Note N - Segment Information

12 Months Ended

Sep. 30, 2023

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 and casual dining restaurants; 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 and AUNTIE ANNE’S, frozen novelties including LUIGI’S Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, WHOLE FRUIT frozen fruit bars and sorbet, DOGSTERS ice cream style treats for dogs, 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

We sell frozen beverages to the foodservice industry primarily under the names ICEE, SLUSH PUPPIE and PARROT ICE in the United States, Mexico and Canada. We also provide repair and maintenance services to customers for customer-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 30,			September 24,			September 25,
	2023			2022			2021
	(53 weeks)			(52 weeks)			(52 weeks)
	(in thousands)
Sales to external customers:
Food Service
Soft pretzels	$	235,572		$	205,752		$	174,977
Frozen novelties		145,425			78,183			44,605
Churros		108,927			88,242			64,916
Handhelds		82,292			92,130			75,627
Bakery		378,149			381,526			342,609
Other		31,475			26,854			22,249
Total Food Service	$	981,840		$	872,687		$	724,983
Retail Supermarket
Soft pretzels	$	60,272		$	61,925		$	54,990
Frozen novelties		115,807			108,911			100,059
Biscuits		25,074			24,695			24,197
Handhelds		16,655			5,640			7,574
Coupon redemption		(2,561	)		(3,713	)		(3,689	)
Other		181			485			1,766
Total Retail Supermarket	$	215,428		$	197,943		$	184,897
Frozen Beverages
Beverages	$	224,655		$	184,063		$	124,498
Repair and maintenance service		95,941			89,840			81,305
Machines revenue		37,933			33,601			26,953
Other		3,032			2,522			1,943
Total Frozen Beverages	$	361,561		$	310,026		$	234,699
Consolidated sales	$	1,558,829		$	1,380,656		$	1,144,579
Depreciation and amortization:
Food Service		39,758		$	29,807		$	26,738
Retail Supermarket		1,966			1,536			1,671
Frozen Beverages		21,417			21,780			20,982
Total depreciation and amortization	$	63,141		$	53,123		$	49,391
Operating Income:
Food Service	$	49,778		$	18,512		$	39,172
Retail Supermarket		9,375			9,487			25,914
Frozen Beverages		50,365			33,800			6,132
Total operating income	$	109,518		$	61,799		$	71,218
Capital expenditures:
Food Service	$	79,388		$	61,738		$	38,558
Retail Supermarket		1,824			8,885			288
Frozen Beverages		23,525			16,668			14,732
Total capital expenditures	$	104,737		$	87,291		$	53,578
Assets:
Food Service	$	903,518		$	893,045		$	799,149
Retail Supermarket		34,232			20,302			31,486
Frozen Beverages		339,486			303,619			291,584
Total assets	$	1,277,236		$	1,216,966		$	1,122,219