J&J SNACK FOODS CORP 10-Q

jjsf20260627_10q.htm UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the period ended June 27, 2026 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _____ to _____ Commission File Number: 0-14616 J&J SNACK FOODS CORP. (Exact name of registrant as specified in its charter) New Jersey (State or other jurisdiction of incorporation or 22-1935537 organization) (I.R.S. Employer Identification No.) 350 Fellowship Road , 08054 Mt. Laurel , New Jersey (Zip code) (Address of principal executive offices) Telephone ( 856 ) 665-9533 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Exchange Act: Title of Each Class Trading Symbol Name of Each Exchange on Which Registered Common Stock, no par value JJSF The NASDAQ Global Select Market 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 for 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 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 is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. Class Outstanding as of August 3, 2026 Common Stock, no par value 18,681,608 shares 1 INDEX Page Number Part I. Financial Information Item l. Consolidated Financial Statements Consolidated Balance Sheets – June 27, 2026 (unaudited) and September 27, 2025 3 Consolidated Statements of Earnings (unaudited) – Three and Nine Months Ended June 27, 2026 and June 28, 2025 4 Consolidated Statements of Comprehensive Income (unaudited) – Three and Nine Months Ended June 27, 2026 and June 28, 2025 5 Consolidated Statements of Changes In Stockholders’ Equity (unaudited) – Three and Nine Months Ended June 27, 2026 and June 28, 2025 6 Consolidated Statements of Cash Flows (unaudited) – Nine Months Ended June 27, 2026 and June 28, 2025 8 Notes to the Consolidated Financial Statements (unaudited) 9 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 25 Item 3. Quantitative and Qualitative Disclosures About Market Risk 33 Item 4. Controls and Procedures 33 Part II. Other Information Item 1. Legal Proceedings 33 Item 1A. Risk Factors 34 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34 Item 5. Other Information 34 Item 6. Exhibits 34 2 PART I. FINANCIAL INFORMATION Item 1. Consolidated Financial Statements J & J SNACK FOODS CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) June 27, 2026 September 27, (unaudited) 2025 Assets Current assets Cash and cash equivalents $ 63,099 $ 105,893 Accounts receivable, net 210,539 184,069 Inventories 171,411 175,173 Prepaid expenses and other 17,211 13,197 Total current assets 462,260 478,332 Property, plant and equipment, at cost Land 3,248 3,684 Buildings and improvements 128,410 127,022 Plant machinery and equipment 497,908 488,771 Marketing equipment 319,582 309,371 Transportation equipment 17,194 16,720 Office equipment 50,256 49,996 Construction in progress 18,350 13,899 Total Property, plant and equipment, at cost 1,034,948 1,009,463 Less accumulated depreciation and amortization 650,776 619,310 Property, plant and equipment, net 384,172 390,153 Other assets Goodwill 185,070 185,070 Trade name intangible assets, net 105,920 105,920 Other intangible assets, net 62,512 66,730 Operating lease right-of-use assets 152,172 151,538 Other 3,779 3,758 Total other assets 509,453 513,016 Total Assets $ 1,355,885 $ 1,381,501 Liabilities and Stockholders' Equity Current liabilities Current finance lease liabilities $ 602 $ 563 Accounts payable 97,611 82,405 Accrued insurance liability 15,608 16,441 Accrued liabilities 18,075 12,606 Current operating lease liabilities 23,742 21,624 Accrued compensation expense 26,758 26,475 Dividends payable 14,926 15,552 Total current liabilities 197,322 175,666 Long-term debt 28,000 - Noncurrent finance lease liabilities 978 1,355 Noncurrent operating lease liabilities 138,584 140,021 Deferred income taxes 92,156 91,703 Other long-term liabilities 6,768 6,061 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 18,628,000 as of June 27, 2026 and 19,440,000 as of September 27, 2025 69,142 139,118 Accumulated other comprehensive loss ( 10,044 ) ( 12,647 ) Retained Earnings 832,979 840,224 Total stockholders' equity 892,077 966,695 Total Liabilities and Stockholders' Equity $ 1,355,885 $ 1,381,501 The accompanying notes are an integral part of these statements. 3 J & J SNACK FOODS CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (in thousands, except per share amounts) Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 Net sales $ 425,957 $ 454,293 $ 1,114,554 $ 1,172,990 Cost of goods sold 274,941 304,248 768,234 833,341 Gross profit 151,016 150,045 346,320 339,649 Operating expenses Marketing and selling 34,627 33,847 96,209 91,023 Distribution 49,621 44,685 129,414 126,128 Administrative 20,068 20,028 61,629 58,685 Intangible asset impairment charges - 1,500 - 1,500 Gain on insurance proceeds received for damage to property, plant, and equipment - ( 10,622 ) ( 800 ) ( 10,622 ) Plant closure expense (recoveries) ( 155 ) - 10,714 - Other general expense 581 10 440 76 Total operating expenses 104,742 89,448 297,606 266,790 Operating income 46,274 60,597 48,714 72,859 Other income (expense) Investment income 680 622 2,224 2,348 Interest expense ( 965 ) ( 441 ) ( 1,406 ) ( 738 ) Earnings before income taxes 45,989 60,778 49,532 74,469 Income tax expense 10,657 16,531 11,640 20,255 NET EARNINGS $ 35,332 $ 44,247 $ 37,892 $ 54,214 Earnings per diluted share $ 1.88 $ 2.26 $ 1.99 $ 2.77 Weighted average number of diluted shares 18,746 19,537 19,001 19,554 Earnings per basic share $ 1.89 $ 2.27 $ 2.00 $ 2.78 Weighted average number of basic shares 18,715 19,455 18,977 19,471 The accompanying notes are an integral part of these statements. 4 J&J SNACK FOODS CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (in thousands) Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 Net earnings $ 35,332 $ 44,247 $ 37,892 $ 54,214 Foreign currency translation adjustments 563 3,774 2,603 1,629 Total other comprehensive income, net of tax 563 3,774 2,603 1,629 Comprehensive income $ 35,895 $ 48,021 $ 40,495 $ 55,843 The accompanying notes are an integral part of these statements. 5 J & J SNACK FOODS CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (in thousands) Accumulated other Common stock comprehensive Retained Shares Amount loss earnings Total Balance at September 27, 2025 19,440 $ 139,118 $ ( 12,647 ) $ 840,224 $ 966,695 Common stock issued upon vesting of service share units, net of shares withheld for taxes 14 ( 685 ) - - ( 685 ) Repurchase of common stock ( 458 ) ( 42,000 ) - - ( 42,000 ) Foreign currency translation adjustment - - 1,694 - 1,694 Dividends declared ($ 0.80 per share) - - - ( 15,208 ) ( 15,208 ) Share-based compensation - 1,479 - - 1,479 Net earnings - - - 883 883 Balance at December 27, 2025 18,996 $ 97,912 $ ( 10,953 ) $ 825,899 $ 912,858 Common stock issued upon vesting of service share units, net of shares withheld for taxes 2 ( 43 ) - - ( 43 ) Common stock issued for employee stock purchase plan, net of shares withheld for taxes 15 1,160 - - 1,160 Repurchase of common stock ( 260 ) ( 22,571 ) - - ( 22,571 ) Foreign currency translation adjustment - - 346 - 346 Dividends declared ($ 0.80 per share) - - - ( 15,003 ) ( 15,003 ) Share-based compensation - 1,652 - - 1,652 Net earnings - - - 1,677 1,677 Balance at March 28, 2026 18,753 $ 78,110 $ ( 10,607 ) $ 812,573 $ 880,076 Common stock issued upon vesting of service share units, net of shares withheld for taxes 11 ( 362 ) - - ( 362 ) Repurchase of common stock ( 136 ) ( 10,159 ) - - ( 10,159 ) Foreign currency translation adjustment - - 563 - 563 Dividends declared ($ 0.80 per share) - - - ( 14,926 ) ( 14,926 ) Share-based compensation - 1,553 - - 1,553 Net earnings - - - 35,332 35,332 Balance at June 27, 2026 18,628 $ 69,142 $ ( 10,044 ) $ 832,979 $ 892,077 6 Accumulated other Common stock comprehensive Retained Shares Amount loss earnings Total Balance at September 28, 2024 19,460 $ 136,516 $ ( 15,299 ) $ 835,753 $ 956,970 Common stock issued upon exercise of stock options, net of shares withheld for taxes 12 1,924 - - 1,924 Common stock issued upon vesting of service share units, net of shares withheld for taxes 7 ( 552 ) - - ( 552 ) Foreign currency translation adjustment - - ( 2,577 ) - ( 2,577 ) Dividends declared ($ 0.78 per share) - - - ( 15,193 ) ( 15,193 ) Share-based compensation - 1,125 - - 1,125 Net earnings - - - 5,143 5,143 Balance at December 28, 2024 19,479 $ 139,013 $ ( 17,876 ) $ 825,703 $ 946,840 Common stock issued upon exercise of stock options, net of shares withheld for taxes 3 187 - - 187 Common stock issued for employee stock purchase plan, net of shares withheld for taxes 10 1,327 - - 1,327 Repurchase of common stock ( 39 ) ( 5,000 ) - - ( 5,000 ) Foreign currency translation adjustment - - 432 - 432 Dividends declared ($ 0.78 per share) - - - ( 15,204 ) ( 15,204 ) Share-based compensation - 1,628 - - 1,628 Net earnings - - - 4,824 4,824 Balance at March 29, 2025 19,453 $ 137,155 $ ( 17,444 ) $ 815,323 $ 935,034 Common stock issued upon exercise of stock options, net of shares withheld for taxes 2 218 - - 218 Foreign currency translation adjustment - - 3,774 - 3,774 Dividends declared ($ 0.78 per share) - - - ( 15,175 ) ( 15,175 ) Share-based compensation - 1,827 - - 1,827 Net earnings - - - 44,247 44,247 Balance at June 28, 2025 19,455 $ 139,200 $ ( 13,670 ) $ 844,395 $ 969,925 The accompanying notes are an integral part of these statements. 7 J & J SNACK FOODS CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) Nine months ended June 27, June 28, 2026 2025 Operating activities: Net earnings $ 37,892 $ 54,214 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation of fixed assets 52,167 48,296 Amortization of intangibles and deferred costs 4,218 5,871 Intangible asset impairment charges - 1,500 Losses (Gains) from disposals of property & equipment 522 ( 394 ) Non-cash plant closure expenses 4,529 - Non-cash impairment charge 850 - Share-based compensation 4,684 4,580 Deferred income taxes 515 127 Gain on insurance proceeds received for damage to property, plant, and equipment ( 800 ) ( 10,622 ) Gain on insurance proceeds received in excess of operating losses recognized - ( 799 ) Other 546 212 Changes in assets and liabilities, net of effects from purchase of companies (Increase) in accounts receivable ( 26,014 ) ( 16,491 ) Decrease (Increase) in inventories 2,274 ( 21,634 ) Net changes in other operating assets and liabilities 19,060 33,837 Net cash provided by operating activities 100,443 98,697 Investing activities: Purchases of property, plant and equipment ( 53,263 ) ( 61,264 ) Proceeds from disposal of property and equipment 396 1,413 Proceeds from insurance for fixed assets 800 11,421 Net cash (used in) investing activities ( 52,067 ) ( 48,430 ) Financing activities: Payments to repurchase common stock ( 74,730 ) ( 5,000 ) Proceeds from issuance of stock 1,160 3,104 Purchase of vested employee service share units and performance share units ( 1,090 ) - Borrowings under credit facility 119,000 40,000 Repayment of borrowings under credit facility ( 91,000 ) ( 40,000 ) Payments for debt issuance costs ( 567 ) - Payments on finance lease obligations ( 353 ) ( 182 ) Payment of cash dividend ( 45,763 ) ( 45,575 ) Net cash (used in) financing activities ( 93,343 ) ( 47,653 ) Effect of exchange rates on cash and cash equivalents 2,173 1,369 Net (decrease) increase in cash and cash equivalents ( 42,794 ) 3,983 Cash and cash equivalents at beginning of period 105,893 73,394 Cash and cash equivalents at end of period $ 63,099 $ 77,377 The accompanying notes are an integral part of these statements. 8 J & J SNACK FOODS CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 1 Basis of Presentation The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all information and notes required by generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended September 27, 2025. