over periods ranging from 2 to 20 years and amortization expense is reflected throughout operating expenses.

~~NOTES~~F TO- ~~CONSOLIDATED FINANCIAL STATEMENTS~~13

11J & J SNACK FOODS CORP. ~~Income~~AND ~~Taxes~~SUBSIDIARIES

WeNOTES ~~account~~TO ~~for~~CONSOLIDATED ~~our~~FINANCIAL income taxes under the liability method. Under the liability method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Deferred tax expense is the result of changes in deferred tax assets and liabilities.STATEMENTS

~~Additionally~~Long-lived assets, weincluding ~~recognize~~fixed aassets ~~liability~~and amortizing intangibles, are reviewed for ~~income~~impairment ~~taxes~~as ~~and~~events ~~associated~~or ~~penalties~~changes ~~and~~in ~~interest~~circumstances occur indicating that the carrying amount of the asset may not be recoverable. Indefinite lived intangibles are reviewed annually for ~~tax~~impairment. ~~positions~~Cash ~~taken or~~flow ~~expected~~and sales analyses are used to beassess ~~taken~~impairment. inThe aestimates ~~tax~~of ~~return~~future ~~which~~cash flows and sales involve considerable management judgment and are ~~more~~based ~~likely~~upon ~~than~~assumptions ~~not~~about toexpected befuture ~~overturned~~operating byperformance. ~~taxing~~Assumptions ~~authorities~~used ~~(“uncertain~~in ~~tax~~these ~~positions”)~~forecasts are consistent with internal planning. WeThe ~~have~~actual ~~not~~cash ~~recognized~~flows aand ~~tax~~sales ~~benefit~~could differ from management’s estimates due to changes in ~~our~~business ~~financial~~conditions, ~~statements for~~operating ~~these~~performance, ~~uncertain~~economic ~~tax~~conditions, ~~positions~~competition, and consumer preferences.

~~As of September 24, 2022 and September 25, 2021, the total amount of gross unrecognized tax benefits is $0~~10.3 ~~million~~Fair ~~and~~Value ~~$0.3 million, respectively, all~~ of ~~which~~Financial would impact our effective tax rate over time, if recognized. We recognize interest and penalties related to income tax matters as a part of the provision for income taxes. As of September 24, 2022 and September 25, 2021, we had $0.3 million of accrued interest and penalties. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:Instruments

	(in thousands)
Balance at September 25, 2021	$	343
Additions based on tax positions related to the current year		-
Reductions for tax positions of prior years		-
Settlements		-
Balance at September 24, 2022	$	343

The carrying value of our short-term financial instruments, such as accounts receivables and accounts payable, approximate their fair values, based on the short-term maturities of these instruments.

~~In addition to our federal tax return and tax returns for Mexico and Canada, we file tax returns in all states that have a corporate income tax~~11. ~~Virtually~~Income ~~all the returns noted above are open for examination for three to four years.~~Taxes

~~Our~~We ~~effective~~account ~~tax~~for ~~rate~~our inincome ~~fiscal~~taxes ~~2022~~under ~~was~~the 23liability method.~~5%.~~ ~~Our~~Under ~~effective~~the ~~tax~~liability ~~rate~~method, indeferred ~~our~~tax ~~fiscal~~assets ~~2021~~and ~~year~~liabilities ~~was~~are ~~24.9%.~~determined ~~Net~~based ~~earnings~~on ~~for~~ the ~~2020~~difference ~~year~~between ~~benefited~~the ~~from~~financial astatement ~~reduction~~and intax ~~income~~bases ~~tax~~of ~~expense~~assets ~~related~~and toliabilities ~~state~~as ~~deferred~~measured ~~taxes~~by ~~and~~the ~~provision~~enacted totax ~~return~~rates ~~adjustments~~that ofwill ~~approximately~~be ~~$2.2~~in ~~million.~~effect ~~Excluding~~when these ~~benefits,~~differences ~~our~~reverse. ~~effective~~Deferred tax ~~rate~~expense inis ~~our~~the ~~fiscal~~result ~~2020~~of ~~year~~changes ~~was~~in 25deferred tax assets and liabilities.~~0%.~~

~~F- 15~~ Additionally, we recognize a liability for income taxes and associated penalties and interest for tax positions taken or expected to be taken in a tax return which are more likely than not to be overturned by taxing authorities (“uncertain tax positions”). We have not recognized a tax benefit in our financial statements for these uncertain tax positions.

JAs &of JSeptember ~~SNACK~~30, ~~FOODS~~2023 ~~CORP~~and September 24, 2022, the total amount of gross unrecognized tax benefits was $0.3 ~~AND~~million ~~SUBSIDIARIES~~and $0.3 million, respectively, all of which would impact our effective tax rate over time, if recognized. We recognize interest and penalties related to income tax matters as a part of the provision for income taxes. As of September 30, 2023 and September 24, 2022, we had $0.3 million of accrued interest and penalties. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	(in thousands)

Balance at September 24, 2022	$	343
Additions based on tax positions related to the current year		-
Reductions for tax positions of prior years		-
Settlements		-
Balance at September 30, 2023	$	343

12In addition to our federal tax return and tax returns for Mexico and Canada, we file tax returns in all states that have a corporate income tax. ~~Earnings~~Virtually ~~Per~~all ~~Common~~the ~~Share~~returns noted above are open for examination for three to four years.

