Note 10

3 Months Ended

Jun. 25, 2011

Segment Reporting Disclosure [Text Block]

Note 10 We principally sell our products to the food service and retail supermarket industries.  Sales and results of our frozen beverages business are monitored separately from the balance of our food service business because of different distribution and capital requirements.  We maintain separate and discrete financial information for the three operating segments mentioned above which is available to our Chief Operating Decision Makers.

We have applied no aggregation criteria to any of these operating segments in order to determine reportable segments.  Our three reportable segments are Food Service, Retail Supermarkets and Frozen Beverages. The Restaurant Group, operator of two BAVARIAN PRETZEL BAKERY retail stores with sales of $502,000 in the nine months ended June 25, 2011, has been included in Food Service because it no longer meets the quantitative thresholds under the guidance for reportable segments to be shown separately. All inter-segment net sales and expenses have been eliminated in computing net sales and operating income (loss). These segments are described below.

Food Service

The primary products sold by the food service group are soft pretzels, frozen juice treats and desserts, churros, dough enrobed handheld products and baked goods.  Our customers in the food service industry include snack bars and food stands in chain, department and discount stores; malls and shopping centers; fast food outlets; stadiums and sports arenas; leisure andtheme parks; convenience stores; movie theatres; warehouse club stores; schools, colleges and other institutions.  Within the food service industry, our products are purchased by the consumer primarily for consumption at the point-of-sale.

Retail Supermarkets

The primary products sold by the retail supermarket segment are soft pretzel products – including SUPERPRETZEL, frozen juice treats and desserts including LUIGI’S Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, WHOLE FRUIT frozen fruit bars, WHOLE FRUIT Sorbet, ICEE Squeeze-Up Tubes, dough enrobed handheld products and TIO PEPE’S Churros.  Within the retail supermarket channel, our frozen and prepackaged products are purchased by the consumer for consumption at home.

Frozen Beverages

We sell frozen beverages and related products to the food service industry, including our restaurant group, primarily under the names ICEE, SLUSH PUPPIE, PARROT ICE and ARCTIC BLAST in the United States, Mexico and Canada.  We also provide repair and maintenance service to customers for customers’ owned equipment.

The Chief Operating Decision Maker for Food Service and Retail Supermarkets and the Chief Operating Decision Maker for Frozen Beverages monthly review detailed operating income statements and sales reports in order to assess performance and allocate resources to each individual segment.  In addition, the Chief Operating Decision Makers review and evaluate depreciation, capital spending and assets of each segment on a quarterly basis to monitor cash flow and asset needs of each segment. Information regarding the operations in these three reportable segments is as follows:

	Three months ended						Nine months ended
	June 25,			June 26,			June 25,			June 26,
	2011			2010			2011			2010
Sales to External Customers:
Food Service
Soft pretzels	$	26,686		$	25,349		$	76,342		$	75,117
Frozen Juices and ices		17,176			15,949			35,904			33,320
Churros		11,004			8,035			31,258			21,955
Handhelds		2,835			-			2,835			-
Bakery		58,080			57,089			173,209			171,161
Other		5,598			6,217			14,929			18,014
	$	121,379		$	112,639		$	334,477		$	319,567
Retail Supermarket
Soft pretzels	$	7,524		$	7,176		$	23,972		$	23,079
Frozen juices and ices		17,943			17,347			33,419			30,153
Handhelds		2,807			-			2,807			-
Coupon redemption		(940	)		(767	)		(2,264	)		(2,122	)
Other		506			186			1,216			560
	$	27,840		$	23,942		$	59,150		$	51,670
Frozen Beverages
Beverages	$	41,260		$	38,812		$	89,789		$	86,435
Repair and
maintenance service		11,078			10,490		$	30,831			30,058
Machines Sales		4,071			3,082		$	8,812			6,712
Other		700			764		$	1,632			1,750
	$	57,109		$	53,148		$	131,064		$	124,955
Consolidated Sales	$	206,328		$	189,729		$	524,691		$	496,192
Depreciation and Amortization:
Food Service	$	4,197		$	4,297		$	12,700		$	12,709
Retail Supermarket		-			-			-			-
Frozen Beverages		3,324			3,226		$	9,962			9,329
	$	7,521		$	7,523		$	22,662		$	22,038
Operating Income
Food Service	$	13,875		$	14,610		$	36,795		$	37,941
Retail Supermarket		3,545			3,809		$	7,677			7,467
Frozen Beverages		9,641			7,643		$	7,516			6,965
	$	27,061		$	26,062		$	51,988		$	52,373
Capital Expenditures:
Food Service	$	5,130		$	4,135		$	10,357		$	9,869
Retail Supermarket		-			-			-			-
Frozen Beverages		4,322			4,098		$	9,712			11,445
	$	9,452		$	8,233		$	20,069		$	21,314
Assets:
Food Service	$	389,042		$	326,113		$	389,042		$	326,113
Retail Supermarket		3,587			2,731			3,587			2,731
Frozen Beverages		145,317			138,398			145,317			138,398
	$	537,946		$	467,242		$	537,946		$	467,242