10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

(Mark One)

X      Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the period ended December 29, 2012

or

  Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number:            0-14616

J & J SNACK FOODS CORP.

(Exact name of registrant as specified in its charter)

New Jersey	22-1935537
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

6000 Central Highway, Pennsauken, NJ 08109

(Address of principal executive offices)

Telephone (856) 665-9533

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.

X Yes No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).

X Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one):

Large Accelerated filer (X)	Accelerated filer ( )
Non-accelerated filer (  )	Smaller reporting company (  )
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes X No

As January 21, 2013, there were 18,797,826 shares of the Registrant’s Common Stock outstanding.

1

INDEX

	Page Number
Part I.            Financial Information
Item l.            Consolidated Financial Statements
Consolidated Balance Sheets – December 29, 2012 (unaudited) and September 29, 2012	3
Consolidated Statements of Earnings (unaudited) – Three Months Ended December 29, 2012 and December 24, 2011	4
Consolidated Statements of Comprehensive Income (unaudited) – Three Months Ended December 29, 2012 and December 24, 2011	5
Consolidated Statements of Cash Flows (unaudited) – Three Months Ended December 29, 2012 and December 24, 2011	6
Notes to the Consolidated Financial Statements (unaudited)	7
Item 2.            Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.            Quantitative and Qualitative Disclosures About Market Risk	21
Item 4.            Controls and Procedures	21
Part II.            Other Information
Item 6.            Exhibits	22

2

J & J SNACK FOODS CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

	December 29, 2012			September 29, 2012
	(unaudited)
Assets
Current assets
Cash and cash equivalents	$	80,216		$	154,198
Marketable securities held to maturity		976			1,214
Accounts receivable, net		66,640			76,414
Inventories, net		76,855			69,761
Prepaid expenses and other		2,702			2,220
Deferred income taxes		4,319			4,261
Total current assets		231,708			308,068
Property, plant and equipment, at cost
Land		2,496			2,496
Buildings		26,741			26,741
Plant machinery and equipment		173,785			172,529
Marketing equipment		235,179			233,612
Transportation equipment		4,911			4,879
Office equipment		15,266			14,987
Improvements		23,421			22,889
Construction in progress		7,885			5,740
		489,684			483,873
Less accumulated depreciation and amortization		347,734			342,329
		141,950			141,544
Other assets
Goodwill		76,899			76,899
Other intangible assets, net		47,345			48,464
Marketable securities held to maturity		24,998			24,998
Marketable securities available for sale		80,029			-
Other		3,309			3,071
		232,580			153,432
	$	606,238		$	603,044
Liability and Stockholder's Equity
Current Liabilities
Current obligations under capital leases	$	318		$	340
Accounts payable		49,528			53,047
Accrued insurance liability		8,934			7,532
Accrued income taxes		5,660			962
Accrued liabilities		3,945			4,027
Accrued compensation expense		9,652			13,151
Dividends payable		-			2,446
Total current liabilities		78,037			81,505
Long-term obligations under capital leases		281			347
Deferred income taxes		44,954			44,874
Other long-term liabilities		776			831
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 18,783,000 and 18,780,000 respectively		42,596			43,011
Accumulated other comprehensive loss		(3,237	)		(3,132	)
Retained Earnings		442,831			435,608
		482,190			475,487
	$	606,238		$	603,044

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
	December 29, 2012			December 24, 2011
Net Sales	$	191,408		$	172,686
Cost of goods sold(1)		137,273			126,280
Gross Profit		54,135			46,406
Operating expenses
Marketing (2)		17,136			17,659
Distribution (3)		15,400			14,219
Administrative (4)		6,599			6,066
Other general income		(61	)		(1	)
		39,074			37,943
Operating Income		15,061			8,463
Other income (expense)
Investment income		776			355
Interest expense & other		(25	)		(39	)
Earnings before income taxes		15,812			8,779
Income taxes		5,586			3,294
NET EARNINGS	$	10,226		$	5,485
Earnings per diluted share	$	0.54		$	0.29
Weighted average number of diluted shares		18,870			18,874
Earnings per basic share	$	0.54		$	0.29
Weighted average number of basic shares		18,807			18,806

(1) Includes share-based compensation expense of $125 and $64 for the three months ended December 29, 2012 and December 24, 2011, respectively.

(2) Includes share-based compensation expense of $173 and $95  for the three months ended December 29, 2012 and December 24, 2011, respectively.

(3) Includes share-based compensation expense of $8 and $6 for the three months ended December 29, 2012 and December 24, 2011, respectively.

(4) Includes share-based compensation expense of $201 and $129 for the three months ended December 29, 2012 and December 24, 2011, respectively.

See accompanying notes to the consolidated financial statements

4

J&J SNACK FOODS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(in thousands)

	Three months ended
	December 29, 2012			December 24, 2011
Net Earnings	$	10,226		$	5,485
Foreign currency translation adjustments		(123	)		(156	)
Unrealized holding gain on marketable securities		29			-
Tax effect		(11	)		-
Total Other Comprehensive Loss, net of tax		(105	)		(156	)
Comprehensive Income	$	10,121		$	5,329

5

J&J SNACK FOODS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)     (in thousands)

	Three months ended
	December 29, 2012			December 24, 2011
Operating activities:
Net earnings	$	10,226		$	5,485
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation of fixed assets		6,790			6,357
Amortization of intangibles and deferred costs		1,197			1,213
Share-based compensation		507			294
Deferred income taxes		15			(85	)
Other		(2	)		(23	)
Changes in assets and liabilities net of effects from purchase of companies
Decrease in accounts receivable		9,787			19,112
Increase in inventories		(6,994	)		(2,941	)
(Increase) decrease in prepaid expenses		(483	)		1,896
Decrease in accounts payable and accrued liabilities		(3,781	)		(10,640	)
Net cash provided by operating activities		17,262			20,668
Investing activities:
Purchases of property, plant and equipment		(7,481	)		(8,869	)
Purchases of marketable securities		(80,002	)		(37,454	)
Proceeds from redemption of marketable securities		240			33,310
Proceeds from disposal of property and equipment		261			102
Other		(37	)		(611	)
Net cash used in investing activities		(87,019	)		(13,522	)
Financing activities:
Payments to repurchase common stock		(2,763	)		-
Proceeds from issuance of stock		1,700			1,825
Payments on capitalized lease obligations		(88	)		(69	)
Payment of cash dividend		(3,004	)		(2,200	)
Net cash used in financing activities		(4,155	)		(444	)
Effect of exchange rate on cash and cash equivalents		(70	)		(90	)
Net (decrease) increase in cash and cash equivalents		(73,982	)		6,612
Cash and cash equivalents at beginning of period		154,198			87,479
Cash and cash equivalents at end of period	$	80,216		$	94,091

See accompanying notes to the consolidated financial statements.

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J & J SNACK FOODS CORP. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 1            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 financial position nd the results of operations and cash flows.  Certain prior year amounts have been reclassified to conform to the current period presentation.  These reclassifications had no effect on reported net earnings.

The results of operations for the three months ended December 29, 2012 and December 24, 2011 are not necessarily indicative of results for the full year.  Sales of our frozen beverages and frozen juice bars and ices are generally higher in the 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 consolidated financial statements and the notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 29, 2012.

Note 2            We recognize revenue from our products when the products are shipped to our customers. Repair and maintenance equipment service revenue is recorded when it is performed provided the customer terms are that the customer is to be charged on a time and material basis or on a straight-line basis over the term of the contract when the customer has signed a service contract. Revenue is recognized only where persuasive evidence of an arrangement exists, our price is fixed or estimable and collectability is reasonably assured.  We record offsets to revenue for allowances, end-user pricing adjustments, trade spending, coupon redemption costs and returned product.  Customers generally do not have the right to return product unless it is damaged or defective.   We provide an allowance for doubtful receivables after taking into consideration historical experience and other factors.  The allowance for doubtful receivables was $987,000 and $685,000 at December 29, 2012 and September 29, 2012, respectively.

Note 3            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 and non compete agreements arising from acquisitions are amortized by the straight-line method over periods ranging from 3 to 20 years. Depreciation expense was $6,790,000 and $6,357,000 for the three months ended December 29, 2012 and December 24, 2011, respectively.

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Note 4            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) or other contracts to issue common stock were exercised and converted into common stock. Our calculation of EPS is as follows:

	Three Months Ended December 29, 2012
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	10,226		18,807	$	0.54
Effect of Dilutive Securities
Options		-		63		-
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	10,226		18,870	$	0.54

	Three Months Ended December 24, 2011
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	5,485		18,806	$	0.29
Effect of Dilutive Securities
Options		-		68		-
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	5,485		18,874	$	0.29

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Note 5            At December 29, 2012, the Company has three stock-based employee compensation plans.  Share-based compensation was recognized as follows:

	Three months ended
	December 29,		December 24,
	2012		2011
	(in thousands, except per share amounts)
Stock Options	$	175	$	95
Stock purchase plan		92		65
Stock issued to outside directors		12		-
Restricted stock issued to an employee		4		-
	$	283	$	160
Per diluted share	$	0.01	$	0.01
The above compensation is net of tax benefits	$	224	$	134

The Company anticipates that share-based compensation will not exceed $1.2 million net of tax benefits, or approximately $.06 per share for the fiscal year ending September 28, 2013.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes options-pricing model with the following weighted average assumptions used for grants in fiscal 2013 first three months: expected volatility of 26%; risk-free interest rate of .67%; dividend rate of .9% and expected lives of 5 years.

