Note N - Segment Reporting

12 Months Ended

Sep. 24, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE N – SEGMENT REPORTING

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 Maker. We have applied no aggregation criteria to any of these operating segments in order to determine reportable segments. Our three reportable segments are Food Service, Retail Supermarkets and Frozen Beverages. 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 segment are soft pretzels, frozen novelties, churros, handheld products and baked goods. Our customers in the food service segment include snack bars and food stands in chain, department, and discount stores; malls and shopping centers; casual dining restaurants; 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 novelties 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 handheld products. Within the retail supermarket channel, our frozen and prepackaged products are purchased by the consumer for consumption at home.

Frozen Beverages

The Company markets frozen beverages primarily under the names ICEE, SLUSH PUPPIE and PARROT ICE which are sold primarily 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, Retail Supermarkets and Frozen Beverages reviews monthly 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 Maker and management when determining each segment’s and the company’s financial condition and operating performance. In addition, the Chief Operating Decision Maker reviews and evaluates 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:

	September 24,			September 25,			September 26,
	2022			2021			2020
	(52 weeks)			(52 weeks)			(52 weeks)
	(in thousands)
Sales to external customers:
Food Service
Soft pretzels	$	205,752		$	174,977		$	150,786
Frozen novelties		78,183			44,605			35,176
Churros		88,242			64,916			46,881
Handhelds		92,130			75,627			36,088
Bakery		381,526			342,609			332,514
Other		26,854			22,249			17,448
Total Food Service	$	872,687		$	724,983		$	618,893
Retail Supermarket
Soft pretzels	$	61,925		$	54,990		$	49,157
Frozen novelties		108,911			100,059			88,743
Biscuits		24,695			24,197			28,317
Handhelds		5,640			7,574			12,303
Coupon redemption		(3,713	)		(3,689	)		(3,569	)
Other		485			1,766			2,214
Total Retail Supermarket	$	197,943		$	184,897		$	177,165
Frozen Beverages
Beverages	$	184,063		$	124,498		$	107,004
Repair and maintenance service		89,840			81,305			83,420
Machines revenue		33,601			26,953			33,986
Other		2,522			1,943			1,570
Total Frozen Beverages	$	310,026		$	234,699		$	225,980
Consolidated sales	$	1,380,656		$	1,144,579		$	1,022,038
Depreciation and amortization:
Food Service	$	29,807		$	26,738		$	28,111
Retail Supermarket		1,536			1,671			1,577
Frozen Beverages		21,780			20,982			23,360
Total depreciation and amortization	$	53,123		$	49,391		$	53,048
Operating Income:
Food Service	$	18,512		$	39,172		$	6,458
Retail Supermarket		9,487			25,914			23,202
Frozen Beverages		33,800			6,132			(12,466	)
Total operating income	$	61,799		$	71,218		$	17,194
Capital expenditures:
Food Service	$	61,738		$	38,558		$	34,798
Retail Supermarket		8,885			288			1,763
Frozen Beverages		16,668			14,732			21,256
Total capital expenditures	$	87,291		$	53,578		$	57,817
Assets:
Food Service	$	893,045		$	799,149		$	738,033
Retail Supermarket		20,302			31,486			31,704
Frozen Beverages		303,619			291,584			286,816
Total assets	$	1,216,966		$	1,122,219		$	1,056,553