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the Company’s financial position and the results of operations and cash flows. The results of operations for the three and nine months ended June 27, 2026 and June 28, 2025 are not necessarily indicative of results for the full year. Sales of our frozen beverages and frozen novelties are generally higher in the fiscal third and fourth quarters due to warmer weather. While we believe that the disclosures presented are adequate to make the information not misleading, it is suggested that these consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 27, 2025. Note 2 Revenue Recognition We recognize revenue in accordance with ASC 606, “Revenue from Contracts with Customers.” Revenue-related taxes collected on behalf of customers and remitted to taxing authorities, principally sales and use taxes, are not included in net sales. When Performance Obligations Are Satisfied A performance obligation is 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. The performance obligations 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 a contract liability on our balance sheet. Significant Payment Terms In general, 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. 9 Shipping All amounts billed to customers related to shipping and handling are classified as revenues; therefore, we recognize revenue for shipping and handling fees at the time the products are shipped or when services are performed. The cost of shipping products to the customer is recognized at the time the products are shipped to the customer and our policy is to classify them as Distribution expenses. Variable Consideration In addition 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 $ 28.2 million at June 27, 2026 and $ 22.3 million at September 27, 2025. Warranties & Returns We provide all customers with a standard or assurance type warranty. Either stated or implied, we provide assurance that 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. We do not grant a general right of return. However, customers may return defective or non-conforming products. Customer remedies may include either a cash refund or an exchange of the product. We do not estimate a right-of-return and related refund liability as returns of our products are rare. Contract Balances Our customers are billed for service contracts in advance of performance and therefore we have a contract liability on our balance sheet as follows: Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 (in thousands) (in thousands) Beginning balance $ 3,607 $ 4,404 $ 3,889 $ 4,798 Additions to contract liability 1,713 1,368 4,973 4,775 Amounts recognized as revenue ( 1,732 ) ( 1,782 ) ( 5,274 ) ( 5,583 ) Ending balance $ 3,588 $ 3,990 $ 3,588 $ 3,990 Disaggregation of Revenue The Company disaggregates revenue by geography and by type of good or service, which management believes best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Product revenues within the food service and retail segments are derived from the sale of snack food products that share similar characteristics, including consistent pricing models, distribution channels, customer types, and point-in-time revenue recognition upon transfer of control. As a result, management has aggregated product lines within these segments. Product revenues within the frozen beverage segment are derived from the sale of frozen beverage syrup, cups, straws and lids. See Note 10 for disaggregation of our net sales by geography and type of good or service. Allowance for Estimated Credit Losses 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. The allowance for estimated credit losses was $ 3.1 million and $ 3.3 million at June 27, 2026 and September 27, 2025, respectively. 10 Note 3 Depreciation and Amortization Expense Depreciation of equipment and buildings is provided for by the straight-line method over the assets’ estimated useful lives. Amortization of improvements is provided for by the straight-line method over the term of the lease or the assets’ estimated useful lives, whichever is shorter. Licenses and rights, customer relationships, franchise agreements, and technology are amortized by the straight-line method over periods ranging from 2 to 20 years. Depreciation expense was $ 17.4 million and $ 16.7 million for the three months ended June 27, 2026 and June 28, 2025, respectively and $ 52.2 million and $ 48.3 million for the nine months ended June 27, 2026 and June 28, 2025, respectively. Note 4 Earnings per Share Basic earnings per common share (“EPS”) excludes dilution and is computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. Diluted EPS takes into consideration the potential dilution that could occur if securities (stock options, service share units (“RSUs”), and performance share units (“PSUs”)) or other contracts to issue common stock were exercised and converted into common stock. Our calculation of EPS is as follows: Three months ended June 27, 2026 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Basic EPS Net earnings available to common stockholders $ 35,332 18,715 $ 1.89 Effect of dilutive securities RSUs, PSUs and options - 31 ( 0.01 ) Diluted EPS Net earnings available to common stockholders plus assumed conversions $ 35,332 18,746 $ 1.88 158,056 anti-dilutive shares have been excluded in the computation of EPS for the three months ended June 27, 2026. Nine months ended June 27, 2026 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Basic EPS Net earnings available to common stockholders $ 37,892 18,977 $ 2.00 Effect of dilutive securities RSUs, PSUs and options - 24 ( 0.01 ) Diluted EPS Net earnings available to common stockholders plus assumed conversions $ 37,892 19,001 $ 1.99 224,924 anti-dilutive shares have been excluded in the computation of EPS for the nine months ended June 27, 2026. Three months ended June 28, 2025 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Basic EPS Net earnings available to common stockholders $ 44,247 19,455 $ 2.27 Effect of dilutive securities RSUs, PSUs and options - 82 ( 0.01 ) Diluted EPS Net earnings available to common stockholders plus assumed conversions $ 44,247 19,537 $ 2.26 230,144 anti-dilutive shares have been excluded in the computation of EPS for the three months ended June 28, 2025. 11 Nine months ended June 28, 2025 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Basic EPS Net earnings available to common stockholders $ 54,214 19,471 $ 2.78 Effect of dilutive securities RSUs, PSUs and options - 83 ( 0.01 ) Diluted EPS Net earnings available to common stockholders plus assumed conversions $ 54,214 19,554 $ 2.77 126,324 anti-dilutive shares have been excluded in the computation of EPS for the nine months ended June 28, 2025 Note 5 Share-Based Compensation As of June 27, 2026, the Company has two stock-based employee compensation plans. Pre-tax share-based compensation expense was recognized as follows: Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 (in thousands) (in thousands) Stock options $ - $ 114 $ - $ 416 Stock purchase plan 90 103 397 330 Stock issued to outside directors - 31 41 109 Service share units issued to employees 1,024 1,084 2,853 2,679 Performance share units issued to employees 439 495 1,393 1,046 Total share-based compensation $ 1,553 $ 1,827 $ 4,684 $ 4,580 Tax benefits $ 395 $ 439 $ 1,158 $ 1,139 The fair value of each option grant is estimated on the date of grant using the Black-Scholes options-pricing model. 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. The Company did not grant any stock options during the nine months ended June 27, 2026, or during the nine months ended June 28, 2025. During the three and nine months ended June 27, 2026, the Company issued 34,609 and 62,761 RSUs, respectively. During the three and nine months ended June 28, 2025, the Company issued 21,311 and 34,868 RSUs, respectively. Each RSU entitles the awardee to one share of common stock upon vesting. The fair value of the RSUs was determined based upon the closing price of the Company’s common stock on the date of grant. During the three and nine months ended June 27, 2026, the Company issued 8,919 and 37,063 PSUs, respectively. During the three and nine months ended June 28, 2025, the Company issued 3,951 and 17,500 PSUs, respectively. Each PSU may result in the issuance of up to two shares of common stock upon vesting, dependent upon the level of achievement of the applicable performance goal. The fair value of the PSUs was determined based upon the closing price of the Company’s common stock on the date of grant. Additionally, the Company applies a quarterly probability assessment in computing this non-cash compensation expense, and any change in estimate is reflected as a cumulative adjustment to expense in the quarter of the change. Note 6 Income Taxes We account for our 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. 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. The total amount of gross unrecognized tax benefits is $ 0.3 million as of both June 27, 2026 and September 27, 2025, all of which would impact our effective tax rate over time, if recognized. We recognize interest and penalties related to uncertain tax positions as a part of the provision for income taxes. As of June 27, 2026 and September 27, 2025, the Company has $ 0.3 million of accrued interest and penalties, respectively. In addition to our federal tax return and tax returns for Mexico, Canada and Netherlands, we file tax returns in all states that have a corporate income tax. Virtually all the returns noted above are open for examination for three to four years. 12 Our effective tax rate for the three months and nine months ended June 27, 2026 was 23.2 %, and 23.5 %, respectively, both of which are higher than the company’s 21.0 % statutory tax rate primarily due to state income taxes, and the tax effect in foreign jurisdictions. Our effective tax rate was 27.2 % in both the three and nine months ended June 28, 2025, which was higher than the company’s 21.0 % statutory tax rate primarily due to state income taxes, and the tax effect in foreign jurisdictions. Note 7 New Accounting Pronouncements and Policies In December 2023, the FASB issued ASU No. 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This guidance enhances the transparency around income tax information through improvements to income tax disclosures, primarily related to the effective rate reconciliation and income taxes paid, to improve the overall effectiveness of income tax disclosures. The amendments in the ASU are effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently assessing the impact of the guidance on our consolidated financial statements and disclosures. In November 2024, the FASB issued ASU No. 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures.” This guidance improves disclosure requirements and provides more detailed information around an entity’s expenses, specifically amounts related to purchases of inventory, employee compensation, depreciation, intangible asset amortization, and selling expenses, along with qualitative descriptions of certain other types of expenses. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. We are currently assessing the impact of the guidance on our consolidated financial statements and disclosures. In July 2025, the FASB issued ASU No. 2025-05 “Financial Instruments – Credit Losses (Topic 326).” This guidance introduces a practical expedient for all entities with qualifying assets to assume that current conditions remain unchanged for the remaining life of the asset with estimated credit losses. The amendments in the ASU are effective for fiscal years beginning after December 15, 2025, with early adoption permitted. We are currently assessing the impact of the guidance on our consolidated financial statements and disclosures. In September 2025, the FASB issued ASU No. 2025-06 “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40).” This authoritative guidance modernizes the accounting for internal use software costs including the elimination of the stage-based capitalization model and updated disclosure requirements. The guidance is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Amendments can be applied using a prospective transition approach, a modified transition approach, or a retrospective transition approach. We are currently assessing the impact of the guidance on our consolidated financial statements and disclosures. Note 8 Long-Term Debt In December 2021, the Company entered into an amended and restated loan agreement (as amended, 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, (“Amendment No. 1”) which provided for an incremental increase of $ 175 million in available borrowings under the revolving credit facility. Amendment No.1 also included 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 (as defined in the Credit Agreement) of the Borrowers (as defined in the Credit Agreement), subject to the satisfaction of certain terms and conditions. On June 5, 2026, the Company entered into Amendment No. 2 to the Credit Agreement (“Amendment No. 2”). Amendment No. 2 maintained the existing $ 225 million revolving credit facility capacity, extended the maturity date of the revolving credit facility established under the Credit Agreement to June 2031, and revised the pricing grid used to determine the Applicable Margin (as defined in the Credit Agreement). Amendment No. 2 also included an option to increase the size of the revolving credit facility by up to an amount not to exceed the greater of $ 200 million or the Consolidated EBITDA of the Borrowers, subject to the satisfaction of certain terms and conditions. 