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 June 29, 2013

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 July 22, 2013 there were 18,767,917 shares of the Registrant’s Common Stock outstanding.

1

INDEX

				Page
				Number
Part I.   Financial Information
	Item l.   Consolidated Financial Statements
		Consolidated Balance Sheets – June 29, 2013 (unaudited) and September 29, 2012		3
		Consolidated Statements of Earnings (unaudited)
			- Three and Nine Months Ended June 29, 2013 and June 23, 2012	4
		Consolidated Statements of Comprehensive Income (unaudited)
			– Three and Nine Months Ended June 29, 2013 and June 23, 2012	5
		Consolidated Statements of Cash Flows (unaudited)
			– Nine Months Ended June 29, 2013 and June 23, 2012	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				22
Item 4.   Controls and Procedures				23
Part II.   Other Information
Item 6.   Exhibits				23

 

2

J & J SNACK FOODS CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 (in thousands, except share amounts)

	June 29, 2013			September 29, 2012
	(unaudited)
Assets
Current assets
Cash and cash equivalents	$	79,268		$	154,198
Marketable securities held to maturity		3,498			1,214
Accounts receivable, net		92,506			76,414
Inventories, net		75,313			69,761
Prepaid expenses and other		3,466			2,220
Deferred income taxes		4,433			4,261
Total current assets		258,484			308,068
Property, plant and equipment, at cost
Land		2,496			2,496
Buildings		26,741			26,741
Plant machinery and equipment		178,040			172,529
Marketing equipment		242,156			233,612
Transportation equipment		5,805			4,879
Office equipment		15,865			14,987
Improvements		24,367			22,889
Construction in progress		10,298			5,740
		505,768			483,873
Less accumulated depreciation and amortization		359,274			342,329
		146,494			141,544
Other assets
Goodwill		76,899			76,899
Other intangible assets, net		45,122			48,464
Marketable securities held to maturity		2,000			24,998
Marketable securities available for sale		107,512			-
Other		3,126			3,071
		234,659			153,432
	$	639,637		$	603,044
Liability and Stockholder's Equity
Current Liabilities
Current obligations under capital leases	$	257		$	340
Accounts payable		56,409			53,047
Accrued insurance liability		9,371			7,532
Accrued income taxes		4,020			962
Accrued liabilities		3,766			4,027
Accrued compensation expense		12,213			13,151
Dividends payable		3,010			2,446
Total current liabilities		89,046			81,505
Long-term obligations under capital leases		164			347
Deferred income taxes		44,874			44,874
Other long-term liabilities		670			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 18,756,000 and 18,780,000 respectively		40,358			43,011
Accumulated other comprehensive loss		(6,120	)		(3,132	)
Retained Earnings		470,645			435,608
		504,883			475,487
	$	639,637		$	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						Nine months ended
	June 29, 2013			June 23, 2012			June 29, 2013			June 23, 2012
Net Sales	$	237,036		$	226,335		$	629,770		$	588,575
Cost of goods sold(1)		161,714			153,828			442,162			415,675
Gross Profit		75,322			72,507			187,608			172,900
Operating expenses
Marketing (2)		19,554			19,892			53,499			54,955
Distribution (3)		16,750			16,034			47,863			44,465
Administrative (4)		7,063			6,873			20,122			19,158
Other general income		(429	)		(183	)		(480	)		(305	)
		42,938			42,616			121,004			118,273
Operating Income		32,384			29,891			66,604			54,627
Other income (expense)
Investment income		904			397			2,576			1,132
Interest expense & other		(29	)		11			(82	)		(32	)
Earnings before income taxes		33,259			30,299			69,098			55,727
Income taxes		12,087			11,627			25,040			21,147
NET EARNINGS	$	21,172		$	18,672		$	44,058		$	34,580
Earnings per diluted share	$	1.12		$	0.99		$	2.33		$	1.83
Weighted average number of diluted shares		18,913			18,947			18,890			18,917
Earnings per basic share	$	1.13		$	0.99		$	2.34		$	1.83
Weighted average number of basic shares		18,807			18,886			18,804			18,850

(1)	Includes share-based compensation expense of $134 and $361 for the three months and nine months ended
	June 29, 2013, respectively and $75 and $198 for the three months and nine months ended June 23, 2012.
(2)	Includes share-based compensation expense of $186 and $496 for the three months and nine months ended
	June 29, 2013, respectively and $113 and $297 for the three months and nine months ended June 23, 2012.
(3)	Includes share-based compensation expense of $8 and $23 for the three months and nine months ended
	June 29, 2013, respectively and $8 and $20 for the three months and nine months ended June 23, 2012.
(4)	Includes share-based compensation expense of $214 and $578 for the three months and nine months ended
	June 29, 2013, respectively and $154 and $404 for the three months and nine months ended June 23, 2012.

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						Nine months ended
	June 29, 2013			June 23, 2012			June 29, 2013			June 23, 2012
Net Earnings	$	21,172		$	18,672		$	44,058		$	34,580
Foreign currency translation adjustments		(947	)		(880	)		(500	)		(105	)
Unrealized holding loss on marketable securities		(2,780	)		-			(2,488	)		-
Tax effect		108			-			-			-
Total Other Comprehensive Loss, net of tax		(3,619	)		(880	)		(2,988	)		(105	)
Comprehensive Income	$	17,553		$	17,792		$	41,070		$	34,475

5

J & J SNACK FOODS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)

	Nine months ended
	June 29, 2013			June 23, 2012
Operating activities:
Net earnings	$	44,058		$	34,580
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation of fixed assets		21,298			19,332
Amortization of intangibles and deferred costs		3,577			3,572
Share-based compensation		1,458			919
Deferred income taxes		(167	)		(122	)
Other		(118	)		(155	)
Changes in assets and liabilities net of effects from purchase of companies
Increase in accounts receivable		(16,104	)		(8,207	)
Increase in inventories		(5,462	)		(9,785	)
(Increase) decrease in prepaid expenses		(1,248	)		969
Increase in accounts payable and accrued liabilities		6,408			11,388
Net cash provided by operating activities		53,700			52,491
Investing activities:
Payments for purchases of companies, net of cash acquired		-			(7,900	)
Purchases of property, plant and equipment		(26,954	)		(30,077	)
Purchases of marketable securities		(113,352	)		(68,450	)
Proceeds from redemption of marketable securities		23,958			81,023
Proceeds from disposal of property and equipment		782			645
Other		(19	)		(962	)
Net cash used in investing activities		(115,585	)		(25,721	)
Financing activities:
Payments to repurchase common stock		(7,198	)		-
Proceeds from issuance of stock		2,899			2,568
Payments on capital leases		(267	)		(210	)
Payment of cash dividend		(8,457	)		(7,092	)
Net cash used in financing activities		(13,023	)		(4,734	)
Effect of exchange rate on cash and cash equivalents		(22	)		(34	)
Net (decrease) increase in cash and cash equivalents		(74,930	)		22,002
Cash and cash equivalents at beginning of period		154,198			87,479
Cash and cash equivalents at end of period	$	79,268		$	109,481

See accompanying notes to the consolidated financial statements.

