Note I - Segment Information

12 Months Ended

Mar. 27, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE I – SEGMENT INFORMATION

Nathan’s considers itself to be a brand marketer of the Nathan’s Famous signature products to the foodservice industry pursuant to its various business structures. Nathan’s sells its products directly to consumers through its restaurant operations segment consisting of Company-operated and franchised restaurants including virtual kitchens, to distributors that resell our products to the foodservice industry through the Branded Product Program and by third party manufacturers pursuant to license agreements that sell our products to club stores and grocery stores nationwide. The Company’s Chief Executive Officer has been identified as the Chief Operating Decision Maker (“CODM”) who evaluates performance and allocates resources for the Branded Product Program, Product Licensing and Restaurant Operations segments based upon a number of factors, the primary profit measure being income from operations. Certain administrative expenses are not allocated to the segments and are reported within the Corporate segment.

Branded Product Program – This segment derives revenue principally from the sale of hot dog products either directly to foodservice operators or to various foodservice distributors who resell the products to foodservice operators.

Product licensing – This segment derives revenue, primarily in the form of royalties, from licensing a broad variety of Nathan’s Famous branded products, including our hot dogs, sausage and corned beef products, frozen French fries and additional products through retail grocery channels and club stores throughout the United States.

Restaurant operations – This segment derives revenue from the sale of our products at Company-owned restaurants and earns fees and royalties from its franchised restaurants, including its virtual kitchens.

Revenues from operating segments are from transactions with unaffiliated third parties and do not include any intersegment revenues.

Income from operations attributable to Corporate consists principally of administrative expenses not allocated to the operating segments such as executive management, finance, information technology, legal, insurance, corporate office costs, corporate incentive compensation and compliance costs and expenses of the Advertising Fund.

Interest expense, loss on debt extinguishment, interest income and other income, net are managed centrally at the corporate level, and, accordingly, such items are not presented by segment since they are excluded from the measure of profitability reviewed by the CODM.

Corporate assets consist primarily of cash and cash equivalents, and long-lived assets.

Operating segment information for the fiscal years ended March 27, 2022 and March 28, 2021 is as follows:

	March 27, 2022			March 28, 2021
Revenues
Branded Product Program	$	66,322		$	33,617
Product licensing		31,824			31,368
Restaurant operations		14,764			9,310
Corporate (1)		1,972			1,544
Total revenues	$	114,882		$	75,839
Income from operations
Branded Product Program	$	6,399		$	4,635
Product licensing		31,642			31,186
Restaurant operations		312			(2,856	)
Corporate		(8,490	)		(7,450	)
Income from operations	$	29,863		$	25,515
Interest expense	$	(10,135	)	$	(10,601	)
Loss on debt extinguishment		(1,354	)		-
Interest income		110			364
Other income, net		52			47
Income before provision for income taxes	$	18,536		$	15,325
Total assets
Branded Product Program	$	9,966		$	7,037
Product licensing		3,179			4,775
Restaurant operations		11,195			11,662
Corporate		54,176			85,335
Total assets	$	78,516		$	108,809
Depreciation & amortization expense
Branded Product Program	$	163		$	247
Restaurant operations		561			613
Corporate		330			323
Total depreciation & amortization expense	$	1,054		$	1,183

(1) Represents advertising fund revenue.