10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

X     Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the period ended June 29, 2019

or

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number:     0-14616

J & J SNACK FOODS CORP.

(Exact name of registrant as specified in its charter)

New Jersey	22-1935537
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

6000 Central Highway, Pennsauken, New Jersey 08109

(Address of principal executive offices)

Telephone (856) 665-9533

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, no par value	JJSF	The NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

X Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

X Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 152-2 of the Exchange Act.

Large Accelerated filer	(X)	Accelerated filer	(  )
Non-accelerated filer	(  )
		Smaller reporting company	(  )
		Emerging growth company	(  )

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule bob-2 of the Exchange Act).

Yes X No

As July 25, 2019, there were 18,840,904 shares of the Registrant’s Common Stock outstanding.

1

INDEX

			Page
			Number
Part I.      Financial Information
	Item l.	Consolidated Financial Statements
		Consolidated Balance Sheets – June 29, 2019 (unaudited) and September 29, 2018	3
		Consolidated Statements of Earnings (unaudited) – Three and nine months ended June 29, 2019 and June 30, 2018	4
		Consolidated Statements of Comprehensive Income (unaudited) – Three and nine months Ended June 29, 2019 and June 30, 2018	5
		Consolidated Statements of Changes In Stockholders’ Equity (unaudited) – Nine months Ended June 29, 2019 and June 30, 2018	6
		Consolidated Statements of Cash Flows (unaudited) – Nine months Ended June 29, 2019 and June 30, 2018	8
		Notes to the Consolidated Financial Statements (unaudited)	9
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
	Item 4.	Controls and Procedures	28
Part II.     Other Information
	Item 6.	Exhibits	29

2

J & J SNACK FOODS CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

	June 29,			September 29,
	2019			2018
	(unaudited)
Assets
Current assets
Cash and cash equivalents	$	156,097		$	111,479
Marketable securities held to maturity		40,809			21,048
Accounts receivable, net		146,553			132,342
Inventories		119,190			112,884
Prepaid expenses and other		4,146			5,044
Total current assets		466,795			382,797
Property, plant and equipment, at cost
Land		2,494			2,494
Buildings		26,582			26,582
Plant machinery and equipment		307,787			290,396
Marketing equipment		307,077			290,955
Transportation equipment		9,534			8,929
Office equipment		30,958			30,752
Improvements		39,761			38,941
Construction in progress		12,978			8,468
Total Property, plant and equipment, at cost		737,171			697,517
Less accumulated depreciation and amortization		486,519			454,844
Property, plant and equipment, net		250,652			242,673
Other assets
Goodwill		102,511			102,511
Other intangible assets, net		55,721			57,762
Marketable securities held to maturity		96,064			118,765
Marketable securities available for sale		21,032			24,743
Other		2,915			2,762
Total other assets		278,243			306,543
Total Assets	$	995,690		$	932,013
Liabilities and Stockholders' Equity
Current Liabilities
Current obligations under capital leases	$	330		$	324
Accounts payable		80,237			69,592
Accrued insurance liability		9,281			11,217
Accrued liabilities		14,098			8,031
Accrued compensation expense		17,177			20,297
Dividends payable		9,413			8,438
Total current liabilities		130,536			117,899
Long-term obligations under capital leases		714			753
Deferred income taxes		53,009			52,322
Other long-term liabilities		1,764			1,948
Stockholders' Equity
Preferred stock, $1 par value; authorized 10,000,000 shares; none issued		-			-
Common stock, no par value; authorized, 50,000,000 shares; issued and outstanding 18,830,000 and 18,754,000 respectively		37,840			27,340
Accumulated other comprehensive loss		(12,548	)		(11,994	)
Retained Earnings		784,375			743,745
Total stockholders' equity		809,667			759,091
Total Liabilities and Stockholders' Equity	$	995,690		$	932,013

The accompanying notes are an integral part of these statements.

3

J & J SNACK FOODS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

(in thousands, except per share amounts)

	Three months ended					Nine months ended
	June 29,		June 30,			June 29,		June 30,
	2019		2018			2019		2018
Net Sales	$	326,701	$	306,239		$	874,615	$	837,550
Cost of goods sold(1)		225,352		211,764			617,155		592,518
Gross Profit		101,349		94,475			257,460		245,032
Operating expenses
Marketing (2)		26,398		25,589			69,792		69,672
Distribution (3)		24,447		24,325			70,521		67,901
Administrative (4)		10,668		9,654			29,909		28,014
Other general expense (income)		794		38			1,343		(193	)
Total operating expenses		62,307		59,606			171,565		165,394
Operating Income		39,042		34,869			85,895		79,638
Other income (expense)
Investment income		1,953		1,705			5,775		4,687
Interest expense & other		1,972		(209	)		1,920		267
Earnings before income taxes		42,967		36,365			93,590		84,592
Income taxes		12,095		10,236			24,838		4,381
NET EARNINGS	$	30,872	$	26,129		$	68,752	$	80,211
Earnings per diluted share	$	1.63	$	1.39		$	3.64	$	4.27
Weighted average number of diluted shares		18,947		18,822			18,912		18,801
Earnings per basic share	$	1.64	$	1.40		$	3.66	$	4.29
Weighted average number of basic shares		18,823		18,698			18,794		18,683

(1)	Includes share-based compensation expense of $271 and $735 for the three months and nine months ended June 29, 2019, respectively and $225 and $642 for the three months and nine months ended June 30, 2018.
(2)	Includes share-based compensation expense of $391 and $1,061 for the three months and nine months ended June 29, 2019, respectively and $349 and $998 for the three months and nine months ended June 30, 2018.
(3)	Includes share-based compensation expense of $24 and $65 for the three months and nine months ended June 29, 2019,, respectively and $20 and $56 for the three months and nine months ended June 30, 2018.
(4)	Includes share-based compensation expense of $435 and $1,191 for the three months and nine months ended June 29, 2019, respectively and $412 and $1,178 for the three months and nine months ended June 30, 2018.

The accompanying notes are an integral part of these statements.

4

J&J SNACK FOODS CORP. AND SUBSIDIARIES 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(in thousands)

	Three months ended					Nine months ended
	June 29,		June 30,			June 29,			June 30,
	2019		2018			2019			2018
Net Earnings	$	30,872	$	26,129		$	68,752		$	80,211
Foreign currency translation adjustments		496		(2,359	)		(469	)		(4,348	)
Unrealized holding loss on marketable securities		-		(253	)		-			(547	)
Total Other Comprehensive Income(loss)		496		(2,612	)		(469	)		(4,895	)
Comprehensive Income	$	31,368	$	23,517		$	68,283		$	75,316

The accompanying notes are an integral part of these statements.

5

J & J SNACK FOODS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(in thousands)

					Accumulated
					Other
	Common Stock				Comprehensive			Retained
	Shares		Amount		Loss			Earnings			Total
Balance at September 29, 2018		18,754	$	27,340	$	(11,994	)	$	743,745		$	759,091
Issuance of common stock upon exercise of stock options		20		1,704		-			-			1,704
Foreign currency translation adjustment		-		-		(1,359	)		-			(1,359	)
Reclass from accumulated other comprehensive gain		-		-		(85	)		85			-
Dividends declared		-		-		-			(9,389	)		(9,389	)
Share-based compensation		-		972		-			-			972
Repurchase of common stock		-		-		-			-			-
Net earnings		-		-		-			17,526			17,526
Balance at December 29, 2018		18,774	$	30,016	$	(13,438	)	$	751,967		$	768,545
Issuance of common stock upon exercise of stock options		34		3,451		-			-			3,451
Issuance of common stock for employee stock purchase plan		6		772		-			-			772
Foreign currency translation adjustment		-		-		394			-			394
Issuance of common stock under deferred stock plan		1		90		-			-			90
Dividends declared		-		-		-			(9,405	)		(9,405	)
Share-based compensation		-		914		-			-			914
Repurchase of common stock		-		-		-			-			-
Net earnings		-		-		-			20,354			20,354
Balance at March 30, 2019		18,815	$	35,243	$	(13,044	)	$	762,916		$	785,115
Issuance of common stock upon exercise of stock options		15		1,499		-			-			1,499
Foreign currency translation adjustment		-		-		496			-			496
Dividends declared		-		-		-			(9,413	)		(9,413	)
Share-based compensation		-		1,098		-			-			1,098
Repurchase of common stock		-		-		-			-			-
Net earnings		-		-		-			30,872			30,872
Balance at June 29, 2019		18,830	$	37,840	$	(12,548	)	$	784,375		$	809,667

6

J & J SNACK FOODS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(in thousands)

							Accumulated
							Other
	Common Stock						Comprehensive			Retained
	Shares			Amount			Loss			Earnings			Total
Balance at September 30, 2017		18,663		$	17,382		$	(8,875	)	$	673,815		$	682,322
Issuance of common stock upon exercise of stock options		5			253			-			-			253
Foreign currency translation adjustment		-			-			(3,887	)		-			(3,887	)
Unrealized holding loss on marketable securities		-			-			(110	)		-			(110	)
Issuance of common stock under deferred stock plan		-			2			-			-			2
Dividends declared		-			-			-			(8,400	)		(8,400	)
Share-based compensation		-			952			-			-			952
Repurchase of common stock		-			-			-			-			-
Net earnings		-			-			-			36,249			36,249
Balance at December 30, 2017		18,668		$	18,589		$	(12,872	)	$	701,664		$	707,381
Issuance of common stock upon exercise of stock options		21			1,951			-			-			1,951
Issuance of common stock for employee stock purchase plan		7			756			-			-			756
Foreign currency translation adjustment		-			-			1,898			-			1,898
Unrealized holding loss on marketable securities		-			-			(184	)		-			(184	)
Issuance of common stock under deferred stock plan		1			92			-			-			92
Dividends declared		-			-			-			(8,413	)		(8,413	)
Share-based compensation		-			868			-			-			868
Repurchase of common stock		-			-			-			-			-
Net earnings		-			-			-			17,833			17,833
Balance at March 31, 2018		18,697		$	22,256		$	(11,158	)	$	711,084		$	722,182
Issuance of common stock upon exercise of stock options		29			2,601			-			-			2,601
Foreign currency translation adjustment		-			-			(2,359	)		-			(2,359	)
Unrealized holding loss on marketable securities		-			-			(253	)		-			(253	)
Issuance of common stock under deferred stock plan		-			2			-			-			2
Dividends declared		-			-			-			(8,415	)		(8,415	)
Share-based compensation		-			982			-			-			982
Repurchase of common stock		(21	)		(2,794	)		-			-			(2,794	)
Net earnings		-			-			-			26,129			26,129
Balance at June 30, 2018		18,705		$	23,047		$	(13,770	)	$	728,798		$	738,075

7

J & J SNACK FOODS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)     (in thousands)

	Nine months ended
	June 29,			June 30,
	2019			2018
Operating activities:
Net earnings	$	68,752		$	80,211
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation of property, plant and equipment		33,374			31,929
Amortization of intangibles and deferred costs		2,586			2,639
Share-based compensation		3,006			2,874
Deferred income taxes		690			(12,502	)
Loss on marketable securities		410			32
Other		350			(3	)
Changes in assets and liabilities net of effects from purchase of companies
Increase in accounts receivable		(14,289	)		(7,530	)
Increase in inventories		(6,257	)		(13,020	)
Decrease (increase) in prepaid expenses		957			(2,949	)
Increase in accounts payable and accrued liabilities		11,584			3,606
Net cash provided by operating activities	$	101,163			85,287
Investing activities:
Payment for purchases of companies, net of cash acquired		(1,155	)		-
Purchases of property, plant and equipment		(42,136	)		(43,344	)
Purchases of marketable securities		(24,056	)		(65,227	)
Proceeds from redemption and sales of marketable securities		29,721			51,417
Proceeds from disposal of property, plant and equipment		1,463			1,895
Other		(212	)		171
Net cash used in investing activities		(36,375	)		(55,088	)
Financing activities:
Payments to repurchase common stock		-			(2,794	)
Proceeds from issuance of stock		7,426			5,561
Payments on capitalized lease obligations		(33	)		(278	)
Payment of cash dividend		(27,230	)		(24,652	)
Net cash used in financing activities		(19,837	)		(22,163	)
Effect of exchange rate on cash and cash equivalents		(333	)		(3,370	)
Net increase in cash and cash equivalents	$	44,618		$	4,666
Cash and cash equivalents at beginning of period		111,479			90,962
Cash and cash equivalents at end of period	$	156,097		$	95,628

The accompanying notes are an integral part of these statements.

8

J & J SNACK FOODS CORP. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 1 The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all information and notes required by generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended September 29, 2018.

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position and the results of operations and cash flows.

The results of operations for the nine months ended June 29, 2019 and June 30, 2018 are not necessarily indicative of results for the full year. Sales of our frozen beverages and frozen juice bars and ices are generally higher in the third and fourth quarters due to warmer weather.

Certain prior year financial statement amounts have been reclassified to be consistent with the presentation for the current year.

While we believe that the disclosures presented are adequate to make the information not misleading, it is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and the notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 29, 2018.

Note 2

Revenue Recognition

We adopted the new revenue recognition guidance on the first day of our fiscal 2019 year using a modified retrospective approach; however, we did not record a cumulative-effect adjustment from initially applying the standard as the adoption did not have a material impact on our financial position or results of operations. We completed a review of customer contracts and evaluated the impact of the new standard on certain common practices currently employed by us. We also finalized our assessment of the impact on our accounting policies, processes, system requirements, internal controls and disclosures.

9

 When Performance Obligations Are Satisfied

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account for revenue recognition. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied.

The singular performance obligation of our customer contracts for product and machine sales is determined by each individual purchase order and the respective products ordered, with revenue being recognized at a point-in-time when the obligation under the terms of the agreement is satisfied and product control is transferred to our customer. Specifically, control transfers to our customers when the product is delivered to, installed or picked up by our customers based upon applicable shipping terms, as our customers can direct the use and obtain substantially all of the remaining benefits from the product at this point in time. The performance obligations in our customer contracts for product are generally satisfied within 30 days.

