Note 11 - Segment Information

6 Months Ended

Mar. 25, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 11 Segment Information

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.

Our 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 or for take-away.

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, DOGSTERS, 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:

	Three months ended						Six months ended
	March 25,			March 26,			March 25,			March 26,
	2023			2022			2023			2022
	(unaudited)						(unaudited)
	(in thousands)						(in thousands)
Sales to external customers:
Food Service
Soft pretzels	$	55,492		$	43,261		$	107,715		$	93,682
Frozen novelties		26,607			7,305			48,372			15,762
Churros		24,920			17,447			50,677			36,936
Handhelds		20,309			20,506			43,881			39,001
Bakery		85,300			83,967			194,248			191,798
Other		5,653			3,854			11,685			10,893
Total Food Service	$	218,281		$	176,340		$	456,578		$	388,072
Retail Supermarket
Soft pretzels	$	16,013		$	15,752		$	30,498		$	31,946
Frozen novelties		20,770			18,919			38,739			36,721
Biscuits		5,858			5,687			13,771			13,958
Handhelds		4,099			1,069			6,991			2,345
Coupon redemption		(375	)		(726	)		(551	)		(1,622	)
Other		(5	)		56			(15	)		104
Total Retail Supermarket	$	46,360		$	40,757		$	89,433		$	83,452
Frozen Beverages
Beverages	$	41,799		$	35,365		$	80,458		$	69,128
Repair and maintenance service		22,585			21,000			46,412			43,011
Machines revenue		8,252			7,542			15,263			15,389
Other		577			509			1,053			951
Total Frozen Beverages	$	73,213		$	64,416		$	143,186		$	128,479
Consolidated sales	$	337,854		$	281,513		$	689,197		$	600,003
Depreciation and amortization:
Food Service	$	9,597		$	6,670		$	19,055		$	13,339
Retail Supermarket		492			386			883			752
Frozen Beverages		5,351			5,484			10,683			10,960
Total depreciation and amortization	$	15,440		$	12,540		$	30,621		$	25,051
Operating Income:
Food Service	$	5,133		$	536		$	11,520		$	9,537
Retail Supermarket		487			1,091			1,598			6,075
Frozen Beverages		4,573			2,461			6,403			3,321
Total operating income	$	10,193		$	4,088		$	19,521		$	18,933
Capital expenditures:
Food Service	$	13,744		$	13,851		$	38,606		$	24,084
Retail Supermarket		105			1,094			1,479			3,623
Frozen Beverages		4,365			4,261			9,039			7,599
Total capital expenditures	$	18,214		$	19,206		$	49,124		$	35,306
Assets:
Food Service	$	910,573		$	799,710		$	910,573		$	799,710
Retail Supermarket		12,162			33,206			12,162			33,206
Frozen Beverages		302,222			290,412			302,222			290,412
Total assets	$	1,224,957		$	1,123,328		$	1,224,957		$	1,123,328