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Consumer spending won't restart when the economy resumes growing. The process of deleveraging is going to take years, not months, and the personal savings rate just passed a 15-year high.

Although consumers are avoiding unnecessary expenditures, they're still willing to shell out for fairly priced entertainment, like a movie or sporting event. Here is a small-cap company benefiting from a moderation in spending.

Pennsauken, N.J.-based J&J Snack Foods ( JJSF) was established in 1971 when Gerald Shrieber successfully bid for the assets of J&J Pretzel at a bankruptcy auction. He purchased the company for just $72,100 and posted annual sales of $400,000 in his first year. J&J Snack trademarked its Super Pretzel in 1973 and achieved $1 million in sales the following year, helped by the introduction of carousel displays at retail locations.

Today, the company has expanded its offerings to include frozen novelties such as Slush Puppi, Icee and Luigi's Italian Ice. Its products are distributed throughout the U.S. and sold at movie theaters, shopping centers, educational institutions and grocery stores. Treats fall into the discretionary category, but due to their low cost and availability at entertainment venues, they're still consumer favorites.

J&J Snack's fiscal second-quarter revenue increased 4% to $149 million as net income surged 81% to $7.2 million and earnings per share improved 86% to 39 cents on better pricing and lower commodity costs. The operating margin widened from 4% to 8% and the net margin jumped from 3% to 5%. Cash reserves have surged 670% to $64 million. A quick ratio of 1.9 indicates sound liquidity. And the balance sheet holds minimal debt.

J&J Snack Foods' stock has increased 9% in 2009, outperforming the Dow Jones Industrial Average and the S&P 500. The company pays a weak dividend yield of 1% and trades at a price-to-earnings ratio of 22, making it 26% more expensive than its average packaged-foods peer. But on the basis of projected 2010 earnings, the stock is 15% cheaper than its peer group, which includes Lance ( LNCE) and Kellogg ( K).

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