The singular performance obligation of our customer contracts for time and material repair and maintenance equipment service is the performance of the repair and maintenance with revenue being recognized at a point-in-time when the repair and maintenance is completed.

The singular performance obligation of our customer repair and maintenance equipment service contracts is the performance of the repair and maintenance with revenue being recognized over the time the service is expected to be performed. Our customers are billed for service contracts in advance of performance and therefore we have contract liability on our balance sheet.

 Significant Payment Terms

In general, within our customer contracts, the purchase order identifies the product, quantity, price, pick-up allowances, payment terms and final delivery terms. Although some payment terms may be more extended, presently the majority of our payment terms are 30 days. As a result, we have used the available practical expedient and, consequently, do not adjust our revenues for the effects of a significant financing component.

 Shipping 

All amounts billed to customers related to shipping and handling are classified as revenues; therefore, we recognize revenue for shipping and handling fees at the time the products are shipped or when services are performed. The cost of shipping products to the customer is recognized at the time the products are shipped to the customer and our policy is to classify them as Distribution expenses.

10

 Variable Consideration

In addition to fixed contract consideration, our contracts include some form of variable consideration, including sales discounts, trade promotions and certain other sales and consumer incentives, including rebates and coupon redemptions. In general, variable consideration is treated as a reduction in revenue when the related revenue is recognized. Depending on the specific type of variable consideration, we use the most likely amount method to determine the variable consideration. We believe there will be no significant changes to our estimates of variable consideration when any related uncertainties are resolved with our customers. We review and update our estimates and related accruals of variable consideration each period based on historical experience.

 Warranties & Returns

We provide all customers with a standard or assurance type warranty. Either stated or implied, we provide assurance the related products will comply with all agreed-upon specifications and other warranties provided under the law. No services beyond an assurance warranty are provided to our customers.

We do not grant a general right of return. However, customers may return defective or non-conforming products. Customer remedies may include either a cash refund or an exchange of the product. We do not estimate a right of return and related refund liability as returns of our products are rare.

 Contract Balances

Our customers are billed for service contracts in advance of performance and therefore we have contract liability on our balance sheet as follows:

	Three Months Ended			Nine Months Ended
	June 29, 2019			June 29, 2019
	(unaudited)			(unaudited)
	(in thousands)			(in thousands)
Beginning Balance	$	1,655		$	1,865
Additions to contract liability		1,271			4,299
Amounts recognized as revenue		(1,499	)		(4,737	)
Ending Balance	$	1,427		$	1,427

11

 Disaggregation of Revenue

See Note 9 for disaggregation of our net sales by class of similar product and type of customer.

 Allowance for Doubtful Receivables

We provide an allowance for doubtful receivables after taking into consideration historical experience and other factors. The allowance for doubtful receivables was $665,000 and $400,000 at June 29, 2019 and September 29, 2018, respectively.

Note 3 Depreciation of equipment and buildings is provided for by the straight-line method over the assets’ estimated useful lives. Amortization of improvements is provided for by the straight-line method over the term of the lease or the assets’ estimated useful lives, whichever is shorter. Licenses and rights, customer relationships and non-compete agreements arising from acquisitions are amortized by the straight-line method over periods ranging from 2 to 20 years. Depreciation expense was $11,484,000 and $10,569,000 for the three months ended June 29, 2019 and June 30, 2018, respectively and $33,374,000 and $31,929,000 for the nine months ended June 29, 2019 and June 30, 2018, respectively.

Note 4 Basic earnings per common share (EPS) excludes dilution and is computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. Diluted EPS takes into consideration the potential dilution that could occur if securities (stock options) or other contracts to issue common stock were exercised and converted into common stock. Our calculation of EPS is as follows:

	Three Months Ended June 29, 2019
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	30,872		18,823	$	1.64
Effect of Dilutive Securities
Options		-		124		(0.01	)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	30,872		18,947	$	1.63

163,170 anti-dilutive shares have been excluded in the computation of EPS for the three months ended June 29, 2019.

12

	Nine Months Ended June 29, 2019
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	68,752		18,794	$	3.66
Effect of Dilutive Securities
Options		-		118		(0.02	)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	68,752		18,912	$	3.64

163,670 anti-dilutive shares have been excluded in the computation of EPS for the nine months ended June 29, 2019.

	Three Months Ended June 30, 2018
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	26,129		18,698	$	1.40
Effect of Dilutive Securities
Options		-		124		(0.01	)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	26,129		18,822	$	1.39

1,000 anti-dilutive shares have been excluded in the computation of EPS for the three months ended June 30, 2018.

13

	Nine Months Ended June 30, 2018
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	80,211		18,683	$	4.29
Effect of Dilutive Securities
Options		-		118		(0.02	)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	80,211		18,801	$	4.27

1,000 anti-dilutive shares have been excluded in the computation of EPS for the nine months ended June 30, 2018.

Note 5 At June 29, 2019, the Company has three stock-based employee compensation plans. Share-based compensation expense was recognized as follows:

	Three months ended				Nine months ended
	June 29,		June 30,		June 29,		June 30,
	2019		2018		2019		2018
	(in thousands)
Stock Options	$	663	$	473	$	1,741	$	1,559
Stock purchase plan		187		89		324		355
Stock issued to an outside director		17		16		50		48
Restricted stock issued to an employee		-		1		-		3
Total share-based compensation	$	867	$	579	$	2,115	$	1,965
The above compensation is net of tax benefits	$	254	$	427	$	937	$	909

14

The fair value of each option grant is estimated on the date of grant using the Black-Scholes options-pricing model with the following weighted average assumptions used for grants in fiscal 2019 nine months: expected volatility of 16.8%; risk-free interest rate of 2.2%; dividend rate of 1.2% and expected lives of 5 years.

During the fiscal year 2019 nine month period, the Company granted 165,170 stock options. The weighted-average grant date fair value of these options was $26.29.

During the fiscal year 2018 nine month period, the Company granted 159,878 stock options. The weighted-average grant date fair value of these options was $23.67.

Expected volatility is based on the historical volatility of the price of our common shares over the past 51 months for 5 year options and 10 years for 10 year options. We use historical information to estimate expected life and forfeitures within the valuation model. The expected term of awards represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Compensation cost is recognized using a straight-line method over the vesting or service period and is net of estimated forfeitures.

Note 6 We account for our income taxes under the liability method. Under the liability method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse.  Deferred tax expense is the result of changes in deferred tax assets and liabilities.

Additionally, we recognize a liability for income taxes and associated penalties and interest for tax positions taken or expected to be taken in a tax return which are more likely than not to be overturned by taxing authorities (“uncertain tax positions”).  We have not recognized a tax benefit in our financial statements for these uncertain tax positions.

The total amount of gross unrecognized tax benefits is $409,000 and $394,000 on June 29, 2019 and September 29, 2018, respectively, all of which would impact our effective tax rate over time, if recognized. We recognize interest and penalties related to uncertain tax positions as a part of the provision for income taxes. As of June 29, 2019, and September 29, 2018, respectively, the Company has $274,000 and $259,000 of accrued interest and penalties.

In addition to our federal tax return and tax returns for Mexico and Canada, we file tax returns in all states that have a corporate income tax with virtually all open for examination for three to four years.

Net earnings for last year’s nine months benefited from a $20.9 million gain on the remeasurement of deferred tax liabilities which was partially offset by a $1.2 million provision for the one time repatriation tax, both of which resulted from the Tax Cuts and Jobs Act enacted in December 2017. Excluding the deferred tax gain and the one time repatriation tax, our effective tax rate was 28.4% in last year’s nine months. Net earnings in this year’s nine months benefitted by a reduction of approximately $900,000 in tax as the provision for the one time repatriation tax was reduced as the amount recorded last year was an estimate.  Excluding the reduction in the provision for the one time repatriation tax, our effective tax rate was 27.5% in this year’s nine months.

15

Note 7 In May 2014 and in subsequent updates, the FASB issued guidance on revenue recognition which requires that we recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration which we expect to be entitled in exchange for those goods or services. We performed a review of the requirements of the new revenue standard, including reviewing customer contracts and applying the five-step model of this new guidance to each contract category we identified. We adopted this guidance on the first day of our fiscal 2019 year using a modified retrospective approach; however, we did not record a cumulative-effect adjustment from initially applying the standard as the adoption did not have a material impact on our financial position or results of operations. See additional revenue recognition disclosures in Note 2.

In January 2016,  the FASB issued guidance which requires an entity to measure equity investments at fair value with changes in fair value recognized in net income, to use the price that would be received by a seller when measuring the fair value of financial instruments for disclosure purposes, and which eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet.  Under prior guidance, changes in fair value of equity investments available for sale were recognized in Stockholders’ Equity.   We adopted this guidance on the first day of our 2019 fiscal year. The adoption of this guidance on our consolidated financial statements was not material.

In February 2016, the FASB issued guidance on lease accounting which requires that an entity recognize most leases on its balance sheet.  The guidance retains a dual lease accounting model for purposes of income statement recognition, continuing the distinction between what are currently known as “capital” and “operating” leases for lessees.  This guidance is effective for our fiscal year ended September 2020.  While we continue to evaluate the effect of adopting this guidance on our consolidated financial statements and related disclosures, we expect our operating leases will be subject to the new standard. We will recognize right-of-use assets and operating lease liabilities on our consolidated balance sheets upon adoption, which will increase our total assets and liabilities. We anticipate that the impact of this guidance on our financial statements will be material.

16

Note 8 Inventories consist of the following:

	June 29,		September 29,
	2019		2018
	(unaudited)
	(in thousands)
Finished goods	$	55,282	$	52,221
Raw materials		22,910		23,173
Packaging materials		10,754		9,780
Equipment parts and other		30,244		27,710
Total Inventories	$	119,190	$	112,884

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. 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.

17

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. Sales and operating income are key variables monitored by the Chief Operating Decision Makers and management when determining each segment’s and the Company’s financial condition and operating performance. 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 29,			June 30,			June 29,			June 30,
	2019			2018			2019			2018
	(unaudited)
	(in thousands)
Sales to External Customers:
Food Service
Soft pretzels	$	55,867		$	53,880		$	154,670		$	151,649
Frozen juices and ices		13,862			12,825			30,336			29,448
Churros		18,888			16,739			49,793			46,603
Handhelds		8,550			9,974			25,339			30,667
Bakery		95,299			93,082			288,172			278,828
Other		6,105			5,201			19,576			16,235
Total Food Service	$	198,571		$	191,701		$	567,886		$	553,430
Retail Supermarket
Soft pretzels	$	7,294		$	7,332		$	28,309		$	27,925
Frozen juices and ices		26,515			28,785			52,179			53,950
Handhelds		3,063			2,960			8,110			8,749
Coupon redemption		(962	)		(1,278	)		(2,163	)		(2,647	)
Other		642			733			1,341			1,715
Total Retail Supermarket	$	36,552		$	38,532		$	87,776		$	89,692
Frozen Beverages
Beverages	$	56,937		$	49,131		$	121,976		$	115,401
Repair and maintenance service		22,514			19,693			62,291			58,005
Machines revenue		11,810			6,856			33,875			20,183
Other		317			326			811			839
Total Frozen Beverages	$	91,578		$	76,006		$	218,953		$	194,428
Consolidated Sales	$	326,701		$	306,239		$	874,615		$	837,550
Depreciation and Amortization:
Food Service	$	6,973		$	6,237		$	19,911		$	19,376
Retail Supermarket		335			332			990			980
Frozen Beverages		5,015			4,860			15,059			14,212
Total Depreciation and Amortization	$	12,323		$	11,429		$	35,960		$	34,568
Operating Income:
Food Service	$	21,154		$	19,663		$	59,195		$	54,098
Retail Supermarket		3,651			3,203			7,739			8,295
Frozen Beverages		14,237			12,003			18,961			17,245
Total Operating Income	$	39,042		$	34,869		$	85,895		$	79,638
Capital Expenditures:
Food Service	$	8,665		$	10,172		$	23,346		$	25,872
Retail Supermarket		597			273			1,730			376
Frozen Beverages		6,523			6,618			17,060			17,096
Total Capital Expenditures	$	15,785		$	17,063		$	42,136		$	43,344
Assets:
Food Service	$	752,117		$	672,861		$	752,117		$	672,861
Retail Supermarket		24,349			24,215			24,349			24,215
Frozen Beverages		219,224			217,156			219,224			217,156
Total Assets	$	995,690		$	914,232		$	995,690		$	914,232

18

Note 10 Our three reporting units, which are also reportable segments, are Food Service, Retail Supermarkets and Frozen Beverages.

The carrying amounts of acquired intangible assets for the Food Service, Retail Supermarkets and Frozen Beverage segments as of June 29, 2019 and September 29, 2018 are as follows:

	June 29, 2019				September 29, 2018
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
	(in thousands)
FOOD SERVICE
Indefinite lived intangible assets
Trade names	$	16,628	$	-	$	16,628	$	-
Amortized intangible assets
Non-compete agreements		858		622		980		538
Customer relationships		19,900		9,473		20,510		8,600
Licenses and rights		1,690		1,206		1,690		1,143
TOTAL FOOD SERVICE	$	39,076	$	11,301	$	39,808	$	10,281
RETAIL SUPERMARKETS
Indefinite lived intangible assets
Trade names	$	6,557	$	-	$	6,557	$	-
Amortized Intangible Assets
Trade names		649		357		649		260
Customer relationships		7,979		4,223		7,979		3,623
TOTAL RETAIL SUPERMARKETS	$	15,185	$	4,580	$	15,185	$	3,883
FROZEN BEVERAGES
Indefinite lived intangible assets
Trade names	$	9,315	$	-	$	9,315	$	-
Distribution rights		6,900				6,900		-
Amortized intangible assets
Customer relationships		737		95		257		76
Licenses and rights		1,400		916		1,400		863
TOTAL FROZEN BEVERAGES	$	18,352	$	1,011	$	17,872	$	939
CONSOLIDATED	$	72,613	$	16,892	$	72,865	$	15,103

19

Fully amortized intangible assets have been removed from the June 29, 2019 amounts. Intangible assets of $480,000 were acquired in the Frozen Beverages segment in the third quarter.