13 Interest accrues, at the Company’s election at (i) the SOFR 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 SOFR 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, makes 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 June 27, 2026, the Company is in compliance with all financial covenants and terms of the Credit Agreement. As of June 27, 2026, $ 28.0 million was outstanding under the Credit Agreement with a weighted average interest rate of 5.64 %. As of June 27, 2026, the amount available under the Credit Agreement was $ 182.2 million, after giving effect to the outstanding letters of credit. As of September 27, 2025, there was no outstanding balance under the Credit Agreement. As of September 27, 2025, the amount available under the Credit Agreement was $210.2 million, after giving effect to the outstanding letters of credit. Note 9 Inventory Inventories consist of the following: June 27, September 27, 2026 2025 (unaudited) (in thousands) Finished goods $ 84,061 $ 89,512 Raw materials 35,275 32,259 Packaging materials 11,724 11,122 Equipment parts and other 40,351 42,280 Total inventories $ 171,411 $ 175,173 Note 10 Segment Information Our financial results are presented as three reportable segments: Food Service, Retail Supermarkets and Frozen Beverages. These segments are described below: 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; 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, ICEE Squeeze-Up Tubes, and handheld products. 14 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 customer-owned equipment. We principally sell our products to the food service and retail supermarket industries. Sales and results of our frozen beverages business are monitored separately from the balance of our food service business because of different distribution and capital requirements. We maintain separate and discrete financial information for the three operating segments mentioned above which is available to our Chief Operating Decision Maker, who is our Chief Executive Officer. We have applied no aggregation criteria to any of these operating segments in order to determine reportable segments. All inter-segment net sales and expenses have been eliminated in computing net sales and operating income. The Chief Operating Decision Maker 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 key variables monitored by the Chief Operating Decision Maker when determining each segment and the Company’s financial condition and operating performance. Significant expenses are expenses which are regularly provided to the Chief Operating Decision Maker and are included in segment operating income. These consist of cost of sales, marketing and selling expenses, distribution expenses, administrative expenses, intangible asset impairment charges, and other general expenses. Cost of sales includes raw materials, direct labor and plant overhead costs. Distribution expenses include costs associated with the transportation of our products to customers. Marketing and selling expenses include costs to execute sales to customers, and costs related to the selling, marketing, advertising and promotional activities. Administrative expenses include costs that are not directly tied to the manufacturing, distribution, or marketing and selling of our products. Costs that are directly attributable to our Food Service, Retail Supermarkets, or Frozen Beverages segments are charged directly to the appropriate segment. Costs that are deemed to be indirect, excluding unallocated general corporate expenses and other unusual significant transactions such as gain on insurance proceeds received for damage to property, plant and equipment, and plant closure expenses, are allocated to the three reportable segments using a reasonable methodology that is consistently applied. To align with how our Chief Operating Decision Maker currently reviews the monthly detailed operating income statements, we have reclassified certain corporate expenses that are not allocated to our three reportable segments. This change in presentation resulted in a decrease to our Food Service segment operating income of $ 3.6 million, and increases to both our Retail and Frozen Beverage segment operating incomes of $ 0.4 million in the three months ended June 28, 2025. In the nine months ended June 28, 2025, this change in presentation resulted in increases of $ 9.7 million to our Food Service segment operating income, $ 2.0 million to our Retail segment operating income, and $ 1.4 million to our Frozen Beverage segment operating income. The corresponding impacts of the presentation change are seen within General corporate expenses, Intangible asset impairment charges, and Gain on insurance proceeds received for damage to property, plant, and equipment in the table below. In addition, the Chief Operating Decision Maker reviews and evaluates capital spending of each segment on a quarterly basis to monitor cash flow and asset needs of each segment. Additionally, our Chief Operating Decision Maker considers variances of actual performance to our annual operating plan and periodic forecasts when making decisions. Information regarding the operations in these three reportable segments is as follows: Three months ended June 27, 2026 Nine months ended June 27, 2026 (in thousands) (in thousands) Food Retail Frozen Food Retail Frozen Service Supermarket Beverages Total Service Supermarket Beverages Total Net sales to external customers $ 254,288 $ 64,932 $ 106,737 $ 425,957 $ 688,109 $ 162,434 $ 264,011 $ 1,114,554 Less: Cost of goods sold 163,458 47,679 63,804 274,941 470,145 123,217 174,872 768,234 Segment gross profit 90,830 17,253 42,933 151,016 217,964 39,217 89,139 346,320 Marketing and selling 19,723 5,110 9,794 34,627 54,827 13,144 28,238 96,209 Distribution 34,334 8,561 6,726 49,621 90,139 20,138 19,137 129,414 Administrative 8,374 922 3,337 12,633 23,721 2,500 10,068 36,289 Other general expense 320 - 261 581 244 - 196 440 Segment operating income 28,079 2,660 22,815 53,554 49,033 3,435 31,500 83,968 General corporate expenses 7,435 25,340 Gain on insurance proceeds received for damage to property, plant, and equipment - ( 800 ) Plant closure expense (recoveries) ( 155 ) 10,714 Operating income $ 46,274 $ 48,714 15 Three months ended June 28, 2025 Nine months ended June 28, 2025 (in thousands) (in thousands) Food Retail Frozen Food Retail Frozen Service Supermarket Beverages Total Service Supermarket Beverages Total Net sales to external customers $ 277,169 $ 63,860 $ 113,264 $ 454,293 $ 742,105 $ 162,425 $ 268,460 $ 1,172,990 Less: Cost of goods sold 191,271 43,543 69,434 304,248 536,209 116,572 180,560 833,341 Segment gross profit 85,898 20,317 43,830 150,045 205,896 45,853 87,900 339,649 Marketing and selling 18,295 5,436 10,116 33,847 49,681 13,461 27,881 91,023 Distribution 30,654 7,704 6,327 44,685 88,187 19,245 18,696 126,128 Administrative 8,938 992 3,789 13,719 23,830 2,259 10,354 36,443 Other general expense 115 - ( 105 ) 10 23 - 53 76 Segment operating income 27,896 6,185 23,703 57,784 44,175 10,888 30,916 85,979 General corporate expenses 6,309 22,242 Intangible asset impairment charges 1,500 1,500 Gain on insurance proceeds received for damage to property, plant, and equipment ( 10,622 ) ( 10,622 ) Plant closure expense (recoveries) - - Operating income $ 60,597 $ 72,859 Net sales to external customers by type of good or service were: Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 (in thousands) (in thousands) Net sales to external customers: Product sales Food Service $ 254,288 $ 277,169 $ 688,109 $ 742,105 Retail Supermarkets 64,932 63,860 162,434 162,425 Frozen Beverages 75,255 71,041 166,861 157,198 Total Product sales $ 394,475 $ 412,070 $ 1,017,404 $ 1,061,728 Repair and maintenance service Frozen Beverages repair and maintenance service $ 21,010 $ 24,378 $ 64,511 $ 72,232 Total Repair and maintenance service $ 21,010 $ 24,378 $ 64,511 $ 72,232 Machines revenue Frozen Beverages machines revenue $ 9,625 $ 16,940 $ 30,303 $ 36,603 Total Machine revenue $ 9,625 $ 16,940 $ 30,303 $ 36,603 Other Frozen Beverages other $ 847 $ 905 $ 2,336 $ 2,427 Total Other $ 847 $ 905 $ 2,336 $ 2,427 Consolidated sales $ 425,957 $ 454,293 $ 1,114,554 $ 1,172,990 16 Total depreciation and amortization expense, capital expenditures, and total assets by segment, reflecting our current segment structure for all periods presented, were: Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 (in thousands) (in thousands) Depreciation and amortization: Food Service $ 12,093 $ 12,325 $ 36,671 $ 35,437 Retail Supermarket 297 289 880 855 Frozen Beverages 5,832 5,616 17,270 16,673 Corporate 564 427 1,564 1,202 Total depreciation and amortization $ 18,786 $ 18,657 $ 56,385 $ 54,167 Capital expenditures: Food Service $ 11,526 $ 16,662 $ 33,501 $ 43,049 Retail Supermarket - 44 - 189 Frozen Beverages 6,333 5,926 18,400 17,807 Corporate 220 102 1,362 219 Total capital expenditures $ 18,079 $ 22,734 $ 53,263 $ 61,264 June 27, September 27, June 27, September 27, 2026 2025 2026 2025 Assets: Food Service $ 934,633 $ 961,092 $ 934,633 $ 961,092 Retail Supermarket 31,181 30,327 31,181 30,327 Frozen Beverages 371,642 364,473 371,642 364,473 Corporate 18,429 25,609 18,429 25,609 Total assets $ 1,355,885 $ 1,381,501 $ 1,355,885 $ 1,381,501 Geographic data for net sales (recognized in the countries where products were sold from) and total assets were: Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 (in thousands) (in thousands) Net sales to external customers: United States $ 401,257 $ 430,111 $ 1,058,489 $ 1,122,116 Other 24,700 24,182 56,065 50,874 Total net sales to external customers $ 425,957 $ 454,293 $ 1,114,554 $ 1,172,990 June 27, September 27, June 27, September 27, 2026 2025 2026 2025 Assets: United States $ 1,278,596 $ 1,302,387 $ 1,278,596 $ 1,302,387 Other 77,289 79,114 77,289 79,114 Total assets $ 1,355,885 $ 1,381,501 $ 1,355,885 $ 1,381,501 17 Note 11 Goodwill and Intangible Assets Intangible Assets Our reportable segments are Food Service, Retail Supermarkets and Frozen Beverages. The carrying amounts of acquired intangible assets for the Food Service, Retail Supermarkets and Frozen Beverages segments as of June 27, 2026 and September 27, 2025 are as follows: June 27, 2026 September 27, 2025 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization (in thousands) FOOD SERVICE Indefinite lived intangible assets Trade names $ 85,424 $ - $ 85,424 $ - Amortized intangible assets Trade names - - 2,515 2,515 Franchise agreements 8,500 3,400 8,500 2,763 Customer relationships 23,550 16,516 23,550 14,749 Technology 23,110 9,210 23,110 7,493 License and rights - - 1,690 1,734 TOTAL FOOD SERVICE $ 140,584 $ 29,126 $ 144,789 $ 29,254 RETAIL SUPERMARKETS Indefinite lived intangible assets Trade names $ 11,181 $ - $ 11,181 $ - TOTAL RETAIL SUPERMARKETS $ 11,181 $ - $ 11,181 $ - FROZEN BEVERAGES Indefinite lived intangible assets Trade names $ 9,315 $ - $ 9,315 $ - Distribution rights 36,100 - 36,100 - Amortized intangible assets Customer relationships 1,439 1,061 1,439 968 Licenses and rights 1,400 1,400 1,400 1,352 TOTAL FROZEN BEVERAGES $ 48,254 $ 2,461 $ 48,254 $ 2,320 CONSOLIDATED $ 200,019 $ 31,587 $ 204,224 $ 31,574 Amortizing intangible assets are being amortized by the straight-line method over periods ranging from 10 to 20 years and amortization expense is reflected throughout operating expenses. Aggregate amortization expense of intangible assets for the three months ended June 27, 2026 and June 28, 2025 was $ 1.4 million and $ 1.9 million, respectively. Aggregate amortization expense of intangible assets for the nine months ended June 27, 2026 and June 28, 2025 was $ 4.2 million and $ 5.9 million, respectively. 