During the 2013 three month period, the Company granted 1,100 stock options.  The weighted-average grant date fair value of these options was $12.24. During the 2012 three month period, the Company granted 1,500 stock options.  The weighted-average grant date fair value of these options was $11.62.

Expected volatility is based on the historical volatility of the price of our common shares over the past 55 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.

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Note 6            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 $510,000 and $541,000 on December 29, 2012 and September 29, 2012, respectively, all of which would impact our effective tax rate over time, if recognized.  We recognize interest and penalties related to income tax matters as a part of the provision for income taxes.  As of December 29, 2012 and September 29, 2012, respectively, the Company has $287,000 and $284,000 of accrued interest and penalties.

In addition to our federal tax return and tax returns for Mexico and Canada, we file tax returns in all states that have a corporate income tax with virtually all open for examination for three to four years.

Note 7            In June 2011, the FASB issued guidance which gives us the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both options, we are required to present each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. This guidance eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders' equity. The amendments in this guidance do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income.  This guidance was adopted in our fiscal year 2013 first quarter and did not have a material impact on our financial statements.

10

Note 8             Inventories consist of the following:

	December 29,		September 29,
	2012		2012
	(unaudited)
	(in thousands)
Finished goods	$	36,884	$	32,439
Raw Materials		16,927		14,584
Packaging materials		6,348		5,985
Equipment parts & other		16,696		16,753
	$	76,855	$	69,761
The above inventories are net of reserves	$	3,943	$	3,883

Note 9            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 Makers.

We have applied no aggregation criteria to any of these operating segments in order to determine reportable segments.  Our three reportable segments are Food Service, Retail Supermarkets and Frozen Beverages. All inter-segment net sales and expenses have been eliminated in computing net sales and operating income (loss). These segments are described below.

Food Service

The primary products sold by the food service group are soft pretzels, frozen juice treats and desserts, churros, dough enrobed handheld products and baked goods.  Our customers in the food service industry include snack bars and food stands in chain, department and discount stores; malls and shopping centers; fast food outlets; stadiums and sports arenas; leisure andtheme 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.

Retail Supermarkets

The primary products sold by the retail supermarket segment are soft pretzel products – including SUPERPRETZEL, frozen juice treats and desserts including LUIGI’S Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, WHOLE FRUIT frozen fruit bars, WHOLE FRUIT Sorbet, ICEE Squeeze-Up Tubes, dough enrobed handheld products and TIO PEPE’S Churros.  Within the retail supermarket channel, our frozen and prepackaged products are purchased by the consumer for consumption at home.

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Frozen Beverages

We sell frozen beverages and related products to the food service industry primarily under the names ICEE, SLUSH PUPPIE, PARROT ICE and ARCTIC BLAST in the United States, Mexico and Canada.  We also provide repair and maintenance service to customers for customers’ owned equipment.

The Chief Operating Decision Maker for Food Service and Retail Supermarkets and the Chief Operating Decision Maker for Frozen Beverages monthly review detailed operating income statements and sales reports in order to assess performance and allocate resources to each individual segment.  In addition, the Chief Operating Decision Makers review and evaluate depreciation, capital spending and assets of each segment on a quarterly basis to monitor cash flow and asset needs of each segment. Information regarding the operations in these three reportable segments is as follows:

	Three months ended
	December 29,			December 24,
	2012			2011
	(unaudited)
	(in thousands)
Sales to External Customers:
Food Service
Soft pretzels	$	32,594		$	25,617
Frozen juices and ices		7,527			7,852
Churros		13,807			10,386
Handhelds		6,314			6,414
Bakery		68,305			60,820
Other		1,640			1,980
	$	130,187		$	113,069
Retail Supermarket
Soft pretzels	$	8,578		$	8,134
Frozen juices and ices		6,470			7,080
Handhelds		6,313			5,881
Coupon redemption		(789	)		(757	)
Other		131			496
	$	20,703		$	20,834
Frozen Beverages
Beverages	$	25,297		$	23,981
Repair and maintenance service		11,842			11,543
Machines sales		3,048			2,913
Other		331			346
	$	40,518		$	38,783
Consolidated Sales	$	191,408		$	172,686
Depreciation and Amortization:
Food Service	$	4,509		$	4,200
Retail Supermarket		8			5
Frozen Beverages		3,470			3,365
	$	7,987		$	7,570
Operating Income (loss):
Food Service	$	12,597		$	7,254
Retail Supermarket		1,570			1,824
Frozen Beverages		894			(615	)
	$	15,061		$	8,463
Capital Expenditures:
Food Service	$	5,260		$	6,313
Retail Supermarket		-			-
Frozen Beverages		2,221			2,556
	$	7,481		$	8,869
Assets:
Food Service	$	460,524		$	406,275
Retail Supermarket		6,090			4,087
Frozen Beverages		139,624			134,933
	$	606,238		$	545,295

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Note 10          Our three reporting units, which are also 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 Beverage segments as of December 29, 2012 and September 29, 2012 are as follows:

	December 29, 2012				September 29, 2012
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
			(in thousands)
FOOD SERVICE
Indefinite lived intangible assets
Trade Names	$	12,880		-	$	12,880	$	-
Amortized intangible assets
Non compete agreements		545		461		545		456
Customer relationships		40,187		23,483		40,187		22,582
License and rights		3,606		2,543		3,606		2,519
	$	57,218	$	26,487	$	57,218	$	25,557
RETAIL SUPERMARKETS
Indefinite lived intangible assets
Trade Names	$	4,006	$	-	$	4,006	$	-
Amortized Intangible Assets
Customer relationships		279		39		279		31
	$	4,285	$	39	$	4,285	$	31
FROZEN BEVERAGES
Indefinite lived intangible assets
Trade Names	$	9,315	$	-	$	9,315	$	-
Amortized intangible assets
Non compete agreements		198		198		198		198
Customer relationships		6,478		4,364		6,478		4,201
Licenses and rights		1,601		662		1,601		644
	$	17,592	$	5,224	$	17,592	$	5,043
CONSOLIDATED	$	79,095	$	31,750	$	79,095	$	30,631

13

Amortized intangible assets are being amortized by the straight-line method over periods ranging from 3 to 20 years and amortization expense is reflected throughout operating expenses. No intangible assets were acquired in the three months ended December 29, 2012.  Aggregate amortization expense of intangible assets for the three months ended December 29, 2012 and December 24, 2011 was $1,119,000 and $1,132,000, respectively.

Estimated amortization expense for the next five fiscal years is approximately $4,500,000 in 2013, $4,400,000 in 2014 and 2015 and $4,200,000 in 2016 and $1,700,000 in 2017. The weighted average amortization period of the intangible assets is 10.1 years.

Goodwill

The carrying amounts of goodwill for the Food Service, Retail Supermarket and Frozen Beverage segments are as follows:

	Food Service		Retail Supermarket		Frozen Beverages		Total
	(in thousands)
Balance at December 29, 2012	$	39,115	$	1,844	$	35,940	$	76,899

There were no changes in the carrying amounts of goodwill for the three months ended December 29, 2012.

Note 11          We have classified our investment securities as marketable securities held to maturity and available for sale.  The FASB defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the FASB has established three levels of inputs that may be used to measure fair value:

Level 1              Observable input such as quoted prices in active markets for identical assets or liabilities;

Level 2              Observable inputs, other than Level 1 inputs in active markets, that are observable either directly or indirectly; and

Level 3              Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions.

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Marketable securities held to maturity and available for sale values are derived solely from level 1 inputs.

The amortized cost, unrealized gains and losses, and fair market values of our investment securities held to maturity at December 29, 2012 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
			(in thousands)
US Government Agency Debt	$	24,998	$	74	$	11	$	25,061
Certificates of Deposit		976		1		-		977
	$	25,974	$	75	$	11	$	26,038

The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at December 29, 2012 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
			(in thousands)
Mutual Funds	$	80,000	$	159	$	130	$	80,029
	$	80,000	$	159	$	130	$	80,029

The mutual funds seek current income with an emphasis on maintaining low volatility and overall moderate duration.

All of the certificates of deposit are within the FDIC limits for insurance coverage.

The amortized cost, unrealized gains and losses, and fair market values of our investment securities held to maturity at September 29, 2012 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
			(in thousands)
US Government Agency Debt	$	24,998	$	126	$	-	$	25,124
Certificates of Deposit		1,214		-		-		1,214
	$	26,212	$	126	$	-	$	26,338

All of the certificates of deposit are within the FDIC limits for insurance coverage.

