Segment Reporting

3 Months Ended

Sep. 26, 2021

Segment Reporting [Abstract]

Segment Reporting

Note H - Segment Reporting

The Company has three reportable operating segments as determined by management using the “management approach” as defined by the authoritative guidance on Disclosures about Segments of an Enterprise and Related Information: (1) Pizza Inn Franchising, (2) Pie Five Franchising and (3) Company-Owned Restaurants. These segments are a result of differences in the nature of the products and services sold. Corporate administration costs, which include, but are not limited to, general accounting, human resources, legal and credit and collections, are partially allocated to the three operating segments. Other revenue consists of non-recurring items.

The Pizza Inn and Pie Five Franchising segments establish franchisees, licensees and territorial rights. Revenue for this segment is primarily derived from franchise royalties, franchise license fees, sale of area development and foreign master license rights, incentive payments from third party suppliers and distributors, advertising funds, and supplier convention funds. Assets for these segments include equipment, furniture and fixtures.

The Company-Owned Restaurant segment includes sales and operating results for all Company-owned restaurants. Assets for this segment include equipment, furniture and fixtures for the Company-owned restaurants.

Revenue for corporate administration and other consists of rental income and interest income.  Assets primarily include cash and short-term investments, as well as furniture and fixtures located at the corporate office and trademarks and other intangible assets. All assets are located within the United States.

Summarized in the following table are net sales and operating revenues, depreciation and amortization expense, and income before taxes, for the Company’s reportable segments as of the three months ended September 26, 2021 and September 27, 2020 (in thousands):

	Three Months Ended
	September 26, 2021			September 27, 2020
Net sales and operating revenues:
Pizza Inn Franchising	$	2,034		$	1,380
Pie Five Franchising		472			476
Corporate administration and other		47			47
Consolidated revenues	$	2,553		$	1,903
Depreciation and amortization:
Pizza Inn Franchising	$	—		$	—
Pie Five Franchising		—			—
Company-Owned Restaurants		—			—
Corporate administration and other		44			44
Depreciation and amortization	$	44		$	44
Income before taxes:
Pizza Inn Franchising	$	1,275		$	1,100
Pie Five Franchising		245			209
Company-Owned Restaurants		(1	)		(100	)
Combined		1,519			1,209
Corporate administration and other		(1,231	)		(1,131	)
Income before taxes	$	288		$	78
Revenues by geography:
United States	$	2,477		$	1,859
Foreign countries		76			44
Consolidated revenues	$	2,553		$	1,903