~~Basic~~Our ~~earnings~~effective ~~per~~tax ~~common~~rate ~~share~~in ~~(EPS)~~fiscal ~~excludes~~2023 ~~dilution~~was ~~and~~26.6%. isOur ~~computed~~effective bytax ~~dividing~~rate ~~income~~in ~~available~~our tofiscal ~~common~~2022 ~~shareholders~~year bywas ~~the weighted average common shares outstanding during the period~~23.5% ~~Diluted EPS takes into consideration the potential dilution that could occur if securities (stock options) or other contracts to issue common stock were exercised~~ and ~~converted~~in ~~into~~fiscal ~~common~~2021 ~~stock~~was 24.9%.

~~Our~~F ~~calculation~~- ~~of EPS is as follows:~~14

	Fiscal Year Ended September 24, 2022
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net earnings available to common stockholders	$	47,235		19,148	$	2.47
Effect of dilutive securities
Options	$	-		65		(0.01	)
Diluted EPS
Net earnings available to common stockholders plus assumed conversions	$	47,235		19,213	$	2.46

J & J SNACK FOODS CORP. AND SUBSIDIARIES

~~287,558~~NOTES ~~anti-dilutive~~TO ~~shares~~CONSOLIDATED ~~have~~FINANCIAL ~~been excluded in the computation of 2022 diluted EPS.~~STATEMENTS

	Fiscal Year Ended September 25, 2021
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net earnings available to common stockholders	$	55,607		19,013	$	2.92
Effect of dilutive securities
Options	$	-		120		(0.01	)
Diluted EPS
Net earnings available to common stockholders plus assumed conversions	$	55,607		19,133	$	2.91

12.

Earnings Per Common Share

~~284,480~~Basic ~~anti-dilutive~~earnings ~~shares~~per ~~have~~common ~~been~~share ~~excluded~~(“EPS”) inexcludes dilution and is computed by dividing income available to common shareholders by the ~~computation~~weighted ofaverage ~~2021~~common ~~diluted~~shares outstanding during the period. Diluted EPS takes into consideration the potential dilution that could occur if securities (stock options) or other contracts to issue common stock were exercised and converted into common stock.

~~F- 16~~ Our calculation of EPS is as follows:

J & J SNACK FOODS CORP. AND SUBSIDIARIES

	Fiscal year ended September 30, 2023
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net earnings available to common stockholders	$	78,906		19,257	$	4.10

Effect of dilutive securities
RSU's and options	$	-		67		(0.02	)

Diluted EPS
Net earnings available to common stockholders plus assumed conversions	$	78,906		19,324	$	4.08

~~NOTES~~252,044 TOanti-dilutive ~~CONSOLIDATED~~shares ~~FINANCIAL~~have ~~STATEMENTS~~been excluded in the computation of fiscal year 2023 diluted EPS.

	Fiscal Year Ended September 26, 2020
	Fiscal year ended September 24, 2022
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net earnings available to common stockholders	$	1847,~~305~~235		1819,~~901~~148	$	02.9747
Effect of dilutive securities
Options	$	-		131		(0.01	)
RSU's and options	$	-		65		(0.01	)
Diluted EPS
Net earnings available to common stockholders plus assumed conversions	$	1847,~~305~~235		19,~~032~~213	$	02.9646

~~341~~287,~~849~~558 anti-dilutive shares have been excluded in the computation of ~~2020~~fiscal year 2022 diluted EPS.

13. Accounting for Stock-Based Compensation

	Fiscal year ended September 25, 2021
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net earnings available to common stockholders	$	55,607		19,013	$	2.92

Effect of dilutive securities
RSU's and options	$	-		120		(0.01	)

Diluted EPS
Net earnings available to common stockholders plus assumed conversions	$	55,607		19,133	$	2.91

~~At September 24~~284,480 ~~2022,~~anti-dilutive ~~the~~shares ~~Company~~have ~~has~~been ~~three~~excluded ~~stock-based~~in ~~employee~~the ~~compensation~~computation ~~plans.~~of ~~Share-based~~fiscal ~~compensation~~year ~~was~~2021 ~~recognized~~diluted ~~as follows:~~EPS.

	Fiscal year ended
	September 24,		September 25,		September 26,
	2022		2021		2020
	(in thousands)
Stock options	$	2,407	$	2,265	$	2,874
Stock purchase plan		389		573		390
Stock issued to an outside director		-		44		66
Restricted stock issued to employees		538		93		-
Performance stock issued to employees		-		-		-
Total share-based compensation	$	3,334	$	2,975	$	3,330
The above compensation is net of tax benefits	$	935	$	1,224	$	1,265

F - 15

~~The~~J ~~fair~~& ~~value~~J ofSNACK ~~each~~FOODS option grant is estimated on the date of grant using the Black-Scholes options-pricing model with the following weighted average assumptions used for grants in fiscal 2022, 2021 and 2020: expected volatility of 25CORP.8% ~~for~~AND both fiscal years 2022 and 2021, and 17.4% for fiscal year 2020; weighted average risk-free interest rates of 0.8%, 0.8% and 0.3%; dividend rate of 1.6%, 1.4% and 1.8% and expected lives ranging between 4 and 10 years for all years.SUBSIDIARIES

~~F- 17~~ NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

J13. &Accounting Jfor ~~SNACK~~Stock-Based ~~FOODS CORP. AND SUBSIDIARIES~~Compensation

~~NOTES~~At TOSeptember ~~CONSOLIDATED~~30, ~~FINANCIAL~~2023, ~~STATEMENTS~~the Company has two stock-based employee compensation plans. Share-based compensation was recognized as follows:

Expected volatility is based on the historical volatility of the price of our common shares over the past 51 months for 5-year options and 10 years for 10-year options. We use historical information to estimate expected life and forfeitures within the valuation model. The expected term of awards represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Compensation cost is recognized using a straight-line method over the vesting or service period and is net of estimated forfeitures.