15

The amortized cost and fair value of the Company’s held to maturity securities by contractual maturity at December 29, 2012 and September 29, 2012 are summarized as follows:

	December 29, 2012				September 29, 2012
			Fair				Fair
	Amortized		Market		Amortized		Market
	Cost		Value		Cost		Value
			(in thousands)
Due in one year or less	$	976	$	977	$	1,214	$	1,214
Due after one year through five years		-		-		-		-
Due after five years through ten years		24,998		25,061		24,998		25,124
Total held to maturity securities	$	25,974	$	26,038	$	26,212	$	26,338
Less current portion		976		977		1,214		1,214
Long term held to maturity securities	$	24,998	$	25,061	$	24,998	$	25,124

Proceeds from the redemption and sale of marketable securities were $240,000 and $33,310,000 in the three months ended December 29, 2012 and December 24, 2011, respectively, with no gain or loss recorded.  We use the specific identification method to determine the cost of securities sold.

Note 12          In May 2011, we acquired the frozen handheld business of ConAgra Foods.  This business had sales of approximately $50 million over the prior twelve months to food service and retail supermarket customers and sales of $18.3 million in our 2011 fiscal year from the acquisition date.

In June 2012, we acquired the assets of Kim & Scott’s Gourmet Pretzels, Inc., a manufacturer and seller of a premium brand soft pretzel.  This business had sales of approximately $8 million over the prior twelve months to food service and retail supermarket customers and had sales of approximately $1.8 million in our 2012 fiscal year from the acquisition date.

These acquisitions were and will be accounted for under the purchase method of accounting, and their operations are and will be included in the consolidated financial statements from their respective acquisition dates.

16

The purchase price allocation for the handhelds acquisition is as follows:

	(in thousands)
Working Capital	$	6,955
Property, plant & equipment		11,036
Trade Names		1,325
Customer Relationships		207
Deferred tax liability		(4,137	)
Net Assets Acquired		15,386
Purchase Price		8,806
Gain on bargain purchase	$	6,580

The purchase price allocation resulted in the recognition of a gain on bargain purchase of approximately $6,580,000 which is included in other income in the consolidated statement of earnings for the three and nine months ended June 25, 2011.  The gain on bargain purchase resulted from the fair value of the identifiable net assets acquired exceeding the purchase price.

Acquisition costs of $546,000 for the handhelds acquisition are included in other general expense in the consolidated statements of earnings for the year September 24, 2011.

The purchase price allocation for the Kim and Scott’s acquisition is as follows:

	(in thousands)
Working Capital	$	(89	)
Property, plant & equipment		724
Trade Names		126
Customer Relationships		235
Non Compete Agreement		75
Goodwill		6,829
Purchase Price	$	7,900

Acquisition costs of $155,000 for the Kim & Scott’s acquisition are included in other general expense in the consolidated statements of earnings for the year ended September 29, 2012.

The goodwill and intangible assets acquired in the business combinations are recorded at fair value.  To measure fair value for such assets, we use techniques including discounted expected future cash flows (Level 3 input).

17

Item 2.             Management’s Discussion and Analysis of Financial Condition and Results of Operations

Liquidity and Capital Resources

Our current cash and cash equivalents balances and cash expected to be provided by future operations are our primary sources of liquidity.  We believe that these sources, along with our borrowing capacity, are sufficient to fund future growth and expansion.  See Note 11 to these financial statements for a discussion of our investment securities.

The Company’s Board of Directors declared a regular quarterly cash dividend of $.16 per share of its common stock payable on December 27, 2012, to shareholders of record as of the close of business on December 11, 2012.

In our fiscal year ended September 29, 2012, we purchased and retired 142,038 shares of our common stock at a cost of $8,167,125.  All of the shares were purchased in the fourth quarter.  Subsequent to September 29, 2012 and through October 31, 2012, we purchased and retired 48,255 shares of our common stock at a cost of $2,762,602.  On November 8, 2012 the Company’s Board of Directors authorized the purchase and retirement of an additional 500,000 shares of the Company’s common stock.

In the three months ended December 29, 2012 and December 24, 2011, fluctuations in the valuation of the Mexican and Canadian currencies and the resulting translation of the net assets of our Mexican and Canadian subsidiaries caused an increase of $123,000 in accumulated other comprehensive loss in the 2013 first quarter and an increase of $156,000 in accumulated other comprehensive loss in the 2012 first quarter.

Our general-purpose bank credit line which expires in December 2016 provides for up to a $50,000,000 revolving credit facility.  The agreement contains restrictive covenants and requires commitment fees in accordance with standard banking practice. There were no outstanding balances under this facility at December 29, 2012.

Results of Operations

Net sales increased $18,722,000 or 11% to $191,408,000 for the three months ended December 29, 2012 compared to the three months ended December 24, 2011.

Excluding sales resulting from the acquisition of Kim & Scott’s Gourmet Pretzels in June 2012, sales increased approximately 10% for the three months.

18

FOOD SERVICE

Sales to food service customers increased $17,118,000 or 15% in the first quarter to $130,187,000.  Excluding Kim & Scott’s sales, food service sales increased approximately 14% for the quarter.  Soft pretzel sales to the food service market increased 27% to $32,594,000 in the first quarter due to increased sales to restaurant chains, warehouse club stores and throughout our customer base. Increased sales to two customers accounted for approximately 50% of the increase in pretzel sales in the quarter. Without Kim & Scott’s, pretzel sales increased about 23%.  Frozen juices and ices sales decreased 4% to $7,527,000 in the three months resulting from lower sales to school food service accounts partially offset by higher sales to warehouse club stores.  Churro sales to food service customers increased 33% to $13,807,000 in the first quarter with sales to one restaurant chain accounting for 85% of the increase.

Sales of bakery products increased $7,485,000 or 12% in the first quarter to $68,305,000 as sales increases were spread throughout our customer base.

Sales of new products in the first twelve months since their introduction were approximately $4.8 million in this quarter. Price increases accounted for approximately $3.0 million of sales in the quarter and net volume increases, including new product sales as defined above and sales resulting from the acquisition of Kim & Scott’s, accounted for approximately $14.1 million of sales in the quarter.

Operating income in our Food Service segment increased from $7,254,000 to $12,597,000 in the quarter. Operating income for the quarter benefited from increased sales volume and price increases. Additionally, last year’s quarter was impacted by a management and sales meeting expense of about $550,000.

RETAIL SUPERMARKETS

Sales of products to retail supermarkets decreased $131,000 or less than 1% to $20,703,000 the first quarter.  Excluding Kim & Scott’s sales, sales decreased 2% for the first quarter.  Soft pretzel sales for the first quarter were up 5% to $8,578,000 on a  unit volume increase of 6% for the quarter. Excluding Kim & Scott’s sales, soft pretzel sales increased about 2% for this quarter.  Sales of frozen juices and ices decreased $610,000 or 9% to $6,470,000 in the first quarter on a unit volume decrease of 14% in this quarter. Coupon redemption costs, a reduction of sales, increased 4% or about $32,000 for the quarter. Handheld sales to retail supermarket customers increased 7% to $6,313,000 in the quarter.

Sales of new products in the first twelve months since their introduction were approximately $1.2 million in the first quarter. Price increases accounted for approximately $200,000 of sales in the quarter and net volume decreases, including new product sales as defined above and Kim & Scott’s sales and net of increased coupon costs, accounted for approximately $300,000 of the sales decrease in this quarter. Operating income in our Retail Supermarkets segment decreased from $1,824,000 to $1,570,000 in the quarter primarily because of increased allowances for the introduction of products into additional retailers, lower sales and increased advertising expenses.
 

19

FROZEN BEVERAGES

Frozen beverage and related product sales increased 4% to $40,518,000 in the first quarter.  Beverage related sales alone were up 5% in the first quarter. Gallon sales were up 2% for the three months.  Service revenue increased 3% to $11,842,000 in the first quarter with sales increases and decreases spread throughout our customer base.

Sales of beverage machines, which tend to fluctuate from year to year while following no specific trend, were $135,000 or 5% higher in  the three month period. The approximate number of company owned frozen beverage dispensers was 42,700 and 42,500 at December 29, 2012 and September 29, 2012, respectively.  Operating income in our Frozen Beverage segment was $894,000 in this year’s quarter compared to an operating loss of $615,000 last year.  The improvement in operating results was from a combination of higher sales and a reduction of expenses.  Last year’s quarter included a management and sales meeting expense of about $200,000.

CONSOLIDATED

Gross profit as a percentage of sales increased to 28.28% in the three month period from 26.87% last year.  Higher volume in our food service segment was the primary reason for the improved gross profit margin.  Ingredient and packaging costs can be extremely volatile and may be significantly different from what we are presently expecting and therefore we cannot project the impact of ingredient and packaging costs on our business going forward; however, there has been a very significant increase in the market cost of flour and packaging as well as lesser used ingredients over the past nine months which we anticipate will result in higher costs over the balance of our fiscal year, although there was no impact in our first quarter.

Total operating expenses increased $1,131,000 in this quarter but as a percentage of sales decreased from 22% percent to 20%.  The drop in percentage was generally because of increased sales and lower expenses in our frozen beverage segment and the overall reduction of $800,000 in expense because of the management and sales meeting we had last year.  Marketing expenses decreased from 10% of sales last year to 9% this year also because of higher sales and reduction of expenses.  Distribution expenses were 8% of sales in both years’ quarter.  Administrative expenses were 3.45% of sales this year compared to 3.51% of sales last year.