6

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 and 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 and nine months ended June 29, 2013 and June 23, 2012 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 $853,000 and $685,000 at June 29, 2013 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 $7,434,000 and $6,620,000 for the three months ended June 29, 2013 and June 23, 2012, respectively, and for the nine months ended June 29, 2013 and June 23, 2012 was $21,298,000 and $19,332,000, 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 June 29, 2013
	Income (Numerator)		Shares (Denominator)		Per Share Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	21,172		18,807	$	1.13
Effect of Dilutive Securities
Options		-		106		(.01	)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	21,172		18,913	$	1.12

	Nine Months Ended June 29, 2013
	Income (Numerator)		Shares (Denominator)		Per Share Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	44,058		18,804	$	2.34
Effect of Dilutive Securities
Options		-		86		(.01	)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	44,058		18,890	$	2.33

8

	Three Months Ended June 23, 2012
	Income (Numerator)		Shares (Denominator)		Per Share Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	18,672		18,886	$	0.99
Effect of Dilutive Securities
Options		-		61		-
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	18,672		18,947	$	0.99

 

	Nine Months Ended June 23, 2012
	Income (Numerator)		Shares (Denominator)		Per Share Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	34,580		18,850	$	1.83
Effect of Dilutive Securities
Options		-		67		-
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	34,580		18,917	$	1.83

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Note 5            At June 29, 2013, the Company has three stock-based employee compensation plans. Share-based compensation was recognized as follows:

 

	Three months ended				Nine months ended
	June 29, 2013		June 23, 2012		June 29, 2013		June 23, 2012
	(in thousands, except per share amounts)
Stock Options	$	206	$	191	$	596	$	484
Stock purchase plan		179		112		316		214
Stock issued to outside directors		11		-		35		-
Restricted stock issued to an employee		4		-		13		-
	$	400	$	303	$	960	$	698
Per diluted share	$	0.02	$	0.02	$	0.05	$	0.04
The above compensation is net of tax benefits	$	142	$	47	$	498	$	221

The Company anticipates that share-based compensation will not exceed $1.4 million net of tax benefits, or approximately $.07 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 nine months: expected volatility of 26%; risk-free interest rate of .81%; dividend rate of .9% and expected lives of 5 years.

During the 2013 nine month period, the Company granted 1,600 stock options. The weighted-average grant date fair value of these options was $13.76. During the 2012 nine month period, the Company granted 2,000 stock options. The weighted-average grant date fair value of these options was $11.97. 

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.

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.

10

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 $425,000 and $541,000 on June 29, 2013 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 June 29, 2013 and September 29, 2012, respectively, the Company has $271,000 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. 

11

Note 8            Inventories consist of the following:

 

	June 29, 2013		September 29, 2012
	(unaudited)
	(in thousands)
Finished goods	$	36,534	$	32,439
Raw Materials		15,154		14,584
Packaging materials		6,233		5,985
Equipment parts & other		17,392		16,753
	$	75,313	$	69,761
The above inventories are net of reserves	$	4,815	$	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 and theme 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.

12

Frozen Beverages

We sell frozen beverages and related products to the food service industry primarily under the names ICEE, SLUSH PUPPIE and PARROT ICE 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						Nine months ended
	June 29, 2013			June 23, 2012			June 29, 2013			June 23, 2012
	(unaudited)
				(in thousands)
Sales to External Customers:
Food Service
Soft pretzels	$	36,136		$	29,579		$	104,067		$	82,592
Frozen juices and ices		16,468			19,680			34,117			39,106
Churros		14,774			12,330			42,648			34,263
Handhelds		6,806			7,249			20,058			21,242
Bakery		68,099			66,754			203,488			191,938
Other		2,939			2,872			6,424			6,716
	$	145,222		$	138,464		$	410,802		$	375,857
Retail Supermarket
Soft pretzels	$	8,576		$	7,635		$	27,200		$	24,242
Frozen juices and ices		18,226			17,629			33,694			34,204
Handhelds		4,995			5,193			16,425			16,861
Coupon redemption		(954	)		(857	)		(2,497	)		(2,183	)
Other		237			255			514			999
	$	31,080		$	29,855		$	75,336		$	74,123
Frozen Beverages
Beverages	$	40,996		$	41,238		$	91,476		$	91,616
Repair and maintenance service		13,833			12,386			38,385			35,875
Machines sales		5,035			3,711			12,028			9,646
Other		870			681			1,743			1,458
	$	60,734		$	58,016		$	143,632		$	138,595
Consolidated Sales	$	237,036		$	226,335		$	629,770		$	588,575
Depreciation and Amortization:
Food Service	$	4,943		$	4,342		$	14,169		$	12,746
Retail Supermarket		9			5			24			15
Frozen Beverages		3,671			3,452			10,682			10,143
	$	8,623		$	7,799		$	24,875		$	22,904
Operating Income:
Food Service	$	18,822		$	15,203		$	46,782		$	35,205
Retail Supermarket		2,883			4,115			6,857			7,597
Frozen Beverages		10,679			10,573			12,965			11,825
	$	32,384		$	29,891		$	66,604		$	54,627
Capital Expenditures:
Food Service	$	4,798		$	6,315		$	14,740		$	19,207
Retail Supermarket		-			-			-			-
Frozen Beverages		6,599			2,691			12,214			10,870
	$	11,397		$	9,006		$	26,954		$	30,077
Assets:
Food Service	$	478,203		$	441,785		$	478,203		$	441,785
Retail Supermarket		6,074			4,285			6,074			4,285
Frozen Beverages		155,360			147,389			155,360			147,389
	$	639,637		$	593,459		$	639,637		$	593,459

  

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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 June 29, 2013 and September 29, 2012 are as follows:

 

	June 29, 2013				September 29, 2012
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
			(in thousands)
FOOD SERVICE
Indefinite lived intangible assets
Trade Names	$	12,880	$	-	$	12,880	$	-
Amortized intangible assets
Non compete agreements		545		472		545		456
Customer relationships		40,187		25,286		40,187		22,582
License and rights		3,606		2,590		3,606		2,519
	$	57,218	$	28,348	$	57,218	$	25,557
RETAIL SUPERMARKETS
Indefinite lived intangible assets
Trade Names	$	4,006	$	-	$	4,006	$	-
Amortized Intangible Assets
Customer relationships		279		55		279		31
	$	4,285	$	55	$	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		4,676		6,478		4,201
Licenses and rights		1,601		696		1,601		644
	$	17,592	$	5,570	$	17,592	$	5,043
CONSOLIDATED	$	79,095	$	33,973	$	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 nine months ended June 29, 2013. Aggregate amortization expense of intangible assets for the three months ended June 29, 2013 and June 23, 2012 was $1,110,000 and $1,109,000, respectively and for the nine months ended June 29, 2013 and June 23, 2012 was $3,342,000 and $3,355,000, respectively.

14

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 June 29, 2013	$	39,115	$	1,844	$	35,940	$	76,899

There were no changes in the carrying amounts of goodwill for the three and nine months ended June 29, 2013.

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.

15

The amortized cost, unrealized gains and losses, and fair market values of our investment securities held to maturity at June 29, 2013 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
			(in thousands)
Guaranteed Investment Certificate	$	3,243	$	-	$	-	$	3,243
US Government Agency Debt		2,000		-		36		1,964
Certificates of Deposit		255		-		-		255
	$	5,498	$	-	$	36	$	5,462

The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at June 29, 2013 are summarized as follows:

 

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
			(in thousands)
Mutual Funds	$	110,000	$	70	$	2,558	$	107,512
	$	110,000	$	70	$	2,558	$	107,512

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:

 

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market 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.

16

The amortized cost and fair value of the Company’s held to maturity securities by contractual maturity at June 29, 2013 and September 29, 2012 are summarized as follows:

 

	June 29, 2013				September 29, 2012
	Amortized Cost		Fair Market Value		Amortized Cost		Fair Market Value
			(in thousands)
Due in one year or less	$	3,498	$	3,498	$	1,214	$	1,214
Due after one year through five years		-		-		-		-
Due after five years through ten years		2,000		1,964		24,998		25,124
Total held to maturity securities	$	5,498	$	5,462	$	26,212	$	26,338
Less current portion		3,498		3,498		1,214		1,214
Long term held to maturity securities	$	2,000	$	1,964	$	24,998	$	25,124

Proceeds from the redemption and sale of marketable securities were $480,000 and $23,958,000 in the three months and nine months ended June 29, 2013, respectively; and $21,000,000 and $81,023,000 in the three months and nine months ended June 23, 2012, respectively, with no gain or loss recorded. We use the specific identification method to determine the cost of securities sold.

Note 12           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.

This acquisition was and will be accounted for under the purchase method of accounting, and its operations are and will be included in the consolidated financial statements from the acquisition date.

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

17

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 combination are recorded at fair value. To measure fair value for such assets, we use techniques including discounted expected future cash flows (Level 3 input).