	Fiscal year ended
	September 30,		September 24,		September 25,
	2023		2022		2021
	(in thousands)

Stock options	$	1,882	$	2,407	$	2,265
Stock purchase plan		555		389		573
Stock issued to outside directors		106		-		44
Service share units issued to employees		1,043		538		93
Performance share units issued to employees		633		-		-
Total share-based compensation	$	4,219	$	3,334	$	2,975

The above compensation is net of tax benefits	$	1,099	$	935	$	1,224

The ~~Company~~fair ~~issued~~value ~~9,200~~of ~~service~~each ~~share~~option ~~units~~grant ~~(“RSU”)’s~~is inestimated ~~fiscal~~on ~~2022.~~the ~~Each~~date ~~RSU~~of ~~entitles~~grant using the ~~awardee~~Black-Scholes tooptions-pricing ~~one~~model. ~~share~~No grants of ~~common~~options ~~stock~~were ~~upon~~made ~~vesting~~in fiscal 2023. The ~~fair~~following ~~value~~weighted average assumptions were used for grants in fiscal 2022 and 2021: expected volatility of ~~the~~25.8% ~~RSU’s~~for ~~was~~both ~~determined~~fiscal ~~based~~years; ~~upon~~weighted ~~the~~average ~~closing~~risk-free ~~price~~interest rates of ~~the~~0.8% ~~Company’s~~for ~~common~~both ~~stock~~fiscal onyears; ~~the~~dividend ~~date~~rate of ~~grant~~1.6% Nofor ~~such~~fiscal ~~RSU’s~~2022 ~~were~~and ~~issued~~1.4% infor fiscal ~~2021or~~2021; and expected lives ranging between 4 and 10 years for both fiscal ~~2020~~years.

~~The~~Expected ~~Company~~volatility ~~also~~is ~~issued~~based ~~8,868~~on ~~performance~~the ~~share~~historical ~~units~~volatility ~~(“PSU”)’s~~of inthe ~~fiscal~~price ~~2022.~~of ~~Each~~our ~~PSU may~~common ~~result~~shares inover the ~~issuance~~past of51 upmonths tofor ~~two~~5-year ~~shares~~options ofand ~~common~~10 ~~stock~~years ~~upon~~for ~~vesting,~~10-year ~~dependent~~options. ~~upon~~We ~~the~~use ~~level~~historical ofinformation ~~achievement~~to ofestimate ~~the~~expected ~~applicable~~life ~~performance~~and ~~goal~~forfeitures within the valuation model. The ~~fair~~expected ~~value~~term of ~~the~~awards ~~PSU’s~~represents ~~was~~the ~~determined~~period ~~based~~of ~~upon~~time ~~the~~that ~~closing~~options ~~price~~granted ofare ~~the~~expected ~~Company’s~~to ~~common~~be ~~stock~~outstanding. onThe ~~the~~risk-free ~~date~~rate offor ~~grant.~~periods ~~Additionally,~~within the ~~Company~~expected ~~applies~~life aof ~~quarterly~~the ~~probability~~option ~~assessment~~is inbased ~~computing~~on ~~this~~the ~~non-cash~~U.S. ~~compensation~~Treasury ~~expense,~~yield ~~and~~curve ~~any~~in ~~change~~effect inat ~~estimate~~the istime ~~reflected~~of asgrant. aCompensation ~~cumulative~~cost ~~adjustment~~is torecognized ~~expense~~using ina ~~the~~straight-line ~~quarter~~method ofover the ~~change.~~vesting Noor ~~such~~service ~~PSU’s~~period ~~were~~and ~~issued~~is innet ~~fiscal~~of ~~2021~~estimated ~~or fiscal 2020~~forfeitures.

14The Company issued 21,864 service share units (“RSU”)’s in fiscal 2023 and 9,200 RSUs in fiscal 2022. ~~Advertising~~Each ~~Costs~~RSU entitles the awardee to one share of common stock upon vesting. The fair value of the RSU’s was determined based upon the closing price of the Company’s common stock on the date of grant. No such RSU’s were issued in fiscal 2021.

~~Advertising~~The ~~costs~~Company ~~are~~also ~~expensed~~issued as21,260 ~~incurred.~~performance ~~Total~~share ~~advertising~~units ~~expense~~(“PSU”)’s ~~was~~in ~~$7.0~~fiscal ~~million~~2023 and 8,868 $4PSUs in fiscal 2022.9 ~~million~~Each PSU may result in the issuance of up to two shares of common stock upon vesting, ~~and~~dependent $6upon the level of achievement of the applicable performance goal.5 ~~million~~The ~~for~~fair value of the ~~fiscal~~PSU’s ~~years~~was ~~2022~~determined based upon the closing price of the Company’s common stock on the date of grant. Additionally, ~~2021~~the ~~and~~Company ~~2020~~applies a quarterly probability assessment in computing this non-cash compensation expense, ~~respectively~~and any change in estimate is reflected as a cumulative adjustment to expense in the quarter of the change. No such PSU’s were issued in fiscal 2021.

