Note I - Segment Information

12 Months Ended

Mar. 28, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE I – SEGMENT INFORMATION

Nathan’s considers itself to be a brand marketer of the Nathan’s Famous signature products to the foodservice industry pursuant to its various business structures. Nathan’s sells its products directly to consumers through its restaurant operations segment consisting of Company-operated and franchised restaurants, to distributors that resell our products to the foodservice industry through the Branded Product Program (“BPP”) and by third party manufacturers pursuant to license agreements that sell our products to club stores and grocery stores nationwide. The Company’s Chief Executive Officer has been identified as the Chief Operating Decision Maker (“CODM”) who evaluates performance and allocates resources for the Branded Product Program, Product Licensing and Restaurant Operations segments based upon a number of factors, the primary profit measure being income from operations. Certain administrative expenses are not allocated to the segments and are reported within the Corporate segment.

Branded Product Program – This segment derives revenue principally from the sale of hot dog products either directly to foodservice operators or to various foodservice distributors who resell the products to foodservice operators.

Product licensing – This segment derives revenue, primarily in the form of royalties, from licensing a broad variety of Nathan’s Famous branded products, including our hot dogs, sausage and corned beef products, frozen French fries and additional products through retail grocery channels and club stores throughout the United States.

Restaurant operations – This segment derives revenue from the sale of our products at Company-owned restaurants and earns fees and royalties from its franchised restaurants.

Revenues from operating segments are from transactions with unaffiliated third parties and do not include any intersegment revenues.

Income from operations attributable to Corporate consists principally of administrative expenses not allocated to the operating segments such as executive management, finance, information technology, legal, insurance, corporate office costs, corporate incentive compensation and compliance costs and expenses of the advertising fund.

Interest expense, interest income and other income, net are managed centrally at the corporate level, and, accordingly, such items are not presented by segment since they are excluded from the measure of profitability reviewed by the CODM.

Corporate assets consist primarily of cash and cash equivalents, and long-lived assets.

Operating segment information for the fiscal years ended March 28, 2021 and March 29, 2020 is as follows:

	March 28, 2021			March 29, 2020
Revenues
Branded Product Program	$	33,617		$	57,586
Product licensing		31,368			25,859
Restaurant operations		9,310			17,545
Corporate (1)		1,544			2,335
Total revenues	$	75,839		$	103,325
Income from operations
Branded Product Program	$	4,635		$	7,688
Product licensing		31,186			25,677
Restaurant operations		(2,856	)		1,637
Corporate		(7,450	)		(7,830	)
Income from operations	$	25,515		$	27,172
Interest expense	$	(10,601	)	$	(10,601	)
Interest income		364			1,357
Other income, net		47			86
Income before provision for income taxes	$	15,325		$	18,014
Total assets
Branded Product Program	$	7,037		$	7,352
Product licensing		4,775			3,906
Restaurant operations		11,662			12,915
Corporate		85,335			81,109
Total assets	$	108,809		$	105,282
Depreciation & amortization expense
Branded Product Program	$	247		$	312
Restaurant operations		613			641
Corporate		323			280
Total depreciation & amortization expense	$	1,183		$	1,233

(1) Represents advertising fund revenue