Gross Margin % is calculated as gross profit divided by its revenue. J&J Snack Foods's Gross Profit for the
three
months ended in Dec. 2023 was $95 Mil. J&J Snack Foods's Revenue for the
three
months ended in Dec. 2023 was $348 Mil. Therefore, J&J Snack Foods's Gross Margin % for the quarter that ended in Dec. 2023 was 27.16%.
The historical rank and industry rank for J&J Snack Foods's Gross Margin % or its related term are showing as below:
JJSF'
s Gross Margin % Range Over the Past 10 Years
Min: 23.33 Med: 29.84 Max: 31.28
Current: 30.44
During the past 13 years, the highestGross Margin % of J&J Snack Foods was 31.28%. The lowest was 23.33%. And the median was 29.84%.
JJSF's Gross Margin % is ranked better than 63.27% of 1808
companies
in the Consumer Packaged Goods industry
Industry Median: 25.04
vs JJSF: 30.44
J&J Snack Foods had a gross margin of 27.16% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for J&J Snack Foods was -0.20% per year.
J&J Snack Foods Gross Margin % Historical Data
The historical data trend for J&J Snack Foods's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of J&J Snack Foods's Gross Margin %
For the Packaged Foods subindustry, J&J Snack Foods's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
J&J Snack Foods's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, J&J Snack Foods's Gross Margin % distribution charts can be found below:
* The bar in red indicates where J&J Snack Foods's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
J&J Snack Foods had a gross margin of 27.16% for the quarter that ended in Dec. 2023 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
J&J Snack Foods Gross Margin % Related Terms
Thank you for viewing the detailed overview of J&J Snack Foods's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
J&J Snack Foods (J&J Snack Foods) Business Description
J&J Snack Foods Corp manufactures, markets, and distributes snack foods and beverages to foodservice and retail supermarket outlets. The company's products include frozen beverages, juice, fruit bars, sorbet, cakes, and cookies that are distributed to various consumers, including restaurants, supermarkets, convenience stores, universities, theaters, and theme parks. The company operates in three business segments: food service, which sells snacks, desserts, and baked goods at the point-of-sale; retail supermarkets, which sells frozen and prepackaged products to supermarkets; and frozen beverages, which sells frozen beverages under brands Icee, Slush puppie, and Parrot ice in the United States, Mexico, and Canada.
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