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 July 3, 2013, to shareholders of record as of the close of business on June 13, 2013.

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 quarter ended June 29, 2013, we purchased and retired 58,840 shares of our common stock at a cost of $4,435,078.

In the three months ended June 29, 2013 and June 23, 2012, 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 $947,000 in accumulated other comprehensive loss in the 2013 third quarter and an increase of $880,000 in accumulated other comprehensive loss in the 2012 third quarter. In the nine month period, 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 $500,000 in accumulated other comprehensive loss in the 2013 nine month period and an increase of $105,000 in accumulated other comprehensive loss in the 2012 nine month period.

18

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 June 29, 2013.

Results of Operations

Net sales increased $10,701,000 or 5% for the three months to $237,036,000 and $41,195,000 or 7% to $629,770,000 for the nine months ended June 29, 2013 compared to the three and nine months ended June 23, 2012.

Excluding sales resulting from the acquisition of Kim & Scott’s Gourmet Pretzels in June 2012, sales increased approximately 4% for the three months and 6% for the nine months.

FOOD SERVICE

Sales to food service customers increased $6,758,000 or 5% in the third quarter to $145,222,000 and increased $34,945,000 or 9% for the nine months. Excluding Kim & Scott’s sales, food service sales increased approximately 4% for the third quarter and increased 8% for the nine months. Soft pretzel sales to the food service market increased 22% to $36,136,000 in the third quarter and increased 26% to $104,067,000 in the nine months 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 and increased sales to three customers accounted for approximately 40% of the increase in the nine months. Without Kim & Scott’s, pretzel sales increased about 19% for the three months and 22% for the nine months. Frozen juices and ices sales decreased 16% to $16,468,000 in the three months and 13% to $34,117,000 in the nine months resulting from lower sales to school food service accounts in both periods and from lower sales to warehouse club stores in the three months. Churro sales to food service customers increased 20% to $14,774,000 in the third quarter and were up 24% to $42,648,000 in the nine months with sales to one restaurant chain accounting for virtually the entire increase in both periods.

Sales of bakery products increased $1,345,000 or 2% in the third quarter to $68,099,000 and increased $11,550,000 or 6% for the nine months as sales increases and decreases were spread throughout our customer base.

Sales of new products in the first twelve months since their introduction were approximately $1.0 million in this quarter and $8.7 million in the nine months. Price increases accounted for approximately $2.5 million of sales in the quarter and $9.0 million in the nine months and net volume increases, including new product sales as defined above and sales resulting from the acquisition of Kim & Scott’s, accounted for approximately $4.3 million of sales in the quarter and $26.0 million of sales in the nine months.

19

Operating income in our Food Service segment increased from $15,203,000 to $18,822,000 in the quarter and increased from $35,205,000 to $46,782,000 for the nine months. Operating income for the quarter and nine months benefited from increased sales volume, price increases and lower ingredients and packaging costs.  Operating income in the third quarter was impacted by a product write down of $500,000 and by a $1.2 million increase in liability insurance expense from last year’s quarter. For the nine months, liability insurance expense was approximately $1.8 million higher than last year. The increase in insurance expense during the three and nine month periods is due to an increase in insurance company estimates for actual claims incurred but not yet paid.

RETAIL SUPERMARKETS

Sales of products to retail supermarkets increased $1,225,000 or 4% to $31,080,000 in the third quarter and were up 2% to $75,336,000 in the nine months. Excluding Kim & Scott’s sales, sales increased 3% for the third quarter and 1% for the nine months. Soft pretzel sales for the third quarter were up 12% to $8,576,000 and were up 12% to $27,200,000 for the nine months on a unit volume increase of 6% for the quarter and 10% for the nine months. Excluding Kim & Scott’s sales, soft pretzel sales increased about 9% for this quarter and 9% for the nine months. Soft pretzel sales benefited from increased distribution of our sweet cinnamon and pretzel dog varieties and perhaps from additional advertising. Sales of frozen juices and ices increased $597,000 or 3% to $18,226,000 in the third quarter and were down 1% to $33,694,000 in the nine months on a unit volume increase of 4% in this quarter and a decrease of 5% for the nine months. Frozen juices and ices sales were impacted by unseasonably cold weather in this quarter and nine months. Coupon redemption costs, a reduction of sales, increased 11% or about $97,000 for the quarter and 14% to $2,497,000 for the nine months. Handheld sales to retail supermarket customers decreased 4% to $4,995,000 in the quarter and 3% to $16,425,000 for the nine months due primarily to lower sales to one customer.

Sales of new products in the first twelve months since their introduction were less than $100,000 in the third quarter and $1.3 million in the nine months. Price increases accounted for approximately $1.1 million of sales in the quarter and $2.0 million in the nine months and net volume increases and decreases, including new product sales as defined above and Kim & Scott’s sales and net of increased coupon costs and trade spending, increased sales by approximately $100,000 in this quarter and reduced sales by $800,000 in the nine months. Operating income in our Retail Supermarkets segment decreased from $4,115,000 to $2,883,000 in the quarter and from $7,597,000 to $6,857,000 in the nine months primarily because of increased trade spending and advertising in the quarter and nine months.

20

FROZEN BEVERAGES

Frozen beverage and related product sales increased 5% to $60,734,000 in the third quarter and increased $5,037,000 or 4% to $143,632,000 in the nine month period. Beverage related sales alone decreased less than 1% to $40,996,000 in the third quarter and were essentially unchanged at $91,476,000 in the nine months.   Gallon sales were down 3% for the three months and 3% for the nine months with two customers accounting for virtually the entire drop in the three months and 90% in the nine months. Service revenue increased 12% to $13,833,000 in the third quarter and 7% to $38,385,000 for the nine months 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 $1,324,000 or 36% higher in the three month period and $2,382,000 higher in the nine months. The approximate number of company owned frozen beverage dispensers was 43,600 and 42,500 at June 29, 2013 and September 29, 2012, respectively. Operating income in our Frozen Beverage segment increased $106,000 to $10,679,000 in the third quarter and increased to $12,965,000 from $11,825,000 in the nine months. For the nine month period, the increase in operating income was primarily from a reduction in operating expenses.

CONSOLIDATED

Gross profit as a percentage of sales decreased to 31.78% in the three month period from 32.04% last year and increased to 29.79% in the nine month period from 29.38% a year ago. Higher volume in our food service segment was the primary reason for the improved gross profit margin in the nine month period and the margin also benefitted by lower ingredient and packaging costs of approximately $700,000 in the three month period and $1.5 million in the nine months. 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.  The third quarter gross profit margin was down because of a $500,000 product write down and $1.2 million of higher liability insurance expense in the quarter compared to last year’s quarter in our food service segment.

Total operating expenses increased $322,000 in the third quarter but as a percentage of sales decreased .72 percentage points from 19% percent to 18%. For the nine months, operating expenses increased $2,731,000, but as a percentage of sales decreased .88 percentage points from 20% to 19%. The drop in percentages was generally because of increased sales in our food service segment and lower expenses in our frozen beverage segment for the nine months and the overall reduction of $800,000 in expense because of the management and sales meeting we had in last year’s first quarter. Marketing expenses decreased about 1/2 of a percentage point from 9% to 8% of sales in the quarter and decreased from 9% to 8% of sales in the nine months also because of higher sales and reduction of expenses. Distribution expenses were 7% of sales in both years’ quarters and were 8% of sales in in both years’ nine months. Administrative expenses were 3% of sales in all periods.     

21

Operating income increased $2,493,000 or 8% to $32,384,000 in the third quarter and increased $11,977,000 or 22% to $66,604,000 in the nine months as a result of the aforementioned items.

Investment income increased by $507,000 and $1,444,000 in the third quarter and nine months, respectively, due primarily to increased investments of marketable securities. We invested $80 million in the first quarter and $30 million in the third 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 3.5 – 3.75%. US Government Agency debt of $23.0 million held at September 29, 2012 which was yielding 2.0% has been called in the nine months ending June 29, 2013.