18 Estimated amortization expense for the next five fiscal years is approximately $ 1.4 million in 2026 (excluding the nine months ended June 27, 2026), $ 4.7 million in 2027, $ 4.3 million in 2028 and 2029, and $ 4.2 million in 2030. The weighted amortization period of the intangible assets, in total, is 10.0 years. The weighted amortization period by intangible asset class is 10 years for Technology, 10 years for Customer relationships, 20 years for Licenses & rights, and 10 years for Franchise agreements. Goodwill The carrying amounts of goodwill for the Food Service, Retail Supermarket and Frozen Beverage segments are as follows: June 27, September 27, 2026 2025 (in thousands) Food Service $ 124,426 $ 124,426 Retail Supermarket 4,146 4,146 Frozen Beverages 56,498 56,498 Total goodwill $ 185,070 $ 185,070 Note 12 Commitments and Contingencies We are a party to litigation which has arisen in the normal course of business which management currently believes will not have a material adverse effect on our financial condition or results of operations. During the three months ended June 27, 2026, an advisory jury returned a verdict in favor of the Company in connection with a long-standing legal matter. As of the date of issuance of the financial statements, final judgment has not been entered by the court, and significant uncertainty remains regarding the ultimate recovery, including the timing, amount and collectability of any proceeds that may be received. Accordingly, the Company has not recognized a gain or recorded a receivable related to this matter in the accompanying financial statements. We self-insure, up to loss limits, certain insurable risks such as workers’ compensation, automobile, and general liability claims. Accruals for claims under our self-insurance program are recorded on a claims incurred basis. Our total recorded liability for all years’ claims incurred but not yet paid was $ 13.7 million and $ 14.4 million at June 27, 2026 and September 27, 2025, respectively. In connection with certain self-insurance agreements, we customarily enter into letters of credit arrangements with our insurers. At both June 27, 2026 and September 27, 2025, we had outstanding letters of credit totaling $ 14.8 million. We have a self-insured medical plan which covers approximately 1,800 of our employees. We record a liability for incurred but not yet reported or paid claims based on our historical experience of claim payments and a calculated lag time period. Our recorded liability at June 27, 2026 and September 27, 2025 was $ 1.9 million and $ 2.2 million, respectively. On August 19, 2024, we experienced a fire at our Holly Ridge plant in North Carolina. The building was damaged as a result of the fire, and plant operations were interrupted. We maintain property, general liability and business interruption insurance coverage. Based on the provisions of our insurance policies, we record estimated insurance recoveries for fire-related costs for which recovery is deemed to be probable. In the nine months ended June 27, 2026, we recorded $ 0.3 million of fire-related costs, and we recognized a gain of $ 2.0 million for insurance proceeds received in excess of operational losses recognized, in cost of goods sold in the Consolidated Statement of Earnings. Additionally, in the nine months ended June 27, 2026, we recognized a gain of $ 0.8 million for insurance proceeds received for damage to property, plant, and equipment in the Consolidated Statement of Earnings and we received $ 3.1 million of insurance proceeds for inventory, fixed asset replacement costs, and business interruption losses. During the three months ended June 27, 2026, no additional fire-related costs or gains were recognized and no insurance proceeds were received. In the three and nine months ended June 28, 2025, we recorded an additional $ 0.3 million and $ 10.4 million of fire-related costs, respectively, for all of which recovery was deemed to be probable , and we recognized a gain of $ 0.8 million for insurance proceeds received in excess of operational losses recognized, in cost of goods sold in the Consolidated Statement of Earnings. Additionally, in the three and nine months ended June 28, 2025, we recognized a gain of $ 10.6 million for insurance proceeds received for damage to property, plant, and equipment in the Consolidated Statement of Earnings and we received $ 21.1 million and $ 23.6 million of insurance proceeds, respectively, for inventory, fixed asset replacement costs, and business interruption losses. 19 Cumulative fire-related costs recorded through June 27, 2026 were $ 17.5 million, for all of which recovery has been received. Cumulative insurance proceeds received as of June 27, 2026 were $ 34.7 million for inventory, fixed asset replacement costs, and business interruption losses. See below for a roll forward of the insurance receivable, net of advanced proceeds received for other fire-related costs for which recovery was deemed probable in the Consolidated Balance Sheet for the three and nine months ended June 27, 2026 and June 28, 2025. Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 (in thousands) (in thousands) Insurance receivable, net of advance proceeds received for other fire-related costs Beginning balance $ - $ 10,178 $ - $ 1,790 Fire-related costs - 296 296 10,388 Insurance proceeds for inventory, fixed asset losses, and other fire-related costs - ( 21,100 ) ( 3,100 ) ( 23,600 ) Gain on insurance proceeds received for damage to property, plant, and equipment - 10,622 800 10,622 Gain on insurance proceeds received, or expected to be received, in excess of operating losses recognized - 4 2,004 800 Ending balance $ - $ - $ - $ - Note 13 Accumulated Other Comprehensive Income (Loss) Changes to the components of accumulated other comprehensive loss are as follows: Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 (in thousands) (in thousands) Foreign currency translation adjustments Beginning balance $ ( 10,607 ) $ ( 17,444 ) $ ( 12,647 ) $ ( 15,299 ) Foreign currency translation adjustment gain (loss) 563 3,774 2,603 1,629 Ending balance $ ( 10,044 ) $ ( 13,670 ) $ ( 10,044 ) $ ( 13,670 ) Accumulated other comprehensive loss $ ( 10,044 ) $ ( 13,670 ) $ ( 10,044 ) $ ( 13,670 ) Note 14 Leases General Lease Description We have operating leases with initial noncancelable lease terms in excess of one year covering the rental of various facilities and equipment. Certain of these leases contain renewal options and some provide options to purchase during the lease term. Our operating leases include leases for real estate for some of our office and manufacturing facilities as well as manufacturing and non-manufacturing equipment used in our business. The remaining lease terms for these operating leases range from 1 month to 18 years. We have finance leases with initial noncancelable lease terms in excess of one year covering the rental of various equipment. These leases are generally for manufacturing and non-manufacturing equipment used in our business. The remaining lease terms for these finance leases range from 1 year to 5 years. Significant Assumptions and Judgments Contract Contains a Lease In evaluating our contracts to determine whether a contract is or contains a lease, we considered the following: • Whether explicitly or implicitly identified assets have been deployed in the contract; and • Whether we obtain substantially all of the economic benefits from the use of that underlying asset, and we can direct how and for what purpose the asset is used during the term of the contract. 20 Allocation of Consideration In determining how to allocate consideration between lease and non-lease components in a contract that was deemed to contain a lease, we used judgment and consistent application of assumptions to reasonably allocate the consideration. Options to Extend or Terminate Leases We have leases which contain options to extend or terminate the leases. On a lease-by-lease basis, we have determined if the extension should be considered reasonably certain to be exercised and thus a right-of-use asset and a lease liability should be recorded. Discount Rate The discount rate for leases, if not explicitly stated in the lease, is the incremental borrowing rate, which is the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. We used the discount rate to calculate the present value of the lease liability at the date of adoption. In the development of the discount rate, we considered our incremental borrowing rate as provided by our lender which was based on cash collateral and credit risk specific to us, and our lease portfolio characteristics. As of June 27, 2026, the weighted-average discount rate of our operating and finance leases was 5.2 % and 4.1 %, respectively. As of September 27, 2025, the weighted-average discount rate of our operating and finance leases was 5.2 % and 4.1 %, respectively. Practical Expedients and Accounting Policy Elections We elected the package of practical expedients that permits us not to reassess our prior conclusions about lease identification, lease classification and initial direct costs and made an accounting policy election to exclude short-term leases with an initial term of 12 months or less from our Consolidated Balance Sheets. 21 Amounts Recognized in the Financial Statements The components of lease expense were as follows: Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 Operating lease cost in Cost of goods sold and Operating Expenses $ 7,972 $ 8,001 $ 24,216 $ 23,386 Finance lease cost: Amortization of assets in Cost of goods sold and Operating Expenses $ 145 $ 35 $ 412 $ 204 Interest on lease liabilities in Interest expense & other 17 12 55 27 Total finance lease cost $ 162 $ 47 $ 467 $ 231 Short-term lease cost in Cost of goods sold and Operating Expenses - - - - Total net lease cost $ 8,134 $ 8,048 $ 24,683 $ 23,617 Supplemental balance sheet information related to leases is as follows: June 27, September 27, 2026 2025 Operating Leases Operating lease right-of-use assets $ 152,172 $ 151,538 Current operating lease liabilities $ 23,742 $ 21,624 Noncurrent operating lease liabilities 138,584 140,021 Total operating lease liabilities $ 162,326 $ 161,645 Finance Leases Finance lease right-of-use assets in Property, plant and equipment, net $ 1,481 $ 2,493 Current finance lease liabilities $ 602 $ 563 Noncurrent finance lease liabilities 978 1,355 Total finance lease liabilities $ 1,580 $ 1,918 Supplemental cash flow information related to leases is as follows: Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,925 $ 7,780 $ 23,425 $ 22,507 Operating cash flows from finance leases $ 17 $ 12 $ 55 $ 27 Financing cash flows from finance leases $ 104 $ 61 $ 353 $ 182 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets $ 8,479 $ 4,691 $ 20,257 $ 23,342 Supplemental noncash information on lease liabilities removed due to purchase of leased asset $ - $ - $ - $ - As of June 27, 2026, the maturities of lease liabilities were as follows: Operating Leases Finance Leases Three months ending September 26, 2026 $ 8,014 $ 156 2027 30,863 595 2028 27,571 384 2029 22,279 255 2030 17,128 239 Thereafter 112,156 73 Total minimum payments 218,011 1,702 Less amount representing interest ( 55,685 ) ( 122 ) Present value of lease obligations $ 162,326 $ 1,580 As of June 27, 2026 the weighted-average remaining term of our operating and finance leases was 10.7 years and 3.5 years, respectively. As of September 27, 2025 the weighted-average remaining term of our operating and finance leases was 11.4 years and 4.1 years, respectively. 