Segment Reporting

3 Months Ended

Sep. 25, 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 ASC 280 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 nonrecurring items.

The Pizza Inn and Pie Five Franchising segments establish franchisees, licensees and territorial rights. Revenue for these segments are derived from franchise royalties, franchise 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 Restaurants 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. As of September 25, 2022, the Company did not operate any Company-owned restaurants.

Corporate administration and other 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 tables are net sales and operating revenues, depreciation and amortization expense, income from continuing operations before taxes, capital expenditures and assets for the Company’s reportable segments as of the three months ended September 25, 2022 and September 26, 2021 (in thousands):

	Three Months Ended
	September 25, 2022			September 26, 2021
Net sales and operating revenues:
Pizza Inn Franchising	$	2,469		$	2,034
Pie Five Franchising		488			472
Company-Owned Restaurants		—			—
Corporate administration and other		48			47
Consolidated revenues	$	3,005		$	2,553
Depreciation and amortization:
Corporate administration and other		51			44
Depreciation and amortization	$	51		$	44
Income/(loss) before taxes:
Pizza Inn Franchising	$	1,511		$	1,275
Pie Five Franchising		244			245
Company-Owned Restaurants		—			(1	)
Combined		1,755			1,519
Corporate administration and other		(1,356	)		(1,231	)
Income/(loss) before taxes	$	399		$	288
Geographic information (revenues):
United States	$	2,929		$	2,477
Foreign countries		76			76
Consolidated revenues	$	3,005		$	2,553