Shares of J&J Snack Foods Corp. plummeted 5.25% during intraday trading following the release of its fiscal first-quarter 2026 results, which fell short of analyst expectations.

The snack food maker reported quarterly sales of $343.778 million, missing the consensus estimate of $363.561 million. Adjusted earnings per share came in at $0.33, below the estimated $0.35. The company's net earnings saw a sharp decline of 82.8% year-over-year to $0.9 million, while operating income dropped 89.8% to $0.6 million. A significant 17% drop in bakery sales, attributed to strategic portfolio rationalization, was a primary driver of the weak performance, outweighing growth in the pretzel segment.

Despite the disappointing results, the company announced a new $50 million share repurchase authorization and highlighted ongoing cost-saving initiatives. However, the market reaction focused on the earnings and revenue misses, leading to the stock's sharp decline.