Segment Reporting

9 Months Ended

Mar. 24, 2024

Segment Reporting [Abstract]

Segment Reporting

Note G - Segment Reporting

The Company has three reportable operating segments as determined by management using the “management approach” as defined by ASC 280 Disclosures about Segments of an Enterprise and Related Information: (1) Pizza Inn Franchising, (2) Pie Five Franchising and (3) Corporate administration and other. These segments are a result of differences in the nature of the products and services sold. Corporate administration costs, which include, but are not limited to, general accounting, human resources, legal and credit and collections, are partially allocated to the three operating segments.

The Pizza Inn and Pie Five Franchising segments establish franchisees, licensees and territorial rights. Revenue for these segments are derived from franchise royalties, franchise fees, sale of area development and foreign master license rights and incentive payments from third party suppliers and distributors. Assets for these segments include equipment, furniture and fixtures.

Corporate administration and other assets primarily include cash and short-term investments, as well as furniture and fixtures located at the corporate office and trademarks and other intangible assets. All assets are located within the United States.

Summarized in the following tables are net operating revenues, depreciation and amortization expense, and income before taxes for the Company’s reportable segments as of the three and nine months ended March 24, 2024 and March 26, 2023 (in thousands):

	Three Months Ended						Nine Months Ended
	March 24, 2024			March 26, 2023			March 24, 2024			March 26, 2023
Net sales and operating revenues:
Pizza Inn Franchising	$	2,498		$	2,450		$	7,373		$	7,270
Pie Five Franchising		441			473			1,314			1,431
Corporate administration and other		23			47			108			140
Consolidated revenues	$	2,962		$	2,970		$	8,795		$	8,841
Depreciation and amortization:
Corporate administration and other	$	58		$	54		$	170		$	158
Depreciation and amortization	$	58		$	54		$	170		$	158
Income before taxes:
Pizza Inn Franchising	$	1,828		$	1,701		$	5,091		$	4,907
Pie Five Franchising		299			258			768			761
Combined		2,127			1,959			5,859			5,668
Corporate administration and other		(1,273	)		(1,521	)		(3,947	)		(4,343	)
Income before taxes	$	854		$	438		$	1,912		$	1,325
Geographic information (revenues):
United States	$	2,908		$	2,910		$	8,643		$	8,638
Foreign countries		54			60			152			203
Consolidated revenues	$	2,962		$	2,970		$	8,795		$	8,841