J&J Snack Foods, the US food business serving retail and foodservice channels, has warned its sales could be impacted by coronavirus as fewer consumers eat out.
The Nasdaq-listed business, located in New Jersey, produces baked goods, cookies, snacks, desserts and frozen beverages under brands such as Hill & Valley, Minute Maid and Auntie Anne’s. The company generated sales in 2019 of US$1.1bn and net earnings of $103.6m.
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J&J Snack Foods said in a statement late yesterday (12 March) that it “expects its results of operations to be impacted by the closings and anticipated lower attendance and traffic at many of the venues and locations where its products are sold, such as schools, stadiums and arenas, movie theatres, amusement parks and restaurants, and by a general slowdown in activity throughout the United States resulting from the effects of the coronavirus (Covid-19).”
The impact may be “material”, the company said, although it could not at this stage put an estimate on exactly what that might be. However, it noted sales from such outlets amount to around $350m to $400m annually.
Gerald Shreiber, its president and chief executive, said: “We have and are continuing to develop contingency plans to address and lessen the impact of the effects of coronavirus on our employees, our customers and our overall business.”
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By GlobalData
