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Small-cap stock J&J Snack Foods (NASDAQ: $JJSF ) is on the rise as investors rotate out of mega-cap technology companies and into consumer staples and value plays.

A few weeks into 2026 and JJSF stock is already up 7% on the year. The rebound is welcome news after the food company's share price declined 35% over the past five years.

For those unfamiliar, J&J Snack Foods is an American manufacturer of snack foods and frozen beverages, with distribution across the U.S. and Canada.

A going concern since 1971, the company makes everything from soft pretzels and frozen juice treats to funnel cakes and cookies.

The stock has largely declined as consumers' eating habits have evolved to include healthier food choices, and over fears about the impact weight-loss drugs will have on future sales.

However, investors appear to now be turning back to J&J Snack Foods' stock as they look for cheaper securities and move away from richly priced tech stocks such as Nvidia (NASDAQ: $NVDA ).

In addition to the rising share price, JJSF stock also offers its shareholders a tasty quarterly dividend of $0.80 U.S. per share, giving it a hefty yield of 3.29%.

With a market capitalization below $2 billion U.S., J&J Snack Foods is firmly in the small-cap stock camp. The shares are currently trading at 28 times future earnings estimates.

Since going public in 1986, JJSF stock has risen nearly 5,000%. With a market rotation now underway and favoring J&J Snack Foods, now might be an opportune time to take a position.