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

Net earnings increased $2,500,000 or 13% in the current three month period to $21,172,000 and increased 27% to $44,058,000 for the nine months this year from $34,580,000 last year 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.

22

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 June 29, 2013, 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.

There has been no change in the Company’s internal control over financial reporting during the quarter ended June 29, 2013, 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 & 31.2	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
99.5 & 99.6	Certification Pursuant to the 18 U.S.C. 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 June 29, 2013, 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

23

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: July 29, 2013	By:	/s/ Gerald B. Shreiber
		Gerald B. Shreiber
		Chairman of the Board,
		President, Chief Executive
		Officer and Director
		(Principal Executive Officer)
Dated: July 29, 2013		/s/ Dennis G. Moore
		Dennis G. Moore, Senior Vice
		President, Chief Financial
		Officer and Director
		(Principal Financial Officer)
		(Principal Accounting Officer)

24

EX-31

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 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 third 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: July 29, 2013

/s/ Dennis G. Moore

Dennis G. Moore, Senior Vice

President, Chief Financial

Officer and Director

(Principal Financial Officer)

(Principal Accounting Officer)

EX-31

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 third 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: July 29, 2013

/s/ Gerald B. Shreiber

Gerald B. Shreiber

Chairman of the Board,

President, Chief Executive

Officer and Director

(Principal Executive Officer)

EX-99

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 June 29, 2013 (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: July 29, 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

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 June 29, 2013 (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: July 29, 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.

XML

Note 10

9 Months Ended

Jun. 29, 2013

Disclosure Text Block [Abstract]

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 June 29, 2013 and September 29, 2012 are as follows:

	June 29, 2013				September 29, 2012
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
			(in thousands)
FOOD SERVICE
Indefinite lived intangible assets
Trade Names	$	12,880	$	-	$	12,880	$	-
Amortized intangible assets
Non compete agreements		545		472		545		456
Customer relationships		40,187		25,286		40,187		22,582
License and rights		3,606		2,590		3,606		2,519
	$	57,218	$	28,348	$	57,218	$	25,557
RETAIL SUPERMARKETS
Indefinite lived intangible assets
Trade Names	$	4,006	$	-	$	4,006	$	-
Amortized Intangible Assets
Customer relationships		279		55		279		31
	$	4,285	$	55	$	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		4,676		6,478		4,201
Licenses and rights		1,601		696		1,601		644
	$	17,592	$	5,570	$	17,592	$	5,043
CONSOLIDATED	$	79,095	$	33,973	$	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 nine months ended June 29, 2013. Aggregate amortization expense of intangible assets for the three months ended June 29, 2013 and June 23, 2012 was $1,110,000 and $1,109,000, respectively and for the nine months ended June 29, 2013 and June 23, 2012 was $3,342,000 and $3,355,000, 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 June 29, 2013	$	39,115	$	1,844	$	35,940	$	76,899

There were no changes in the carrying amounts of goodwill for the three and nine months ended June 29, 2013.

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Consolidated Statements of Earnings (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended				9 Months Ended
	Jun. 29, 2013		Jun. 23, 2012		Jun. 29, 2013		Jun. 23, 2012
Net Sales	$ 237,036		$ 226,335		$ 629,770		$ 588,575
Cost of goods sold(1)	161,714	[1]	153,828	[1]	442,162	[1]	415,675
Gross Profit	75,322		72,507		187,608		172,900
Operating expenses
Marketing (2)	19,554	[2]	19,892	[2]	53,499	[2]	54,955
Distribution (3)	16,750	[3]	16,034	[3]	47,863	[3]	44,465
Administrative (4)	7,063	[4]	6,873	[4]	20,122	[4]	19,158
Other general income	(429)		(183)		(480)		(305)
	42,938		42,616		121,004		118,273
Operating Income	32,384		29,891		66,604		54,627
Investment income	904		397		2,576		1,132
Interest expense & other	(29)		11		(82)		(32)
Earnings before income taxes	33,259		30,299		69,098		55,727
Income taxes	12,087		11,627		25,040		21,147
NET EARNINGS	$ 21,172		$ 18,672		$ 44,058		$ 34,580
Earnings per diluted share (in Dollars per share)	$ 1.12		$ 0.99		$ 2.33		$ 1.83
Weighted average number of diluted shares (in Shares)	18,913		18,947		18,890		18,917
Earnings per basic share (in Dollars per share)	$ 1.13		$ 0.99		$ 2.34		$ 1.83
Weighted average number of basic shares (in Shares)	18,807		18,886		18,804		18,850

[1] Includes share-based compensation expense of $134 and $361 for the three months and nine months ended June 29, 2013, respectively and $75 and $198 for the three months and nine months ended June 23, 2012.

[2] Includes share-based compensation expense of $186 and $496 for the three months and nine months ended June 29, 2013, respectively and $113 and $297 for the three months and nine months ended June 23, 2012.

[3] Includes share-based compensation expense of $8 and $23 for the three months and nine months ended June 29, 2013, respectively and $8 and $20 for the three months and nine months ended June 23, 2012.

[4] Includes share-based compensation expense of $214 and $578 for the three months and nine months ended June 29, 2013, respectively and $154 and $404 for the three months and nine months ended June 23, 2012.

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Note 3

9 Months Ended

Jun. 29, 2013

Property, Plant and Equipment Disclosure [Text Block]

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 $7,434,000 and $6,620,000 for the three months ended June 29, 2013 and June 23, 2012, respectively, and for the nine months ended June 29, 2013 and June 23, 2012 was $21,298,000 and $19,332,000, respectively

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Note 10 (Tables)

9 Months Ended

Jun. 29, 2013

Disclosure Text Block [Abstract]

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

	June 29, 2013				September 29, 2012
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
			(in thousands)
FOOD SERVICE
Indefinite lived intangible assets
Trade Names	$	12,880	$	-	$	12,880	$	-
Amortized intangible assets
Non compete agreements		545		472		545		456
Customer relationships		40,187		25,286		40,187		22,582
License and rights		3,606		2,590		3,606		2,519
	$	57,218	$	28,348	$	57,218	$	25,557
RETAIL SUPERMARKETS
Indefinite lived intangible assets
Trade Names	$	4,006	$	-	$	4,006	$	-
Amortized Intangible Assets
Customer relationships		279		55		279		31
	$	4,285	$	55	$	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		4,676		6,478		4,201
Licenses and rights		1,601		696		1,601		644
	$	17,592	$	5,570	$	17,592	$	5,043
CONSOLIDATED	$	79,095	$	33,973	$	79,095	$	30,631

Schedule of Goodwill [Table Text Block]

	Food Service		Retail Supermarket		Frozen Beverages		Total
	(in thousands)
Balance at June 29, 2013	$	39,115	$	1,844	$	35,940	$	76,899

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Note 11

9 Months Ended

Jun. 29, 2013

Fair Value Disclosures [Text Block]

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 June 29, 2013 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
			(in thousands)
Guaranteed Investment Certificate	$	3,243	$	-	$	-	$	3,243
US Government Agency Debt		2,000		-		36		1,964
Certificates of Deposit		255		-		-		255
	$	5,498	$	-	$	36	$	5,462

The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at June 29, 2013 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
			(in thousands)
Mutual Funds	$	110,000	$	70	$	2,558	$	107,512
	$	110,000	$	70	$	2,558	$	107,512

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:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market 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 June 29, 2013 and September 29, 2012 are summarized as follows:

	June 29, 2013				September 29, 2012
	Amortized Cost		Fair Market Value		Amortized Cost		Fair Market Value
			(in thousands)
Due in one year or less	$	3,498	$	3,498	$	1,214	$	1,214
Due after one year through five years		-		-		-		-
Due after five years through ten years		2,000		1,964		24,998		25,124
Total held to maturity securities	$	5,498	$	5,462	$	26,212	$	26,338
Less current portion		3,498		3,498		1,214		1,214
Long term held to maturity securities	$	2,000	$	1,964	$	24,998	$	25,124

Proceeds from the redemption and sale of marketable securities were $480,000 and $23,958,000 in the three months and nine months ended June 29, 2013, respectively; and $21,000,000 and $81,023,000 in the three months and nine months ended June 23, 2012, respectively, with no gain or loss recorded. We use the specific identification method to determine the cost of securities sold.

