Segment Reporting

6 Months Ended

Jun. 28, 2025

Segment Reporting

Segment Reporting

(7) Segment Reporting

The Company manages the business activities on a consolidated basis and has one operating segment: retail. The Company derives all its revenue from sales within Pennsylvania and six surrounding states. The Company’s retail segment derives revenues from customers through the retail sale of a range of products including grocery, pharmaceutical and fuel from company operated supermarkets. See Note 6 for the disaggregation of revenue by product category. The accounting policies of the Company’s single segment are the same as those described in the Company’s Significant Accounting Policies.

The Company’s chief operating decision maker is the Chief Operating Officer. The chief operating decision maker assesses performance for the segment and decides how to allocate resources based on operating income and net income that is also reported on the accompanying Consolidated Statements of Income. The measure of segment assets used to assess performance and allocate resources is reported on the Consolidated Balance Sheets as total assets. The chief operating decision maker uses operating income and net income to evaluate income generated from segment assets in deciding whether to reinvest profits into the segment, such as for acquisitions. Operating income and net income are used to monitor budget versus actual results. The chief operating decision maker also uses operating income and net income in competitive analysis by benchmarking to the Company’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment.

The following table presents the retail segment’s revenue, significant segment expenses, and segment operating and net income for the thirteen and twenty-six weeks ended June 28, 2025 and June 29, 2024:

	13 Weeks Ended				26 Weeks Ended
(amounts in thousands)	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Net sales	$	1,214,479	$	1,181,456	$	2,411,284	$	2,360,370
Other revenue (1)		4,317		4,263		8,288		8,300
Total revenue		1,218,796		1,185,719		2,419,572		2,368,670
Less:
Cost of sales - stores		890,344		865,741		1,770,945		1,734,044
Labor - stores		110,789		106,934		219,595		212,127
Depreciation and amortization - stores (2)		23,574		22,405		46,800		44,369
Occupancy - stores		21,893		21,155		44,281		42,808
All other expense - stores (3)		79,897		77,412		159,962		155,336
Administration, manufacturing, and property management expense		30,969		33,520		63,726		66,300
Distribution and transportation		29,393		26,063		59,291		53,834
Income from operations		31,937		32,489		54,972		59,852
Other income (expense) (4)		(2,163)		(407)		(1,805)		(1,808)
Investment income (loss) and interest expense		5,294		4,062		9,705		9,613
Provision for income taxes		8,541		9,885		15,868		18,233
Net income	$	26,526	$	26,259	$	47,004	$	49,424

(1) Other revenue represents commission income earned from a variety of services such as lottery, money orders, third party gift cards, and third party bill pay services.

(2) Segment depreciation and amortization expense, for stores and non-stores, was $30.6 million and $27.9 million for the thirteen weeks ended June 28, 2025 and June 29, 2024 and $60.2 million and $55.3 million for the twenty-six weeks ended June 28, 2025 and June 29, 2024, respectively. Segment additions of long-lived assets was $55.1 million and $30.0 million for the thirteen weeks ended June 28, 2025 and June 29, 2024, respectively. Segment additions of long-lived assets was $91.2 million and $65.6 million for the twenty-six weeks ended June 28, 2025 and June 29, 2024, respectively.

(3) All other expense consists of all other store controllable and fixed expenses, such as financial services fees, utilities, and outside services.

(4) Other income (expenses) consists of gains (losses) on SERP liability.