22 Note 15 Related Parties NFI Industries, Inc. We have related party expenses for distribution and shipping related costs with NFI Industries, Inc. and its affiliated entities (“NFI”). Our director, Sidney R. Brown, is CEO and an owner of NFI Industries, Inc. The payments to NFI were as follows: Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 (in millions) (in millions) Transportation management services payments (1) $ 0.2 $ 0.2 $ 0.6 $ 0.6 Labor management services payments (2) 3.9 4.5 11.5 12.3 Lease payments (3) 0.4 0.5 1.4 1.4 Pass through payments to third parties (4) 14.9 15.1 37.3 40.3 Total amount distributed to NFI $ 19.4 $ 20.3 $ 50.8 $ 54.6 (1) The Company is contracted with NFI for transportation management services, which involves the arrangement for the distribution of the Company's goods. This amount represents the payments for management fees associated with this service. (2) The Company is entered into a master service agreement with NFI for the operations and labor management of our three regional distribution centers. This amount represents the payments to NFI for services rendered under this contract. (3) In June 2023, the Company began leasing a regional distribution center in Terrell, Texas that was constructed by, and is owned by, a subsidiary of NFI. This amount represents the lease payments associated with the lease arrangement. At the lease commencement date, $ 28.7 million was recorded as an operating right-of-use asset, $ 0.2 million was recorded as a current operating lease liability, and $ 28.5 million was recorded as a non-current operating lease liability. As of June 27, 2026, $ 25.7 million was recorded as an operating right-of-use asset, $ 0.7 million was recorded as a current operating lease liability, and $ 27.0 million was recorded as a non-current operating lease liability. As of September 27, 2025, $ 26.5 million was recorded as an operating right-of-use asset, $ 0.7 million was recorded as a current operating lease liability, and $ 27.4 million was recorded as a non-current operating lease liability. (4) This amount represents passed through payments to third-party distribution and shipping vendors that are managed on the Company's behalf by NFI. As of June 27, 2026, and September 27, 2025, related party trade payables of approximately $ 4.8 million and $ 0.6 million, respectively, were recorded as accounts payable. All agreements with NFI include terms that are consistent with those that we believe would have been negotiated at an arm’s length with an independent party. Ken Roshkoff The Company pays board advisory consulting fees to the husband of our director, Marjorie Roshkoff. In the nine months ended June 27, 2026 and June 28, 2025, the Company paid $ 26,000 and $ 38,000 for these board advisory consulting fees, respectively. In the three months ended June 28, 2025, the Company paid $ 13,000 for these board advisory fees. There were no such payments made in the three months ended June 27, 2026. Note 16 Reclassifications Certain prior year financial statements amounts have been reclassified to be consistent with the presentation for the current year. Note 17 Share repurchase programs On February 3, 2025, the Company announced that the Board of Directors authorized a share repurchase program (the 2025 Share Repurchase Program) pursuant to which the Company could repurchase up to $ 50.0 million of the Company’s common stock, exclusive of any fees, commissions, and other expenses related to such repurchases. Under the 2025 Share Repurchase Program, the Company may repurchase its common stock from time to time, in amounts, at prices, and at such times as the Company deems appropriate, subject to market conditions, legal requirements, and other considerations. The Company’s repurchases may be executed using open market purchases, unsolicited or solicited privately negotiated transactions, or other transactions, and may be affected pursuant to trading plans intended to qualify under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The 2025 Share Repurchase Program is effective for two years; however, the 2025 Share Repurchase Program does not obligate the Company to repurchase any specific number of shares and may be suspended, modified or terminated at any time without prior notice. During the nine months ended June 28, 2025, the Company repurchased 39,061 shares of common stock of the Company at an average price of $ 128.00 per share on the open market, pursuant to the 2025 Share Repurchase Program. As of the date of the repurchase, the repurchased shares were retired and returned to the status of authorized but unissued shares of common stock. The Company repurchased no shares during the three months ended June 28, 2025. 23 During the three months ended December 27, 2025, the Company repurchased 458,467 shares of common stock of the Company at an average price of $ 91.61 per share on the open market, pursuant to the 2025 Share Repurchase Program. As of the date of the repurchase, the repurchased shares were retired and returned to the status of authorized but unissued shares of common stock. As of December 27, 2025, the Company had fully exhausted its share repurchase ability under the 2025 Share Repurchase Program. On February 3, 2026, the Company announced that the Board of Directors authorized a new share repurchase program (the “2026 Share Repurchase Program”) pursuant to which the Company could repurchase up to $ 50.0 million of the Company’s common stock, exclusive of any fees, commissions, and other expenses related to such repurchases. Under the 2026 Share Repurchase Program, the Company may repurchase its common stock from time to time, in amounts, at prices, and at such times as the Company deems appropriate, subject to market conditions, legal requirements, and other considerations. The Company’s repurchases may be executed using open market purchases, unsolicited or solicited privately negotiated transactions, or other transactions, and may be affected pursuant to trading plans intended to qualify under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The 2026 Share Repurchase Program is effective for approximately two years, however, the 2026 Share Repurchase Program does not obligate the Company to repurchase any specific number of shares and may be suspended, modified or terminated at any time without prior notice. During the three months ended June 27, 2026, the Company repurchased 135,852 shares of common stock of the Company at an average price of $ 74.04 per share on the open market, pursuant to the 2026 Share Repurchase Program. As of the date of the repurchase, the repurchased shares were retired and returned to the status of authorized but unissued shares of common stock. During the nine months ended June 27, 2026, the Company repurchased 854,208 shares of common stock of the Company at an average price of $ 86.66 per share on the market, which included the 458,467 shares of common stock of the Company that were purchased pursuant to the 2025 Share Repurchase Program during the three months ended December 27, 2025, and an additional 395,741 shares of common stock of the Company that were purchased pursuant to the 2026 Share Repurchase Program. As a result of the Company’s recent stock repurchases, as of June 27, 2026, there remains $ 18.0 million of share repurchase availability under the 2026 Share Repurchase Program. Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 Shares repurchased (in thousands) 136 - 854 39 Average price per share $ 74.04 $ - $ 86.66 $ 128.00 Total investment (in thousands) including fees and excise tax $ 10,159 $ - $ 74,730 $ 5,000 Note 18 Manufacturing and Distribution Facility Closures and Disposals During the fourth quarter of fiscal 2025, we announced the closure of two manufacturing facilities, our plant in Holly Ridge, North Carolina, and our plant in Atlanta, Georgia. In October 2025, during the first quarter of fiscal 2026, we subsequently announced the closure of a third manufacturing facility, our plant in Colton, California. In March 2026, during the second quarter of fiscal 2026, we made the decision to close a fourth facility, our manufacturing/distribution facility in New York, New York, which subsequently closed in our third fiscal quarter. Production from these facilities has been consolidated into various other facilities across our network, or it was selectively discontinued. This consolidation was enabled by investments we have made in our plants to modernize and expand capacity for our core products, as well as our investments made to build out our three regional distribution centers. As a result of the plant closures, we recorded a net recovery of $( 0.2 ) million in the three months ended June 27, 2026, and a net charge of $ 10.7 million in the nine months ended June 27, 2026. These costs are reported in the plant closure expenses (recoveries) item within the Operating expenses sections of the Consolidated Statements of Earnings. Included in the results in the three months ended June 27, 2026 are $ 0.3 million of charges that have resulted or will result in cash outflows, and $( 0.5 ) million of net non-cash recoveries. Included in the results in the nine months ended June 27, 2026 are $ 6.2 million of charges that have resulted or will result in cash outflows, and $ 4.5 million of net non-cash charges. No plant closure expenses were recorded in the three or nine months ended June 28, 2025. The manufacturing facility in Holly Ridge, NC produced handheld products for our Food Service and Retail Supermarket segments and ceased production on July 31, 2025. During the three months ended March 28, 2026, in connection with our plan to actively market and sell the building and land at Holly Ridge, NC, we reclassified $ 6.3 million of property, plant, and equipment, net, to assets held for sale. We then measured the assets held for sale at the lower of their carrying value or fair value less the estimated costs to sell, and recorded a pre-tax, non-cash impairment charge of $ 2.0 million during the three months ended March 28, 2026. The remaining $ 4.3 million of assets held for sale are still reported in the Prepaid expenses and other item, within current assets, on our Consolidated Balance Sheet as of June 27, 2026. We expect to be able to sell the building and land for fair value less the estimated costs to sell, within the next twelve months. 24 There were no plant closure costs for the Holly Ridge facility in the three months ended June 27, 2026. The closure costs for the facility totaled $ 3.4 million in the nine months ended June 27, 2026, including the $ 2.0 million impairment charge on assets held-for-sale noted above, and $ 1.2 million of other exit and disposal costs. These costs are reported in the plant closure expense (recoveries) item of the Consolidated Statements of Earnings. The manufacturing facility in Atlanta, GA produced bakery and biscuit products for our Food Service and Retail Supermarket segments and ceased production on September 27, 2025. The closure costs for the facility totaled $ 0.1 million in the three months ended June 27, 2026, and related to inventory write-offs, and other exit and disposal costs. The closure costs for the facility totaled $ 4.4 million in the nine months ended June 27, 2026, including $ 2.1 million of other exit and disposal costs, $ 1.8 million of inventory write-offs, and $ 0.5 million of severance and benefits costs. These costs are reported in the plant closure expense (recoveries) item of the Consolidated Statements of Earnings. The manufacturing facility in Colton, CA produced churro products for our Food Service and Retail Supermarket segments and ceased production in the first quarter of fiscal 2026. During the three months ended June 27, 2026, $( 0.3 ) million of net plant closure related recoveries were recorded for the facility, primarily related to a reduced contractual obligation. The net closure costs for the facility totaled $ 1.8 million in the nine months ended June 27, 2026, including $ 1.4 million of severance and benefits costs and $ 0.4 million of other exit and disposal costs. These costs are reported in the plant closure expense (recoveries) item of the Consolidated Statements of Earnings. The manufacturing and distribution facility in New York, NY produced and distributed soft pretzel products for our Food Service segment and ceased production during the third quarter of our fiscal 2026. During the three months ended June 27, 2026, no net plant closure costs were recorded for the facility, resulting from $ 0.2 million of other exit and