20

Operating income increased $6,598,000 or 78% to $15,061,000 in the first quarter as a result of the aforementioned items.

Investment income increased by $421,000 in the quarter due primarily to increased investments of marketable securities.  We invested $80 million in this quarter in mutual funds that seek current income with an emphasis on maintaining low volatility and overall moderate duration.  We estimate yield from these funds to approximate 4%.

The effective income tax rate has been estimated at 35% and 38% for the quarter this year and last year, respectively. We are estimating an effective income tax rate of between 36 1/2% and 37% for the year.  The first quarter benefitted from a reduction of tax expense because of changes in estimates related to a prior year.

Net earnings increased $4,741,000 or 86% in the current three month period to $10,226,000 as a result of 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.

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 its 2012 annual report on Form 10-K filed with the SEC.

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 December 29, 2012, that the Company’s disclosure controls and procedures 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.

21

There has been no change in the Company’s internal control over financial reporting during the quarter ended December 29, 2012, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 PART II.  OTHER INFORMATION

Item 6.	Exhibits
	Exhibit No.

31.1	&	Certification Pursuant to Section 302 of
31.2		the Sarbanes-Oxley Act of 2002
99.5	&	Certification Pursuant to the 18 U.S.C.
99.6		Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101		The following financial information from J&J Snack Foods Corp.'s Quarterly Report on Form 10-Q for the quarter ended December 29, 2012, formatted in XBRL (eXtensible Business Reporting Language):
		(i)     Consolidated Balance Sheets,
		(ii)    Consolidated Statements of Earnings,
		(iii)   Consolidated Statements of Comprehensive Income,
		(iv)   Consolidated Statements of Cash Flows and
		(v)    the Notes to the Consolidated Financial Statements

22

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: January 28, 2013	/s/ Gerald B. Shreiber
	Gerald B. Shreiber
	Chairman of the Board,
	President, Chief Executive
	Officer and Director
	(Principal Executive Officer)

Dated: January 28, 2013	/s/ Dennis G. Moore
	Dennis G. Moore, Senior Vice
	President, Chief Financial
	Officer and Director
	(Principal Financial Officer)
	(Principal Accounting Officer)

23

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

 SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Dennis G. Moore, certify that:

1.           I have reviewed this report on Form 10-Q of J & J Snack Foods Corp.;

2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.           Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.           The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls and procedures for financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)           designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)           designed such internal controls and procedures for financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation offinancial statements for external purposes in accordance with generally accepted accounting principles;

c)           evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)           disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s first fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.           The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)           all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)           any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date:  January 28, 2013

/s/ Dennis G. Moore

Dennis G. Moore, Senior Vice

President, Chief Financial

Officer and Director

(Principal Financial Officer)

(Principal Accounting Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Gerald B. Shreiber, certify that:

1.           I have reviewed this report on Form 10-Q of J & J Snack Foods Corp.;

2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.           Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.           The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls and procedures for financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)           designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)           designed such internal controls and procedures for financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)           evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)           disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s first fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.           The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)           all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)           any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date:  January 28, 2013

/s/ Gerald B. Shreiber

Gerald B. Shreiber

Chairman of the Board,

President, Chief Executive

Officer and Director

(Principal Executive Officer)

EX-99.5

Exhibit 99.5

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code), each of the undersigned officers of J & J Snack Foods Corp. (the “Company”), does hereby certify with respect to the Quarterly Report of the Company on Form 10-Q for the quarter ended December 29, 2012 (the “Report”) that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  January 28, 2013

/s/ Dennis G. Moore

Dennis G. Moore, Senior Vice

President, Chief Financial

Officer and Director

(Principal Financial Officer)

(Principal Accounting Officer)

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code) and is not being filed as part of the Report or as a separate disclosure document.

EX-99.6

Exhibit 99.6

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code), each of the undersigned officers of J & J Snack Foods Corp. (the “Company”), does hereby certify with respect to the Quarterly Report of the Company on Form 10-Q for the quarter ended December 29, 2012 (the “Report”) that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: January 28, 2013

/s/ Gerald B. Shreiber

Gerald B. Shreiber

Chairman of the Board,

President, Chief Executive

Officer and Director

(Principal Executive Officer)

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code) and is not being filed as part of the Report or as a separate disclosure document.

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Note 11 (Detail) (USD $)	3 Months Ended
	Dec. 29, 2012	Dec. 24, 2011
Proceeds from Sale and Maturity of Marketable Securities	$ 240,000	$ 33,310,000
Marketable Securities, Gain (Loss)	$ 0	$ 0

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Note 8 (Detail) - Inventories (USD $) In Thousands, unless otherwise specified	Dec. 29, 2012	Sep. 29, 2012
Finished goods	$ 36,884	$ 32,439
Equipment parts & other	16,696	16,753
	76,855	69,761
The above inventories are net of reserves	3,943	3,883
Raw Materials [Member]
Raw Materials	16,927	14,584
Packaging Materials [Member]
Raw Materials	$ 6,348	$ 5,985

XML

Note 11 (Tables)

3 Months Ended

Dec. 29, 2012

Unrealized Gain (Loss) on Investments [Table Text Block]

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
			(in thousands)
US Government Agency Debt	$	24,998	$	74	$	11	$	25,061
Certificates of Deposit		976		1		-		977
	$	25,974	$	75	$	11	$	26,038

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
			(in thousands)
Mutual Funds	$	80,000	$	159	$	130	$	80,029
	$	80,000	$	159	$	130	$	80,029

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
			(in thousands)
US Government Agency Debt	$	24,998	$	126	$	-	$	25,124
Certificates of Deposit		1,214		-		-		1,214
	$	26,212	$	126	$	-	$	26,338

Investments Classified by Contractual Maturity Date [Table Text Block]

	December 29, 2012				September 29, 2012
			Fair				Fair
	Amortized		Market		Amortized		Market
	Cost		Value		Cost		Value
			(in thousands)
Due in one year or less	$	976	$	977	$	1,214	$	1,214
Due after one year through five years		-		-		-		-
Due after five years through ten years		24,998		25,061		24,998		25,124
Total held to maturity securities	$	25,974	$	26,038	$	26,212	$	26,338
Less current portion		976		977		1,214		1,214
Long term held to maturity securities	$	24,998	$	25,061	$	24,998	$	25,124

XML

Note 12 (Detail) (USD $)	3 Months Ended		9 Months Ended	12 Months Ended
	Dec. 29, 2012 Frozen Handheld Business [Member]	Jun. 25, 2011 Frozen Handheld Business [Member]	Jun. 25, 2011 Frozen Handheld Business [Member]	Sep. 24, 2011 Frozen Handheld Business [Member]	Sep. 29, 2012 Kim and Scott's [Member]	Sep. 24, 2011 Kim and Scott's [Member]
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period				$ 50,000,000		$ 8,000,000
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual				18,300,000	1,800,000
Business Combination, Bargain Purchase, Gain Recognized, Amount	6,580,000	6,580,000	6,580,000
Business Combination, Acquisition Related Costs				$ 546,000	$ 155,000

XML

Note 10 (Detail) - Intagible Assets by Reporting Segment (USD $) In Thousands, unless otherwise specified	Dec. 29, 2012	Sep. 29, 2012
Gross carrying amount	$ 79,095	$ 79,095
Accumulated amortization	31,750	30,631
Food Service [Member] | Trade Names [Member]
Gross carrying amount of indefinite lived intangible assets	12,880	12,880
Food Service [Member] | Noncompete Agreements [Member]
Gross carrying amount of amortized intangible assets	545	545
Accumulated amortization of amortized intangible assets	461	456
Food Service [Member] | Customer Relationships [Member]
Gross carrying amount of amortized intangible assets	40,187	40,187
Accumulated amortization of amortized intangible assets	23,483	22,582
Food Service [Member] | License and Rights [Member]
Gross carrying amount of amortized intangible assets	3,606	3,606
Accumulated amortization of amortized intangible assets	2,543	2,519
Food Service [Member]
Gross carrying amount	57,218	57,218
Accumulated amortization	26,487	25,557
Retail Supermarket [Member] | Trade Names [Member]
Gross carrying amount of indefinite lived intangible assets	4,006	4,006
Retail Supermarket [Member] | Customer Relationships [Member]
Gross carrying amount of amortized intangible assets	279	279
Accumulated amortization of amortized intangible assets	39	31
Retail Supermarket [Member]
Gross carrying amount	4,285	4,285
Accumulated amortization	39	31
Frozen Beverages [Member] | Trade Names [Member]
Gross carrying amount of indefinite lived intangible assets	9,315	9,315
Frozen Beverages [Member] | Noncompete Agreements [Member]
Gross carrying amount of amortized intangible assets	198	198
Accumulated amortization of amortized intangible assets	198	198
Frozen Beverages [Member] | Customer Relationships [Member]
Gross carrying amount of amortized intangible assets	6,478	6,478
Accumulated amortization of amortized intangible assets	4,364	4,201
Frozen Beverages [Member] | License and Rights [Member]
Gross carrying amount of amortized intangible assets	1,601	1,601
Accumulated amortization of amortized intangible assets	662	644
Frozen Beverages [Member]
Gross carrying amount	17,592	17,592
Accumulated amortization	$ 5,224	$ 5,043

XML

Note 2

3 Months Ended

Dec. 29, 2012

Revenue Recognition, Policy [Policy Text Block]

Note 2            We recognize revenue from our products when the products are shipped to our customers. Repair and maintenance equipment service revenue is recorded when it is performed provided the customer terms are that the customer is to be charged on a time and material basis or on a straight-line basis over the term of the contract when the customer has signed a service contract. Revenue is recognized only where persuasive evidence of an arrangement exists, our price is fixed or estimable and collectability is reasonably assured.  We record offsets to revenue for allowances, end-user pricing adjustments, trade spending, coupon redemption costs and returned product.  Customers generally do not have the right to return product unless it is damaged or defective.   We provide an allowance for doubtful receivables after taking into consideration historical experience and other factors.  The allowance for doubtful receivables was $987,000 and $685,000 at December 29, 2012 and September 29, 2012, respectively.

