Note I - Segment Information

12 Months Ended

Mar. 31, 2024

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-owned and franchised restaurants, including virtual kitchens, to distributors that resell our products to the foodservice industry through the Branded Product Program and by third party manufacturers pursuant to license agreements that sell our products to supermarkets, club stores and grocery stores nationwide. The Company’s Chief Executive Officer has been identified as the Chief Operating Decision Maker (“CODM”) who regularly reviews operating results, 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, sausages, frozen crinkle-cut French fries and additional products through retail supermarkets, 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, including its virtual kitchens.

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, loss on debt extinguishment, 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 long-lived assets.

Operating segment information for the fiscal years ended March 31, 2024 and March 26, 2023 is as follows:

	March 31, 2024			March 26, 2023
Revenues
Branded Product Program	$	86,489		$	78,884
Product licensing		33,581			33,455
Restaurant operations		16,459			16,453
Corporate (1)		2,081			1,993
Total revenues	$	138,610		$	130,785
Income from operations
Branded Product Program	$	8,284		$	8,976
Product licensing		33,399			33,273
Restaurant operations		1,661			1,684
Corporate		(10,838	)		(9,488	)
Income from operations	$	32,506		$	34,445
Interest expense	$	(5,355	)	$	(7,742	)
Loss on debt extinguishment		(169	)		(357	)
Interest income		383			440
Other income, net		86			18
Income before provision for income taxes	$	27,451		$	26,804
Total assets
Branded Product Program	$	11,777		$	12,033
Product licensing		3,602			3,376
Restaurant operations		8,303			9,296
Corporate		25,176			33,905
Total assets	$	48,858		$	58,610
Depreciation & amortization expense
Branded Product Program	$	144		$	132
Restaurant operations		700			716
Corporate		291			287
Total depreciation & amortization expense	$	1,135		$	1,135

(1) Represents advertising fund revenue.