Amortizing intangible assets are being amortized by the straight-line method over periods ranging from 2 to 20 years and amortization expense is reflected throughout operating expenses.

Aggregate amortization expense of intangible assets for the three months ended June 29, 2019 and June 30, 2018 was $836,000 and $876,000, respectively. Aggregate amortization expense of intangible assets for the nine months ended June 29, 2019 and June 30, 2018 was $2,521,000 and $2,626,000, respectively.

Estimated amortization expense for the next five fiscal years is approximately $3,300,000 in 2019, $3,000,000 in 2020, $2,400,000 in 2021, and $2,300,000 in 2022 and in 2023. The weighted amortization period of the intangible assets is 10.7 years.

Goodwill 

The carrying amounts of goodwill for the Food Service, Retail Supermarket and Frozen Beverage segments are as follows:

	Food		Retail		Frozen
	Service		Supermarket		Beverages		Total
	(in thousands)
Balance at June 29, 2019	$	61,665	$	3,670	$	37,176	$	102,511
Balance at September 29, 2018	$	61,665	$	3,670	$	37,176	$	102,511

Note 11 We have classified our investment securities as marketable securities held to maturity and available for sale. The FASB defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the FASB has established three levels of inputs that may be used to measure fair value:

Level 1	Observable input such as quoted prices in active markets for identical assets or liabilities;
Level 2	Observable inputs, other than Level 1 inputs in active markets, that are observable either directly or indirectly; and
Level 3	Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions.

20

Marketable securities held to maturity and available for sale consist primarily of investments in mutual funds, preferred stock and corporate bonds.  The fair values of mutual funds are based on quoted market prices in active markets and are classified within Level 1 of the fair value hierarchy.  The fair values of preferred stock, corporate bonds and certificates of deposit are based on quoted prices for identical or similar instruments in markets that are not active.  As a result, preferred stock, corporate bonds and certificates of deposit are classified within Level 2 of the fair value hierarchy. 

The amortized cost, unrealized gains and losses, and fair market values of our investment securities held to maturity at June 29, 2019 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Corporate Bonds	$	133,993	$	1,011	$	125	$	134,879
Certificates of Deposit		2,880		5		-		2,885
Total marketable securities held to maturity	$	136,873	$	1,016	$	125	$	137,764

The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at June 29, 2019 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Mutual Funds	$	5,549	$	-	$	394	$	5,155
Preferred Stock		15,681		254		58		15,877
Total marketable securities available for sale	$	21,230	$	254	$	452	$	21,032

The mutual funds seek current income with an emphasis on maintaining low volatility and overall moderate duration. The Fixed-to-Floating Perpetual Preferred Stock generate fixed income to call dates in 2019, 2020 and 2025 and then income is based on a spread above LIBOR if the securities are not called. The mutual funds and Fixed-to-Floating Perpetual Preferred Stock do not have contractual maturities; however, we classify them as long term assets as it is our intent to hold them for a period of over one year, although we may sell some or all of them depending on presently unanticipated needs for liquidity or market conditions. The corporate bonds generate fixed income to maturity dates in 2019 through 2022, with $112 million maturing within 2 years. Our expectation is that we will hold the corporate bonds to their maturity dates and redeem them at our amortized cost.

21

The amortized cost, unrealized gains and losses, and fair market values of our investment securities held to maturity at September 29, 2018 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
			(in thousands)
Corporate Bonds	$	136,933	$	28	$	1,520	$	135,441
Certificates of Deposit		2,880		-		7		2,873
Total marketable securities held to maturity	$	139,813	$	28	$	1,527	$	138,314

The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at September 29, 2018 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
			(in thousands)
Mutual Funds	$	8,978	$	-	$	295	$	8,683
Preferred Stock		15,680		380		-		16,060
Total marketable securities available for sale	$	24,658	$	380	$	295	$	24,743

The amortized cost and fair value of the Company’s held to maturity securities by contractual maturity at June 29, 2019 and September 29, 2018 are summarized as follows:

	June 29, 2019				September 29, 2018
			Fair				Fair
	Amortized		Market		Amortized		Market
	Cost		Value		Cost		Value
			(in thousands)
Due in one year or less	$	40,809	$	40,895	$	21,048	$	21,001
Due after one year through five years		96,064		96,869		118,765		117,313
Due after five years through ten years		-		-		-		-
Total held to maturity securities	$	136,873	$	137,764	$	139,813	$	138,314
Less current portion		40,809		40,895		21,048		21,001
Long term held to maturity securities	$	96,064	$	96,869	$	118,765	$	117,313

22

Proceeds from the redemption and sale of marketable securities were $6,584,800 and $29,721,000 in the three and nine months ended June 29, 2019 and were $21,964,000 and $51,417,000 in the three and nine months ended June 30, 2018, respectively. Realized losses of $8,000 and $25,000 were recorded in the three and nine months ended June 29, 2019 and realized losses of $35,000 and $32,000 were recorded in the three and nine months ended June 30, 2018, respectively. We use the specific identification method to determine the cost of securities sold. Under new accounting guidance adopted on the first day of this fiscal year, recognized unrealized losses on marketable securities of $118,000 and $385,000 were recorded in the three months and nine months ended June 29, 2019, respectively.

Note 12 Changes to the components of accumulated other comprehensive loss are as follows:

	Three Months Ended June 29, 2019								Nine Months Ended June 29, 2019
	(unaudited)								(unaudited)
	(in thousands)								(in thousands)
				Unrealized								Unrealized
	Foreign Currency			Holding Gain					Foreign Currency			Holding Gain
	Translation			on Marketable					Translation			on Marketable
	Adjustments			Securities		Total			Adjustments			Securities			Total
Beginning Balance	$	(13,044	)	$	-	$	(13,044	)	$	(12,079	)	$	85		$	(11,994	)
Other comprehensive income (loss) before reclassifications		496			-		496			(469	)		-			(469	)
Amounts reclassified from accumulated other comprehensive income		-			-		-			-			(85	)		(85	)
Ending Balance	$	(12,548	)	$	-	$	(12,548	)	$	(12,548	)	$	-		$	(12,548	)

	Three Months Ended June 30, 2018									Nine Months Ended June 30, 2018
	(unaudited)									(unaudited)
	(in thousands)									(in thousands)
				Unrealized									Unrealized
	Foreign Currency			Holding Gain (Loss)						Foreign Currency			Holding Gain (Loss)
	Translation			on Marketable						Translation			on Marketable
	Adjustments			Securities			Total			Adjustments			Securities			Total
Beginning Balance	$	(11,330	)	$	172		$	(11,158	)	$	(9,341	)	$	466		$	(8,875	)
Other comprehensive loss before reclassifications		(2,359	)		(328	)		(2,687	)		(4,348	)		(622	)		(4,970	)
Amounts reclassified from accumulated other comprehensive income		-			75			75			-			75			75
Ending Balance	$	(13,689	)	$	(81	)	$	(13,770	)	$	(13,689	)	$	(81	)	$	(13,770	)

23

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Liquidity and Capital Resources

Our current cash and cash equivalents balances, investments and cash expected to be provided by future operations are our primary sources of liquidity. We believe that these sources, along with our borrowing capacity, are sufficient to fund future growth and expansion. See Note 11 to these financial statements for a discussion of our investment securities.

The Company’s Board of Directors declared a regular quarterly cash dividend of $.50 per share of its common stock payable on July 3, 2019, to shareholders of record as of the close of business on June 12, 2019.

In our fiscal year ended September 29, 2018, we purchased and retired 20,604 shares of our common stock at a cost of $2,794,027. In the three months and nine months ended June 29, 2019 we did not purchase and retire any shares. On August 4, 2017 the Company’s Board of Directors authorized the purchase and retirement of 500,000 shares of the Company’s common stock; 384,506 shares remain to be purchased under this authorization.

Fluctuations in the valuation of the Mexican and Canadian currencies and the resulting translation of the net assets of our Mexican and Canadian subsidiaries caused a decrease of $496,000 in accumulated other comprehensive loss in the 2019 third quarter and an increase of $2,359,000 in accumulated other comprehensive loss in the 2018 third quarter. In the nine-month period, fluctuations in the valuation of the Mexican and Canadian currencies and the resulting translation of the net assets of our Mexican and Canadian subsidiaries caused an increase of $469,000 in accumulated other comprehensive loss in the 2019 nine-month period and an increase of $4,348,000 in accumulated other comprehensive loss in the 2018 nine-month period.

Our general-purpose bank credit line which expires in November 2021 provides for up to a $50,000,000 revolving credit facility. The agreement contains restrictive covenants and requires commitment fees in accordance with standard banking practice. There were no outstanding balances under this facility at June 29, 2019.

RESULTS OF OPERATIONS

Net sales increased $20,462,000 or 7% to $326,701,000 for the three months and $37,065,000 or 4% to $874,615,000 for the nine months ended June 29, 2019 compared to the three and nine months ended June 30, 2018, respectively.

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FOOD SERVICE

Sales to food service customers increased $6,870,000 or 4% in the third quarter to $198,571,000 and increased $14,456,000 or 3% to $567,886,000 for the nine months. Soft pretzel sales to the food service market increased 4% to $55,867,000 in the three months and 2% to $154,670,000 in the nine months due primarily to higher sales to convenience store chains. Two chains accounted for about 3/4 of the sales increase in the third quarter and about 1/2 of the increase in the nine months.

Frozen juices and ices sales increased 8% to $13,862,000 in the three months and 3% to $30,336,000 in the nine months as sales to warehouse club stores accounted for over 60% of the increase in the third quarter and all of the increase in the nine months.

Churro sales to food service customers were up 13% in the quarter to $18,888,000 and up 7% to $49,793,000 in the nine months with strong sales to warehouse club stores and general increases and decreases across our customer base.

Sales of bakery products increased $2,217,000 or 2% to $95,299,000 in the third quarter and increased $9,344,000 or 3% to $288,172,000 for the nine months as sales were higher to school foodservice and were up and down across our customer base.

Sales of handhelds decreased $1,424,000 or 14% in the quarter and $5,328,000 or 17% in the nine months with the decrease primarily coming from lower sales to co-pack customers because of unsuccessful product launches. Sales of funnel cake increased $522,000 or, 10%, to $5,616,000 in the quarter and $2,873,000, or 19%, to $18,308,000 in the nine months. The nine months sales increase was primarily sales to a quick service restaurant under a limited time offer program which ended in the second quarter.

Sales of new products in the first twelve months since their introduction were approximately $4 million in this quarter and $11 million in the nine months. Price increases were approximately $4 million for the quarter and $11 million for the nine months and net volume increases were approximately $3 million of sales in the quarter and in the nine months.

Operating income in our Food Service segment increased from $19,663,000 to $21,154,000 in the quarter and increased from $54,098,000 to $59,195,000 in the nine months. For the quarter, operating income increased primarily because of increased volume, lower distribution expenses and increased pricing but was impacted by approximately $600,000 of costs related to prior years’ product recalls.  For the nine months, operating income improved primarily because of increased volume, price increases, lower marketing expenses and improved operations at several of our manufacturing facilities. Additionally, last year’s first quarter included shutdown costs of our Chambersburg, PA production facility. However, this year’s nine months, all in the first quarter, was impacted by approximately $900,000 of higher distribution expenses primarily due to higher freight rates which increased with the implementation of the electronic logging device mandate in January 2018. Additionally, lower sales of our MARY B’s biscuits and related costs due to our recall in January 2018 impacted our operating income by approximately $500,000 in last year’s first quarter.

25

RETAIL SUPERMARKETS

Sales of products to retail supermarkets decreased $1,980,000 or 5% to $36,552,000 in the third quarter and decreased $1,916,000 or 2% to $87,776,000 for the nine months. Soft pretzel sales for the third quarter were down less than 1% to $7,294,000 and up 1% to $28,309,000 for the nine months. Sales of frozen juices and ices decreased $2,270,000 or 8% to $26,515,000 in the third quarter and decreased $1,771,000 or 3% in the nine months as we lost some volume and placements due to price increases. Handheld sales to retail supermarket customers increased 3% to $3,063,000 in the quarter and were down 7% to $8,110,000 in the nine months as the sales of this product line continue their long-term decline.

Sales of new products in the third quarter were approximately $200,000 and were approximately $1 million for the nine months. Price increases provided about $1.1 million of sales in the quarter and $2.0 million of sales in the nine months and net volume decreased by about $3.1 million for the quarter and $4.0 million for the nine months.

Operating income in our Retail Supermarkets segment increased to $3,651,000 in this year’s third quarter from $3,203,000 in last year’s quarter, a 14% increase and decreased to $7,739,000 in this year’s nine months compared to $8,295,000 in last year’s nine months. For the quarter, operating income benefited from lower marketing and distribution costs and increased pricing.  For the nine months, increased product costs combined with lower volume were the primary drivers of the decrease in operating income.

FROZEN BEVERAGES

Frozen beverage and related product sales increased 20% to $91,578,000 in the third quarter and increased 13% to $218,953,000 in the nine months.  Beverage related sales were up 16% to $56,937,000 in the quarter due in large part to increased sales to one distributor of about $4 million and up 6% to $121,976,000 in the nine months.   The increased sales to this one distributor did not benefit operating income.  Sales to this distributor may continue to be higher into our fourth quarter. Gallon sales were up 2% for the three months.  Service revenue increased 14% to $22,514,000 in the third quarter and increased 7% to $62,291,000 in the nine months with sales increases and decreases spread throughout our customer base, but with significant increases in sales to two customers.

