Segment Reporting

3 Months Ended

Sep. 29, 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 months ended September 29, 2024 and September 24, 2023 (in thousands):

	Three Months Ended
	September 29, 2024			September 24, 2023
Net sales and operating revenues:
Pizza Inn Franchising	$	2,720		$	2,604
Pie Five Franchising		307			436
Corporate administration and other		23			47
Consolidated revenues	$	3,050		$	3,087
Depreciation and amortization:
Corporate administration and other	$	43		$	55
Depreciation and amortization	$	43		$	55
Income before taxes:
Pizza Inn Franchising	$	1,831		$	1,661
Pie Five Franchising		201			209
Combined		2,032			1,870
Corporate administration and other		(1,337	)		(1,352	)
Income before taxes	$	695		$	518
Geographic information (revenues):
United States	$	2,987		$	3,034
Foreign countries		63			53
Consolidated revenues	$	3,050		$	3,087