Note 10 - Segment Information

6 Months Ended

Mar. 30, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 10 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 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:

	Three months ended						Six months ended
	March 30,			March 25,			March 30,			March 25,
	2024			2023			2024			2023
	(unaudited)						(unaudited)
	(in thousands)						(in thousands)
Sales to external customers:
Food Service
Soft pretzels	$	54,328		$	55,492		$	104,456		$	107,715
Frozen novelties		27,713			26,607			48,763			48,372
Churros		30,825			24,920			58,886			50,677
Handhelds		19,504			20,309			41,551			43,881
Bakery		91,907			85,300			193,889			194,248
Other		5,713			5,653			11,054			11,685
Total Food Service	$	229,990		$	218,281		$	458,599		$	456,578
Retail Supermarket
Soft pretzels	$	16,453		$	16,013		$	34,900		$	30,498
Frozen novelties		23,676			20,770			36,537			38,739
Biscuits		6,207			5,858			13,239			13,771
Handhelds		7,194			4,099			12,704			6,991
Coupon redemption		(769	)		(375	)		(1,101	)		(551	)
Other		129			(5	)		370			(15	)
Total Retail Supermarket	$	52,890		$	46,360		$	96,649		$	89,433
Frozen Beverages
Beverages	$	44,666		$	41,799		$	86,616		$	80,458
Repair and maintenance service		23,231			22,585			47,790			46,412
Machines revenue		8,221			8,252			17,110			15,263
Other		736			577			1,278			1,053
Total Frozen Beverages	$	76,854		$	73,213		$	152,794		$	143,186
Consolidated sales	$	359,734		$	337,854		$	708,042		$	689,197
Depreciation and amortization:
Food Service	$	11,173		$	9,597		$	21,846		$	19,055
Retail Supermarket		525			492			1,052			883
Frozen Beverages		5,702			5,351			11,294			10,683
Total depreciation and amortization	$	17,400		$	15,440		$	34,192		$	30,621
Operating Income:
Food Service	$	7,931		$	5,133		$	13,947		$	11,520
Retail Supermarket		5,110			487			5,562			1,598
Frozen Beverages		4,863			4,573			8,078			6,403
Total operating income	$	17,904		$	10,193		$	27,587		$	19,521
Capital expenditures:
Food Service	$	9,364		$	13,744		$	21,229		$	38,606
Retail Supermarket		-			105			2			1,479
Frozen Beverages		7,332			4,365			15,395			9,039
Total capital expenditures	$	16,696		$	18,214		$	36,626		$	49,124
Assets:
Food Service	$	963,870		$	910,573		$	963,870		$	910,573
Retail Supermarket		36,650			12,162			36,650			12,162
Frozen Beverages		335,086			302,222			335,086			302,222
Total assets	$	1,335,606		$	1,224,957		$	1,335,606		$	1,224,957