Machines revenue (primarily sales of frozen beverage machines) was $11,810,000, an increase of $4,954,000, in the quarter and $33,875,000, an increase of $13,692,000, in the nine months. Increases in sales to three customers accounted for the higher revenue in the quarter. Operating income in our Frozen Beverages segment increased to $14,237,000, or 19%, in this quarter and was up $1,716,000, or 10%, to $18,961,000 in the nine months primarily as a result of the increases in sales.

26

CONSOLIDATED

Gross profit as a percentage of sales was 31.02% in the third quarter and 30.85% last year.  Gross profit as a percentage of sales was 29.44% in the nine month period this year and 29.26% last year. Gross profit percentage for the quarter and nine months increased because of improved operations at several of our manufacturing facilities, price increases and because last year had the burden of shutting down our Chambersburg, PA production facility and moving its production to other facilities.

Total operating expenses increased $2,701,000 in the third quarter and as a percentage of sales decreased to 19.1% from 19.5% last year. For the nine months, operating expenses increased $6,171,000 and as a percentage of sales decreased to 19.6% from 19.7% last year. Marketing expenses decreased to 8.1% of sales in this year’s quarter from 8.4% last year and were 8.0% in the nine months compared to 8.3% of sales in last year’s nine months primarily because of controlled spending across all of our segments. Distribution expenses were 7.5% of sales in the third quarter and 7.9% of sales in last year’s quarter and were 8.1% in both year’s nine months. Distribution expenses as a percentage of sales were lower in the third quarter primarily because freight rates have dropped compared to last year. Administrative expenses were 3.3% of sales in the third quarter compared to 3.2% of sales last year in the third quarter and were 3.4% in this year’s nine months compared to 3.3% of sales in last year’s nine months. Other general operating expense in this year’s quarter includes $621,000 of costs related to prior years’ product recalls.

Operating income increased $4,173,000 or 12% to $39,042,000 in the three months and increased $6,257,000 or 8% to $85,895,000 the first nine months as a result of the aforementioned items.

Investment income increased by $248,000 and $1,088,000 in the third quarter and nine months, respectively, resulting from higher amounts invested and higher interest rates. Additionally, the third quarter and nine months were impacted by $118,000 and $385,000 of recognized unrealized losses.

This year’s other income in the third quarter includes a $2.0 million payment received from a customer due to cancellation of production under a co-manufacturing agreement. Our sales of the product line cancelled were $121,000 and $1.2 million in the three and nine months ended June 30, 2018 and we have not had any sales since June 30, 2018. Other income for last year’s nine months includes a $520,000 gain on a sale of property.

Net earnings increased $4,743,000, or 18%, in the current three month period to $30,872,000 and were $68,752,000 for the nine month period this year compared to $80,211,000 for the nine month period last year.

Net earnings for last year’s nine months benefited from a $20.9 million gain, or $1.11 per diluted share, on the remeasurement of deferred tax liabilities which was partially offset by a $1.2 million, or $.06 per diluted share, provision for the one time repatriation tax, both of which resulted from the Tax Cuts and Jobs Act enacted in December 2017. Excluding the deferred tax gain and the one time repatriation tax, our effective tax rate was 28.4% in last year’s nine months. Net earnings in this year’s nine months benefitted by a reduction of approximately $900,000 in tax as the provision for the one time repatriation tax was reduced as the amount recorded last year was an estimate.  Excluding the reduction in the provision for the one time repatriation tax, our effective tax rate was 27.5% in this year’s nine months. Our effective tax rate for the third quarter this year was 28.1% and 28.1% for last year’s third quarter, as this year benefitted from tax credits on returns filed this year and a lower federal tax rate.   

There are many factors which can impact our net earnings from year to year and in the long run, among which are the supply and cost of raw materials and labor, insurance costs, factors impacting sales as noted above, the continuing consolidation of our customers, our ability to manage our manufacturing, marketing and distribution activities, our ability to make and integrate acquisitions and changes in tax laws and interest rates.

27

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There has been no material change in the Company’s assessment of its sensitivity to market risk since its presentation set forth, in item 7a. “Quantitative and Qualitative Disclosures About Market Risk,” in its 2017 annual report on Form 10-K filed with the SEC.

Item 4. Controls and Procedures

The Chief Executive Officer and the Chief Financial Officer of the Company (its principal executive officer and principal financial officer, respectively) have concluded, based on their evaluation as of June 29, 2019, that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports filed or submitted by it under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and include controls and procedures designed to ensure that information required to be disclosed by the Company in such reports is accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

There has been no change in the Company’s internal control over financial reporting during the quarter ended June 29, 2019, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

28

	PART II. OTHER INFORMATION
Item 6.	Exhibits
	Exhibit No.

31.1	&	Certification Pursuant to Section 302 of
31.2		the Sarbanes-Oxley Act of 2002
99.5	&	Certification Pursuant to the 18 U.S.C.
99.6		Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.1		The following financial information from J&J Snack Foods Corp.'s Quarterly Report on Form 10-Q for the quarter ended June 29, 2019, formatted in XBRL (extensible Business Reporting Language):
		(i)	Consolidated Balance Sheets,
		(ii)	Consolidated Statements of Earnings,
		(iii)	Consolidated Statements of Comprehensive Income,
		(iv)	Consolidated Statements of Cash Flows and
		(v)	the Notes to the Consolidated Financial Statements

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	J & J SNACK FOODS CORP.
Dated: August 1, 2019	/s/ Gerald B. Shreiber
	Gerald B. Shreiber
	Chairman of the Board,
	President, Chief Executive
	Officer and Director
	(Principal Executive Officer)
Dated: August 1, 2019	/s/ Dennis G. Moore
	Dennis G. Moore, Senior Vice
	President, Chief Financial
	Officer and Director
	(Principal Financial Officer)
	(Principal Accounting Officer)

29

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Dennis G. Moore, certify that:

1.     I have reviewed this report on Form 10-Q of J & J Snack Foods Corp.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls and procedures for financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)     designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)     designed such internal controls and procedures for financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of

financial statements for external purposes in accordance with generally accepted accounting principles;

c)     evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)     disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s third fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)     all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)     any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: August 1, 2019

/s/ Dennis G. Moore

Dennis G. Moore, Senior Vice

President, Chief Financial

Officer and Director

(Principal Financial Officer)

(Principal Accounting Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Gerald B. Shreiber, certify that:

1.     I have reviewed this report on Form 10-Q of J & J Snack Foods Corp.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls and procedures for financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)     designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)     designed such internal controls and procedures for financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)     evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)     disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s third fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)     all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)     any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date: August 1, 2019

/s/ Gerald B. Shreiber

Gerald B. Shreiber

Chairman of the Board,

President, Chief Executive

Officer and Director

(Principal Executive Officer)

EX-99.5

Exhibit 99.5

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code), each of the undersigned officers of J & J Snack Foods Corp. (the “Company”), does hereby certify with respect to the Quarterly Report of the Company on Form 10-Q for the quarter ended June 29, 2019 (the “Report”) that:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 1, 2019

/s/ Dennis G. Moore

Dennis G. Moore, Senior Vice

President, Chief Financial

Officer and Director

(Principal Financial Officer)

(Principal Accounting Officer)

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code) and is not being filed as part of the Report or as a separate disclosure document.

EX-99.6

Exhibit 99.6

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code), each of the undersigned officers of J & J Snack Foods Corp. (the “Company”), does hereby certify with respect to the Quarterly Report of the Company on Form 10-Q for the quarter ended June 29, 2019 (the “Report”) that:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 1, 2019

/s/ Gerald B. Shreiber

Gerald B. Shreiber

Chairman of the Board,

President, Chief Executive

Officer and Director

(Principal Executive Officer)

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code) and is not being filed as part of the Report or as a separate disclosure document.

XML

Document And Entity Information - shares	9 Months Ended
	Jun. 29, 2019	Jul. 25, 2019
Document Information [Line Items]
Entity Central Index Key	0000785956
Entity Shell Company	false
Entity Registrant Name	J&J SNACK FOODS CORP
Amendment Flag	false
Current Fiscal Year End Date	--09-28
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019
Entity Small Business	false
Entity Emerging Growth Company	false
Document Quarterly Report	true
Document Transition Report	false
Document Type	10-Q
Document Period End Date	Jun. 29, 2019
Entity File Number	0-14616
Entity Incorporation, State or Country Code	NJ
Entity Tax Identification Number	22-1935537
Entity Address, Address Line One	6000 Central Highway
Entity Address, City or Town	Pennsauken
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	08109
City Area Code	856
Local Phone Number	665-9533
Title of 12(b) Security	Common Stock
Trading Symbol	JJSF
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		18,840,904

XML

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jun. 29, 2019	Sep. 29, 2018
Current assets
Cash and cash equivalents	$ 156,097	$ 111,479
Marketable securities held to maturity	40,809	21,048
Accounts receivable, net	146,553	132,342
Inventories	119,190	112,884
Prepaid expenses and other	4,146	5,044
Total current assets	466,795	382,797
Property, plant and equipment, at cost
Land	2,494	2,494
Buildings	26,582	26,582
Plant machinery and equipment	307,787	290,396
Marketing equipment	307,077	290,955
Transportation equipment	9,534	8,929
Office equipment	30,958	30,752
Improvements	39,761	38,941
Construction in progress	12,978	8,468
Total Property, plant and equipment, at cost	737,171	697,517
Less accumulated depreciation and amortization	486,519	454,844
Property, plant and equipment, net	250,652	242,673
Other assets
Goodwill	102,511	102,511
Other intangible assets, net	55,721	57,762
Marketable securities held to maturity	96,064	118,765
Marketable securities available for sale	21,032	24,743
Other	2,915	2,762
Total other assets	278,243	306,543
Total Assets	995,690	932,013
Current Liabilities
Current obligations under capital leases	330	324
Accounts payable	80,237	69,592
Accrued insurance liability	9,281	11,217
Accrued liabilities	14,098	8,031
Accrued compensation expense	17,177	20,297
Dividends payable	9,413	8,438
Total current liabilities	130,536	117,899
Long-term obligations under capital leases	714	753
Deferred income taxes	53,009	52,322
Other long-term liabilities	1,764	1,948
Stockholders' Equity
Preferred stock, $1 par value; authorized 10,000,000 shares; none issued	0	0
Common stock, no par value; authorized, 50,000,000 shares; issued and outstanding 18,830,000 and 18,754,000 respectively	37,840	27,340
Accumulated other comprehensive loss	(12,548)	(11,994)
Retained Earnings	784,375	743,745
Total stockholders' equity	809,667	759,091
Total Liabilities and Stockholders' Equity	$ 995,690	$ 932,013

XML

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 29, 2019	Sep. 29, 2018
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	18,830,000	18,754,000
Common stock, shares outstanding (in shares)	18,830,000	18,754,000

XML

Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Net Sales		$ 326,701	$ 306,239	$ 874,615	$ 837,550
Cost of goods sold	[1]	225,352	211,764	617,155	592,518
Gross Profit		101,349	94,475	257,460	245,032
Operating expenses
Marketing	[2]	26,398	25,589	69,792	69,672
Distribution	[3]	24,447	24,325	70,521	67,901
Administrative	[4]	10,668	9,654	29,909	28,014
Other general expense (income)		794	38	1,343	(193)
Total operating expenses		62,307	59,606	171,565	165,394
Operating Income		39,042	34,869	85,895	79,638
Other income (expense)
Investment income		1,953	1,705	5,775	4,687
Interest expense & other		1,972	(209)	1,920	267
Earnings before income taxes		42,967	36,365	93,590	84,592
Income taxes		12,095	10,236	24,838	4,381
NET EARNINGS		$ 30,872	$ 26,129	$ 68,752	$ 80,211
Earnings per diluted share (in dollars per share)		$ 1.63	$ 1.39	$ 3.64	$ 4.27
Weighted average number of diluted shares (in shares)		18,947	18,822	18,912	18,801
Earnings per basic share (in dollars per share)		$ 1.64	$ 1.40	$ 3.66	$ 4.29
Weighted average number of basic shares (in shares)		18,823	18,698	18,794	18,683

[1] Includes share-based compensation expense of $271 and $735 for the three months and nine months ended June 29, 2019, respectively and $225 and $642 for the three months and nine months ended June 30, 2018.

[2] Includes share-based compensation expense of $391 and $1,061 for the three months and nine months ended June 29, 2019, respectively and $349 and $998 for the three months and nine months ended June 30, 2018.

[3] Includes share-based compensation expense of $24 and $65 for the three months and nine months ended June 29, 2019, respectively and $20 and $56 for the three months and nine months ended June 30, 2018.

[4] Includes share-based compensation expense of $435 and $1,191 for the three months and nine months ended June 29, 2019, respectively and $412 and $1,178 for the three months and nine months ended June 30, 2018.

