J & J Snack Foods Corp.

Good day and thank you for standing by. Welcome to the J&J Snack Foods fourth quarter 2025 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to your first speaker today, Reed Anderson with ICR. Please go ahead.

Thank you, operator, and good morning, everyone. Thank you for joining the J&J Snack Foods fiscal 2025 fourth quarter conference call. Before getting started, let me take a minute to read the safe harbor language. This call contains forward-looking statements within the meaning of the Private Security Litigation Reform Act of 1995. All statements made on this call that do not relate to matters of historical facts or should be considered forward-looking statements, including statements regarding management's plans, strategies, goals, expectations, and objectives, as well as our anticipated financial performance. This includes, without limitation, our expectations with respect to the success of our cost savings initiatives and customer demand improvements in the sales channels in which we operate. These statements are neither promises nor guarantees and involve known and unknown risks. uncertainties, and other important factors that may cause results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Risk factors and other items discussed in our annual report on Form 10-K and our other filings with the Securities and Exchange Commission could cause actual results to differ materially from those indicated by the forward-looking statements made on the call today. Any such forward-looking statements represent management's estimates as of the date of this call today, November 17, 2025. While we may elect to update forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause expectations to change. In addition, we may also reference certain non-GAAP measures on the call today, including adjusted EBITDA, adjusted operating income, or adjusted earnings per share, all of which are reconciled to the nearest GAAP measure on the company's earnings press release, which can be found on our investor relations website. Joining me on the call today is Dan Faschner, our chief executive officer, along with Sean Munsell, our chief financial officer. Following management's prepared remarks, we will open the call for a question and answer session. With that, I would now like to turn the call over to Mr. Faschner. Please go ahead, Dan.

Good morning. I am pleased with our fourth quarter results. Despite a challenging backdrop during the summer, we delivered adjusted EBITDA of 57.4 million on sales of 410.2 million, down 3.9% on sales versus the prior year. As anticipated, over half of the sales decline was associated with our frozen beverage business as we lapped strong volumes from the Inside Out 2 movie last year. Pretzel sales in both retail and food service rose in the quarter. reflecting progress on key initiatives to drive growth through innovation. Pretzel growth helped to offset some declines in frozen novelties that we are addressing through marketing, trade spend, and innovation. For the full year, adjusted EBITDA was $180.9 billion, while net sales increased 0.5% to $1.58 billion. Although 2025 was a more challenging year, I'm encouraged by our operational execution in the second half, which puts us in a strong position moving forward. Some bright spots for fiscal 2025 include, we achieved record sales and adjusted EBITDA in fiscal Q3. We modernized our flagship super pretzel product with a recipe enhancement and fresh packaging. The effort to reinvigorate our pretzel business led to a 2.7% pretzel sales increase in 2025, driven by a strong second-half performance, with sales up 8% compared to the prior year. The rollout of Dippin' Dots to theaters was substantially completed, with a presence now in almost 1,600 theaters. Dippin' Dots Sundays were launched at retail with great success, adding approximately 5 million to the top line. We optimized our frozen beverage distribution and service network, which reduced expenses by 2% in the fourth quarter. Now I'll talk through some initiatives underpinning our optimism for fiscal 2026. To start, we have initiated a business transformation program, which we are calling Project Apollo, that will generate sustainable efficiencies and cost savings across the enterprise. Some key elements are already underway, and we expect the program to deliver at least 20 million of annualized operating income once all the initiatives are implemented in 2026. The initial focus of Project Apollo is consolidation of our manufacturing network. During the fourth quarter and early in the first quarter of fiscal 2026, we announced the closure of three facilities, Holly Ridge, North Carolina, Atlanta, Georgia, and Colton, California. Production from these facilities will either be consolidated into other facilities or discontinued as part of an ongoing portfolio optimization. The closures reflect the next logical step in the evolution of our manufacturing footprint and are enabled by the investments we have made in our plants to modernize and expand capacity for core products and to build out our regional distribution centers. We expect annualized savings associated with the plant closures of approximately $15 million, which should be materially complete in Q2 of fiscal 2026. We're also undertaking various initiatives within our distribution system that will generate approximately $3 million of annualized savings. The remaining net savings from Project Apollo are associated with various administrative initiatives. We expect to realize most of the annualized freight and administrative related savings by the third quarter of fiscal 2026. The initiatives I have just outlined represent the first phase of Apollo. We are working on a second phase that is focused on generating further efficiencies within the plants following the completion of the consolidation work. We're also developing a robust roadmap for modernizing our system and tech infrastructures to streamline additional corporate processes and sharpen the quality of our data analytics. We'll be sharing more as the next phase of the project work is finalized. I am energized that the projects we have identified will generate durable structural savings and will do so relatively quickly in fiscal 2026. I'm encouraged by the impact that these actions are having on our early performance so far in Q1. Our operating teams are focused on the closures and seamless redeployment of production within our network to prevent any disruption to customer orders. I'm also excited about several commercial and innovation initiatives that are being rolled out for our fiscal 2026. Starting with the commercial activities, we will commence shipping churros to a major QSR later in fiscal Q1 as part of a limited time offer program. We expect the program to be successful given it is such a great fit with this customer and believe there is potential to be converted to a permanent volume. We are completing the rollout of IC machines for a large and growing convenience store operator in the Southwest. The frozen beverage test with a major West Coast QSR operator is nearly complete, and we are encouraged by the results. And the handheld capacity outage should be remedied by the start of our second quarter. With respect to innovation, We have several exciting launches around the corner for fiscal 2026 with most of these products available to consumers beginning the fiscal second quarter. These innovation items underscore the quality and breadth of our iconic brands. Our new protein pretzel for retail will be available for consumers as a four pack of large pretzels with 10 grams of protein or a smaller mini pretzel with seven grams of protein per serving. We are rolling out super pretzel pizza sticks and queso sticks, which are smaller pretzel bites with tasty fillings. On the frozen novelty front, we are introducing Luigi's mini pops, which feature exciting flavor profiles and better for you attributes such as hydration and immunity support. We are extending our popular pet treat brand, Dogsters, to include a new mini ice cream sandwich. Regarding Dippin' Dots innovation, I am pleased to announce that we will be launching Dippin' Dots in its original form for retail. This represents another major growth milestone for the brand. Additionally, we are introducing two new flavors to the Dippin' Dots retail Sunday lineup. taking the flavor total to four. The outlook for theaters also is encouraging as the industry continues closing the gap to the pre-COVID environment. Box office sales for the period that aligns to our fiscal 2025 were up 10% versus the prior year. Industry sources are projecting North America box office sales that aligns with our fiscal 2026 to increase by 9%, supported by a great lineup of movies that includes Wicked for Good, Zootopia 2, and Spider-Man, A Brand New Day. The lineup for our fiscal first half looks particularly promising as compared to last year's slates. With $106 million in cash and no debt, our financial position remains strong. And we continue to take a balanced approach to capital allocation across three areas, investing in our business to drive growth and operational efficiency, strategic acquisitions, and returning capital to shareholders through dividends and share repurchases. Given the current trends of our business and outlook for fiscal 2026, including the benefits we expect to realize from Project Apollo, We expect to increase our focus on share repurchase activity as we see compelling value in our shares. Share repurchases total 3 million in the quarter, and we intend to accelerate our pace significantly during the current quarter. I'll now turn the call over to Sean to discuss the quarter and full year results in a little more detail. Sean?