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Note 10 (Details) - Goodwill by Reporting Segment (USD $) In Thousands, unless otherwise specified	Jun. 29, 2013
Goodwill [Line Items]
Balance at June 29, 2013	$ 76,899
Food Service [Member]
Goodwill [Line Items]
Balance at June 29, 2013	39,115
Retail Supermarket [Member]
Goodwill [Line Items]
Balance at June 29, 2013	1,844
Frozen Beverages [Member]
Goodwill [Line Items]
Balance at June 29, 2013	$ 35,940

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Note 2 (Details) (USD $)	Jun. 29, 2013	Sep. 29, 2012
Policy Text Block [Abstract]
Allowance for Doubtful Accounts Receivable	$ 853,000	$ 685,000

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Note 12 (Tables)

9 Months Ended

Jun. 29, 2013

Business Combination Disclosure [Text Block]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

	(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 9 (Details)	9 Months Ended
	Jun. 29, 2013
Segment Reporting Disclosure [Text Block]
Number of Operating Segments	3
Number of Reportable Segments	3

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Note 11 (Details) - Summary of Securities (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jun. 29, 2013	Sep. 29, 2012
Note 11 (Details) - Summary of Securities [Line Items]
Amortized Cost - Held To Maturity	$ 5,498	$ 26,212
Gross Unrealized Gains - Held To Maturity		126
Gross Unrealized Losses - Held To Maturity	36
Fair Market Value - Held To Maturity	5,462	26,338
Amortized Cost - Available For Sale	110,000
Gross Unrealized Gains - Available For Sale	70
Gross Unrealized Losses - Available For Sale	2,558
Fair Market Value - Available For Sale	107,512
Guaranteed Investment Contract [Member]
Note 11 (Details) - Summary of Securities [Line Items]
Amortized Cost - Held To Maturity	3,243
Fair Market Value - Held To Maturity	3,243
US Government Corporations and Agencies Securities [Member]
Note 11 (Details) - Summary of Securities [Line Items]
Amortized Cost - Held To Maturity	2,000	24,998
Gross Unrealized Gains - Held To Maturity		126
Gross Unrealized Losses - Held To Maturity	36
Fair Market Value - Held To Maturity	1,964	25,124
Certificates of Deposit [Member]
Note 11 (Details) - Summary of Securities [Line Items]
Amortized Cost - Held To Maturity	255	1,214
Fair Market Value - Held To Maturity	255	1,214
Mutual Funds [Member]
Note 11 (Details) - Summary of Securities [Line Items]
Amortized Cost - Available For Sale	110,000
Gross Unrealized Gains - Available For Sale	70
Gross Unrealized Losses - Available For Sale	2,558
Fair Market Value - Available For Sale	$ 107,512

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Note 5 (Details) - Share-based Compensation (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 29, 2013	Jun. 23, 2012	Jun. 29, 2013	Jun. 23, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation by plans	$ 400	$ 303	$ 960	$ 698
Per diluted share (in Dollars per share)	$ 0.02	$ 0.02	$ 0.05	$ 0.04
The above compensation is net of tax benefits	142	47	498	221
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation by plans	206	191	596	484
Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation by plans	179	112	316	214
Stock Issued to Outside Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation by plans	11		35
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation by plans	$ 4		$ 13

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Note 12 (Details) - Purchase Price Allocation (USD $) In Thousands, unless otherwise specified	Jun. 29, 2013	Sep. 29, 2012	Sep. 24, 2011 Kim and Scott's [Member] Customer Relationships [Member]	Sep. 24, 2011 Kim and Scott's [Member] Noncompete Agreements [Member]	Sep. 24, 2011 Kim and Scott's [Member]
Note 12 (Details) - Purchase Price Allocation [Line Items]
Working Capital					$ (89)
Property, plant & equipment					724
Trade Names					126
Intangible assets			235	75
Goodwill	76,899	76,899			6,829
Purchase Price					$ 7,900

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Note 11 (Tables)

9 Months Ended

Jun. 29, 2013

Fair Value Disclosures [Text Block]

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

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
			(in thousands)
Guaranteed Investment Certificate	$	3,243	$	-	$	-	$	3,243
US Government Agency Debt		2,000		-		36		1,964
Certificates of Deposit		255		-		-		255
	$	5,498	$	-	$	36	$	5,462

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
			(in thousands)
Mutual Funds	$	110,000	$	70	$	2,558	$	107,512
	$	110,000	$	70	$	2,558	$	107,512

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market 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]

	June 29, 2013				September 29, 2012
	Amortized Cost		Fair Market Value		Amortized Cost		Fair Market Value
			(in thousands)
Due in one year or less	$	3,498	$	3,498	$	1,214	$	1,214
Due after one year through five years		-		-		-		-
Due after five years through ten years		2,000		1,964		24,998		25,124
Total held to maturity securities	$	5,498	$	5,462	$	26,212	$	26,338
Less current portion		3,498		3,498		1,214		1,214
Long term held to maturity securities	$	2,000	$	1,964	$	24,998	$	25,124

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Consolidated Statements of Comprehensive Income (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 29, 2013	Jun. 23, 2012	Jun. 29, 2013	Jun. 23, 2012
Net Earnings	$ 21,172	$ 18,672	$ 44,058	$ 34,580
Foreign currency translation adjustments	(947)	(880)	(500)	(105)
Unrealized holding loss on marketable securities	(2,780)	0	(2,488)
Tax effect	108	0
Total Other Comprehensive Loss, net of tax	(3,619)	(880)	(2,988)	(105)
Comprehensive Income	$ 17,553	$ 17,792	$ 41,070	$ 34,475

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Note 1

9 Months Ended

Jun. 29, 2013

Disclosure Text Block [Abstract]

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 and 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 and nine months ended June 29, 2013 and June 23, 2012 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 4

9 Months Ended

Jun. 29, 2013

Earnings Per Share [Text Block]

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 June 29, 2013
	Income (Numerator)		Shares (Denominator)		Per Share Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	21,172		18,807	$	1.13
Effect of Dilutive Securities
Options		-		106		(.01	)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	21,172		18,913	$	1.12

	Nine Months Ended June 29, 2013
	Income (Numerator)		Shares (Denominator)		Per Share Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	44,058		18,804	$	2.34
Effect of Dilutive Securities
Options		-		86		(.01	)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	44,058		18,890	$	2.33

	Three Months Ended June 23, 2012
	Income (Numerator)		Shares (Denominator)		Per Share Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	18,672		18,886	$	0.99
Effect of Dilutive Securities
Options		-		61		-
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	18,672		18,947	$	0.99

	Nine Months Ended June 23, 2012
	Income (Numerator)		Shares (Denominator)		Per Share Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	34,580		18,850	$	1.83
Effect of Dilutive Securities
Options		-		67		-
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	34,580		18,917	$	1.83

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Note 2

9 Months Ended

Jun. 29, 2013

Policy Text Block [Abstract]

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 $853,000 and $685,000 at June 29, 2013 and September 29, 2012, respectively.

