Note 9

6 Months Ended

Mar. 28, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 9 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.

Our three reportable segments are Food Service, Retail Supermarkets and Frozen Beverages. 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 and theme 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 to the retail supermarket channel 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 and sorbet, PHILLY SWIRL cups and sticks, ICEE Squeeze-Up Tubes and dough enrobed handheld products including PATIO burritos. 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 primarily under the names ICEE, SLUSH PUPPIE and PARROT ICE 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						Six months ended
	March 28,			March 29,			March 28,			March 29,
	2015			2014			2015			2014
	(unaudited)
	(in thousands)
Sales to External Customers:
Food Service
Soft pretzels	$	41,099		$	38,815		$	81,817		$	78,123
Frozen juices and ices		11,072			11,857			19,273			20,086
Churros		14,622			13,430			27,589			27,381
Handhelds		5,044			5,712			10,202			12,116
Bakery		70,791			66,169			145,222			135,245
Other		2,634			2,346			4,720			4,158
	$	145,262		$	138,329		$	288,823		$	277,109
Retail Supermarket
Soft pretzels	$	10,829		$	10,309		$	20,029		$	19,224
Frozen juices and ices		13,722			8,402			22,877			14,825
Handhelds		4,569			4,815			9,448			10,102
Coupon redemption		(927	)		(689	)		(2,000	)		(1,369	)
Other		340			213			566			432
	$	28,533		$	23,050		$	50,920		$	43,214
Frozen Beverages
Beverages	$	28,778		$	26,713		$	54,288		$	51,902
Repair and maintenance service		15,723			13,135			31,033			26,744
Machines sales		6,328			3,759			12,075			9,282
Other		384			335			621			593
	$	51,213		$	43,942		$	98,017		$	88,521
Consolidated Sales	$	225,008		$	205,321		$	437,760		$	408,844
Depreciation and Amortization:
Food Service	$	5,388		$	5,233		$	10,641		$	10,372
Retail Supermarket		187			8			440			16
Frozen Beverages		3,866			3,921			7,775			7,714
	$	9,441		$	9,162		$	18,856		$	18,102
Operating Income:
Food Service	$	15,649		$	17,562		$	31,142		$	32,713
Retail Supermarket		2,535			2,602			3,201			4,566
Frozen Beverages		3,621			168			4,072			1,024
	$	21,805		$	20,332		$	38,415		$	38,303
Capital Expenditures:
Food Service	$	4,656		$	4,991		$	10,812		$	10,839
Retail Supermarket		-			-			-			-
Frozen Beverages		5,132			6,517			9,831			9,986
	$	9,788		$	11,508		$	20,643		$	20,825
Assets:
Food Service	$	532,773		$	505,745		$	532,773		$	505,745
Retail Supermarket		14,452			6,051			14,452			6,051
Frozen Beverages		162,088			154,198			162,088			154,198
	$	709,313		$	665,994		$	709,313		$	665,994