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Note 12 (Detail) - Purchase Price Allocation (USD $)	3 Months Ended		9 Months Ended
	Dec. 29, 2012	Jun. 25, 2011	Jun. 25, 2011
Frozen Handheld Business [Member]
Working Capital	$ 6,955,000
Property, plant & equipment	11,036,000
Trade Names	1,325,000
Customer Relationships	207,000
Deferred tax liability	(4,137,000)
Net Assets Acquired	15,386,000
Purchase Price	8,806,000
Gain on bargain purchase	6,580,000	6,580,000	6,580,000
Kim and Scott's [Member]
Working Capital	(89,000)
Property, plant & equipment	724,000
Trade Names	126,000
Customer Relationships	235,000
Non Compete Agreement	75,000
Goodwill	6,829,000
Purchase Price	$ 7,900,000

XML

Note 4 (Detail) - Calculation of EPS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Dec. 29, 2012	Dec. 24, 2011
Basic EPS
Net Earnings available to common stockholders (in Dollars)	$ 10,226	$ 5,485
Net Earnings available to common stockholders	18,807	18,806
Net Earnings available to common stockholders (in Dollars per share)	$ 0.54	$ 0.29
Effect of Dilutive Securities
Options	63	68
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions (in Dollars)	$ 10,226	$ 5,485
Net Earnings available to common stockholders plus assumed conversions	18,870	18,874
Net Earnings available to common stockholders plus assumed conversions (in Dollars per share)	$ 0.54	$ 0.29

XML

Note 3 (Detail) (USD $)	3 Months Ended
	Dec. 29, 2012	Dec. 24, 2011
Depreciation (in Dollars)	$ 6,790,000	$ 6,357,000
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life	3 years
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life	20 years

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Note 5 (Detail) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended		12 Months Ended
	Dec. 29, 2012	Dec. 24, 2011	Sep. 28, 2013
Anticipated Share Based Compensation Net Of Tax Benefits (in Dollars)			$ 1.2
Anticipated Share Based Compensation Per Share (in Dollars per share)			$ 0.06
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	26.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	0.67%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.90%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	5 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)	1,100	1,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share)	$ 12.24	$ 11.62
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	10 years

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Note 5 (Detail) - Share-based Compensation (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Dec. 29, 2012	Dec. 24, 2011
Share-based compensation by plans	$ 283	$ 160
Per diluted share (in Dollars per share)	$ 0.01	$ 0.01
The above compensation is net of tax benefits	224	134
Stock Options [Member]
Share-based compensation by plans	175	95
Stock Purchase Plan [Member]
Share-based compensation by plans	92	65
Stock Issued to Outside Directors [Member]
Share-based compensation by plans	12
Restricted Stock [Member]
Share-based compensation by plans	$ 4

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Note 1

3 Months Ended

Dec. 29, 2012

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1            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 financial position nd the results of operations and cash flows.  Certain prior year amounts have been reclassified to conform to the current period presentation.  These reclassifications had no effect on reported net earnings.

The results of operations for the three months ended December 29, 2012 and December 24, 2011 are not necessarily indicative of results for the full year.  Sales of our frozen beverages and frozen juice bars and ices are generally higher in the 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 consolidated financial statements and the notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 29, 2012.

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Note 6 (Detail) (USD $)	Dec. 29, 2012	Sep. 29, 2012
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 510,000	$ 541,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	$ 287,000	$ 284,000

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Note 11 (Detail) - Summary of Securities (USD $) In Thousands, unless otherwise specified	Dec. 29, 2012	Sep. 29, 2012
Amortized Cost - Held To Maturity	$ 25,974	$ 26,212
Gross Unrealized Gains - Held To Maturity	75	126
Gross Unrealized Losses - Held To Maturity	11
Fair Market Value - Held To Maturity	26,038	26,338
Amortized Cost - Available For Sale	80,000
Gross Unrealized Gains - Available For Sale	159
Gross Unrealized Losses - Available For Sale	130
Fair Market Value - Available For Sale	80,029
US Government Corporations and Agencies Securities [Member]
Amortized Cost - Held To Maturity	24,998	24,998
Gross Unrealized Gains - Held To Maturity	74	126
Gross Unrealized Losses - Held To Maturity	11
Fair Market Value - Held To Maturity	25,061	25,124
Certificates of Deposit [Member]
Amortized Cost - Held To Maturity	976	1,214
Gross Unrealized Gains - Held To Maturity	1
Fair Market Value - Held To Maturity	977	1,214
Mutual Funds [Member]
Amortized Cost - Available For Sale	80,000
Gross Unrealized Gains - Available For Sale	159
Gross Unrealized Losses - Available For Sale	130
Fair Market Value - Available For Sale	$ 80,029

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Consolidated Balance Sheets (Current Period Unaudited) (USD $) In Thousands, unless otherwise specified	Dec. 29, 2012	Sep. 29, 2012
Current assets
Cash and cash equivalents	$ 80,216	$ 154,198
Marketable securities held to maturity	976	1,214
Accounts receivable, net	66,640	76,414
Inventories, net	76,855	69,761
Prepaid expenses and other	2,702	2,220
Deferred income taxes	4,319	4,261
Total current assets	231,708	308,068
Property, plant and equipment, at cost
Land	2,496	2,496
Buildings	26,741	26,741
Improvements	23,421	22,889
Construction in progress	7,885	5,740
	489,684	483,873
Less accumulated depreciation and amortization	347,734	342,329
	141,950	141,544
Other assets
Goodwill	76,899	76,899
Other intangible assets, net	47,345	48,464
Marketable securities held to maturity	24,998	24,998
Marketable securities available for sale	80,029	0
Other	3,309	3,071
	232,580	153,432
	606,238	603,044
Current Liabilities
Current obligations under capital leases	318	340
Accounts payable	49,528	53,047
Accrued insurance liability	8,934	7,532
Accrued income taxes	5,660	962
Accrued liabilities	3,945	4,027
Accrued compensation expense	9,652	13,151
Dividends payable		2,446
Total current liabilities	78,037	81,505
Long-term obligations under capital leases	281	347
Deferred income taxes	44,954	44,874
Other long-term liabilities	776	831
Stockholders' Equity
Preferred stock, $1 par value; authorized 10,000,000 shares; none issued	0	0
Common stock, no par value; authorized, 50,000,000 shares; issued and outstanding 18,783,000 and 18,780,000 respectively	42,596	43,011
Accumulated other comprehensive loss	(3,237)	(3,132)
Retained Earnings	442,831	435,608
	482,190	475,487
	606,238	603,044
Plant Machinery and Equipment [Member]
Property, plant and equipment, at cost
Equipment	173,785	172,529
Marketing Equipment [Member]
Property, plant and equipment, at cost
Equipment	235,179	233,612
Transportation Equipment [Member]
Property, plant and equipment, at cost
Equipment	4,911	4,879
Office Equipment [Member]
Property, plant and equipment, at cost
Equipment	$ 15,266	$ 14,987

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Consolidated Statements of Comprehensive Income (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Dec. 29, 2012	Dec. 24, 2011
Net Earnings	$ 10,226	$ 5,485
Foreign currency translation adjustments	(123)	(156)
Unrealized holding gain on marketable securities	29	0
Tax effect	(11)	0
Total Other Comprehensive Loss, net of tax	(105)	(156)
Comprehensive Income	$ 10,121	$ 5,329

