SEGMENT REPORTING

12 Months Ended

Jun. 25, 2023

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE M - 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 and incentive payments from third party suppliers and distributors. 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 June 25, 2023 and June 26, 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 operating revenues, depreciation and amortization expense, and income before taxes for the Company’s reportable segments as of and for the fiscal years ended June 25, 2023 and June 26, 2022 (in thousands):

	Fiscal Year Ended
	June 25, 2023			June 26, 2022
Net sales and operating revenues:
Pizza Inn Franchising	$	9,810		$	8,535
Pie Five Franchising		1,893			1,967
Company-Owned Restaurants		—			—
Corporate administration and other		186			190
Consolidated revenues	$	11,889		$	10,692
Depreciation and amortization:
Pizza Inn Franchising	$	—		$	—
Pie Five Franchising		—			—
Company-Owned Restaurants		—			—
Combined		—			—
Corporate administration and other		214			187
Depreciation and amortization	$	214		$	187
Income before taxes:
Pizza Inn Franchising	$	6,751		$	6,222
Pie Five Franchising		996			996
Company-Owned Restaurants		—			(3	)
Combined		7,747			7,215
Corporate administration and other		(5,597	)		(4,850	)
Income before taxes	$	2,150		$	2,365

The following table provides information on our foreign and domestic revenues:

Geographic information (revenues):
United States	$	11,627	$	10,399
Foreign countries		262		293
Consolidated total	$	11,889	$	10,692