XML

Consolidated Statements of Earnings (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Cost of Sales [Member]
Share-based compensation expense	$ 271	$ 225	$ 735	$ 642
Selling and Marketing Expense [Member]
Share-based compensation expense	391	349	1,061	998
Distribution [Member]
Share-based compensation expense	24	20	65	56
General and Administrative Expense [Member]
Share-based compensation expense	$ 435	$ 412	$ 1,191	$ 1,178

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Net Earnings	$ 30,872	$ 26,129	$ 68,752	$ 80,211
Foreign currency translation adjustments	496	(2,359)	(469)	(4,348)
Unrealized holding loss on marketable securities	0	(253)	0	(547)
Total Other Comprehensive Income(loss)	496	(2,612)	(469)	(4,895)
Comprehensive Income	$ 31,368	$ 23,517	$ 68,283	$ 75,316

XML

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock Including Additional Paid in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Sep. 30, 2017	18,663
Balance at Sep. 30, 2017	$ 17,382	$ (8,875)	$ 673,815	$ 682,322
Issuance of common stock upon exercise of stock options (in shares)	5
Issuance of common stock upon exercise of stock options	$ 253	0	0	253
Foreign currency translation adjustment	0	(3,887)	0	(3,887)
Dividends declared	0	0	(8,400)	(8,400)
Share-based compensation	952	0	0	952
Repurchase of common stock	0	0	0	0
Net Earnings	0	0	36,249	36,249
Issuance of common stock under deferred stock plan	2	0	0	2
Unrealized holding loss on marketable securities	$ 0	(110)	0	(110)
Balance (in shares) at Dec. 30, 2017	18,668
Balance at Dec. 30, 2017	$ 18,589	(12,872)	701,664	707,381
Balance (in shares) at Sep. 30, 2017	18,663
Balance at Sep. 30, 2017	$ 17,382	(8,875)	673,815	682,322
Foreign currency translation adjustment				(4,348)
Net Earnings				80,211
Balance (in shares) at Jun. 30, 2018	18,705
Balance at Jun. 30, 2018	$ 23,047	(13,770)	728,798	738,075
Balance (in shares) at Dec. 30, 2017	18,668
Balance at Dec. 30, 2017	$ 18,589	(12,872)	701,664	707,381
Issuance of common stock upon exercise of stock options (in shares)	21
Issuance of common stock upon exercise of stock options	$ 1,951	0	0	1,951
Foreign currency translation adjustment	0	1,898	0	1,898
Dividends declared	0	0	(8,413)	(8,413)
Share-based compensation	868	0	0	868
Repurchase of common stock	0	0	0	0
Net Earnings	$ 0	0	17,833	17,833
Issuance of common stock for employee stock purchase plan (in shares)	7
Issuance of common stock for employee stock purchase plan	$ 756	0	0	756
Issuance of common stock under deferred stock plan (in shares)	1
Issuance of common stock under deferred stock plan	$ 92	0	0	92
Unrealized holding loss on marketable securities	$ 0	(184)	0	(184)
Balance (in shares) at Mar. 31, 2018	18,697
Balance at Mar. 31, 2018	$ 22,256	(11,158)	711,084	722,182
Issuance of common stock upon exercise of stock options (in shares)	29
Issuance of common stock upon exercise of stock options	$ 2,601	0	0	2,601
Foreign currency translation adjustment	0	(2,359)	0	(2,359)
Dividends declared	0	0	(8,415)	(8,415)
Share-based compensation	982	0	0	982
Repurchase of common stock	(2,794)	0	0	(2,794)
Net Earnings	0	0	26,129	26,129
Issuance of common stock under deferred stock plan	2	0	0	2
Unrealized holding loss on marketable securities	$ 0	(253)	0	(253)
Repurchase of common stock (in shares)	(21)
Balance (in shares) at Jun. 30, 2018	18,705
Balance at Jun. 30, 2018	$ 23,047	(13,770)	728,798	$ 738,075
Balance (in shares) at Sep. 29, 2018	18,754			18,754,000
Balance at Sep. 29, 2018	$ 27,340	(11,994)	743,745	$ 759,091
Issuance of common stock upon exercise of stock options (in shares)	20
Issuance of common stock upon exercise of stock options	$ 1,704	0	0	1,704
Foreign currency translation adjustment	0	(1,359)	0	(1,359)
Reclass from accumulated other comprehensive gain | Accounting Standards Update 2016-01 [Member]	0	(85)	85	0
Dividends declared	0	0	(9,389)	(9,389)
Share-based compensation	972	0	0	972
Repurchase of common stock	0	0	0	0
Net Earnings	$ 0	0	17,526	17,526
Balance (in shares) at Dec. 29, 2018	18,774
Balance at Dec. 29, 2018	$ 30,016	(13,438)	751,967	$ 768,545
Balance (in shares) at Sep. 29, 2018	18,754			18,754,000
Balance at Sep. 29, 2018	$ 27,340	(11,994)	743,745	$ 759,091
Foreign currency translation adjustment				(469)
Net Earnings				$ 68,752
Balance (in shares) at Jun. 29, 2019	18,830			18,830,000
Balance at Jun. 29, 2019	$ 37,840	(12,548)	784,375	$ 809,667
Balance (in shares) at Dec. 29, 2018	18,774
Balance at Dec. 29, 2018	$ 30,016	(13,438)	751,967	768,545
Issuance of common stock upon exercise of stock options (in shares)	34
Issuance of common stock upon exercise of stock options	$ 3,451	0	0	3,451
Foreign currency translation adjustment	0	394	0	394
Dividends declared	0	0	(9,405)	(9,405)
Share-based compensation	914	0	0	914
Repurchase of common stock	0	0	0	0
Net Earnings	$ 0	0	20,354	20,354
Issuance of common stock for employee stock purchase plan (in shares)	6
Issuance of common stock for employee stock purchase plan	$ 772	0	0	772
Issuance of common stock under deferred stock plan (in shares)	1
Issuance of common stock under deferred stock plan	$ 90	0	0	90
Balance (in shares) at Mar. 30, 2019	18,815
Balance at Mar. 30, 2019	$ 35,243	(13,044)	762,916	785,115
Issuance of common stock upon exercise of stock options (in shares)	15
Issuance of common stock upon exercise of stock options	$ 1,499	0	0	1,499
Foreign currency translation adjustment	0	496	0	496
Dividends declared	0	0	(9,413)	(9,413)
Share-based compensation	1,098	0	0	1,098
Repurchase of common stock	0	0	0	0
Net Earnings	$ 0	0	30,872	$ 30,872
Balance (in shares) at Jun. 29, 2019	18,830			18,830,000
Balance at Jun. 29, 2019	$ 37,840	$ (12,548)	$ 784,375	$ 809,667

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 29, 2019	Jun. 30, 2018
Operating activities:
Net earnings	$ 68,752,000	$ 80,211,000
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation of property, plant and equipment	33,374,000	31,929,000
Amortization of intangibles and deferred costs	2,586,000	2,639,000
Share-based compensation	3,006,000	2,874,000
Deferred income taxes	690,000	(12,502,000)
Loss on marketable securities	410,000	32,000
Other	350,000	(3,000)
Changes in assets and liabilities net of effects from purchase of companies
Increase in accounts receivable	(14,289,000)	(7,530,000)
Increase in inventories	(6,257,000)	(13,020,000)
Decrease (increase) in prepaid expenses	957,000	(2,949,000)
Increase in accounts payable and accrued liabilities	11,584,000	3,606,000
Net cash provided by operating activities	101,163,000	85,287,000
Investing activities:
Payment for purchases of companies, net of cash acquired	(1,155,000)	0
Purchases of property, plant and equipment	(42,136,000)	(43,344,000)
Purchases of marketable securities	(24,056,000)	(65,227,000)
Proceeds from redemption and sales of marketable securities	29,721,000	51,417,000
Proceeds from disposal of property, plant and equipment	1,463,000	1,895,000
Other	(212,000)	171,000
Net cash used in investing activities	(36,375,000)	(55,088,000)
Financing activities:
Payments to repurchase common stock	0	(2,794,000)
Proceeds from issuance of stock	7,426,000	5,561,000
Payments on capitalized lease obligations	(33,000)	(278,000)
Payment of cash dividend	(27,230,000)	(24,652,000)
Net cash used in financing activities	(19,837,000)	(22,163,000)
Effect of exchange rate on cash and cash equivalents	(333,000)	(3,370,000)
Net increase in cash and cash equivalents	44,618,000	4,666,000
Cash and cash equivalents at beginning of period	111,479,000	90,962,000
Cash and cash equivalents at end of period	$ 156,097,000	$ 95,628,000

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Note 1

9 Months Ended

Jun. 29, 2019

Notes to Financial Statements

Significant Accounting Policies [Text Block]

Note 1 The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all information and notes required by generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended September 29, 2018.

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position and the results of operations and cash flows.

The results of operations for the nine months ended June 29, 2019 and June 30, 2018 are not necessarily indicative of results for the full year. Sales of our frozen beverages and frozen juice bars and ices are generally higher in the third and fourth quarters due to warmer weather.

Certain prior year financial statement amounts have been reclassified to be consistent with the presentation for the current year.

While we believe that the disclosures presented are adequate to make the information not misleading, it is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and the notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 29, 2018.

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Note 2

9 Months Ended

Jun. 29, 2019

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Note 2

Revenue Recognition

We adopted the new revenue recognition guidance on the first day of our fiscal 2019 year using a modified retrospective approach; however, we did not record a cumulative-effect adjustment from initially applying the standard as the adoption did not have a material impact on our financial position or results of operations. We completed a review of customer contracts and evaluated the impact of the new standard on certain common practices currently employed by us. We also finalized our assessment of the impact on our accounting policies, processes, system requirements, internal controls and disclosures.

 When Performance Obligations Are Satisfied

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account for revenue recognition. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied.

The singular performance obligation of our customer contracts for product and machine sales is determined by each individual purchase order and the respective products ordered, with revenue being recognized at a point-in-time when the obligation under the terms of the agreement is satisfied and product control is transferred to our customer. Specifically, control transfers to our customers when the product is delivered to, installed or picked up by our customers based upon applicable shipping terms, as our customers can direct the use and obtain substantially all of the remaining benefits from the product at this point in time. The performance obligations in our customer contracts for product are generally satisfied within 30 days.

The singular performance obligation of our customer contracts for time and material repair and maintenance equipment service is the performance of the repair and maintenance with revenue being recognized at a point-in-time when the repair and maintenance is completed.

The singular performance obligation of our customer repair and maintenance equipment service contracts is the performance of the repair and maintenance with revenue being recognized over the time the service is expected to be performed. Our customers are billed for service contracts in advance of performance and therefore we have contract liability on our balance sheet.

 Significant Payment Terms

In general, within our customer contracts, the purchase order identifies the product, quantity, price, pick-up allowances, payment terms and final delivery terms. Although some payment terms may be more extended, presently the majority of our payment terms are 30 days. As a result, we have used the available practical expedient and, consequently, do not adjust our revenues for the effects of a significant financing component.

 Shipping 

All amounts billed to customers related to shipping and handling are classified as revenues; therefore, we recognize revenue for shipping and handling fees at the time the products are shipped or when services are performed. The cost of shipping products to the customer is recognized at the time the products are shipped to the customer and our policy is to classify them as Distribution expenses.

 Variable Consideration

In addition to fixed contract consideration, our contracts include some form of variable consideration, including sales discounts, trade promotions and certain other sales and consumer incentives, including rebates and coupon redemptions. In general, variable consideration is treated as a reduction in revenue when the related revenue is recognized. Depending on the specific type of variable consideration, we use the most likely amount method to determine the variable consideration. We believe there will be no significant changes to our estimates of variable consideration when any related uncertainties are resolved with our customers. We review and update our estimates and related accruals of variable consideration each period based on historical experience.

 Warranties & Returns

We provide all customers with a standard or assurance type warranty. Either stated or implied, we provide assurance the related products will comply with all agreed-upon specifications and other warranties provided under the law. No services beyond an assurance warranty are provided to our customers.

We do not grant a general right of return. However, customers may return defective or non-conforming products. Customer remedies may include either a cash refund or an exchange of the product. We do not estimate a right of return and related refund liability as returns of our products are rare.

 Contract Balances

Our customers are billed for service contracts in advance of performance and therefore we have contract liability on our balance sheet as follows:

	Three Months Ended			Nine Months Ended
	June 29, 2019			June 29, 2019
	(unaudited)			(unaudited)
	(in thousands)			(in thousands)
Beginning Balance	$	1,655		$	1,865
Additions to contract liability		1,271			4,299
Amounts recognized as revenue		(1,499	)		(4,737	)
Ending Balance	$	1,427		$	1,427

 Disaggregation of Revenue

See Note 9 for disaggregation of our net sales by class of similar product and type of customer.

 Allowance for Doubtful Receivables

We provide an allowance for doubtful receivables after taking into consideration historical experience and other factors. The allowance for doubtful receivables was $665,000 and $400,000 at June 29, 2019 and September 29, 2018, respectively.

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Note 3

9 Months Ended

Jun. 29, 2019

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

Note 3 Depreciation of equipment and buildings is provided for by the straight-line method over the assets’ estimated useful lives. Amortization of improvements is provided for by the straight-line method over the term of the lease or the assets’ estimated useful lives, whichever is shorter. Licenses and rights, customer relationships and non-compete agreements arising from acquisitions are amortized by the straight-line method over periods ranging from 2 to 20 years. Depreciation expense was $11,484,000 and $10,569,000 for the three months ended June 29, 2019 and June 30, 2018, respectively and $33,374,000 and $31,929,000 for the nine months ended June 29, 2019 and June 30, 2018, respectively.

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Note 4

9 Months Ended

Jun. 29, 2019

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 4 Basic earnings per common share (EPS) excludes dilution and is computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. Diluted EPS takes into consideration the potential dilution that could occur if securities (stock options) or other contracts to issue common stock were exercised and converted into common stock. Our calculation of EPS is as follows:

	Three Months Ended June 29, 2019
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	30,872		18,823	$	1.64
Effect of Dilutive Securities
Options		-		124		(0.01	)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	30,872		18,947	$	1.63

163,170 anti-dilutive shares have been excluded in the computation of EPS for the three months ended June 29, 2019.

	Nine Months Ended June 29, 2019
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	68,752		18,794	$	3.66
Effect of Dilutive Securities
Options		-		118		(0.02	)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	68,752		18,912	$	3.64

163,670 anti-dilutive shares have been excluded in the computation of EPS for the nine months ended June 29, 2019.

	Three Months Ended June 30, 2018
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	26,129		18,698	$	1.40
Effect of Dilutive Securities
Options		-		124		(0.01	)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	26,129		18,822	$	1.39

1,000 anti-dilutive shares have been excluded in the computation of EPS for the three months ended June 30, 2018.

	Nine Months Ended June 30, 2018
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	80,211		18,683	$	4.29
Effect of Dilutive Securities
Options		-		118		(0.02	)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	80,211		18,801	$	4.27

1,000 anti-dilutive shares have been excluded in the computation of EPS for the nine months ended June 30, 2018.