1514. ~~Commodity~~Advertising ~~Price Risk Management~~Costs

~~Our~~Advertising ~~most~~costs ~~significant~~are ~~raw~~expensed ~~material~~as ~~requirements include flour, packaging, shortening, corn syrup, sugar, juice, cheese, chocolate, and a variety of nuts~~incurred. WeTotal ~~attempt~~advertising toexpense ~~minimize~~was the effect of future price fluctuations related to the purchase of raw materials primarily through forward purchasing to cover future manufacturing requirements, generally for periods from 1 to 12 months$9.7 ~~As of September 24~~million, ~~2022, we have approximately~~ $~~130 million of such commitments~~7.0 ~~Futures contracts are not used in combination with forward purchasing of these raw materials. Our procurement practices are intended to reduce the risk of future price increases~~million, ~~but~~and ~~also may potentially limit the ability to benefit from possible price decreases~~$4. At9 ~~each~~million offor the ~~last three~~ fiscal ~~year~~years ~~ends~~2023, we2022 ~~did~~and ~~not~~2021, ~~have any material losses on our purchase commitments~~respectively.

1615. ~~Research~~Commodity ~~and~~Price ~~Development~~Risk ~~Costs~~Management

~~Research~~Our ~~and~~most ~~development~~significant ~~costs~~raw ~~are~~material ~~expensed~~requirements asinclude ~~incurred.~~flour, ~~Total~~packaging, ~~research~~shortening, corn syrup, sugar, juice, cheese, chocolate, and ~~development~~a ~~expense~~variety ~~was~~of $0nuts.7 ~~million~~We attempt to minimize the effect of future price fluctuations related to the purchase of raw materials primarily through forward purchasing to cover future manufacturing requirements, $0generally for periods from 1 to 12 months.6 ~~million~~As ~~and~~of September 30, 2023, we have approximately $~~0.7~~125 million ~~for~~of such commitments. Futures contracts are not used in combination with forward purchasing of these raw materials. Our procurement practices are intended to reduce the ~~fiscal~~risk ~~years~~of ~~2022~~future price increases, ~~2021~~but ~~and~~also ~~2020,~~may ~~respectively~~potentially limit the ability to benefit from possible price decreases. At each of the last three fiscal year ends, we did not have any material losses on our purchase commitments.

~~17.~~F ~~Recent~~- ~~Accounting Pronouncements~~16

~~In June~~J ~~2016,~~& ~~the~~J ~~FASB~~SNACK ~~issued~~FOODS ~~ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which changes the impairment model used to measure credit losses for most financial assets~~CORP. WeAND are required to recognize an allowance that reflects the Company’s current estimate of credit losses expected to be incurred over the life of the financial asset, including trade receivables and held to maturity debt securities.SUBSIDIARIES

~~The~~NOTES ~~Company~~TO ~~adopted~~CONSOLIDATED ~~this~~FINANCIAL guidance in the first quarter of Fiscal 2021 using the modified retrospective transition method. The adoption of ASU 2016-13 did not have a material impact on the Company’s consolidated financial statements.STATEMENTS

1816. ~~Reclassifications~~Research and Development Costs

~~Certain~~Research ~~prior~~and ~~year~~development ~~financial~~costs ~~statement~~are ~~amounts~~expensed ~~have~~as ~~been~~incurred. ~~reclassified~~Total toresearch beand ~~consistent~~development ~~with~~expense ~~the~~was ~~presentation~~$1.2 million, $0.7 million and $0.6 million for the ~~current~~fiscal ~~year~~years 2023, 2022 and 2021, respectively.

~~F- 18~~ 17. Recent Accounting Pronouncements

JIn &December J2022, ~~SNACK~~the ~~FOODS~~FASB ~~CORP~~issued ASU No. ~~AND~~2022-06, ~~SUBSIDIARIES~~"Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848", to provide optional guidance to temporarily ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. Preceding the issuance of ASU 2020-04, which established ASC 848, the United Kingdom's Financial Conduct Authority ("FCA") announced that it would no longer need to persuade or compel banks to submit to LIBOR after December 31, 2021. In response, the FASB established December 31, 2022 as the expiration date for ASC 848. In March 2021, the FCA announced the intended cessation date of the overnight 1-, 3-, 6-, and 12-month USD LIBOR would be June 30, 2023. Because the current relief in Topic 848 may not cover a period of time during which a significant number of modifications may take place, this update deferred the sunset date in Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. This guidance is not expected to have a material impact on our consolidated financial statements and disclosures.

~~NOTES~~In TOSeptember ~~CONSOLIDATED~~2022, ~~FINANCIAL~~the ~~STATEMENTS~~FASB issued ASU No. 2022-04 “Liabilities – Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations”. This guidance requires annual and interim disclosures for entities that use supplier finance programs in connection with the purchase of goods and services. These amendments are effective for fiscal years beginning after December 15, 2022, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. We are currently assessing the impact of the guidance on our consolidated financial statements and disclosures.