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Note 9 (Detail) - Reportable Segments Operations Information (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Dec. 29, 2012	Dec. 24, 2011	Sep. 29, 2012
Sales to External Customers	$ 191,408	$ 172,686
Depreciation and Amortization	7,987	7,570
Operating Income (Loss)	15,061	8,463
Capital Expenditures	7,481	8,869
Assets	606,238	545,295	603,044
Food Service [Member] | Soft Pretzels [Member]
Sales to External Customers	32,594	25,617
Food Service [Member] | Frozen Juices And Ices [Member]
Sales to External Customers	7,527	7,852
Food Service [Member] | Churros [Member]
Sales to External Customers	13,807	10,386
Food Service [Member] | Handhelds [Member]
Sales to External Customers	6,314	6,414
Food Service [Member] | Bakery [Member]
Sales to External Customers	68,305	60,820
Food Service [Member] | Other [Member]
Sales to External Customers	1,640	1,980
Food Service [Member]
Sales to External Customers	130,187	113,069
Depreciation and Amortization	4,509	4,200
Operating Income (Loss)	12,597	7,254
Capital Expenditures	5,260	6,313
Assets	460,524	406,275
Retail Supermarket [Member] | Soft Pretzels [Member]
Sales to External Customers	8,578	8,134
Retail Supermarket [Member] | Frozen Juices And Ices [Member]
Sales to External Customers	6,470	7,080
Retail Supermarket [Member] | Handhelds [Member]
Sales to External Customers	6,313	5,881
Retail Supermarket [Member] | Other [Member]
Sales to External Customers	131	496
Retail Supermarket [Member] | Coupon Redemtion [Member]
Sales to External Customers	(789)	(757)
Retail Supermarket [Member]
Sales to External Customers	20,703	20,834
Depreciation and Amortization	8	5
Operating Income (Loss)	1,570	1,824
Assets	6,090	4,087
Frozen Beverages [Member] | Other [Member]
Sales to External Customers	331	346
Frozen Beverages [Member] | Beverages [Member]
Sales to External Customers	25,297	23,981
Frozen Beverages [Member] | Repair And Maintenance Service [Member]
Sales to External Customers	11,842	11,543
Frozen Beverages [Member] | Machines Sales [Member]
Sales to External Customers	3,048	2,913
Frozen Beverages [Member]
Sales to External Customers	40,518	38,783
Depreciation and Amortization	3,470	3,365
Operating Income (Loss)	894	(615)
Capital Expenditures	2,221	2,556
Assets	$ 139,624	$ 134,933

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Note 8 (Tables)

3 Months Ended

Dec. 29, 2012

Schedule of Inventory, Current [Table Text Block]

	December 29,		September 29,
	2012		2012
	(unaudited)
	(in thousands)
Finished goods	$	36,884	$	32,439
Raw Materials		16,927		14,584
Packaging materials		6,348		5,985
Equipment parts & other		16,696		16,753
	$	76,855	$	69,761
The above inventories are net of reserves	$	3,943	$	3,883

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Note 10 (Detail) (USD $)	3 Months Ended
	Dec. 29, 2012	Dec. 24, 2011
Number of Reportable Segments	3
Acquired Indefinite-lived Intangible Asset, Amount	$ 0
Amortization of Intangible Assets	1,119,000	1,132,000
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	4,500,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	4,400,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	4,400,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	4,200,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five	1,700,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	10 years 36 days
Goodwill, Period Increase (Decrease)	$ 0
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life	3 years
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life	20 years

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Note 10 (Tables)

3 Months Ended

Dec. 29, 2012

Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]

	December 29, 2012				September 29, 2012
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
			(in thousands)
FOOD SERVICE
Indefinite lived intangible assets
Trade Names	$	12,880		-	$	12,880	$	-
Amortized intangible assets
Non compete agreements		545		461		545		456
Customer relationships		40,187		23,483		40,187		22,582
License and rights		3,606		2,543		3,606		2,519
	$	57,218	$	26,487	$	57,218	$	25,557
RETAIL SUPERMARKETS
Indefinite lived intangible assets
Trade Names	$	4,006	$	-	$	4,006	$	-
Amortized Intangible Assets
Customer relationships		279		39		279		31
	$	4,285	$	39	$	4,285	$	31
FROZEN BEVERAGES
Indefinite lived intangible assets
Trade Names	$	9,315	$	-	$	9,315	$	-
Amortized intangible assets
Non compete agreements		198		198		198		198
Customer relationships		6,478		4,364		6,478		4,201
Licenses and rights		1,601		662		1,601		644
	$	17,592	$	5,224	$	17,592	$	5,043
CONSOLIDATED	$	79,095	$	31,750	$	79,095	$	30,631

Schedule of Goodwill [Table Text Block]

	Food Service		Retail Supermarket		Frozen Beverages		Total
	(in thousands)
Balance at December 29, 2012	$	39,115	$	1,844	$	35,940	$	76,899

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Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Dec. 29, 2012	Dec. 24, 2011
Operating activities:
Net earnings	$ 10,226,000	$ 5,485,000
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation of fixed assets	6,790,000	6,357,000
Amortization of intangibles and deferred costs	1,197,000	1,213,000
Share-based compensation	507,000	294,000
Deferred income taxes	15,000	(85,000)
Other	(2,000)	(23,000)
Changes in assets and liabilities net of effects from purchase of companies
Decrease in accounts receivable	9,787,000	19,112,000
Increase in inventories	(6,994,000)	(2,941,000)
(Increase) decrease in prepaid expenses	(483,000)	1,896,000
Decrease in accounts payable and accrued liabilities	(3,781,000)	(10,640,000)
Net cash provided by operating activities	17,262,000	20,668,000
Investing activities:
Purchases of property, plant and equipment	(7,481,000)	(8,869,000)
Purchases of marketable securities	(80,002,000)	(37,454,000)
Proceeds from redemption of marketable securities	240,000	33,310,000
Proceeds from disposal of property and equipment	261,000	102,000
Other	(37,000)	(611,000)
Net cash used in investing activities	(87,019,000)	(13,522,000)
Financing activities:
Payments to repurchase common stock	(2,763,000)
Proceeds from issuance of stock	1,700,000	1,825,000
Payments on capitalized lease obligations	(88,000)	(69,000)
Payment of cash dividend	(3,004,000)	(2,200,000)
Net cash used in financing activities	(4,155,000)	(444,000)
Effect of exchange rate on cash and cash equivalents	(70,000)	(90,000)
Net (decrease) increase in cash and cash equivalents	(73,982,000)	6,612,000
Cash and cash equivalents at beginning of period	154,198,000	87,479,000
Cash and cash equivalents at end of period	$ 80,216,000	$ 94,091,000

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Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) In Thousands, except Per Share data, unless otherwise specified	Dec. 29, 2012	Sep. 29, 2012
Preferred, par value (in Dollars per share) (in Dollars per share) (in Dollars per share)	$ 1	$ 1
Preferred, shares authorized (in Shares)	10,000	10,000
Preferred, shares issued (in Shares)	0	0
Common, par value (in Dollars per share) (in Dollars per share) (in Dollars per share)	$ 0	$ 0
Common, shares authorized (in Shares)	50,000	50,000
Common, shares issued (in Shares)	18,783	18,780
Common, shares outstanding (in Shares)	18,783	18,780

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Note 10

3 Months Ended

Dec. 29, 2012

Intangible Assets Disclosure [Text Block]

Note 10          Our three reporting units, which are also 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 Beverage segments as of December 29, 2012 and September 29, 2012 are as follows:

	December 29, 2012				September 29, 2012
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
			(in thousands)
FOOD SERVICE
Indefinite lived intangible assets
Trade Names	$	12,880		-	$	12,880	$	-
Amortized intangible assets
Non compete agreements		545		461		545		456
Customer relationships		40,187		23,483		40,187		22,582
License and rights		3,606		2,543		3,606		2,519
	$	57,218	$	26,487	$	57,218	$	25,557
RETAIL SUPERMARKETS
Indefinite lived intangible assets
Trade Names	$	4,006	$	-	$	4,006	$	-
Amortized Intangible Assets
Customer relationships		279		39		279		31
	$	4,285	$	39	$	4,285	$	31
FROZEN BEVERAGES
Indefinite lived intangible assets
Trade Names	$	9,315	$	-	$	9,315	$	-
Amortized intangible assets
Non compete agreements		198		198		198		198
Customer relationships		6,478		4,364		6,478		4,201
Licenses and rights		1,601		662		1,601		644
	$	17,592	$	5,224	$	17,592	$	5,043
CONSOLIDATED	$	79,095	$	31,750	$	79,095	$	30,631

Amortized intangible assets are being amortized by the straight-line method over periods ranging from 3 to 20 years and amortization expense is reflected throughout operating expenses. No intangible assets were acquired in the three months ended December 29, 2012.  Aggregate amortization expense of intangible assets for the three months ended December 29, 2012 and December 24, 2011 was $1,119,000 and $1,132,000, respectively.

Estimated amortization expense for the next five fiscal years is approximately $4,500,000 in 2013, $4,400,000 in 2014 and 2015 and $4,200,000 in 2016 and $1,700,000 in 2017. The weighted average amortization period of the intangible assets is 10.1 years.

Goodwill

The carrying amounts of goodwill for the Food Service, Retail Supermarket and Frozen Beverage segments are as follows:

	Food Service		Retail Supermarket		Frozen Beverages		Total
	(in thousands)
Balance at December 29, 2012	$	39,115	$	1,844	$	35,940	$	76,899

There were no changes in the carrying amounts of goodwill for the three months ended December 29, 2012.