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Note 11 (Details) - Held to Maturity Securities by Contractual Maturity (USD $) In Thousands, unless otherwise specified	Jun. 29, 2013	Sep. 29, 2012
Held to Maturity Securities by Contractual Maturity [Abstract]
Due in one year or less	$ 3,498	$ 1,214
Due in one year or less	3,498	1,214
Due after one year through five years		0
Due after one year through five years		0
Due after five years through ten years	2,000	24,998
Due after five years through ten years	1,964	25,124
Total held to maturity securities	5,498	26,212
Total held to maturity securities	5,462	26,338
Less current portion	3,498	1,214
Less current portion	3,498	1,214
Long term held to maturity securities	2,000	24,998
Long term held to maturity securities	$ 1,964	$ 25,124

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Note 3 (Details) (USD $)	3 Months Ended		9 Months Ended
	Jun. 29, 2013	Jun. 23, 2012	Jun. 29, 2013	Jun. 23, 2012
Note 3 (Details) [Line Items]
Depreciation	$ 7,434,000	$ 6,620,000	$ 21,298,000	$ 19,332,000
Minimum [Member]
Note 3 (Details) [Line Items]
Finite-Lived Intangible Asset, Useful Life			3 years
Maximum [Member]
Note 3 (Details) [Line Items]
Finite-Lived Intangible Asset, Useful Life			20 years

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Note 6 (Details) (USD $)	Jun. 29, 2013	Sep. 29, 2012
Income Tax Disclosure [Text Block]
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 425,000	$ 541,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	$ 271,000	$ 284,000

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Note 10 (Details) - Intagible Assets by Reporting Segment (USD $) In Thousands, unless otherwise specified	Jun. 29, 2013	Sep. 29, 2012
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 79,095	$ 79,095
Accumulated amortization	33,973	30,631
Food Service [Member] | Trade Names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount of indefinite lived intangible assets	12,880	12,880
Food Service [Member] | Noncompete Agreements [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount of amortized intangible assets	545	545
Accumulated amortization of amortized intangible assets	472	456
Food Service [Member] | Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount of amortized intangible assets	40,187	40,187
Accumulated amortization of amortized intangible assets	25,286	22,582
Food Service [Member] | License and Rights [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount of amortized intangible assets	3,606	3,606
Accumulated amortization of amortized intangible assets	2,590	2,519
Food Service [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	57,218	57,218
Accumulated amortization	28,348	25,557
Retail Supermarket [Member] | Trade Names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount of indefinite lived intangible assets	4,006	4,006
Retail Supermarket [Member] | Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount of amortized intangible assets	279	279
Accumulated amortization of amortized intangible assets	55	31
Retail Supermarket [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	4,285	4,285
Accumulated amortization	55	31
Frozen Beverages [Member] | Trade Names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount of indefinite lived intangible assets	9,315	9,315
Frozen Beverages [Member] | Noncompete Agreements [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount of amortized intangible assets	198	198
Accumulated amortization of amortized intangible assets	198	198
Frozen Beverages [Member] | Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount of amortized intangible assets	6,478	6,478
Accumulated amortization of amortized intangible assets	4,676	4,201
Frozen Beverages [Member] | License and Rights [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount of amortized intangible assets	1,601	1,601
Accumulated amortization of amortized intangible assets	696	644
Frozen Beverages [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	17,592	17,592
Accumulated amortization	$ 5,570	$ 5,043

XML

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) In Thousands, except Per Share data, unless otherwise specified	Jun. 29, 2013	Sep. 29, 2012
Preferred, par value (in Dollars per share)	$ 1	$ 1
Preferred, shares authorized	10,000	10,000
Preferred, shares issued	0	0
Common, par value (in Dollars per share)	$ 0	$ 0
Common, shares authorized	50,000	50,000
Common, shares issued	18,756	18,780
Common, shares outstanding	18,756	18,780

XML

Note 7

9 Months Ended

Jun. 29, 2013

Table Text Block [Abstract]

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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Consolidated Statements of Earnings (Unaudited) (Parentheticals) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 29, 2013	Jun. 23, 2012	Jun. 29, 2013	Jun. 23, 2012
Allocated Share Based Compensation	$ 400	$ 303	$ 960	$ 698
Cost Of Goods Sold [Member]
Allocated Share Based Compensation	134	75	361	198
Marketing [Member]
Allocated Share Based Compensation	186	113	496	297
Distribution [Member]
Allocated Share Based Compensation	8	8	23	20
Administrative [Member]
Allocated Share Based Compensation	$ 214	$ 154	$ 578	$ 404

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Consolidated Balance Sheets (Current Period Unaudited) (USD $) In Thousands, unless otherwise specified	Jun. 29, 2013	Sep. 29, 2012
Assets
Cash and cash equivalents	$ 79,268	$ 154,198
Marketable securities held to maturity	3,498	1,214
Accounts receivable, net	92,506	76,414
Inventories, net	75,313	69,761
Prepaid expenses and other	3,466	2,220
Deferred income taxes	4,433	4,261
Total current assets	258,484	308,068
Land	2,496	2,496
Buildings	26,741	26,741
Improvements	24,367	22,889
Construction in progress	10,298	5,740
	505,768	483,873
Less accumulated depreciation and amortization	359,274	342,329
	146,494	141,544
Goodwill	76,899	76,899
Other intangible assets, net	45,122	48,464
Marketable securities held to maturity	2,000	24,998
Marketable securities available for sale	107,512	0
Other	3,126	3,071
	234,659	153,432
	639,637	603,044
Current Liabilities
Current obligations under capital leases	257	340
Accounts payable	56,409	53,047
Accrued insurance liability	9,371	7,532
Accrued income taxes	4,020	962
Accrued liabilities	3,766	4,027
Accrued compensation expense	12,213	13,151
Dividends payable	3,010	2,446
Total current liabilities	89,046	81,505
Long-term obligations under capital leases	164	347
Deferred income taxes	44,874	44,874
Other long-term liabilities	670	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 18,756,000 and 18,780,000 respectively	40,358	43,011
Accumulated other comprehensive loss	(6,120)	(3,132)
Retained Earnings	470,645	435,608
	504,883	475,487
	639,637	603,044
Plant Machinery and Equipment [Member]
Assets
Equipment	178,040	172,529
Marketing Equipment [Member]
Assets
Equipment	242,156	233,612
Transportation Equipment [Member]
Assets
Equipment	5,805	4,879
Office Equipment [Member]
Assets
Equipment	$ 15,865	$ 14,987

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Note 4 (Details) - Calculation of EPS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 29, 2013	Jun. 23, 2012	Jun. 29, 2013	Jun. 23, 2012
Basic EPS
Net Earnings available to common stockholders (in Dollars)	$ 21,172	$ 18,672	$ 44,058	$ 34,580
Net Earnings available to common stockholders	18,807	18,886	18,804	18,850
Net Earnings available to common stockholders (in Dollars per share)	$ 1.13	$ 0.99	$ 2.34	$ 1.83
Effect of Dilutive Securities
Options	106	61	86	67
Options (in Dollars per share)	$ (0.01)		$ (0.01)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions (in Dollars)	$ 21,172	$ 18,672	$ 44,058	$ 34,580
Net Earnings available to common stockholders plus assumed conversions	18,913	18,947	18,890	18,917
Net Earnings available to common stockholders plus assumed conversions (in Dollars per share)	$ 1.12	$ 0.99	$ 2.33	$ 1.83

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Note 9 (Tables)

9 Months Ended

Jun. 29, 2013

Segment Reporting Disclosure [Text Block]