~~NOTE~~18. ~~B – ACQUISITIONS~~Reclassifications

~~On October~~Certain 1,prior ~~2019,~~year wefinancial ~~acquired~~statement ~~the~~amounts ~~assets~~have ofbeen ~~ICEE~~reclassified ~~Distributors~~to ~~LLC,~~be ~~based~~consistent inwith Bossier City, Louisiana for approximately $45 million. ICEE Distributors does business in Arkansas, Louisiana and Texas. Sales and operating income of ICEE Distributors were $9.7 million and $2.4 million for the ~~year~~presentation ~~ended September 25, 2021. Sales and operating income of ICEE Distributors were $11.4 million and $3.6 million~~ for the ~~year~~current ~~ended September 26, 2020~~year.

~~On February~~NOTE 4,B ~~2020,~~– we acquired the assets of BAMA ICEE, based in Birmingham, Alabama for approximately $12 million. BAMA ICEE does business in Alabama and Georgia. Sales and operating income of BAMA ICEE were $1.8 million and $0.5 million for the year ended September 25, 2021. Sales and operating income of BAMA ICEE were $1.7 million and $0.6 million for the year ended September 26, 2020. ACQUISITIONS

On June 21, 2022, J & J Snack Foods Corp. and its wholly-owned subsidiary, DD Acquisition Holdings, LLC, completed the acquisition of one hundred percent (100%) of the equity interests of Dippin’ Dots Holding, L.L.C. (“Dippin’ Dots”) which, through its wholly-owned subsidiaries, owns and operates the Dippin’ Dots and Doc Popcorn businesses. The purchase price ~~allocations~~was approximately $223.6 million, consisting entirely of cash, and may be modified for ~~these~~certain ~~two~~customary ~~acquisitions~~post-closing ~~are~~purchase asprice ~~follows:~~adjustments.

ICEE Distributors LLC and BAMA ICEE Purchase Price Allocation
	ICEE			BAMA
	Distributors			ICEE			Total
	(in thousands)
Accounts Receivable, net	$	721		$	71		$	792
Inventories		866			77			943
Property, plant & equipment, net		4,851			1,722			6,573
Customer Relationships		569			133			702
Distribution rights		22,400			6,800			29,200
Goodwill		15,773			3,549			19,322
Total assets acquired		45,180			12,352			57,532
Accounts Payable		(210	)		(110	)		(320	)
Purchase Price	$	44,970		$	12,242		$	57,212

The ~~goodwill~~financial ~~and~~results ~~intangible~~of ~~assets~~Dippin’ ~~acquired~~Dots inhave ~~the~~been ~~business~~included ~~combinations~~in ~~are~~our ~~recorded~~consolidated atfinancial ~~estimated~~statements ~~fair~~since ~~value.~~the Todate ~~measure~~of ~~fair~~the ~~value~~acquisition. ~~for~~Sales ~~such~~and ~~assets,~~net weearnings ~~use~~of ~~techniques~~Dippin’ ~~including~~Dots ~~discounted~~$96.0 ~~expected~~million ~~future~~and ~~cash flows (Level 3 input)~~$13.0 ~~The~~million ~~goodwill~~for ~~recognized~~the isyear ~~attributable~~ended toSeptember ~~the~~30, ~~assembled~~2023, ~~workforce~~and of$33.7 ~~each~~million ~~acquired~~and ~~business~~$4.9 ~~and~~million ~~certain~~for ~~other~~the ~~strategic~~year ~~intangible~~ended ~~assets~~September ~~that~~24, do2022. ~~not~~Dippin’ ~~meet~~Dots ~~the~~is ~~requirements~~reported ~~for~~as ~~recognition~~part ~~separate~~of ~~and~~our ~~apart~~Food ~~from~~Service ~~goodwill~~segment. Acquisition costs of $03.1 million ~~are~~were included inwithin ~~other~~Administrative ~~general~~expenses ~~expense~~ for the year ended September 2624, ~~2020~~2022.

~~On June 21, 2022, J & J Snack Foods Corp. and its wholly-owned subsidiary, DD Acquisition Holdings, LLC, completed the acquisition of one hundred percent (100%) of the equity interests of~~ Dippin’' Dots ~~Holding,~~Results ~~L.L.C.~~Included ~~(“Dippin’~~in ~~Dots”) which, through its wholly-owned subsidiaries, owns and operates~~ the ~~Dippin’~~Company's ~~Dots~~Consolidated ~~and Doc Popcorn businesses. The purchase price was approximately $223.6 million, consisting entirely of cash, and may be modified for certain customary post-closing purchase price adjustments.~~Results

	Fiscal year ended
	September 30,		September 24,
	2023		2022
	(in thousands)

Net sales	$	95,963	$	33,734
Net earnings	$	13,005	$	4,859

~~The~~Upon ~~financial~~acquisition, ~~results~~the assets and liabilities of Dippin’ Dots ~~have~~were ~~been~~adjusted ~~included~~to intheir ~~our~~respective ~~consolidated~~fair ~~financial~~values ~~statements~~as ~~since~~of the closing date of the ~~acquisition~~transaction, including the identifiable intangible assets acquired. ~~Sales~~In ~~and~~addition, ~~net~~the ~~earnings~~excess of ~~Dippin’~~the ~~Dots~~purchase ~~since~~price over the ~~date~~fair value of ~~acquisition~~the ~~were~~net ~~$33.7~~assets ~~million~~acquired ~~and~~has $6been recorded as goodwill.6 ~~million~~The ~~for~~fair ~~the~~value ~~year~~estimates ~~ended September~~used ~~24,~~in ~~2022.~~valuing ~~Dippin’~~certain ~~Dots~~acquired isassets ~~reported~~and asliabilities are based, in part, ofon ~~our~~inputs ~~Food~~that ~~Service~~are ~~segment~~unobservable. ~~Acquisition~~For ~~costs~~intangible ofassets, ~~$3.1~~these ~~million~~include, ~~were~~but ~~included~~are ~~within~~not ~~Administrative~~limited ~~expenses~~to, ~~for~~forecasted ~~the~~future ~~year~~cash ~~ended September~~flows, 24revenue growth rates, ~~2022~~attrition rates and discount rates.