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Document And Entity Information	3 Months Ended
	Dec. 29, 2012	Jan. 21, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	J&J SNACK FOODS CORP
Document Type	10-Q
Current Fiscal Year End Date	--09-28
Entity Common Stock, Shares Outstanding		18,797,826
Amendment Flag	false
Entity Central Index Key	0000785956
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Well-known Seasoned Issuer	Yes
Document Period End Date	Dec. 29, 2012
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1

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Note 11

3 Months Ended

Dec. 29, 2012

Fair Value Disclosures [Text Block]

Note 11          We have classified our investment securities as marketable securities held to maturity and available for sale.  The FASB defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the FASB has established three levels of inputs that may be used to measure fair value:

Level 1              Observable input such as quoted prices in active markets for identical assets or liabilities;

Level 2              Observable inputs, other than Level 1 inputs in active markets, that are observable either directly or indirectly; and

Level 3              Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions.

Marketable securities held to maturity and available for sale values are derived solely from level 1 inputs.

The amortized cost, unrealized gains and losses, and fair market values of our investment securities held to maturity at December 29, 2012 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
			(in thousands)
US Government Agency Debt	$	24,998	$	74	$	11	$	25,061
Certificates of Deposit		976		1		-		977
	$	25,974	$	75	$	11	$	26,038

The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at December 29, 2012 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
			(in thousands)
Mutual Funds	$	80,000	$	159	$	130	$	80,029
	$	80,000	$	159	$	130	$	80,029

The mutual funds seek current income with an emphasis on maintaining low volatility and overall moderate duration.

All of the certificates of deposit are within the FDIC limits for insurance coverage.

The amortized cost, unrealized gains and losses, and fair market values of our investment securities held to maturity at September 29, 2012 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
			(in thousands)
US Government Agency Debt	$	24,998	$	126	$	-	$	25,124
Certificates of Deposit		1,214		-		-		1,214
	$	26,212	$	126	$	-	$	26,338

All of the certificates of deposit are within the FDIC limits for insurance coverage.

The amortized cost and fair value of the Company’s held to maturity securities by contractual maturity at December 29, 2012 and September 29, 2012 are summarized as follows:

	December 29, 2012				September 29, 2012
			Fair				Fair
	Amortized		Market		Amortized		Market
	Cost		Value		Cost		Value
			(in thousands)
Due in one year or less	$	976	$	977	$	1,214	$	1,214
Due after one year through five years		-		-		-		-
Due after five years through ten years		24,998		25,061		24,998		25,124
Total held to maturity securities	$	25,974	$	26,038	$	26,212	$	26,338
Less current portion		976		977		1,214		1,214
Long term held to maturity securities	$	24,998	$	25,061	$	24,998	$	25,124

Proceeds from the redemption and sale of marketable securities were $240,000 and $33,310,000 in the three months ended December 29, 2012 and December 24, 2011, respectively, with no gain or loss recorded.  We use the specific identification method to determine the cost of securities sold.

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Consolidated Statements of Earnings (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Dec. 29, 2012		Dec. 24, 2011
Net Sales	$ 191,408		$ 172,686
Cost of goods sold(1)	137,273	[1]	126,280
Gross Profit	54,135		46,406
Marketing (2)	17,136	[2]	17,659
Distribution (3)	15,400	[3]	14,219
Administrative (4)	6,599	[4]	6,066
Other general income	(61)		(1)
	39,074		37,943
Operating Income	15,061		8,463
Investment income	776		355
Interest expense & other	(25)		(39)
Earnings before income taxes	15,812		8,779
Income taxes	5,586		3,294
NET EARNINGS	$ 10,226		$ 5,485
Earnings per diluted share (in Dollars per share)	$ 0.54		$ 0.29
Weighted average number of diluted shares (in Shares)	18,870		18,874
Earnings per basic share (in Dollars per share)	$ 0.54		$ 0.29
Weighted average number of basic shares (in Shares)	18,807		18,806

[1] Includes share-based compensation expense of $125 and $64 for the three months ended December 29, 2012 and December 24, 2011, respectively.

[2] Includes share-based compensation expense of $173 and $95 for the three months ended December 29, 2012 and December 24, 2011, respectively.

[3] Includes share-based compensation expense of $8 and $6 for the three months ended December 29, 2012 and December 24, 2011, respectively.

[4] Includes share-based compensation expense of $201 and $129 for the three months ended December 29, 2012 and December 24, 2011, respectively.

XML

Note 5

3 Months Ended

Dec. 29, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 5            At December 29, 2012, the Company has three stock-based employee compensation plans.  Share-based compensation was recognized as follows:

	Three months ended
	December 29,		December 24,
	2012		2011
	(in thousands, except per share amounts)
Stock Options	$	175	$	95
Stock purchase plan		92		65
Stock issued to outside directors		12		-
Restricted stock issued to an employee		4		-
	$	283	$	160
Per diluted share	$	0.01	$	0.01
The above compensation is net of tax benefits	$	224	$	134

The Company anticipates that share-based compensation will not exceed $1.2 million net of tax benefits, or approximately $.06 per share for the fiscal year ending September 28, 2013.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes options-pricing model with the following weighted average assumptions used for grants in fiscal 2013 first three months: expected volatility of 26%; risk-free interest rate of .67%; dividend rate of .9% and expected lives of 5 years.

During the 2013 three month period, the Company granted 1,100 stock options.  The weighted-average grant date fair value of these options was $12.24. During the 2012 three month period, the Company granted 1,500 stock options.  The weighted-average grant date fair value of these options was $11.62.

Expected volatility is based on the historical volatility of the price of our common shares over the past 55 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.

XML

Note 4

3 Months Ended

Dec. 29, 2012

Earnings Per Share [Text Block]

Note 4            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) or other contracts to issue common stock were exercised and converted into common stock. Our calculation of EPS is as follows:

	Three Months Ended December 29, 2012
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	10,226		18,807	$	0.54
Effect of Dilutive Securities
Options		-		63		-
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	10,226		18,870	$	0.54

	Three Months Ended December 24, 2011
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	5,485		18,806	$	0.29
Effect of Dilutive Securities
Options		-		68		-
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	5,485		18,874	$	0.29

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Note 9 (Tables)

3 Months Ended

Dec. 29, 2012

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three months ended
	December 29,			December 24,
	2012			2011
	(unaudited)
	(in thousands)
Sales to External Customers:
Food Service
Soft pretzels	$	32,594		$	25,617
Frozen juices and ices		7,527			7,852
Churros		13,807			10,386
Handhelds		6,314			6,414
Bakery		68,305			60,820
Other		1,640			1,980
	$	130,187		$	113,069
Retail Supermarket
Soft pretzels	$	8,578		$	8,134
Frozen juices and ices		6,470			7,080
Handhelds		6,313			5,881
Coupon redemption		(789	)		(757	)
Other		131			496
	$	20,703		$	20,834
Frozen Beverages
Beverages	$	25,297		$	23,981
Repair and maintenance service		11,842			11,543
Machines sales		3,048			2,913
Other		331			346
	$	40,518		$	38,783
Consolidated Sales	$	191,408		$	172,686
Depreciation and Amortization:
Food Service	$	4,509		$	4,200
Retail Supermarket		8			5
Frozen Beverages		3,470			3,365
	$	7,987		$	7,570
Operating Income (loss):
Food Service	$	12,597		$	7,254
Retail Supermarket		1,570			1,824
Frozen Beverages		894			(615	)
	$	15,061		$	8,463
Capital Expenditures:
Food Service	$	5,260		$	6,313
Retail Supermarket		-			-
Frozen Beverages		2,221			2,556
	$	7,481		$	8,869
Assets:
Food Service	$	460,524		$	406,275
Retail Supermarket		6,090			4,087
Frozen Beverages		139,624			134,933
	$	606,238		$	545,295

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Note 12

3 Months Ended

Dec. 29, 2012

Business Combination Disclosure [Text Block]

Note 12          In May 2011, we acquired the frozen handheld business of ConAgra Foods.  This business had sales of approximately $50 million over the prior twelve months to food service and retail supermarket customers and sales of $18.3 million in our 2011 fiscal year from the acquisition date.

In June 2012, we acquired the assets of Kim & Scott’s Gourmet Pretzels, Inc., a manufacturer and seller of a premium brand soft pretzel.  This business had sales of approximately $8 million over the prior twelve months to food service and retail supermarket customers and had sales of approximately $1.8 million in our 2012 fiscal year from the acquisition date.

These acquisitions were and will be accounted for under the purchase method of accounting, and their operations are and will be included in the consolidated financial statements from their respective acquisition dates.

The purchase price allocation for the handhelds acquisition is as follows:

	(in thousands)
Working Capital	$	6,955
Property, plant & equipment		11,036
Trade Names		1,325
Customer Relationships		207
Deferred tax liability		(4,137	)
Net Assets Acquired		15,386
Purchase Price		8,806
Gain on bargain purchase	$	6,580

The purchase price allocation resulted in the recognition of a gain on bargain purchase of approximately $6,580,000 which is included in other income in the consolidated statement of earnings for the three and nine months ended June 25, 2011.  The gain on bargain purchase resulted from the fair value of the identifiable net assets acquired exceeding the purchase price.

Acquisition costs of $546,000 for the handhelds acquisition are included in other general expense in the consolidated statements of earnings for the year September 24, 2011.