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

	Three months ended						Nine months ended
	June 29, 2013			June 23, 2012			June 29, 2013			June 23, 2012
	(unaudited)
				(in thousands)
Sales to External Customers:
Food Service
Soft pretzels	$	36,136		$	29,579		$	104,067		$	82,592
Frozen juices and ices		16,468			19,680			34,117			39,106
Churros		14,774			12,330			42,648			34,263
Handhelds		6,806			7,249			20,058			21,242
Bakery		68,099			66,754			203,488			191,938
Other		2,939			2,872			6,424			6,716
	$	145,222		$	138,464		$	410,802		$	375,857
Retail Supermarket
Soft pretzels	$	8,576		$	7,635		$	27,200		$	24,242
Frozen juices and ices		18,226			17,629			33,694			34,204
Handhelds		4,995			5,193			16,425			16,861
Coupon redemption		(954	)		(857	)		(2,497	)		(2,183	)
Other		237			255			514			999
	$	31,080		$	29,855		$	75,336		$	74,123
Frozen Beverages
Beverages	$	40,996		$	41,238		$	91,476		$	91,616
Repair and maintenance service		13,833			12,386			38,385			35,875
Machines sales		5,035			3,711			12,028			9,646
Other		870			681			1,743			1,458
	$	60,734		$	58,016		$	143,632		$	138,595
Consolidated Sales	$	237,036		$	226,335		$	629,770		$	588,575
Depreciation and Amortization:
Food Service	$	4,943		$	4,342		$	14,169		$	12,746
Retail Supermarket		9			5			24			15
Frozen Beverages		3,671			3,452			10,682			10,143
	$	8,623		$	7,799		$	24,875		$	22,904
Operating Income:
Food Service	$	18,822		$	15,203		$	46,782		$	35,205
Retail Supermarket		2,883			4,115			6,857			7,597
Frozen Beverages		10,679			10,573			12,965			11,825
	$	32,384		$	29,891		$	66,604		$	54,627
Capital Expenditures:
Food Service	$	4,798		$	6,315		$	14,740		$	19,207
Retail Supermarket		-			-			-			-
Frozen Beverages		6,599			2,691			12,214			10,870
	$	11,397		$	9,006		$	26,954		$	30,077
Assets:
Food Service	$	478,203		$	441,785		$	478,203		$	441,785
Retail Supermarket		6,074			4,285			6,074			4,285
Frozen Beverages		155,360			147,389			155,360			147,389
	$	639,637		$	593,459		$	639,637		$	593,459

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Note 11 (Details) (USD $)	3 Months Ended		9 Months Ended
	Jun. 29, 2013	Jun. 23, 2012	Jun. 29, 2013	Jun. 23, 2012
Fair Value Disclosures [Text Block]
Proceeds from Sale and Maturity of Marketable Securities	$ 480,000	$ 21,000,000	$ 23,958,000	$ 81,023,000
Marketable Securities, Gain (Loss)		$ 0		$ 0

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Note 9 (Details) - Reportable Segments Operations Information (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 29, 2013	Jun. 23, 2012	Jun. 29, 2013	Jun. 23, 2012	Sep. 29, 2012
Segment Reporting Information [Line Items]
Sales to External Customers	$ 237,036	$ 226,335	$ 629,770	$ 588,575
Depreciation and Amortization	8,623	7,799	24,875	22,904
Operating Income (Loss)	32,384	29,891	66,604	54,627
Capital Expenditures	11,397	9,006	26,954	30,077
Assets	639,637	593,459	639,637	593,459	603,044
Soft Pretzels [Member] | Food Service [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	36,136	29,579	104,067	82,592
Soft Pretzels [Member] | Retail Supermarket [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	8,576	7,635	27,200	24,242
Frozen Juices And Ices [Member] | Food Service [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	16,468	19,680	34,117	39,106
Frozen Juices And Ices [Member] | Retail Supermarket [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	18,226	17,629	33,694	34,204
Churros [Member] | Food Service [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	14,774	12,330	42,648	34,263
Handhelds [Member] | Food Service [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	6,806	7,249	20,058	21,242
Handhelds [Member] | Retail Supermarket [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	4,995	5,193	16,425	16,861
Bakery [Member] | Food Service [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	68,099	66,754	203,488	191,938
Other [Member] | Food Service [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	2,939	2,872	6,424	6,716
Other [Member] | Retail Supermarket [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	237	255	514	999
Other [Member] | Frozen Beverages [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	870	681	1,743	1,458
Coupon Redemtion [Member] | Retail Supermarket [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	(954)	(857)	(2,497)	(2,183)
Beverages [Member] | Frozen Beverages [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	40,996	41,238	91,476	91,616
Repair And Maintenance Service [Member] | Frozen Beverages [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	13,833	12,386	38,385	35,875
Machines Sales [Member] | Frozen Beverages [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	5,035	3,711	12,028	9,646
Food Service [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	145,222	138,464	410,802	375,857
Depreciation and Amortization	4,943	4,342	14,169	12,746
Operating Income (Loss)	18,822	15,203	46,782	35,205
Capital Expenditures	4,798	6,315	14,740	19,207
Assets	478,203	441,785	478,203	441,785
Retail Supermarket [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	31,080	29,855	75,336	74,123
Depreciation and Amortization	9	5	24	15
Operating Income (Loss)	2,883	4,115	6,857	7,597
Assets	6,074	4,285	6,074	4,285
Frozen Beverages [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	60,734	58,016	143,632	138,595
Depreciation and Amortization	3,671	3,452	10,682	10,143
Operating Income (Loss)	10,679	10,573	12,965	11,825
Capital Expenditures	6,599	2,691	12,214	10,870
Assets	$ 155,360	$ 147,389	$ 155,360	$ 147,389

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Note 10 (Details) (USD $)	3 Months Ended		9 Months Ended
	Jun. 29, 2013	Jun. 23, 2012	Jun. 29, 2013	Jun. 23, 2012
Note 10 (Details) [Line Items]
Number of Reportable Segments			3
Indefinite-lived Intangible Assets Acquired			$ 0
Amortization of Intangible Assets	1,110,000	1,109,000	3,342,000	3,355,000
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	4,500,000		4,500,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	4,400,000		4,400,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	4,400,000		4,400,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	4,200,000		4,200,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five	1,700,000		1,700,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			10 years 36 days
Goodwill, Period Increase (Decrease)	$ 0		$ 0
Minimum [Member]
Note 10 (Details) [Line Items]
Finite-Lived Intangible Asset, Useful Life			3 years
Maximum [Member]
Note 10 (Details) [Line Items]
Finite-Lived Intangible Asset, Useful Life			20 years

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Note 6

9 Months Ended

Jun. 29, 2013

Income Tax Disclosure [Text Block]

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 $425,000 and $541,000 on June 29, 2013 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 June 29, 2013 and September 29, 2012, respectively, the Company has $271,000 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 5 (Details) (USD $) In Millions, except Share data, unless otherwise specified	9 Months Ended		12 Months Ended
	Jun. 29, 2013	Jun. 23, 2012	Sep. 28, 2013
Note 5 (Details) [Line Items]
Anticipated Share Based Compensation Net Of Tax Benefits (in Dollars)			$ 1.4
Anticipated Share Based Compensation Per Share (in Dollars per share)			$ 0.07
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	0.81%
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)	1,600	2,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share)	$ 13.76	$ 11.97
Maximum [Member]
Note 5 (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	10 years

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Note 12 (Details) (Kim and Scott's [Member], USD $)	12 Months Ended
	Sep. 29, 2012	Sep. 24, 2011
Kim and Scott's [Member]
Note 12 (Details) [Line Items]
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period		$ 8,000,000
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual	1,800,000
Business Combination, Acquisition Related Costs	$ 155,000

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Note 9

9 Months Ended

Jun. 29, 2013

Segment Reporting Disclosure [Text Block]

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 and theme 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 and PARROT ICE 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						Nine months ended
	June 29, 2013			June 23, 2012			June 29, 2013			June 23, 2012
	(unaudited)
				(in thousands)
Sales to External Customers:
Food Service
Soft pretzels	$	36,136		$	29,579		$	104,067		$	82,592
Frozen juices and ices		16,468			19,680			34,117			39,106
Churros		14,774			12,330			42,648			34,263
Handhelds		6,806			7,249			20,058			21,242
Bakery		68,099			66,754			203,488			191,938
Other		2,939			2,872			6,424			6,716
	$	145,222		$	138,464		$	410,802		$	375,857
Retail Supermarket
Soft pretzels	$	8,576		$	7,635		$	27,200		$	24,242
Frozen juices and ices		18,226			17,629			33,694			34,204
Handhelds		4,995			5,193			16,425			16,861
Coupon redemption		(954	)		(857	)		(2,497	)		(2,183	)
Other		237			255			514			999
	$	31,080		$	29,855		$	75,336		$	74,123
Frozen Beverages
Beverages	$	40,996		$	41,238		$	91,476		$	91,616
Repair and maintenance service		13,833			12,386			38,385			35,875
Machines sales		5,035			3,711			12,028			9,646
Other		870			681			1,743			1,458
	$	60,734		$	58,016		$	143,632		$	138,595
Consolidated Sales	$	237,036		$	226,335		$	629,770		$	588,575
Depreciation and Amortization:
Food Service	$	4,943		$	4,342		$	14,169		$	12,746
Retail Supermarket		9			5			24			15
Frozen Beverages		3,671			3,452			10,682			10,143
	$	8,623		$	7,799		$	24,875		$	22,904
Operating Income:
Food Service	$	18,822		$	15,203		$	46,782		$	35,205
Retail Supermarket		2,883			4,115			6,857			7,597
Frozen Beverages		10,679			10,573			12,965			11,825
	$	32,384		$	29,891		$	66,604		$	54,627
Capital Expenditures:
Food Service	$	4,798		$	6,315		$	14,740		$	19,207
Retail Supermarket		-			-			-			-
Frozen Beverages		6,599			2,691			12,214			10,870
	$	11,397		$	9,006		$	26,954		$	30,077
Assets:
Food Service	$	478,203		$	441,785		$	478,203		$	441,785
Retail Supermarket		6,074			4,285			6,074			4,285
Frozen Beverages		155,360			147,389			155,360			147,389
	$	639,637		$	593,459		$	639,637		$	593,459