~~F- 19~~ The purchase price allocation as of the date of acquisition was based on a preliminary valuation and is subject to revision as more detailed analyses are completed and additional information about the fair value of assets acquired and liabilities assumed becomes available.

JIn &fiscal Jyear ~~SNACK~~2023, ~~FOODS~~we ~~CORP~~recorded a measurement period adjustment to the estimated fair values initially recorded on June 21, 2022, which resulted in an increase in Other Current Liabilities of $0.7 ~~AND~~million ~~SUBSIDIARIES~~and an increase in Goodwill of $0.7 million. In fiscal year 2022, we previously recorded measurement period adjustments to the estimated fair values initially recorded on June 21, 2022, which resulted in an increase to Property, plant, and equipment, net of $6.5 million, and reductions in Goodwill, Identifiable intangible assets, and Inventories of $4.0 million, $2.2 million, and $0.3 million, respectively. The measurement period adjustments were recorded to better reflect market participant assumptions about facts and circumstances existing as of the acquisition date and did not have a material impact on our consolidated statement of income for the year ended September 30, 2023.

~~NOTES~~F TO- ~~CONSOLIDATED FINANCIAL STATEMENTS~~17

~~Upon~~J ~~acquisition,~~& ~~the~~J ~~assets~~SNACK ~~and~~FOODS ~~liabilities of Dippin’ Dots were adjusted to their respective fair values as of the closing date of the transaction, including the identifiable intangible assets acquired~~CORP. InAND addition, the excess of the purchase price over the fair value of the net assets acquired has been recorded as goodwill. The fair value estimates used in valuing certain acquired assets and liabilities are based, in part, on inputs that are unobservable. For intangible assets, these include, but are not limited to, forecasted future cash flows, revenue growth rates, attrition rates and discount rates.SUBSIDIARIES

~~The~~NOTES ~~purchase~~TO ~~price~~CONSOLIDATED ~~allocation~~FINANCIAL as of the date of acquisition was based on a preliminary valuation and is subject to revision as more detailed analyses are completed and additional information about the fair value of assets acquired and liabilities assumed becomes available.STATEMENTS

InThe ~~fiscal~~following ~~year~~table ~~2022,~~reflects: we(i) ~~recorded~~the ~~measurement~~Company’s ~~period~~preliminary ~~adjustments~~allocation toof the ~~estimated~~purchase ~~fair~~price ~~values initially recorded on June 21, 2022, which resulted in an increase~~ to ~~Property,~~the ~~plant,~~assets ~~and~~acquired ~~equipment, net of $6.5 million,~~ and ~~reductions~~liabilities inassumed ~~Goodwill,~~as ~~Identifiable intangible assets, and Inventories~~ of ~~$4.0~~the ~~million,~~acquisition ~~$2.2~~date; ~~million,~~(ii) ~~and $0.3 million, respectively. The~~ measurement period adjustments ~~were~~made ~~recorded~~ to ~~better~~the ~~reflect~~preliminary ~~market~~allocation ~~participant~~during ~~assumptions~~the ~~about~~measurement ~~facts~~period; and ~~circumstances~~(iii) ~~existing~~the asfinal allocation of the ~~acquisition~~purchase ~~date~~price ~~and~~to ~~did not have a material impact on our consolidated statement of income for~~ the ~~year~~assets ~~ended September~~acquired ~~24,~~and ~~2022.~~liabilities assumed:

~~The~~Final ~~major~~Dippin' ~~classes~~Dots ofPurchase ~~assets~~Price ~~and liabilities to which we have preliminarily allocated the purchase price were as follows:~~Allocation

Preliminary Dippin' Dots Purchase Price Allocation (1)
	Preliminary Value
	as of acquisition
	date (as previously		Measurement
	reported as of		Period
	June 25,2022)		Adjustment			As Adjusted
	June 25, 2022)		Adjustment			As Adjusted
	(in thousands)
Cash and cash equivalents	$	2,259				$	2,259
Accounts receivable, net		12,257					12,257
Inventories		8,812		(301	)		8,511
Prepaid expenses and other		1,215					1,215
Property, plant and equipment, net		24,622		6,548			31,170
Intangible assets		120,400		(2,200	)		118,200
Goodwill (2)		66,634		(4,047	)		62,587
Goodwill (1)		66,634		(3,397	)		63,237
Operating lease right-of-use assets		3,514					3,514
Other noncurrent assets		243					243
Total assets acquired		239,956		-650			~~239~~240,~~956~~606
Liabilities assumed:
Current lease liabilities		619					619
Accounts payable		6,005					6,005
Other current liabilities		3,532		650			34,~~532~~182
Noncurrent lease liabilities		2,954					2,954
Other noncurrent liabilities		3,285					3,285
Total liabilities acquired		16,395		-650			1617,~~395~~045
Purchase price	$	223,561	$	-		$	223,561

(1) ~~Due to the limited time since the date of the acquisition, the purchase price allocation remains preliminary. (2)~~ Goodwill was assigned to our Food Services segment and was primarily attributed to the assembled workforce of the acquired business and to our expectations of favorable growth opportunities in entertainment and amusement locations, theaters, and convenience based on increased synergies that are expected to be achieved from the integration of Dippin’ Dots.

