Segment Reporting

9 Months Ended

Mar. 27, 2022

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 and nine months ended March 27, 2022 and March 28, 2021 (in thousands):

	Three Months Ended						Nine Months Ended
	March 27, 2022			March 28, 2021			March 27, 2022			March 28, 2021
Net sales and operating revenues:
Pizza Inn Franchising	$	2,091		$	1,714		$	6,279		$	4,718
Pie Five Franchising		482			418			1,450			1,350
Company-Owned Restaurants		—			—			—			—
Corporate administration and other		47			51			140			146
Consolidated revenues	$	2,620		$	2,183		$	7,869		$	6,214
Depreciation and amortization expense:
Corporate administration and other	$	46		$	41		$	138		$	128
Depreciation and amortization	$	46		$	41		$	138		$	128
Income before taxes:
Pizza Inn Franchising	$	1,648		$	1,339		$	4,506		$	3,723
Pie Five Franchising		220			164			748			563
Company-Owned Restaurants		(1	)		(77	)		(3	)		(256	)
Combined		1,867			1,426			5,251			4,030
Corporate administration and other		(1,371	)		(1,009	)		(4,006	)		(3,431	)
Income before taxes	$	496		$	417		$	1,245		$	599
Geographic information (revenues):
United States	$	2,547		$	2,114		$	7,643		$	6,047
Foreign countries		73			69			226			167
Consolidated total	$	2,620		$	2,183		$	7,869		$	6,214