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Note 5

9 Months Ended

Jun. 29, 2013

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

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

Note 5            At June 29, 2013, the Company has three stock-based employee compensation plans. Share-based compensation was recognized as follows:

	Three months ended				Nine months ended
	June 29, 2013		June 23, 2012		June 29, 2013		June 23, 2012
	(in thousands, except per share amounts)
Stock Options	$	206	$	191	$	596	$	484
Stock purchase plan		179		112		316		214
Stock issued to outside directors		11		-		35		-
Restricted stock issued to an employee		4		-		13		-
	$	400	$	303	$	960	$	698
Per diluted share	$	0.02	$	0.02	$	0.05	$	0.04
The above compensation is net of tax benefits	$	142	$	47	$	498	$	221

The Company anticipates that share-based compensation will not exceed $1.4 million net of tax benefits, or approximately $.07 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 nine months: expected volatility of 26%; risk-free interest rate of .81%; dividend rate of .9% and expected lives of 5 years.

During the 2013 nine month period, the Company granted 1,600 stock options. The weighted-average grant date fair value of these options was $13.76. During the 2012 nine month period, the Company granted 2,000 stock options. The weighted-average grant date fair value of these options was $11.97. 

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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Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Jun. 29, 2013	Jun. 23, 2012
Operating activities:
Net earnings	$ 44,058,000	$ 34,580,000
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation of fixed assets	21,298,000	19,332,000
Amortization of intangibles and deferred costs	3,577,000	3,572,000
Share-based compensation	1,458,000	919,000
Deferred income taxes	(167,000)	(122,000)
Other	(118,000)	(155,000)
Changes in assets and liabilities net of effects from purchase of companies
Increase in accounts receivable	(16,104,000)	(8,207,000)
Increase in inventories	(5,462,000)	(9,785,000)
(Increase) decrease in prepaid expenses	(1,248,000)	969,000
Increase in accounts payable and accrued liabilities	6,408,000	11,388,000
Net cash provided by operating activities	53,700,000	52,491,000
Investing activities:
Payments for purchases of companies, net of cash acquired		(7,900,000)
Purchases of property, plant and equipment	(26,954,000)	(30,077,000)
Purchases of marketable securities	(113,352,000)	(68,450,000)
Proceeds from redemption of marketable securities	23,958,000	81,023,000
Proceeds from disposal of property and equipment	782,000	645,000
Other	(19,000)	(962,000)
Net cash used in investing activities	(115,585,000)	(25,721,000)
Financing activities:
Payments to repurchase common stock	(7,198,000)	0
Proceeds from issuance of stock	2,899,000	2,568,000
Payments on capital leases	(267,000)	(210,000)
Payment of cash dividend	(8,457,000)	(7,092,000)
Net cash used in financing activities	(13,023,000)	(4,734,000)
Effect of exchange rate on cash and cash equivalents	(22,000)	(34,000)
Net (decrease) increase in cash and cash equivalents	(74,930,000)	22,002,000
Cash and cash equivalents at beginning of period	154,198,000	87,479,000
Cash and cash equivalents at end of period	$ 79,268,000	$ 109,481,000

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Note 8 (Details) - Inventories (USD $) In Thousands, unless otherwise specified	Jun. 29, 2013	Sep. 29, 2012
Inventory [Line Items]
Finished goods	$ 36,534	$ 32,439
Equipment parts & other	17,392	16,753
	75,313	69,761
The above inventories are net of reserves	4,815	3,883
Raw Materials [Member]
Inventory [Line Items]
Raw Materials	15,154	14,584
Packaging Materials [Member]
Inventory [Line Items]
Raw Materials	$ 6,233	$ 5,985

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Note 12

9 Months Ended

Jun. 29, 2013

Business Combination Disclosure [Text Block]

Business Combination Disclosure [Text Block]

Note 12           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.

This acquisition was and will be accounted for under the purchase method of accounting, and its operations are and will be included in the consolidated financial statements from the acquisition date.

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 combination 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

9 Months Ended

Jun. 29, 2013

Inventory Disclosure [Text Block]

Inventory Disclosure [Text Block]

Note 8            Inventories consist of the following:

	June 29, 2013		September 29, 2012
	(unaudited)
	(in thousands)
Finished goods	$	36,534	$	32,439
Raw Materials		15,154		14,584
Packaging materials		6,233		5,985
Equipment parts & other		17,392		16,753
	$	75,313	$	69,761
The above inventories are net of reserves	$	4,815	$	3,883

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Note 8 (Tables)

9 Months Ended

Jun. 29, 2013

Inventory Disclosure [Text Block]

Schedule of Inventory, Current [Table Text Block]

	June 29, 2013		September 29, 2012
	(unaudited)
	(in thousands)
Finished goods	$	36,534	$	32,439
Raw Materials		15,154		14,584
Packaging materials		6,233		5,985
Equipment parts & other		17,392		16,753
	$	75,313	$	69,761
The above inventories are net of reserves	$	4,815	$	3,883

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Note 4 (Tables)

9 Months Ended

Jun. 29, 2013

Earnings Per Share [Text Block]

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

	Three Months Ended June 29, 2013
	Income (Numerator)		Shares (Denominator)		Per Share Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	21,172		18,807	$	1.13
Effect of Dilutive Securities
Options		-		106		(.01	)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	21,172		18,913	$	1.12

	Nine Months Ended June 29, 2013
	Income (Numerator)		Shares (Denominator)		Per Share Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	44,058		18,804	$	2.34
Effect of Dilutive Securities
Options		-		86		(.01	)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	44,058		18,890	$	2.33

	Three Months Ended June 23, 2012
	Income (Numerator)		Shares (Denominator)		Per Share Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	18,672		18,886	$	0.99
Effect of Dilutive Securities
Options		-		61		-
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	18,672		18,947	$	0.99

	Nine Months Ended June 23, 2012
	Income (Numerator)		Shares (Denominator)		Per Share Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	34,580		18,850	$	1.83
Effect of Dilutive Securities
Options		-		67		-
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	34,580		18,917	$	1.83

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Document And Entity Information	9 Months Ended
	Jun. 29, 2013	Jul. 22, 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		18,767,917
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	Jun. 29, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3

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Note 5 (Tables)

9 Months Ended

Jun. 29, 2013

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

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

	Three months ended				Nine months ended
	June 29, 2013		June 23, 2012		June 29, 2013		June 23, 2012
	(in thousands, except per share amounts)
Stock Options	$	206	$	191	$	596	$	484
Stock purchase plan		179		112		316		214
Stock issued to outside directors		11		-		35		-
Restricted stock issued to an employee		4		-		13		-
	$	400	$	303	$	960	$	698
Per diluted share	$	0.02	$	0.02	$	0.05	$	0.04
The above compensation is net of tax benefits	$	142	$	47	$	498	$	221