Acquired Intangible Assets
			(in thousands)
	Weighted average		June 21,
	life (years)		2022
Amortizable
Trade name	indefinite		$	76,900
Developed technology		10		22,900
Customer relationships		10		9,900
Franchise agreements		10		8,500
Total acquired intangible assets			$	118,200

Acquired Intangible Assets

F- 20

	Weighted average		June 21,
	life (years)		2022
			(in thousands)
Amortizable
Trade name	indefinite		$	76,900
Developed technology		10		22,900
Customer relationships		10		9,900
Franchise agreements		10		8,500
Total acquired intangible assets			$	118,200

JThe &following Junaudited ~~SNACK~~pro ~~FOODS~~forma ~~CORP.~~information ~~AND~~presents ~~SUBSIDIARIES~~the consolidated results of operations as if the business combination in 2022 had occurred as of September 27, 2020, after giving effect to acquisition-related adjustments, including: (1) depreciation and amortization of assets; (2) amortization of unfavorable contracts related to the fair value adjustments of the assets acquired; (3) change in the effective tax rate; (4) interest expense on any debt incurred to fund the acquisitions which would have been incurred had such acquisitions occurred as of September 27, 2020; and (5) merger and acquisition costs.

~~NOTES~~J TO& ~~CONSOLIDATED~~J ~~FINANCIAL~~Snack ~~STATEMENTS~~Foods Corp and Dippin' Dots Unaudited Pro Forma Combined Financial Information

The following unaudited pro forma information presents the consolidated results of operations as if the business combination in 2022 had occurred as of September 27, 2020, after giving effect to acquisition-related adjustments, including: (1) depreciation and amortization of assets; (2) amortization of unfavorable contracts related to the fair value adjustments of the assets acquired; (3) change in the effective tax rate; (4) interest expense on any debt incurred to fund the acquisitions which would have been incurred had such acquisitions occurred as of September 27, 2020; and (5) merger and acquisition costs.

	Fiscal year ended
	September 24,		September 25,
	2022		2021
	(in thousands)

Net sales	$	1,428,505	$	1,209,055
Net earnings	$	49,191	$	61,001

Earnings per diluted share	$	2.56	$	3.19
Weighted average number of diluted shares		19,213		19,133

Dippin' Dots Results Included in the Company's Consolidated Results
	Fiscal year ended
	September 24,
	2022
	(in thousands)
Net sales	$	33,734
Net earnings		4,859

F - 18

J & J Snack Foods Corp and Dippin' Dots Unaudited Pro Forma Combined Financial Information
	Fiscal year ended
	September 24,		September 25,
	2022		2021
	(in thousands)
Net sales		1,428,505		1,209,055
Net earnings		49,191		61,001
Earnings per diluted share	$	2.56	$	3.19
Weighted average number of diluted shares		19,213		19,133

J & J SNACK FOODS CORP. AND SUBSIDIARIES

~~NOTE~~NOTES CTO –CONSOLIDATED ~~INVESTMENT~~FINANCIAL ~~SECURITIES~~STATEMENTS

WeNOTE ~~have~~C ~~classified~~– ~~our~~INVESTMENT investment securities as marketable securities held to maturity and available for sale. The FASB defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the FASB has established three levels of inputs that may be used to measure fair value:SECURITIES

~~Level~~We 1have ~~Observable~~classified ~~inputs~~our ~~such~~investment securities as ~~quoted~~marketable ~~prices~~securities inheld ~~active~~to ~~markets~~maturity and available for ~~identical~~sale. ~~assets~~The FASB defines fair value as the price that would be received from selling an asset or ~~liabilities;~~paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the FASB has established three levels of inputs that may be used to measure fair value:

Level 21 Observable inputs, ~~other~~such ~~than~~as ~~Level~~quoted 1prices ~~inputs~~ in active markets, ~~that~~for ~~are~~identical ~~observable~~assets ~~either directly~~ or ~~indirectly~~liabilities; ~~and~~

Level 32 ~~Unobservable~~Observable inputs, ~~for~~other ~~which~~than ~~there~~Level is1 ~~little~~inputs orin noactive ~~market data~~markets, ~~which~~that ~~require~~are ~~the~~observable ~~reporting~~either ~~entity~~directly toor ~~develop~~indirectly; ~~its own assumptions.~~and

~~F- 21~~ Level 3 Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions.

JMarketable &securities Jheld ~~SNACK~~to ~~FOODS~~maturity ~~CORP~~and available for sale consist primarily of investments in mutual funds, preferred stock and corporate bonds. ~~AND~~The ~~SUBSIDIARIES~~fair values of mutual funds are based on quoted market prices in active markets and are classified within Level 1 of the fair value hierarchy. The fair values of preferred stock and corporate bonds are based on quoted prices for identical or similar instruments in markets that are not active. As a result, preferred stock and corporate bonds are classified within Level 2 of the fair value hierarchy.