disposals costs, offset by a $ 0.2 million recovery related to a reduced contractual obligation. The net closure costs for the facility totaled $ 1.1 million in the nine months ended June 27, 2026, including $ 0.7 million of right-of-use (“ROU”) asset and long-lived asset impairment charges and $ 0.2 million of severance and benefits costs and $ 0.4 million of other exit and disposal costs. These costs are reported in the plant closure expense (recoveries) item of the Consolidated Statements of Earnings. The following table reflects our liability related to manufacturing and distribution facility closures as of June 27, 2026 (in thousands): September 27, Plant closure Plant closure June 27, 2025 charges payments 2026 Severance and benefits costs $ 2,534 $ 2,054 $ ( 4,588 ) $ - Other exit and disposal costs 118 4,148 ( 4,128 ) 138 Total $ 2,652 $ 6,202 $ ( 8,716 ) $ 138 Note 19 Subsequent Events In July 2026, the Company received correspondence from the insurance carrier handling its Holly Ridge fire-related insurance claim indicating that the carrier had received the required documentation and was in the final stages of processing the final payment to the Company related to this claim. Subsequent to that correspondence, in August 2026, the Company received insurance proceeds of $ 17.1 million related to the matter. No gain related to this insurance recovery has been recognized as of the date of these financial statements. Item 2. Management ’ s Discussion and Analysis of Financial Condition and Results of Operations Statements made in this Form 10-Q that are not historical 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, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to us, based on our current beliefs as well as assumptions made by us and information currently available to us. Forward-looking statements generally will be accompanied by words such as "anticipate," "if," "may," "believe," "plan,", "goals," "estimate," "expect," "project," "continue," "forecast," "intend," "may," "could," "should," "will," and other similar 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. This includes, without limitation, our statements and expectations regarding any current or future recovery in our industry (or the industries of our customers), the success of new product innovations, and the future impact of our supply chain efficiency projects, including investments in additional production capacity and logistics and warehousing operations. Such forward-looking statements are inherently uncertain, and readers must recognize that actual results may differ materially from the expectations of management. We intend that such forward-looking statements be subject to the safe harbor provisions of the Securities Act and the Exchange Act. 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 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. 25 Objective This Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to provide readers of our financial statements with a narrative form 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 Part I, Item 1 of this Quarterly Report on Form 10-Q and within the Company’s Annual Report on Form 10-K filed for the fiscal year ended September 27, 2025. Business Overview The Company manufactures and sells 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 donuts, churros, cookies, 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. The Company’s Food Service and Frozen Beverage sales are made principally 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 theaters; independent retailers; and schools, colleges and other institutions. The Company’s Retail Supermarket customers are primarily supermarket chains. Business Trends and Strategy Our products are generally sold for discretionary consumption. Our results are impacted by macroeconomic and demographic trends and changes in consumer behavior. The U.S. economy has experienced economic volatility and uncertainty in recent years, which has had, and we expect might continue to have, an impact on consumer behavior. Consumer spending may continue to be impacted by levels of discretionary income and the impact of that on the consumer’s decision-making around their purchases. While overall packaging and raw material inflation appears to have moderated during fiscal 2026, uncertainty within the supply chain surrounding impacts from the US government’s tariffs on imports, as well as elevated fuel and freight costs, could continue to be potential headwinds for the Company throughout the remainder of fiscal 2026 and into fiscal 2027. Tariffs and elevated fuel and freight costs may increase the cost of certain raw materials and packaging that we use in our business, as well as increase our distribution costs, and our financial performance may be adversely impacted if we are unable to pass on the cost increases in the form of price increases to our customers. Additionally, the ultimate impact of tariffs may be difficult to predict as tariff rates and duration remain uncertain, which can make our planning process more challenging. To help combat these potential headwinds, we continue to pursue operational improvements, as well as expand growth opportunities across our various channels and customers. Some recent examples of implementing these strategies include: ● Our recently completed strategic supply chain transformation in which we opened three regional distribution centers which is projected to drive cost reductions around warehousing and distribution costs. ● Many examples of successful cross-selling and leveraging our brands across customer channels, including our recent expansion of Dippin’ Dots brand into retail and further into the theater channel. ● Our recently announced transformation program, “Project Apollo,” which is anticipated to generate sustainable efficiencies and cost savings across the enterprise. 26 The above referenced Project Apollo is expected to generate approximately $25 million of run-rate operating income for the initiatives that are expected to be implemented by the end of fiscal 2026. The initial focus of the project is the consolidation and optimization of our manufacturing network. During the fourth quarter of fiscal 2025, we announced the closure of two manufacturing facilities, our plant in Holly Ridge, North Carolina, and our plant in Atlanta, Georgia. In the first quarter of fiscal 2026, we announced the closure of a third manufacturing facility, our plant in Colton, California. During the second quarter of fiscal 2026, we made the decision to close a fourth facility, our manufacturing/distribution facility in New York, New York, which closed as anticipated during our third fiscal quarter. Production from these facilities has been consolidated into various other facilities across our network, or in certain cases, has been discontinued. This consolidation was enabled by investments we have made in our plants to modernize and expand capacity for our core products, as well as our investments made to build out our three regional distribution centers. In connection with the closing of our four facilities, we recorded plant closure costs of approximately $24 million in the fourth quarter of fiscal 2025, and an additional approximately $11 million in the nine months ended June 27, 2026, the majority of which was recorded in our first and second quarters of fiscal 2026. These costs primarily related to non-cash write-downs and write-offs related to inventory and property, plant and equipment, as well as severance and benefit costs and other exit and disposal activities. In addition to plant consolidation, as part of the first phase of Project Apollo, we are continuing to work towards optimally repositioning production within our network, and to streamline our corporate functions, both of which have started to generate savings in fiscal 2026, but for which we anticipate the full run-rate benefit to begin to be seen in fiscal 2027 and beyond. RESULTS OF OPERATIONS – Three and nine months ended June 27, 2026 The following discussion provides a review of results for the three and nine months ended June 27, 2026 as compared with the three and nine months ended June 28, 2025. Summary of Results Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 % Change 2026 2025 % Change (in thousands) (in thousands) Net sales $ 425,957 $ 454,293 (6.2 )% $ 1,114,554 $ 1,172,990 (5.0 )% Cost of goods sold 274,941 304,248 (9.6 )% 768,234 833,341 (7.8 )% Gross profit 151,016 150,045 0.6 % 346,320 339,649 2.0 % Operating expenses Marketing and selling 34,627 33,847 2.3 % 96,209 91,023 5.7 % Distribution 49,621 44,685 11.0 % 129,414 126,128 2.6 % Administrative 20,068 20,028 0.2 % 61,629 58,685 5.0 % Intangible asset impairment charges - 1,500 n.m. - 1,500 n.m. Gain on insurance proceeds received for damage to property, plant, and equipment - (10,622 ) n.m. (800 ) (10,622 ) n.m. Plant closure expense (recoveries) (155 ) - n.m. 10,714 - n.m. Other general expense (income) 581 10 5710.0 % 440 76 478.9 % Total operating expenses 104,742 89,448 17.1 % 297,606 266,790 11.6 % Operating income 46,274 60,597 (23.6 )% 48,714 72,859 (33.1 )% Other income (expense) Investment income 680 622 9.3 % 2,224 2,348 (5.3 )% Interest expense (965 ) (441 ) 118.8 % (1,406 ) (738 ) 90.5 % Earnings before income taxes 45,989 60,778 (24.3 )% 49,532 74,469 (33.5 )% Income tax expense 10,657 16,531 (35.5 )% 11,640 20,255 (42.5 )% NET EARNINGS $ 35,332 $ 44,247 (20.1 )% $ 37,892 $ 54,214 (30.1 )% Comparisons as a Percentage of Net Sales Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 Basis Pt Chg 2026 2025 Basis Pt Chg Gross profit 35.5 % 33.0 % 250 31.1 % 29.0 % 210 Marketing and selling 8.1 % 7.5 % 60 8.6 % 7.8 % 80 Distribution 11.6 % 9.8 % 180 11.6 % 10.8 % 80 Administrative 4.7 % 4.4 % 30 5.5 % 5.0 % 50 Operating income 10.9 % 13.3 % (240 ) 4.4 % 6.2 % (180 ) Earnings before income taxes 10.8 % 13.4 % (260 ) 4.4 % 6.3 % (190 ) Net earnings 8.3 % 9.7 % (140 ) 3.4 % 4.6 % (120 ) Net Sales Net sales decreased by $28.3 million, or 6.2%, to $426.0 million for the three months ended June 27, 2026. Net sales decreased by $58.4 million, or 5.0%, to $1,114.6 million for the nine months ended June 27, 2026. The sales decrease was primarily driven by declines in our Food Service segment, most notably within our bakery portfolio, and the majority of which related to anticipated sales reductions in our bakery business. 27 Gross Profit Gross Profit increased by $1.0 million, or 0.6%, to $151.0 million for the three months ended June 27, 2026. As a percentage of sales, gross profit increased from 33.0% to 35.5%. The increase in gross profit as a percentage of sales was largely driven by the benefits of our previously announced plant closures as well as the favorable impact from mix improvements. These favorable tailwinds significantly offset the unfavorable impact of lower sales volumes in our Food Service segment, as well as the higher slotting fees and promotional spend within our Retail segment. Gross Profit increased by $6.7 million, or 2.0%, to $346.3 million for the nine months ended June 27, 2026. As a percentage of sales, gross profit increased from 29.0% to 31.1%. The increase in gross profit as a percentage of sales was largely driven by the benefits of our previously announced plant closures as well as the favorable impact from mix improvements. These favorable tailwinds significantly offset the unfavorable impact of lower sales volumes in our Food Service segment, as well as the higher slotting fees and promotional spend within our Retail segment. Operating Expenses Operating Expenses increased by $15.3 million, or 17.1%, to $104.7 million for the three months ended June 27, 2026. As a percentage of sales, operating expenses increased from 19.7% to 24.6%. Operating expenses in the prior year included the benefit of a $10.6 million gain on insurance proceeds received for damage to property, plant and equipment, related to the fire at our Holly Ridge plant, offset slightly by the $1.5 million intangible asset impairment charge. The net of those two items reduced prior year operating expenses as a percentage of sales by approximately 200 bps. The remaining increase in operating expenses for the three months ended June 27, 2026 primarily related to higher distribution