The purchase price allocation for the Kim and Scott’s acquisition is as follows:

	(in thousands)
Working Capital	$	(89	)
Property, plant & equipment		724
Trade Names		126
Customer Relationships		235
Non Compete Agreement		75
Goodwill		6,829
Purchase Price	$	7,900

Acquisition costs of $155,000 for the Kim & Scott’s acquisition are included in other general expense in the consolidated statements of earnings for the year ended September 29, 2012.

The goodwill and intangible assets acquired in the business combinations are recorded at fair value.  To measure fair value for such assets, we use techniques including discounted expected future cash flows (Level 3 input).

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Note 8

3 Months Ended

Dec. 29, 2012

Inventory Disclosure [Text Block]

Note 8             Inventories consist of the following:

	December 29,		September 29,
	2012		2012
	(unaudited)
	(in thousands)
Finished goods	$	36,884	$	32,439
Raw Materials		16,927		14,584
Packaging materials		6,348		5,985
Equipment parts & other		16,696		16,753
	$	76,855	$	69,761
The above inventories are net of reserves	$	3,943	$	3,883

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Note 6

3 Months Ended

Dec. 29, 2012

Income Tax Disclosure [Text Block]

Note 6            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 $510,000 and $541,000 on December 29, 2012 and September 29, 2012, respectively, all of which would impact our effective tax rate over time, if recognized.  We recognize interest and penalties related to income tax matters as a part of the provision for income taxes.  As of December 29, 2012 and September 29, 2012, respectively, the Company has $287,000 and $284,000 of accrued interest and penalties.

In addition to our federal tax return and tax returns for Mexico and Canada, we file tax returns in all states that have a corporate income tax with virtually all open for examination for three to four years.

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Note 7

3 Months Ended

Dec. 29, 2012

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

Note 7            In June 2011, the FASB issued guidance which gives us the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both options, we are required to present each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. This guidance eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders' equity. The amendments in this guidance do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income.  This guidance was adopted in our fiscal year 2013 first quarter and did not have a material impact on our financial statements.

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Note 9

3 Months Ended

Dec. 29, 2012

Segment Reporting Disclosure [Text Block]

Note 9            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 Makers.

We have applied no aggregation criteria to any of these operating segments in order to determine reportable segments.  Our three reportable segments are Food Service, Retail Supermarkets and Frozen Beverages. All inter-segment net sales and expenses have been eliminated in computing net sales and operating income (loss). These segments are described below.

Food Service

The primary products sold by the food service group are soft pretzels, frozen juice treats and desserts, churros, dough enrobed handheld products and baked goods.  Our customers in the food service industry include snack bars and food stands in chain, department and discount stores; malls and shopping centers; fast food outlets; stadiums and sports arenas; leisure andtheme 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.

Retail Supermarkets

The primary products sold by the retail supermarket segment are soft pretzel products – including SUPERPRETZEL, frozen juice treats and desserts including LUIGI’S Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, WHOLE FRUIT frozen fruit bars, WHOLE FRUIT Sorbet, ICEE Squeeze-Up Tubes, dough enrobed handheld products and TIO PEPE’S Churros.  Within the retail supermarket channel, our frozen and prepackaged products are purchased by the consumer for consumption at home.

Frozen Beverages

We sell frozen beverages and related products to the food service industry primarily under the names ICEE, SLUSH PUPPIE, PARROT ICE and ARCTIC BLAST in the United States, Mexico and Canada.  We also provide repair and maintenance service to customers for customers’ owned equipment.

The Chief Operating Decision Maker for Food Service and Retail Supermarkets and the Chief Operating Decision Maker for Frozen Beverages monthly review detailed operating income statements and sales reports in order to assess performance and allocate resources to each individual segment.  In addition, the Chief Operating Decision Makers review and evaluate depreciation, capital spending and assets of each segment on a quarterly basis to monitor cash flow and asset needs of each segment. Information regarding the operations in these three reportable segments is as follows:

	Three months ended
	December 29,			December 24,
	2012			2011
	(unaudited)
	(in thousands)
Sales to External Customers:
Food Service
Soft pretzels	$	32,594		$	25,617
Frozen juices and ices		7,527			7,852
Churros		13,807			10,386
Handhelds		6,314			6,414
Bakery		68,305			60,820
Other		1,640			1,980
	$	130,187		$	113,069
Retail Supermarket
Soft pretzels	$	8,578		$	8,134
Frozen juices and ices		6,470			7,080
Handhelds		6,313			5,881
Coupon redemption		(789	)		(757	)
Other		131			496
	$	20,703		$	20,834
Frozen Beverages
Beverages	$	25,297		$	23,981
Repair and maintenance service		11,842			11,543
Machines sales		3,048			2,913
Other		331			346
	$	40,518		$	38,783
Consolidated Sales	$	191,408		$	172,686
Depreciation and Amortization:
Food Service	$	4,509		$	4,200
Retail Supermarket		8			5
Frozen Beverages		3,470			3,365
	$	7,987		$	7,570
Operating Income (loss):
Food Service	$	12,597		$	7,254
Retail Supermarket		1,570			1,824
Frozen Beverages		894			(615	)
	$	15,061		$	8,463
Capital Expenditures:
Food Service	$	5,260		$	6,313
Retail Supermarket		-			-
Frozen Beverages		2,221			2,556
	$	7,481		$	8,869
Assets:
Food Service	$	460,524		$	406,275
Retail Supermarket		6,090			4,087
Frozen Beverages		139,624			134,933
	$	606,238		$	545,295

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Note 9 (Detail)	3 Months Ended
	Dec. 29, 2012
Number of Operating Segments	3
Number of Reportable Segments	3

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Note 5 (Tables)

3 Months Ended

Dec. 29, 2012

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

	Three months ended
	December 29,		December 24,
	2012		2011
	(in thousands, except per share amounts)
Stock Options	$	175	$	95
Stock purchase plan		92		65
Stock issued to outside directors		12		-
Restricted stock issued to an employee		4		-
	$	283	$	160
Per diluted share	$	0.01	$	0.01
The above compensation is net of tax benefits	$	224	$	134

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Note 12 (Tables)

3 Months Ended

Dec. 29, 2012

Schedule of Purchase Price Allocation [Table Text Block]

	(in thousands)
Working Capital	$	6,955
Property, plant & equipment		11,036
Trade Names		1,325
Customer Relationships		207
Deferred tax liability		(4,137	)
Net Assets Acquired		15,386
Purchase Price		8,806
Gain on bargain purchase	$	6,580

	(in thousands)
Working Capital	$	(89	)
Property, plant & equipment		724
Trade Names		126
Customer Relationships		235
Non Compete Agreement		75
Goodwill		6,829
Purchase Price	$	7,900

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Note 11 (Detail) - Held to Maturity Securities by Contractual Maturity (USD $) In Thousands, unless otherwise specified	Dec. 29, 2012	Sep. 29, 2012
Due in one year or less	$ 976	$ 1,214
Due in one year or less	977	1,214
Due after one year through five years	0	0
Due after one year through five years	0	0
Due after five years through ten years	24,998	24,998
Due after five years through ten years	25,061	25,124
Total held to maturity securities	25,974	26,212
Total held to maturity securities	26,038	26,338
Less current portion	976	1,214
Less current portion	977	1,214
Long term held to maturity securities	24,998	24,998
Long term held to maturity securities	$ 25,061	$ 25,124

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Consolidated Statements of Earnings (Unaudited) (Parentheticals) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Dec. 29, 2012	Dec. 24, 2011
Allocated Share Based Compensation	$ 283	$ 160
Cost Of Goods Sold [Member]
Allocated Share Based Compensation	125	64
Marketing [Member]
Allocated Share Based Compensation	173	95
Distribution [Member]
Allocated Share Based Compensation	8	6
Administrative [Member]
Allocated Share Based Compensation	$ 201	$ 129

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Note 3

3 Months Ended

Dec. 29, 2012

Property, Plant and Equipment Disclosure [Text Block]

Note 3            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 and non compete agreements arising from acquisitions are amortized by the straight-line method over periods ranging from 3 to 20 years. Depreciation expense was $6,790,000 and $6,357,000 for the three months ended December 29, 2012 and December 24, 2011, respectively.

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Note 2 (Detail) (USD $)	Dec. 29, 2012	Sep. 29, 2012
Allowance for Doubtful Accounts Receivable	$ 987,000	$ 685,000

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Note 10 (Detail) - Goodwill by Reporting Segment (USD $) In Thousands, unless otherwise specified	Dec. 29, 2012
Balance at December 29, 2012	$ 76,899
Food Service [Member]
Balance at December 29, 2012	39,115
Retail Supermarket [Member]
Balance at December 29, 2012	1,844
Frozen Beverages [Member]
Balance at December 29, 2012	$ 35,940

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Note 4 (Tables)

3 Months Ended

Dec. 29, 2012

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended December 29, 2012
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	10,226		18,807	$	0.54
Effect of Dilutive Securities
Options		-		63		-
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	10,226		18,870	$	0.54

	Three Months Ended December 24, 2011
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	5,485		18,806	$	0.29
Effect of Dilutive Securities
Options		-		68		-
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	5,485		18,874	$	0.29