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Note 5

9 Months Ended

Jun. 29, 2019

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

Note 5 At June 29, 2019, the Company has three stock-based employee compensation plans. Share-based compensation expense was recognized as follows:

	Three months ended				Nine months ended
	June 29,		June 30,		June 29,		June 30,
	2019		2018		2019		2018
	(in thousands)
Stock Options	$	663	$	473	$	1,741	$	1,559
Stock purchase plan		187		89		324		355
Stock issued to an outside director		17		16		50		48
Restricted stock issued to an employee		-		1		-		3
Total share-based compensation	$	867	$	579	$	2,115	$	1,965
The above compensation is net of tax benefits	$	254	$	427	$	937	$	909

The fair value of each option grant is estimated on the date of grant using the Black-Scholes options-pricing model with the following weighted average assumptions used for grants in fiscal 2019 nine months: expected volatility of 16.8%; risk-free interest rate of 2.2%; dividend rate of 1.2% and expected lives of 5 years.

During the fiscal year 2019 nine month period, the Company granted 165,170 stock options. The weighted-average grant date fair value of these options was $26.29.

During the fiscal year 2018 nine month period, the Company granted 159,878 stock options. The weighted-average grant date fair value of these options was $23.67.

Expected volatility is based on the historical volatility of the price of our common shares over the past 51 months for 5 year options and 10 years for 10 year options. We use historical information to estimate expected life and forfeitures within the valuation model. The expected term of awards represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Compensation cost is recognized using a straight-line method over the vesting or service period and is net of estimated forfeitures.

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Note 6

9 Months Ended

Jun. 29, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note 6 We account for our income taxes under the liability method. Under the liability method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse.  Deferred tax expense is the result of changes in deferred tax assets and liabilities.

Additionally, we recognize a liability for income taxes and associated penalties and interest for tax positions taken or expected to be taken in a tax return which are more likely than not to be overturned by taxing authorities (“uncertain tax positions”).  We have not recognized a tax benefit in our financial statements for these uncertain tax positions.

The total amount of gross unrecognized tax benefits is $409,000 and $394,000 on June 29, 2019 and September 29, 2018, respectively, all of which would impact our effective tax rate over time, if recognized. We recognize interest and penalties related to uncertain tax positions as a part of the provision for income taxes. As of June 29, 2019, and September 29, 2018, respectively, the Company has $274,000 and $259,000 of accrued interest and penalties.

In addition to our federal tax return and tax returns for Mexico and Canada, we file tax returns in all states that have a corporate income tax with virtually all open for examination for three to four years.

Net earnings for last year’s nine months benefited from a $20.9 million gain on the remeasurement of deferred tax liabilities which was partially offset by a $1.2 million provision for the one time repatriation tax, both of which resulted from the Tax Cuts and Jobs Act enacted in December 2017. Excluding the deferred tax gain and the one time repatriation tax, our effective tax rate was 28.4% in last year’s nine months. Net earnings in this year’s nine months benefitted by a reduction of approximately $900,000 in tax as the provision for the one time repatriation tax was reduced as the amount recorded last year was an estimate.  Excluding the reduction in the provision for the one time repatriation tax, our effective tax rate was 27.5% in this year’s nine months.

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Note 7

9 Months Ended

Jun. 29, 2019

Notes to Financial Statements

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

Note 7 In May 2014 and in subsequent updates, the FASB issued guidance on revenue recognition which requires that we recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration which we expect to be entitled in exchange for those goods or services. We performed a review of the requirements of the new revenue standard, including reviewing customer contracts and applying the five-step model of this new guidance to each contract category we identified. We adopted this guidance on the first day of our fiscal 2019 year using a modified retrospective approach; however, we did not record a cumulative-effect adjustment from initially applying the standard as the adoption did not have a material impact on our financial position or results of operations. See additional revenue recognition disclosures in Note 2.

In January 2016,  the FASB issued guidance which requires an entity to measure equity investments at fair value with changes in fair value recognized in net income, to use the price that would be received by a seller when measuring the fair value of financial instruments for disclosure purposes, and which eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet.  Under prior guidance, changes in fair value of equity investments available for sale were recognized in Stockholders’ Equity.   We adopted this guidance on the first day of our 2019 fiscal year. The adoption of this guidance on our consolidated financial statements was not material.

In February 2016, the FASB issued guidance on lease accounting which requires that an entity recognize most leases on its balance sheet.  The guidance retains a dual lease accounting model for purposes of income statement recognition, continuing the distinction between what are currently known as “capital” and “operating” leases for lessees.  This guidance is effective for our fiscal year ended September 2020.  While we continue to evaluate the effect of adopting this guidance on our consolidated financial statements and related disclosures, we expect our operating leases will be subject to the new standard. We will recognize right-of-use assets and operating lease liabilities on our consolidated balance sheets upon adoption, which will increase our total assets and liabilities. We anticipate that the impact of this guidance on our financial statements will be material.

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Note 8

9 Months Ended

Jun. 29, 2019

Notes to Financial Statements

Inventory Disclosure [Text Block]

Note 8 Inventories consist of the following:

	June 29,		September 29,
	2019		2018
	(unaudited)
	(in thousands)
Finished goods	$	55,282	$	52,221
Raw materials		22,910		23,173
Packaging materials		10,754		9,780
Equipment parts and other		30,244		27,710
Total Inventories	$	119,190	$	112,884

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Note 9

9 Months Ended

Jun. 29, 2019

Notes to Financial Statements

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. 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. Sales and operating income are key variables monitored by the Chief Operating Decision Makers and management when determining each segment’s and the Company’s financial condition and operating performance. 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 29,			June 30,			June 29,			June 30,
	2019			2018			2019			2018
	(unaudited)
	(in thousands)
Sales to External Customers:
Food Service
Soft pretzels	$	55,867		$	53,880		$	154,670		$	151,649
Frozen juices and ices		13,862			12,825			30,336			29,448
Churros		18,888			16,739			49,793			46,603
Handhelds		8,550			9,974			25,339			30,667
Bakery		95,299			93,082			288,172			278,828
Other		6,105			5,201			19,576			16,235
Total Food Service	$	198,571		$	191,701		$	567,886		$	553,430
Retail Supermarket
Soft pretzels	$	7,294		$	7,332		$	28,309		$	27,925
Frozen juices and ices		26,515			28,785			52,179			53,950
Handhelds		3,063			2,960			8,110			8,749
Coupon redemption		(962	)		(1,278	)		(2,163	)		(2,647	)
Other		642			733			1,341			1,715
Total Retail Supermarket	$	36,552		$	38,532		$	87,776		$	89,692
Frozen Beverages
Beverages	$	56,937		$	49,131		$	121,976		$	115,401
Repair and maintenance service		22,514			19,693			62,291			58,005
Machines revenue		11,810			6,856			33,875			20,183
Other		317			326			811			839
Total Frozen Beverages	$	91,578		$	76,006		$	218,953		$	194,428
Consolidated Sales	$	326,701		$	306,239		$	874,615		$	837,550
Depreciation and Amortization:
Food Service	$	6,973		$	6,237		$	19,911		$	19,376
Retail Supermarket		335			332			990			980
Frozen Beverages		5,015			4,860			15,059			14,212
Total Depreciation and Amortization	$	12,323		$	11,429		$	35,960		$	34,568
Operating Income:
Food Service	$	21,154		$	19,663		$	59,195		$	54,098
Retail Supermarket		3,651			3,203			7,739			8,295
Frozen Beverages		14,237			12,003			18,961			17,245
Total Operating Income	$	39,042		$	34,869		$	85,895		$	79,638
Capital Expenditures:
Food Service	$	8,665		$	10,172		$	23,346		$	25,872
Retail Supermarket		597			273			1,730			376
Frozen Beverages		6,523			6,618			17,060			17,096
Total Capital Expenditures	$	15,785		$	17,063		$	42,136		$	43,344
Assets:
Food Service	$	752,117		$	672,861		$	752,117		$	672,861
Retail Supermarket		24,349			24,215			24,349			24,215
Frozen Beverages		219,224			217,156			219,224			217,156
Total Assets	$	995,690		$	914,232		$	995,690		$	914,232

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Note 10

9 Months Ended

Jun. 29, 2019

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note 10 Our three reporting units, which are also reportable segments, are Food Service, Retail Supermarkets and Frozen Beverages.

The carrying amounts of acquired intangible assets for the Food Service, Retail Supermarkets and Frozen Beverage segments as of June 29, 2019 and September 29, 2018 are as follows:

	June 29, 2019				September 29, 2018
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
	(in thousands)
FOOD SERVICE
Indefinite lived intangible assets
Trade names	$	16,628	$	-	$	16,628	$	-
Amortized intangible assets
Non-compete agreements		858		622		980		538
Customer relationships		19,900		9,473		20,510		8,600
Licenses and rights		1,690		1,206		1,690		1,143
TOTAL FOOD SERVICE	$	39,076	$	11,301	$	39,808	$	10,281
RETAIL SUPERMARKETS
Indefinite lived intangible assets
Trade names	$	6,557	$	-	$	6,557	$	-
Amortized Intangible Assets
Trade names		649		357		649		260
Customer relationships		7,979		4,223		7,979		3,623
TOTAL RETAIL SUPERMARKETS	$	15,185	$	4,580	$	15,185	$	3,883
FROZEN BEVERAGES
Indefinite lived intangible assets
Trade names	$	9,315	$	-	$	9,315	$	-
Distribution rights		6,900				6,900		-
Amortized intangible assets
Customer relationships		737		95		257		76
Licenses and rights		1,400		916		1,400		863
TOTAL FROZEN BEVERAGES	$	18,352	$	1,011	$	17,872	$	939
CONSOLIDATED	$	72,613	$	16,892	$	72,865	$	15,103

Fully amortized intangible assets have been removed from the June 29, 2019 amounts. Intangible assets of $480,000 were acquired in the Frozen Beverages segment in the third quarter.

Amortizing intangible assets are being amortized by the straight-line method over periods ranging from 2 to 20 years and amortization expense is reflected throughout operating expenses.

Aggregate amortization expense of intangible assets for the three months ended June 29, 2019 and June 30, 2018 was $836,000 and $876,000, respectively. Aggregate amortization expense of intangible assets for the nine months ended June 29, 2019 and June 30, 2018 was $2,521,000 and $2,626,000, respectively.

Estimated amortization expense for the next five fiscal years is approximately $3,300,000 in 2019, $3,000,000 in 2020, $2,400,000 in 2021, and $2,300,000 in 2022 and in 2023. The weighted amortization period of the intangible assets is 10.7 years.

Goodwill 

The carrying amounts of goodwill for the Food Service, Retail Supermarket and Frozen Beverage segments are as follows:

	Food		Retail		Frozen
	Service		Supermarket		Beverages		Total
	(in thousands)
Balance at June 29, 2019	$	61,665	$	3,670	$	37,176	$	102,511
Balance at September 29, 2018	$	61,665	$	3,670	$	37,176	$	102,511

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Note 11

9 Months Ended

Jun. 29, 2019

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Note 11 We have classified our investment securities as marketable securities held to maturity and available for sale. The FASB defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the FASB has established three levels of inputs that may be used to measure fair value:

Level 1	Observable input such as quoted prices in active markets for identical assets or liabilities;
Level 2	Observable inputs, other than Level 1 inputs in active markets, that are observable either directly or indirectly; and
Level 3	Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions.

Marketable securities held to maturity and available for sale consist primarily of investments in mutual funds, preferred stock and corporate bonds.  The fair values of mutual funds are based on quoted market prices in active markets and are classified within Level 1 of the fair value hierarchy.  The fair values of preferred stock, corporate bonds and certificates of deposit are based on quoted prices for identical or similar instruments in markets that are not active.  As a result, preferred stock, corporate bonds and certificates of deposit are classified within Level 2 of the fair value hierarchy. 

The amortized cost, unrealized gains and losses, and fair market values of our investment securities held to maturity at June 29, 2019 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Corporate Bonds	$	133,993	$	1,011	$	125	$	134,879
Certificates of Deposit		2,880		5		-		2,885
Total marketable securities held to maturity	$	136,873	$	1,016	$	125	$	137,764

The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at June 29, 2019 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Mutual Funds	$	5,549	$	-	$	394	$	5,155
Preferred Stock		15,681		254		58		15,877
Total marketable securities available for sale	$	21,230	$	254	$	452	$	21,032

The mutual funds seek current income with an emphasis on maintaining low volatility and overall moderate duration. The Fixed-to-Floating Perpetual Preferred Stock generate fixed income to call dates in 2019, 2020 and 2025 and then income is based on a spread above LIBOR if the securities are not called. The mutual funds and Fixed-to-Floating Perpetual Preferred Stock do not have contractual maturities; however, we classify them as long term assets as it is our intent to hold them for a period of over one year, although we may sell some or all of them depending on presently unanticipated needs for liquidity or market conditions. The corporate bonds generate fixed income to maturity dates in 2019 through 2022, with $112 million maturing within 2 years. Our expectation is that we will hold the corporate bonds to their maturity dates and redeem them at our amortized cost.