expenses, mostly driven by elevated fuel costs due to rising oil prices and higher freight rates resulting from the constrained capacity due to regulatory and legislative changes. As a percentage of sales, distribution expenses increased from 9.8% to 11.6% and from $44.7 million to $49.6 million. As a percentage of sales, marketing and selling expenses increased from 7.5% to 8.1% and from $33.8 million to $34.6 million in the three months ended June 27, 2026, with the increase primarily attributable to increased commission costs on retail vending sales, increased spend on sponsorships, brand support and other promotional activities, and higher depreciation for customer equipment for growth. As a percentage of sales, general and administrative expenses increased from 4.4% to 4.7% and from $20.0 million to $20.1 million in the three months ended June 27, 2026. Operating Expenses increased by $30.8 million, or 11.6%, to $297.6 million for the nine months ended June 27, 2026. As a percentage of sales, operating expenses increased from 22.7% to 26.7%. Operating expenses in the nine months ended June 27, 2026 included $10.7 million of plant closure expenses and a partly offsetting $0.8 million gain on insurance proceeds received for damage to property, plant, and equipment. The net impact of these items increased operating expenses as a percentage of sales in the nine months ended June 27, 2026 by approximately 90 bps. Additionally, operating expenses in the nine months ended June 28, 2025 included a benefit of a $10.6 million gain on insurance proceeds received for damage to property, plant and equipment, related to the fire at our Holly Ridge plant, offset slightly by the $1.5 million intangible asset impairment charge. The net of the two items reduced operating expenses as a percentage of sales in the nine months ended June 28, 2025 by approximately 80 bps. The remaining increase in operating expenses in the nine months ended June 27, 2026 was driven by increases in marketing and selling expenses, distribution expenses, and general and administrative expenses. As a percentage of sales, marketing and selling expenses increased from 7.8% to 8.6% and from $91.0 million to $96.2 million in the nine months ended June 27, 2026, with the increase primarily attributable to increased commission costs on retail vending sales, increased spend on sponsorships, brand support and other promotional activities, and higher depreciation for customer equipment for growth. As a percentage of sales, distribution expenses increased from 10.8% to 11.6%, and from $126.1 million to $129.4 million in the nine months ended June 27, 2026, with the increase primarily attributable to elevated fuel costs due to rising oil prices and higher freight rates resulting from the constrained capacity due to regulatory and legislative changes, which were incurred predominantly in the three months ended June 27, 2026. As a percentage of sales, general and administrative expenses increased from 5.0% to 5.5% and from $58.7 million to $61.6 million in the nine months ended June 27, 2026. The increase was most significantly driven by non-recurring restructuring and legal expenses incurred during the first and second quarters in fiscal 2026. 28 Other Income and Expense Investment income increased slightly from $0.6 million to $0.7 million for the three months ended June 27, 2026, but decreased slightly from $2.3 million to $2.2 million for the nine months ended June 27, 2026. Interest expense increased from $0.4 million to $1.0 million for the three months ended June 27, 2026, and from $0.7 million to $1.4 million for the nine months ended June 27, 2026, respectively, due to the increase in the Company’s average outstanding borrowings under the Credit Agreement for the three and nine- month periods ended June 27, 2026, as compared to the prior year periods. Income Tax Expense Our effective tax rate decreased from 27.2% to 23.2% and from 27.2% to 23.5% for the three and nine months ended June 27, 2026, respectively. The decrease in rate between periods was primarily attributable to a change in the blended state tax rate between periods. Net Earnings Net earnings decreased by $8.9 million, or 20.1%, for the three months ended June 27, 2026, due to the aforementioned items. Net earnings decreased by $16.3 million, or 30.1%, for the nine months ended June 27, 2026, due to 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. Business Segment Discussion We operate in three segments: Food Service, Retail Supermarket, and Frozen Beverages. The following table is a summary of sales and operating income, which is how we measure segment profit. Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 % Change 2026 2025 % Change (in thousands) (in thousands) Net sales Food Service $ 254,288 $ 277,169 (8.3 )% $ 688,109 $ 742,105 (7.3 )% Retail Supermarket 64,932 63,860 1.7 % 162,434 162,425 0.0 % Frozen Beverages 106,737 113,264 (5.8 )% 264,011 268,460 (1.7 )% Total sales $ 425,957 $ 454,293 (6.2 )% $ 1,114,554 $ 1,172,990 (5.0 )% Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 % Change 2026 2025 % Change (in thousands) (in thousands) Operating income Food Service $ 28,079 $ 27,896 0.7 % $ 49,033 $ 44,175 11.0 % Retail Supermarket 2,660 6,185 (57.0 )% 3,435 10,888 (68.5 )% Frozen Beverages 22,815 23,703 (3.7 )% 31,500 30,916 1.9 % General corporate expenses (7,435 ) (6,309 ) 17.8 % (25,340 ) (22,242 ) 13.9 % Intangible asset impairment charges - (1,500 ) n.m. - (1,500 ) n.m. Gain on insurance proceeds received for damage to property, plant, and equipment - 10,622 n.m. 800 10,622 n.m. Plant closure (expense) recoveries 155 - 0.0 % (10,714 ) - 0.0 % Total operating income $ 46,274 $ 60,597 (23.6 )% $ 48,714 $ 72,859 (33.1 )% Food Service Segment Results Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 % Change 2026 2025 % Change (in thousands) (in thousands) Food Service sales to external customers $ 254,288 $ 277,169 (8.3 )% $ 688,109 $ 742,105 (7.3 )% Food Service operating income $ 28,079 $ 27,896 0.7 % $ 49,033 $ 44,175 11.0 % Sales to food service customers decreased $22.9 million, or 8.3%, to $254.3 million for the three months ended June 27, 2026. The largest driver of the decrease was bakery product sales, which decreased by 19%, with the decrease largely attributable to the anticipated sales reductions in our bakery business. Additionally, sales of handhelds decreased by 16%, with the decrease attributable to lower comparative volumes, as well as contractual pricing true-ups on the lower costing of certain raw material ingredients. The decrease in sales within those two product categories was offset slightly by modest growth within our soft pretzel and churro product categories. 29 Sales of new products in the first twelve months since their introduction were minimal for the three months ended June 27, 2026. Low-single digit net pricing increases were more than offset by the net volume declines, primarily attributable to the anticipated sales reductions in our bakery business. Operating income in our Food Service segment increased $0.2 million, or 0.7%, to $28.1 million for the three months ended June 27, 2026, which reflected the efficiencies and benefits of the optimization of our manufacturing footprint as well as mix improvements across the portfolio more than offsetting the lower comparative sales volumes. Sales to food service customers decreased $54.0 million, or 7.3%, to $688.1 million for the nine months ended June 27, 2026. The largest driver of the decrease was bakery product sales, which decreased by 17%, with the decrease largely attributable to the anticipated sales reductions in our bakery business. Additionally, sales of handhelds decreased by 18%, with the decrease attributable to lower comparative volumes on our core handhelds, as well as contractual pricing true-ups on the lower costing of certain raw material ingredients. Somewhat offsetting these decreases were soft pretzel sales to foodservice customers, which increased by 6%, with the increase largely attributable to volume increases seen within the category on our key brands, a continuation of the trend seen in the second half of our fiscal 2025. Sales of new products in the first twelve months since their introduction were minimal for the nine months ended June 27, 2026. Low-single digit net pricing increases were more than offset by the net volume declines, primarily attributable to the anticipated sales reductions in our bakery business. Operating income in our Food Service segment increased $4.9 million, or 11.0% to $49.0 million for the nine months ended June 27, 2026, which reflected the efficiencies and benefits of the optimization of our manufacturing footprint seen within gross profit, as well as mix improvements across the portfolio, which more than offset the lower comparative sales volumes. Retail Supermarket Segment Results Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 % Change 2026 2025 % Change (in thousands) (in thousands) Retail Supermarket sales to external customers $ 64,932 $ 63,860 1.7 % $ 162,434 $ 162,425 0.0 % Retail Supermarket operating income $ 2,660 $ 6,185 (57.0 )% $ 3,435 $ 10,888 (68.5 )% Sales of products to retail customers increased $1.1 million, or 1.7%, to $64.9 million for the three months ended June 27, 2026. The net increase was primarily attributable to volume increases seen across the majority of our retail product categories, offset somewhat by the comparative increased slotting fees and promotional spend, primarily within the frozen novelties category. Sales of new products in retail supermarkets were approximately $2.4 million in the three months ended June 27, 2026, driven by the launch of new frozen novelties products. Sales in the quarter were impacted by the higher slotting fees and promotional spend, which drove high-single digit negative net pricing and mostly offset the volume increases across the retail portfolio. Operating income in our Retail Supermarket segment decreased $3.5 million in the three months ended June 27, 2026, primarily driven by the impact of the higher comparative slotting fees and promotional spend within the frozen novelties category, along with the impact of product mix on gross profit. Sales of products to retail customers remained materially flat at $162.4 million for the nine months ended June 27, 2026, with the volume increases across the majority of retail product categories offset by the increased slotting fees and promotional spend. Sales of new products in retail supermarkets were approximately $2.9 million in the nine months ended June 27, 2026, driven by the launch of new frozen novelties products. Sales in the nine-month period were impacted by the higher slotting fees and promotional spend, which drove mid-single digit negative net pricing and mostly offset the volume increases across the retail portfolio. Operating income in our Retail Supermarket segment decreased $7.5 million, or 68.5%, to $3.4 million in the nine months ended June 27, 2026, primarily driven by the impact of the higher comparative slotting fees and promotional spend within the frozen novelties category, along with the impact of product mix on gross profit. 