MOUNT LAUREL, NJ. — Higher volumes across core products and brands along with strong new business performance in the company’s foodservice and retail segments helped lift third-quarter earnings and sales at J&J Snack Foods Corp.

Net income at J&J Snack Foods in the third quarter ended June 29 totaled $36.23 million, equal to $1.87 per share on the common stock, up 3.8% from $34.98 million, or $1.82 per share, in the same period a year ago.  Net sales increased 3.3% to $439.96 million from $425.77 million.

“J&J Snack Foods delivered an excellent third quarter building on our strong momentum from the first half of the year,” said Daniel Fachner, president and chief executive officer of J&J Snack Foods, during an Aug. 6 conference call with analysts. “These results continue to validate that the investments we have made and the strategies that we have implemented are having a positive impact on the sales and earnings power of our business. And it’s positioning J&J to win in what remains a dynamic consumer and operating environment.”

Foodservice operating income at J&J Snack Foods was $20.25 million in the third quarter, down narrowly from $20.79 million in the third quarter of the previous year. Sales, meanwhile, increased 3.7% to $264.45 million from $254.98 million. Within the segment, churro sales decreased 0.7% to $30.27 million from $30.47 million, bakery sales increased 6.8% to $93.57 million from $87.58 million, frozen novelties sales increased 9.1% to $51.7 million from $47.41 million, and handheld sales increased 25% to $21.3 million from $17 million.

Fachner said bakery sales were driven by unit volume growth in cookies, new products, encouraging same-store results, and expanded customer placements.

In the retail supermarket segment, operating income in the third quarter was $7.81 million, up 87% from $4.17 million in the third quarter of the previous year. Sales in the retail supermarket segment increased 12% to $68.72 million from $61.15 million. Within the segment, soft pretzel sales increased 8.2% to $11.11 million from $10.27 million, frozen novelties sales increased 11% to $46.21 million from $41.68 million, biscuit sales decreased 5.8% to $4.84 million from $5.14 million, and handheld sales increased 70% to $7.56 million from $4.45 million.

In the frozen beverages segment, J&J Snack Foods posted operating income of $22.06 million, down 5.5% from $23.34 million in the third quarter of the previous year. Sales in the segment also decreased, falling 2.6% to $106.79 million from $109.64 million.

Fachner said the company’s SuperPretzel brand is “outperforming” the snack category and continues to provide opportunities for growth, new product extensions and new points of sale.

“We are expanding across retail, led by the launch of Bavarian sticks, which remains the No. 2 seller in the SuperPretzel portfolio, reaching an ACV now of 28% and growing,” he said.

Regarding operations, Fachner said the addition of six production lines has once again allowed J&J Snacks to significantly expand its capacity, thus enabling the company to meet growth opportunities across core products such as pretzels, churros and frozen novelties.

“The expanded capacity has created production efficiencies and higher output metrics through better automation, which improves product margins, decrease in overtime, and provides the flexibility to respond to new sales opportunities,” Fachner said. “Fill rates have reached 98.5%, a high point for … business and high relative to the overall industry trend.”

Overall, net income in the nine months ended June 29 totaled $56.91 million, or $2.94 per share, up 16% from $48.49 million, or $2.52 per share, in the third quarter of the previous year. Net sales totaled $1.15 billion, up 3.5% from $1.11 billion.