The amortized cost, unrealized gains and losses, and fair market values of our investment securities held to maturity at September 29, 2018 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
			(in thousands)
Corporate Bonds	$	136,933	$	28	$	1,520	$	135,441
Certificates of Deposit		2,880		-		7		2,873
Total marketable securities held to maturity	$	139,813	$	28	$	1,527	$	138,314

The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at September 29, 2018 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
			(in thousands)
Mutual Funds	$	8,978	$	-	$	295	$	8,683
Preferred Stock		15,680		380		-		16,060
Total marketable securities available for sale	$	24,658	$	380	$	295	$	24,743

The amortized cost and fair value of the Company’s held to maturity securities by contractual maturity at June 29, 2019 and September 29, 2018 are summarized as follows:

	June 29, 2019				September 29, 2018
			Fair				Fair
	Amortized		Market		Amortized		Market
	Cost		Value		Cost		Value
			(in thousands)
Due in one year or less	$	40,809	$	40,895	$	21,048	$	21,001
Due after one year through five years		96,064		96,869		118,765		117,313
Due after five years through ten years		-		-		-		-
Total held to maturity securities	$	136,873	$	137,764	$	139,813	$	138,314
Less current portion		40,809		40,895		21,048		21,001
Long term held to maturity securities	$	96,064	$	96,869	$	118,765	$	117,313

Proceeds from the redemption and sale of marketable securities were $6,584,800 and $29,721,000 in the three and nine months ended June 29, 2019 and were $21,964,000 and $51,417,000 in the three and nine months ended June 30, 2018, respectively. Realized losses of $8,000 and $25,000 were recorded in the three and nine months ended June 29, 2019 and realized losses of $35,000 and $32,000 were recorded in the three and nine months ended June 30, 2018, respectively. We use the specific identification method to determine the cost of securities sold. Under new accounting guidance adopted on the first day of this fiscal year, recognized unrealized losses on marketable securities of $118,000 and $385,000 were recorded in the three months and nine months ended June 29, 2019, respectively.

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Note 12

9 Months Ended

Jun. 29, 2019

Notes to Financial Statements

Comprehensive Income (Loss) Note [Text Block]

Note 12 Changes to the components of accumulated other comprehensive loss are as follows:

	Three Months Ended June 29, 2019								Nine Months Ended June 29, 2019
	(unaudited)								(unaudited)
	(in thousands)								(in thousands)
				Unrealized								Unrealized
	Foreign Currency			Holding Gain					Foreign Currency			Holding Gain
	Translation			on Marketable					Translation			on Marketable
	Adjustments			Securities		Total			Adjustments			Securities			Total
Beginning Balance	$	(13,044	)	$	-	$	(13,044	)	$	(12,079	)	$	85		$	(11,994	)
Other comprehensive income (loss) before reclassifications		496			-		496			(469	)		-			(469	)
Amounts reclassified from accumulated other comprehensive income		-			-		-			-			(85	)		(85	)
Ending Balance	$	(12,548	)	$	-	$	(12,548	)	$	(12,548	)	$	-		$	(12,548	)

	Three Months Ended June 30, 2018									Nine Months Ended June 30, 2018
	(unaudited)									(unaudited)
	(in thousands)									(in thousands)
				Unrealized									Unrealized
	Foreign Currency			Holding Gain (Loss)						Foreign Currency			Holding Gain (Loss)
	Translation			on Marketable						Translation			on Marketable
	Adjustments			Securities			Total			Adjustments			Securities			Total
Beginning Balance	$	(11,330	)	$	172		$	(11,158	)	$	(9,341	)	$	466		$	(8,875	)
Other comprehensive loss before reclassifications		(2,359	)		(328	)		(2,687	)		(4,348	)		(622	)		(4,970	)
Amounts reclassified from accumulated other comprehensive income		-			75			75			-			75			75
Ending Balance	$	(13,689	)	$	(81	)	$	(13,770	)	$	(13,689	)	$	(81	)	$	(13,770	)

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Note 2 (Tables)

9 Months Ended

Jun. 29, 2019

Notes Tables

Contract with Customer, Asset and Liability [Table Text Block]

	Three Months Ended			Nine Months Ended
	June 29, 2019			June 29, 2019
	(unaudited)			(unaudited)
	(in thousands)			(in thousands)
Beginning Balance	$	1,655		$	1,865
Additions to contract liability		1,271			4,299
Amounts recognized as revenue		(1,499	)		(4,737	)
Ending Balance	$	1,427		$	1,427

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Note 4 (Tables)

9 Months Ended

Jun. 29, 2019

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended June 29, 2019
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	30,872		18,823	$	1.64
Effect of Dilutive Securities
Options		-		124		(0.01	)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	30,872		18,947	$	1.63

	Nine Months Ended June 29, 2019
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	68,752		18,794	$	3.66
Effect of Dilutive Securities
Options		-		118		(0.02	)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	68,752		18,912	$	3.64

	Three Months Ended June 30, 2018
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	26,129		18,698	$	1.40
Effect of Dilutive Securities
Options		-		124		(0.01	)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	26,129		18,822	$	1.39

	Nine Months Ended June 30, 2018
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	80,211		18,683	$	4.29
Effect of Dilutive Securities
Options		-		118		(0.02	)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	80,211		18,801	$	4.27

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Note 5 (Tables)

9 Months Ended

Jun. 29, 2019

Notes Tables

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

	Three months ended				Nine months ended
	June 29,		June 30,		June 29,		June 30,
	2019		2018		2019		2018
	(in thousands)
Stock Options	$	663	$	473	$	1,741	$	1,559
Stock purchase plan		187		89		324		355
Stock issued to an outside director		17		16		50		48
Restricted stock issued to an employee		-		1		-		3
Total share-based compensation	$	867	$	579	$	2,115	$	1,965
The above compensation is net of tax benefits	$	254	$	427	$	937	$	909

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Note 8 (Tables)

9 Months Ended

Jun. 29, 2019

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	June 29,		September 29,
	2019		2018
	(unaudited)
	(in thousands)
Finished goods	$	55,282	$	52,221
Raw materials		22,910		23,173
Packaging materials		10,754		9,780
Equipment parts and other		30,244		27,710
Total Inventories	$	119,190	$	112,884

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Note 9 (Tables)

9 Months Ended

Jun. 29, 2019

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three months ended						Nine months ended
	June 29,			June 30,			June 29,			June 30,
	2019			2018			2019			2018
	(unaudited)
	(in thousands)
Sales to External Customers:
Food Service
Soft pretzels	$	55,867		$	53,880		$	154,670		$	151,649
Frozen juices and ices		13,862			12,825			30,336			29,448
Churros		18,888			16,739			49,793			46,603
Handhelds		8,550			9,974			25,339			30,667
Bakery		95,299			93,082			288,172			278,828
Other		6,105			5,201			19,576			16,235
Total Food Service	$	198,571		$	191,701		$	567,886		$	553,430
Retail Supermarket
Soft pretzels	$	7,294		$	7,332		$	28,309		$	27,925
Frozen juices and ices		26,515			28,785			52,179			53,950
Handhelds		3,063			2,960			8,110			8,749
Coupon redemption		(962	)		(1,278	)		(2,163	)		(2,647	)
Other		642			733			1,341			1,715
Total Retail Supermarket	$	36,552		$	38,532		$	87,776		$	89,692
Frozen Beverages
Beverages	$	56,937		$	49,131		$	121,976		$	115,401
Repair and maintenance service		22,514			19,693			62,291			58,005
Machines revenue		11,810			6,856			33,875			20,183
Other		317			326			811			839
Total Frozen Beverages	$	91,578		$	76,006		$	218,953		$	194,428
Consolidated Sales	$	326,701		$	306,239		$	874,615		$	837,550
Depreciation and Amortization:
Food Service	$	6,973		$	6,237		$	19,911		$	19,376
Retail Supermarket		335			332			990			980
Frozen Beverages		5,015			4,860			15,059			14,212
Total Depreciation and Amortization	$	12,323		$	11,429		$	35,960		$	34,568
Operating Income:
Food Service	$	21,154		$	19,663		$	59,195		$	54,098
Retail Supermarket		3,651			3,203			7,739			8,295
Frozen Beverages		14,237			12,003			18,961			17,245
Total Operating Income	$	39,042		$	34,869		$	85,895		$	79,638
Capital Expenditures:
Food Service	$	8,665		$	10,172		$	23,346		$	25,872
Retail Supermarket		597			273			1,730			376
Frozen Beverages		6,523			6,618			17,060			17,096
Total Capital Expenditures	$	15,785		$	17,063		$	42,136		$	43,344
Assets:
Food Service	$	752,117		$	672,861		$	752,117		$	672,861
Retail Supermarket		24,349			24,215			24,349			24,215
Frozen Beverages		219,224			217,156			219,224			217,156
Total Assets	$	995,690		$	914,232		$	995,690		$	914,232

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Note 10 (Tables)

9 Months Ended

Jun. 29, 2019

Notes Tables

Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]

	June 29, 2019				September 29, 2018
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
	(in thousands)
FOOD SERVICE
Indefinite lived intangible assets
Trade names	$	16,628	$	-	$	16,628	$	-
Amortized intangible assets
Non-compete agreements		858		622		980		538
Customer relationships		19,900		9,473		20,510		8,600
Licenses and rights		1,690		1,206		1,690		1,143
TOTAL FOOD SERVICE	$	39,076	$	11,301	$	39,808	$	10,281
RETAIL SUPERMARKETS
Indefinite lived intangible assets
Trade names	$	6,557	$	-	$	6,557	$	-
Amortized Intangible Assets
Trade names		649		357		649		260
Customer relationships		7,979		4,223		7,979		3,623
TOTAL RETAIL SUPERMARKETS	$	15,185	$	4,580	$	15,185	$	3,883
FROZEN BEVERAGES
Indefinite lived intangible assets
Trade names	$	9,315	$	-	$	9,315	$	-
Distribution rights		6,900				6,900		-
Amortized intangible assets
Customer relationships		737		95		257		76
Licenses and rights		1,400		916		1,400		863
TOTAL FROZEN BEVERAGES	$	18,352	$	1,011	$	17,872	$	939
CONSOLIDATED	$	72,613	$	16,892	$	72,865	$	15,103

	Food		Retail		Frozen
	Service		Supermarket		Beverages		Total
	(in thousands)
Balance at June 29, 2019	$	61,665	$	3,670	$	37,176	$	102,511
Balance at September 29, 2018	$	61,665	$	3,670	$	37,176	$	102,511

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Note 11 (Tables)

9 Months Ended

Jun. 29, 2019

Notes Tables

Unrealized Gain (Loss) on Investments [Table Text Block]

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Corporate Bonds	$	133,993	$	1,011	$	125	$	134,879
Certificates of Deposit		2,880		5		-		2,885
Total marketable securities held to maturity	$	136,873	$	1,016	$	125	$	137,764

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Mutual Funds	$	5,549	$	-	$	394	$	5,155
Preferred Stock		15,681		254		58		15,877
Total marketable securities available for sale	$	21,230	$	254	$	452	$	21,032

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
			(in thousands)
Corporate Bonds	$	136,933	$	28	$	1,520	$	135,441
Certificates of Deposit		2,880		-		7		2,873
Total marketable securities held to maturity	$	139,813	$	28	$	1,527	$	138,314

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
			(in thousands)
Mutual Funds	$	8,978	$	-	$	295	$	8,683
Preferred Stock		15,680		380		-		16,060
Total marketable securities available for sale	$	24,658	$	380	$	295	$	24,743

Investments Classified by Contractual Maturity Date [Table Text Block]

	June 29, 2019				September 29, 2018
			Fair				Fair
	Amortized		Market		Amortized		Market
	Cost		Value		Cost		Value
			(in thousands)
Due in one year or less	$	40,809	$	40,895	$	21,048	$	21,001
Due after one year through five years		96,064		96,869		118,765		117,313
Due after five years through ten years		-		-		-		-
Total held to maturity securities	$	136,873	$	137,764	$	139,813	$	138,314
Less current portion		40,809		40,895		21,048		21,001
Long term held to maturity securities	$	96,064	$	96,869	$	118,765	$	117,313

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Note 12 (Tables)

9 Months Ended

Jun. 29, 2019

Notes Tables

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

	Three Months Ended June 29, 2019								Nine Months Ended June 29, 2019
	(unaudited)								(unaudited)
	(in thousands)								(in thousands)
				Unrealized								Unrealized
	Foreign Currency			Holding Gain					Foreign Currency			Holding Gain
	Translation			on Marketable					Translation			on Marketable
	Adjustments			Securities		Total			Adjustments			Securities			Total
Beginning Balance	$	(13,044	)	$	-	$	(13,044	)	$	(12,079	)	$	85		$	(11,994	)
Other comprehensive income (loss) before reclassifications		496			-		496			(469	)		-			(469	)
Amounts reclassified from accumulated other comprehensive income		-			-		-			-			(85	)		(85	)
Ending Balance	$	(12,548	)	$	-	$	(12,548	)	$	(12,548	)	$	-		$	(12,548	)

	Three Months Ended June 30, 2018									Nine Months Ended June 30, 2018
	(unaudited)									(unaudited)
	(in thousands)									(in thousands)
				Unrealized									Unrealized
	Foreign Currency			Holding Gain (Loss)						Foreign Currency			Holding Gain (Loss)
	Translation			on Marketable						Translation			on Marketable
	Adjustments			Securities			Total			Adjustments			Securities			Total
Beginning Balance	$	(11,330	)	$	172		$	(11,158	)	$	(9,341	)	$	466		$	(8,875	)
Other comprehensive loss before reclassifications		(2,359	)		(328	)		(2,687	)		(4,348	)		(622	)		(4,970	)
Amounts reclassified from accumulated other comprehensive income		-			75			75			-			75			75
Ending Balance	$	(13,689	)	$	(81	)	$	(13,770	)	$	(13,689	)	$	(81	)	$	(13,770	)

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Note 2 (Details Textual) - USD ($)	Jun. 29, 2019	Sep. 29, 2018
Accounts Receivable, Allowance for Credit Loss, Ending Balance	$ 665,000	$ 400,000

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Note 2 - Contract Liability (Unaudited) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 29, 2019	Jun. 29, 2019
Beginning Balance	$ 1,655	$ 1,865
Additions to contract liability	1,271	4,299
Amounts recognized as revenue	(1,499)	(4,737)
Ending Balance	$ 1,427	$ 1,427

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Note 3 (Details Textual) - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Mar. 30, 2019	Jun. 29, 2019	Jun. 30, 2018
Depreciation, Total	$ 11,484,000	$ 10,569,000		$ 33,374,000	$ 31,929,000
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life			2 years	2 years
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life			20 years	20 years

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Note 4 (Details Textual) - shares	3 Months Ended		9 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	163,170	1,000	163,670	1,000