30 Frozen Beverages Segment Results Three months ended Nine months ended June 27, June 28, June 27, June 28, 2026 2025 % Change 2026 2025 % Change (in thousands) (in thousands) Frozen Beverages sales to external customers $ 106,737 $ 113,264 (5.8 )% $ 264,011 $ 268,460 (1.7 )% Frozen Beverages operating income $ 22,815 $ 23,703 (3.7 )% $ 31,500 $ 30,916 1.9 % Frozen beverage and related product sales decreased $6.5 million, or 5.8%, in the three months ended June 27, 2026. Beverage sales increased 6% to $75.3 million, with the increase driven by a strong performance in our theater and mass merchandising channels. Gallon sales increased approximately 7% for the three months ended June 27, 2026. Service revenue decreased 14% to $21.0 million due to weakness in demand related to customer decisions to insource their maintenance. Machine revenue (primarily sales of frozen beverage machines) decreased 43% to $9.6 million, primarily the result of the lapping of the impact of a major convenience customer that had updated its equipment across its store network in the prior year. Operating income in our Frozen Beverage segment decreased $0.9 million in the quarter to $22.8 million, as the decrease in service revenue and machine revenue more than offset the strong beverage sales. Frozen beverage and related product sales decreased $4.5 million, or 1.7% in the nine months ended June 27, 2026. Beverage sales increased 6% to $166.9 million with the increase driven by strong performance in our theater channel, combined with pricing increases, a favorable sales mix and some foreign exchange-related tailwinds. Gallon sales increased approximately 2% for the nine months ended June 27, 2026. Service revenue decreased 11% to $64.5 million due to weakness in demand related to customer decisions to insource their maintenance, as well as slower restaurant traffic. Machine revenue (primarily sales of frozen beverage machines) decreased 17% to $30.3 million, primarily the result of the lapping of the impact of a major convenience customer that had updated its equipment across its store network in the prior year third fiscal quarter. Operating income in our Frozen Beverage segment increased $0.6 million in the nine months ended June 27, 2026 to $31.5 million, as strong beverage sales positively impacted leverage across the business. 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 to fund future growth and expansion. Nine months ended June 27, June 28, 2026 2025 (in thousands) Cash flows from operating activities Net earnings $ 37,892 $ 54,214 Non-cash items in net income: Depreciation of fixed assets 52,167 48,296 Amortization of intangibles and deferred costs 4,218 5,871 Intangible asset impairment charges - 1,500 Losses (Gains) from disposals of property & equipment 522 (394 ) Non-cash plant closure expenses 4,529 - Non-cash impairment charge 850 - Share-based compensation 4,684 4,580 Deferred income taxes 515 127 Gain on insurance proceeds received for damage to property, plant, and equipment (800 ) (10,622 ) Gain on insurance proceeds received in excess of operating losses recognized - (799 ) Other 546 212 Changes in assets and liabilities, net of effects from purchase of companies (4,680 ) (4,288 ) Net cash provided by operating activities $ 100,443 $ 98,697 ● Gain on insurance proceeds received related to insurance recoveries related to the Holly Ridge fire claim. 31 ● The net cash outflow of $4.7 million in cash flows associated with changes in assets and liabilities, net of effects from purchase of companies, in the nine months ended June 27, 2026, was primarily driven by largely offsetting impacts across working capital categories, including a $26.0 million increase in accounts receivable offset somewhat by a net $19.1 million cash inflow attributable to other operating assets and liabilities, and a $2.3 million decrease in inventories. In the prior year, the net cash outflow of $4.3 million was primarily driven by largely offsetting impacts across working capital categories, including a $21.6 million increase in inventories, a $16.5 million increase in accounts receivable, and a net $33.8 million cash inflow attributable to other operating assets and liabilities. Nine months ended June 27, June 28, 2026 2025 (in thousands) Cash flows from investing activities Purchases of property, plant and equipment $ (53,263 ) $ (61,264 ) Proceeds from disposal of property and equipment 396 1,413 Proceeds from insurance for fixed assets 800 11,421 Net cash (used in) investing activities $ (52,067 ) $ (48,430 ) ● 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. ● Proceeds from insurance for fixed assets related to insurance recoveries related to the Holly Ridge fire claim. Nine months ended June 27, June 28, 2026 2025 (in thousands) Cash flows from financing activities Payments to repurchase common stock $ (74,730 ) $ (5,000 ) Proceeds from issuance of stock 1,160 3,104 Purchase of vested employee service share units and performance share units (1,090 ) - Borrowings under credit facility 119,000 40,000 Repayment of borrowings under credit facility (91,000 ) (40,000 ) Payments for debt issuance costs (567 ) - Payments on finance lease obligations (353 ) (182 ) Payment of cash dividend (45,763 ) (45,575 ) Net cash (used in) financing activities $ (93,343 ) $ (47,653 ) ● During the nine months ended June 27, 2026, the Company repurchased 854,208 shares of common stock of the Company at an average price of $86.66 per share on the open market, pursuant to the 2025 and 2026 Share Repurchase Programs. During the nine months ended June 28, 2025, the Company repurchased 39,061 shares of common stock of the Company at an average price of $128.00 per share on the open market, pursuant to the 2025 Share Repurchase Program. ● Proceeds from issuance of stock decreased in the nine months ended June 27, 2026 as no stock options were exercised in the period as the Company began to issue service share units and performance units as forms of stock-based compensation in recent years. ● Borrowings under credit facility and repayment of borrowings under credit facility relate to the Company’s cash draws and repayments made to primarily fund working capital needs. ● The slight increase in payment of cash dividends from prior year period was due to the raising of our quarterly dividend during fiscal 2025, somewhat offset by a decrease in outstanding share count due to the share repurchases. Liquidity As of June 27, 2026, we had $63.1 million of Cash and Cash Equivalents. In December 2021, the Company entered into an amended and restated loan agreement (as amended, 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, (“Amendment No. 1”), which provided for an incremental increase of $175 million in available borrowings under the revolving credit facility. Amendment No. 1 also included 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 (as defined in the Credit Agreement) of the Borrowers (as defined in the Credit Agreement), subject to the satisfaction of certain terms and conditions. 32 On June 5, 2026, the Company entered into Amendment No. 2 to the Credit Agreement (“Amendment No. 2”). Amendment No. 2 maintained the existing $225 million revolving credit facility capacity, extended the maturity date of the revolving credit facility established under the Credit Agreement to June 2031, and revised the pricing grid used to determine the Applicable Margin (as defined in the Credit Agreement). Amendment No. 2 also included an option to increase the size of the revolving credit facility by up to an amount not to exceed the greater of $200 million or 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 SOFR 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 SOFR 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 June 27, 2026, the Company is in compliance with all financial covenants of the Credit Agreement. As of June 27, 2026, $28.0 million was outstanding under the Amended Credit Agreement with a weighted average interest rate of 5.64%. As of June 27, 2026, the amount available under the Amended Credit Agreement was $182.2 million, after giving effect to the outstanding letters of credit. Critical Accounting Policies, Judgments and Estimates There have been no material changes to our critical accounting policies, judgments and estimates from the information provided in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies, Judgments and Estimates, in our Annual Report on Form 10-K for the year ended September 27, 2025, as filed with the SEC on November 26, 2025. Item 3. Quantitative and Qualitative Disclosures About Market Risk There has been no material change in the Company’s assessment of its sensitivity to market risk since its presentation set forth, in item 7a. “Quantitative and Qualitative Disclosures About Market Risk,” in our Annual Report on Form 10-K for the year ended September 27, 2025, as filed with the SEC on November 26, 2025. Item 4. Controls and Procedures The Chief Executive Officer and the Chief Financial Officer of the Company (its principal executive officer and principal financial officer, respectively) have concluded, based on their evaluation as of June 27, 2026, that the Company’s disclosure controls and procedures (as defined in Rule 13a-15(f) under the Exchange Act) are effective to ensure that information required to be disclosed by the Company in the reports filed or submitted by it under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and include controls and procedures designed to ensure that information required to be disclosed by the Company in such reports is accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. There has been no change in the Company’s internal control over financial reporting (as such term is defined in Rule 13a-15(f) of the Exchange Act) during the quarter ended June 27, 2026, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. PART II. OTHER INFORMATION Item 1. Legal Proceedings The Company is subject, from time to time, to certain legal proceedings and claims that arise from our business. As of the date of this Quarterly Report on Form 10-Q, the Company does not expect that any such proceedings will have a material adverse effect on the Company’s financial position or results of operations. 33 Item 1A. Risk Factors For information on risk factors, please refer to “Risk Factors” in Part I, Item 1A of the Company’s Form 10-K for the fiscal year ended September 27, 2025. The risks identified in that report have not changed in any material respect. Item 2. Unregistered Sales of Equity Securities and the Use of Proceeds The following table sets forth repurchases of our common stock during the third quarter of 2026: Total number of shares Approximate dollar value Total number Average purchased as part of of shares that may yet of shares price paid publicly announced be purchased under Period purchased (1) per share plans or programs (2) plans or programs (2) (in thousands) March 29, 2026 to April 25, 2026 - - - $ 28,023 April 26, 2026 to May 23, 2026 97,131 73.09 94,997 21,080 May 24, 2026 to June 27, 2026 44,083 76.25 40,855 17,965 Three months ended June 27, 2026 141,214 74.08 135,852 17,965 (1) There were 135,852 shares repurchased as part of our publicly announced share repurchase program during the quarter ended June 27, 2026, and there were 5,362 shares withheld to cover taxes associated with the vesting of certain restricted stock units held by officers and employees. (2) On February 3, 2026, the Company announced that the Board of Directors authorized a share repurchase program (the 2026 Share Repurchase Program) pursuant to which the Company could repurchase up to $50.0 million of the Company’s common stock, exclusive of any fees, commissions, and other expenses related to such repurchases. As of June 27, 2026, there remains $18.0 million of share repurchase availability under the 2026 Share Repurchase Program. Item 5. Other Information During the three months ended June 27, 2026, 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. Item 6. Exhibits Exhibit No. 10.1 Amendment No. 2 to Second Amended and Restated Credit Agreement dated as of June 5, 2026, among J & J Snack Foods Corp. and certain subsidiaries, as borrowers, Citizens Bank, N.A. as Administrative Agent, and certain lenders and other parties thereto (Incorporated by reference from the Company’s Form 8-K filed June 10, 2026. 31.1 & 31.2 Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 32.1 & 32.2 Certification Pursuant to the 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 101.1 The following financial information from J&J Snack Foods Corp.'s Quarterly Report on Form 10-Q for the quarter ended June 27, 2026, formatted in Inline XBRL (Inline extensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Earnings, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Stockholders’ Equity, (v) Consolidated Statements of Cash Flows and (vi) the Notes to the Consolidated Financial Statements 104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) 34 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. J & J SNACK FOODS CORP. Dated: August 6, 2026 /s/ Dan Fachner Dan Fachner Chairman, President and Chief Executive Officer (Principal Executive Officer) Dated: August 6, 2026 /s/ Shawn Munsell Shawn Munsell, Senior Vice President and Chief Financial Officer (Principal Financial Officer) (Principal Accounting Officer) 35