~~NOTES~~As TOof ~~CONSOLIDATED~~September ~~FINANCIAL~~30, ~~STATEMENTS~~2023, the Company held no held to maturity investment securities or marketable securities available for sale.

~~Our~~As ~~marketable~~of ~~securities~~the ~~held~~end toof ~~maturity~~fiscal ~~and~~2023, ~~available~~the ~~for~~Company ~~sale~~did ~~consist~~not ~~primarily~~hold ofany mutual fund investments. inHowever, during the fiscal year, the mutual funds, ~~preferred~~held ~~stock~~sought current income with an emphasis on maintaining low volatility and ~~corporate~~overall ~~bonds~~moderate duration. The ~~fair~~mutual ~~values~~funds generated income of ~~mutual~~about ~~funds~~6.8% ~~are~~in ~~based~~the onfiscal ~~quoted~~year. ~~market~~As ~~prices~~of the end of fiscal 2023, the Company was not invested in ~~active~~Fixed-to-Floating ~~markets~~Perpetual ~~and~~Preferred ~~are~~Stock. ~~classified~~However, ~~within~~during ~~Level~~the 1fiscal ofyear, the ~~fair~~Company ~~value~~held ~~hierarchy.~~investments ~~The~~in ~~fair~~Fixed-to-Floating ~~values~~Perpetual ofPreferred ~~preferred~~Stock ~~stock~~which generated fixed income to call dates in 2025 and ~~corporate~~then ~~bonds~~income ~~are~~was based on ~~quoted~~a ~~prices~~spread ~~for~~above ~~identical~~LIBOR orif ~~similar~~the ~~instruments~~securities were not called. The annual yield from these investments was 6.1% in ~~markets~~the ~~that~~fiscal ~~are~~year, of which 50% is not ~~active~~subject to income tax. As aof ~~result~~the end of fiscal 2023, ~~preferred~~the ~~stock~~Company ~~and~~held no held to maturity investment securities. However, during the fiscal year, the Company was invested in corporate bonds ~~are~~which ~~classified~~generated ~~within~~fixed ~~Level~~income 2to maturity dates in 2023. The bonds generated income of about 1.7% in the ~~fair~~fiscal ~~value~~year ~~hierarchy~~based on purchase price.

As of September 30, 2023, the Company had no held to maturity marketable securities. The amortized cost, unrealized gains and losses, and fair market values of our marketable securities held to maturity at September 24, 2022 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Corporate bonds	$	4,011	$	-	$	21	$	3,990
Corporate Bonds	$	4,011	$	-	$	21	$	3,990
Total marketable securities held to maturity	$	4,011	$	-	$	21	$	3,990

~~The~~F ~~amortized~~- ~~cost, unrealized gains and losses, and fair market values of our marketable securities available for sale at September 24, 2022 are summarized as follows:~~19

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Mutual Funds	$	3,588	$	-	$	742	$	2,846
Preferred Stock		2,816		46		-		2,862
Total marketable securities available for sale	$	6,404	$	46	$	742	$	5,708

J & J SNACK FOODS CORP. AND SUBSIDIARIES

~~The~~NOTES ~~mutual~~TO ~~funds~~CONSOLIDATED ~~seek~~FINANCIAL current income with an emphasis on maintaining low volatility and overall moderate duration. The mutual funds presently generate income of about 3.7% per year. We have invested $3 million in Fixed-to-Floating Perpetual Preferred Stock which generates fixed income to call dates in 2025 and then income is based on a spread above LIBOR if the securities are not called. The annual yield from these investments is presently 5.5%, of which 50% is not subject to income tax. The mutual funds and the Fixed-to-Floating Perpetual Preferred Stock investment securities do not have contractual maturities; however, we classify them as long-term assets as it is our intent to hold them for a period of over one year, although we may sell some or all of them depending on presently unanticipated needs for liquidity or market conditions. We have invested $4.0 million in corporate bonds which generate fixed income to maturity dates in 2022 through 2023, with $4.0 million maturing prior to the end of our fiscal year 2023. The bonds presently generate income of about 3.3% per year based on purchase price. Our expectation is that we will hold the corporate bonds to their maturity dates and redeem them at our amortized cost.STATEMENTS

~~F- 22~~ As of September 30, 2023, the Company had no available for sale marketable securities. The amortized cost, unrealized gains and losses, and fair market values of our marketable securities available for sale at September 24, 2022 are summarized as follows:

J & J SNACK FOODS CORP. AND SUBSIDIARIES

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)

Mutual Funds	$	3,588	$	-	$	742	$	2,846
Preferred Stock		2,816		46		-		2,862
Total marketable securities available for sale	$	6,404	$	46	$	742	$	5,708

~~NOTES~~As TOof ~~CONSOLIDATED~~September ~~FINANCIAL~~30, ~~STATEMENTS~~2023, the Company had no held to maturity securities. The amortized cost and fair value of the Company’s held to maturity securities by contractual maturity at September 24, 2022 are summarized as follows:

The amortized cost, unrealized gains and losses, and fair market values of our marketable securities held to maturity at September 25, 2021 are summarized as follows:

			Fair
	Amortized		Market
	Cost		Value

Due in one year or less	$	4,011	$	3,990
Due after one year through five years		-		-
Due after five years through ten years		-		-
Total held to maturity securities	$	4,011	$	3,990
Less current portion		4,011

Filing Compare · J&J SNACK FOODS CORP