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Note 4 - Calculation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Net Earnings available to common stockholders	$ 30,872		$ 26,129	$ 68,752	$ 80,211
Weighted average number of shares outstanding, basic (in shares)	18,823	18,698	18,698	18,794	18,683
Earnings per share, basic (in dollars per share)	$ 1.64	$ 1.40	$ 1.40	$ 3.66	$ 4.29
Options	$ 0		$ 0	$ 0	$ 0
Options (in shares)	124		124	118	118
Options (in dollars per share)	$ (0.01)		$ (0.01)	$ (0.02)	$ (0.02)
Net Earnings available to common stockholders plus assumed conversions	$ 30,872		$ 26,129	$ 68,752	$ 80,211
Weighted average number of shares outstanding, diluted (in shares)	18,947	18,822	18,822	18,912	18,801
Earnings per share, diluted (in dollars per share)	$ 1.63	$ 1.39	$ 1.39	$ 3.64	$ 4.27

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Note 5 (Details Textual) - $ / shares	9 Months Ended
	Jun. 29, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	165,170	159,878
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 26.29	$ 23.67
Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	16.80%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	2.20%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	1.20%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	5 years
Five Year Options [Member]
Share Based Compensation Arrangement by Share Based Payment Award Fair Value Assumptions Volatility Calculation Term	51 months
Ten Year Options [Member]
Share Based Compensation Arrangement by Share Based Payment Award Fair Value Assumptions Volatility Calculation Term	10 years

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Note 5 - Summary of Share-based Compensation Expense (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Share-based compensation expense	$ 867	$ 579	$ 2,115	$ 1,965
The above compensation is net of tax benefits	254	427	937	909
Share-based Payment Arrangement, Option [Member]
Share-based compensation expense	663	473	1,741	1,559
Stock Purchase Plan [Member]
Share-based compensation expense	187	89	324	355
Director Stock Award [Member]
Share-based compensation expense	17	16	50	48
Restricted Stock [Member]
Share-based compensation expense	$ 0	$ 1	$ 0	$ 3

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Note 6 (Details Textual) - USD ($)	9 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Sep. 29, 2018
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 409,000		$ 394,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total	$ 274,000		$ 259,000
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability		$ 20,900,000
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount		$ 1,200,000
Effective Income Tax Rate Reconciliation, Percent, Total	27.50%	28.40%
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount		$ 900,000

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Note 8 - Summary of Inventory (Details) - USD ($) $ in Thousands	Jun. 29, 2019	Sep. 29, 2018
Finished goods	$ 55,282	$ 52,221
Raw materials	22,910	23,173
Packaging materials	10,754	9,780
Equipment parts and other	30,244	27,710
Total Inventories	$ 119,190	$ 112,884

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Note 9 (Details Textual)	9 Months Ended
	Jun. 29, 2019
Number of Reportable Segments	3

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Note 9 - Operations Information by Reporting Segment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018	Sep. 29, 2018
Sales	$ 326,701,000	$ 306,239,000	$ 874,615,000	$ 837,550,000
Depreciation and amortization	12,323,000	11,429,000	35,960,000	34,568,000
Operating income	39,042,000	34,869,000	85,895,000	79,638,000
Capital expenditures	15,785,000	17,063,000	42,136,000	43,344,000
Assets	995,690,000	914,232,000	995,690,000	914,232,000	$ 932,013,000
Food Service [Member]
Sales	198,571,000	191,701,000	567,886,000	553,430,000
Depreciation and amortization	6,973,000	6,237,000	19,911,000	19,376,000
Operating income	21,154,000	19,663,000	59,195,000	54,098,000
Capital expenditures	8,665,000	10,172,000	23,346,000	25,872,000
Assets	752,117,000	672,861,000	752,117,000	672,861,000
Retail Supermarket [Member]
Sales	36,552,000	38,532,000	87,776,000	89,692,000
Depreciation and amortization	335,000	332,000	990,000	980,000
Operating income	3,651,000	3,203,000	7,739,000	8,295,000
Capital expenditures	597,000	273,000	1,730,000	376,000
Assets	24,349,000	24,215,000	24,349,000	24,215,000
Frozen Beverages [Member]
Sales	91,578,000	76,006,000	218,953,000	194,428,000
Depreciation and amortization	5,015,000	4,860,000	15,059,000	14,212,000
Operating income	14,237,000	12,003,000	18,961,000	17,245,000
Capital expenditures	6,523,000	6,618,000	17,060,000	17,096,000
Assets	219,224,000	217,156,000	219,224,000	217,156,000
Soft Pretzels [Member] | Food Service [Member]
Sales	55,867,000	53,880,000	154,670,000	151,649,000
Soft Pretzels [Member] | Retail Supermarket [Member]
Sales	7,294,000	7,332,000	28,309,000	27,925,000
Frozen Juices and Ices [Member] | Food Service [Member]
Sales	13,862,000	12,825,000	30,336,000	29,448,000
Frozen Juices and Ices [Member] | Retail Supermarket [Member]
Sales	26,515,000	28,785,000	52,179,000	53,950,000
Churros [Member] | Food Service [Member]
Sales	18,888,000	16,739,000	49,793,000	46,603,000
Handhelds [Member] | Food Service [Member]
Sales	8,550,000	9,974,000	25,339,000	30,667,000
Handhelds [Member] | Retail Supermarket [Member]
Sales	3,063,000	2,960,000	8,110,000	8,749,000
Bakery [Member] | Food Service [Member]
Sales	95,299,000	93,082,000	288,172,000	278,828,000
Other Products [Member] | Food Service [Member]
Sales	6,105,000	5,201,000	19,576,000	16,235,000
Other Products [Member] | Retail Supermarket [Member]
Sales	642,000	733,000	1,341,000	1,715,000
Other Products [Member] | Frozen Beverages [Member]
Sales	317,000	326,000	811,000	839,000
Coupon Redemtion [Member] | Retail Supermarket [Member]
Sales	(962,000)	(1,278,000)	(2,163,000)	(2,647,000)
Beverage [Member] | Frozen Beverages [Member]
Sales	56,937,000	49,131,000	121,976,000	115,401,000
Repair and Maintenance Service [Member] | Frozen Beverages [Member]
Sales	22,514,000	19,693,000	62,291,000	58,005,000
Machine Sales [Member] | Frozen Beverages [Member]
Sales	$ 11,810	$ 6,856	$ 33,875	$ 20,183

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Note 10 (Details Textual)	3 Months Ended		6 Months Ended	9 Months Ended
	Jun. 29, 2019 USD ($)	Jun. 30, 2018 USD ($)	Mar. 30, 2019	Jun. 29, 2019 USD ($)	Jun. 30, 2018 USD ($)
Number of Reportable Segments				3
Amortization of Intangible Assets, Total	$ 836,000	$ 876,000		$ 2,521,000	$ 2,626,000
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year	3,300,000			3,300,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	3,000,000			3,000,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	2,400,000			2,400,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	2,300,000			$ 2,300,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life				10 years 8 months 12 days
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life			2 years	2 years
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life			20 years	20 years
Frozen Beverages [Member]
Finite-lived Intangible Assets Acquired	$ 480,000

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Note 10 - Intangible Assets by Reporting Segment (Details) - USD ($) $ in Thousands	Jun. 29, 2019	Sep. 29, 2018
Finite-lived intangible assets, accumulated amortization	$ 16,892	$ 15,103
Intangible assets	72,613	72,865
Goodwill	102,511	102,511
Food Service [Member]
Finite-lived intangible assets, accumulated amortization	11,301	10,281
Intangible assets	39,076	39,808
Goodwill	61,665	61,665
Food Service [Member] | Noncompete Agreements [Member]
Finite-lived intangible assets, gross	858	980
Finite-lived intangible assets, accumulated amortization	622	538
Food Service [Member] | Customer Relationships [Member]
Finite-lived intangible assets, gross	19,900	20,510
Finite-lived intangible assets, accumulated amortization	9,473	8,600
Food Service [Member] | License and Rights [Member]
Finite-lived intangible assets, gross	1,690	1,690
Finite-lived intangible assets, accumulated amortization	1,206	1,143
Food Service [Member] | Trade Names [Member]
Indefinite-lived intangible assets, gross	16,628	16,628
Retail Supermarket [Member]
Finite-lived intangible assets, accumulated amortization	4,580	3,883
Intangible assets	15,185	15,185
Goodwill	3,670	3,670
Retail Supermarket [Member] | Customer Relationships [Member]
Finite-lived intangible assets, gross	7,979	7,979
Finite-lived intangible assets, accumulated amortization	4,223	3,623
Retail Supermarket [Member] | Finite-lived Trade Names [Member]
Finite-lived intangible assets, gross	649	649
Finite-lived intangible assets, accumulated amortization	357	260
Retail Supermarket [Member] | Trade Names [Member]
Indefinite-lived intangible assets, gross	6,557	6,557
Frozen Beverages [Member]
Finite-lived intangible assets, accumulated amortization	1,011	939
Intangible assets	18,352	17,872
Goodwill	37,176	37,176
Frozen Beverages [Member] | Customer Relationships [Member]
Finite-lived intangible assets, gross	737	257
Finite-lived intangible assets, accumulated amortization	95	76
Frozen Beverages [Member] | License and Rights [Member]
Finite-lived intangible assets, gross	1,400	1,400
Finite-lived intangible assets, accumulated amortization	916	863
Frozen Beverages [Member] | Trade Names [Member]
Indefinite-lived intangible assets, gross	9,315	9,315
Frozen Beverages [Member] | Distribution Rights, Indefinite-lived [Member]
Indefinite-lived intangible assets, gross	$ 6,900	$ 6,900

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Note 11 (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018	Sep. 29, 2018
Debt Securities, Held-to-maturity, Total	$ 136,873,000		$ 136,873,000		$ 139,813,000
Proceeds from Sale and Maturity of Marketable Securities, Total	6,584,800	$ 21,964,000	29,721,000	$ 51,417,000
Marketable Securities, Gain (Loss), Total	(8,000)	$ (35,000)	(25,000)	$ (32,000)
Marketable Securities, Unrealized Gain (Loss), Total	(118,000)		(385,000)
Corporate Bond Securities [Member]
Debt Securities, Held-to-maturity, Total	$ 112,000,000		$ 112,000,000
Investment Securities Maturity Term			2 years

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Note 11 - Summary of Securities (Details) - USD ($) $ in Thousands	Jun. 29, 2019	Sep. 29, 2018
Held-to-maturity securities, amortized cost	$ 136,873	$ 139,813
Held-to-maturity securities, gross unrealized gains	1,016	28
Held-to-maturity securities, gross unrealized losses	125	1,527
Held-to-maturity securities, fair market value	137,764	138,314
Available-for-sale securities, amortized cost	21,230	24,658
Available-for-sale securities, gross unrealized gains	254	380
Available-for-sale securities, gross unrealized losses	452	295
Available-for-sale securities, fair market value	21,032	24,743
Corporate Bond Securities [Member]
Held-to-maturity securities, amortized cost	133,993	136,933
Held-to-maturity securities, gross unrealized gains	1,011	28
Held-to-maturity securities, gross unrealized losses	125	1,520
Held-to-maturity securities, fair market value	134,879	135,441
Mutual Funds [Member]
Available-for-sale securities, amortized cost	5,549	8,978
Available-for-sale securities, gross unrealized gains	0	0
Available-for-sale securities, gross unrealized losses	394	295
Available-for-sale securities, fair market value	5,155	8,683
Certificates of Deposit [Member]
Held-to-maturity securities, amortized cost	2,880	2,880
Held-to-maturity securities, gross unrealized gains	5	0
Held-to-maturity securities, gross unrealized losses	0	7
Held-to-maturity securities, fair market value	2,885	2,873
Preferred Stock [Member]
Available-for-sale securities, amortized cost	15,681	15,680
Available-for-sale securities, gross unrealized gains	254	380
Available-for-sale securities, gross unrealized losses	58	0
Available-for-sale securities, fair market value	$ 15,877	$ 16,060

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Note 11 - Held-to-maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 29, 2019	Sep. 29, 2018
Due in one year or less, amortized cost	$ 40,809	$ 21,048
Due in one year or less, fair market value	40,895	21,001
Due after one year through five years, amortized cost	96,064	118,765
Due after one year through five years, fair market value	96,869	117,313
Due after five years through ten years, amortized cost	0	0
Due after five years through ten years, fair market value	0	0
Total held to maturity securities, amortized cost	136,873	139,813
Total held to maturity securities, fair market value	137,764	138,314
Less current portion, amortized cost	40,809	21,048
Less current portion, fair market value	40,895	21,001
Long term held to maturity securities, amortized cost	96,064	118,765
Long term held to maturity securities, fair market value	$ 96,869	$ 117,313

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Note 12 - Changes to the Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 29, 2019	Jun. 30, 2018	Jun. 29, 2019	Jun. 30, 2018
Balance	$ 785,115	$ 722,182	$ 759,091	$ 682,322
Balance	809,667	738,075	809,667	738,075
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Balance	(13,044)	(11,330)	(12,079)	(9,341)
Other comprehensive income (loss) before reclassifications	496	(2,359)	(469)	(4,348)
Amounts reclassified from accumulated other comprehensive income	0	0	0	0
Balance	(12,548)	(13,689)	(12,548)	(13,689)
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member]
Balance	0	172	85	466
Other comprehensive income (loss) before reclassifications	0	(328)	0	(622)
Amounts reclassified from accumulated other comprehensive income	0	75	(85)	75
Balance	0	(81)	0	(81)
AOCI Attributable to Parent [Member]
Balance	(13,044)	(11,158)	(11,994)	(8,875)
Other comprehensive income (loss) before reclassifications	496	(2,687)	(469)	(4,970)
Amounts reclassified from accumulated other comprehensive income	0	75	(85)	75
Balance	$ (12,548)	$ (13,770)	$ (12,548)	$ (13,770)