Note 11 - Segment Information

9 Months Ended

Jun. 24, 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						Nine months ended
	June 24,			June 25,			June 24,			June 25,
	2023			2022			2023			2022
Sales to external customers:
Food Service
Soft pretzels	$	63,527		$	55,946		$	171,242		$	149,628
Frozen novelties		47,410			17,155			95,782			32,917
Churros		30,470			25,614			81,147			62,550
Handhelds		17,003			25,740			60,884			64,741
Bakery		87,582			95,495			281,830			287,293
Other		8,988			7,892			20,673			18,785
Total Food Service	$	254,980		$	227,842		$	711,558		$	615,914
Retail Supermarket
Soft pretzels	$	10,269		$	11,696		$	40,767		$	43,642
Frozen novelties		41,684			41,865			80,423			78,586
Biscuits		5,135			6,066			18,906			20,024
Handhelds		4,452			1,589			11,443			3,934
Coupon redemption		(385	)		(605	)		(936	)		(2,227	)
Other		(5	)		397			(20	)		501
Total Retail Supermarket	$	61,150		$	61,008		$	150,583		$	144,460
Frozen Beverages
Beverages	$	72,878		$	57,791		$	153,336		$	126,919
Repair and maintenance service		24,144			22,892			70,556			65,903
Machines revenue		11,554			9,868			26,817			25,257
Other		1,063			826			2,116			1,777
Total Frozen Beverages	$	109,639		$	91,377		$	252,825		$	219,856
Consolidated sales	$	425,769		$	380,227		$	1,114,966		$	980,230
Depreciation and amortization:
Food Service	$	9,797		$	7,097		$	28,852		$	20,436
Retail Supermarket		540			405			1,423			1,157
Frozen Beverages		5,426			5,514			16,109			16,474
Total depreciation and amortization	$	15,763		$	13,016		$	46,384		$	38,067
Operating Income:
Food Service	$	20,786		$	2,640		$	32,306		$	12,177
Retail Supermarket		4,168			2,341			5,766			8,416
Frozen Beverages		23,340			16,279			29,743			19,600
Total operating income	$	48,294		$	21,260		$	67,815		$	40,193
Capital expenditures:
Food Service	$	20,015		$	21,673		$	58,621		$	45,757
Retail Supermarket		345			2,815			1,824			6,438
Frozen Beverages		6,988			4,437			16,027			12,036
Total capital expenditures	$	27,348		$	28,925		$	76,472		$	64,231
Assets:
Food Service	$	959,657		$	957,719		$	959,657		$	957,719
Retail Supermarket		12,327			29,147			12,327			29,147
Frozen Beverages		332,113			304,376			332,113			304,376
Total assets	$	1,304,097		$	1,291,242		$	1,304,097		$	1,291,242