Segment Reporting

3 Months Ended

Sep. 28, 2025

Segment Reporting [Abstract]

Segment Reporting

Note G - 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) Corporate administration and other. 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. The Company's chief operating decision maker (“CODM”) is the chief executive officer, who assesses segment performance primarily based on operating revenues and income before taxes to inform decisions regarding resource allocation. In addition, the CODM uses segment income to evaluate investment opportunities and strategic priorities across the Company's brands.

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.

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 revenues, expenses, operating income, and income before taxes for the Company’s reportable segments as of the three months ended September 28, 2025 and September 29, 2024 (in thousands):

		Pizza Inn Franchising				Pie Five Franchising				Corporate						Total
		Fiscal Quarter Ended				Fiscal Quarter Ended				Fiscal Quarter Ended						Fiscal Quarter Ended
		September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024		September 28, 2025			September 29, 2024			September 28, 2025		September 29, 2024
REVENUES:
Franchise royalties	$	1,029	$	951	$	141	$	170	$	—		$	—		$	1,170	$	1,121
Supplier and distributor incentive revenues		1,227		1,122		48		70		—			—			1,275		1,192
Franchise license fees		20		20		3		8		—			—			23		28
Area development exclusivity fees and foreign master license fees		2		2		1		1		—			—			3		3
Advertising fund contributions		488		407		45		57		—			—			533		464
Supplier convention funds		209		217		—		—		—			—			209		217
Rental income		—		—		—		—		—			23			—		23
Other franchise revenue		—		—		—		2		—			—			—		2
Total revenues		2,975		2,719		238		308		—			23			3,213		3,050
COSTS AND EXPENSES:
General and administrative expenses		—		—		—		—		1,378			1,420			1,378		1,420
Franchise expenses		977		889		60		106		—			—			1,037		995
Provision (recovery) for credit losses		—		—		—		—		4			(17	)		4		(17	)
Depreciation and amortization expense		—		—		—		—		42			43			42		43
Total costs and expenses		977		889		60		106		1,424			1,446			2,461		2,441
OPERATING INCOME		1,998		1,830		178		202		(1,424	)		(1,423	)		752		609
Interest income		—		—		—		—		91			82			91		82
Other income		—		—		—		—		8			4			8		4
Total other income		—		—		—		—		99			86			99		86
INCOME/(LOSS) BEFORE TAXES	$	1,998	$	1,830	$	178	$	202	$	(1,325	)	$	(1,337	)	$	851	$	695
Income tax expense		—		—		—		—		206			169			206		169
NET INCOME/(LOSS)		1,998		1,830		178		202		(1,531	)		(1,506	)		645		526