Note 9

6 Months Ended

Mar. 26, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 9 We principally sell our products to the food service and retail supermarket industries. Sales and results of our frozen beverages business are monitored separately from the balance of our food service business because of different distribution and capital requirements. We maintain separate and discrete financial information for the three operating segments mentioned above which is available to our Chief Operating Decision Maker.

Our three reportable segments are Food Service, Retail Supermarkets and Frozen Beverages. All inter-segment net sales and expenses have been eliminated in computing net sales and operating income. These segments are described below.

Food Service

The primary products sold by the food service segment are soft pretzels, frozen novelties, churros, handheld products and baked goods. Our customers in the food service segment include snack bars and food stands in chain, department and discount stores; malls and shopping centers; casual dining restaurants, fast food outlets; stadiums and sports arenas; leisure and theme parks; convenience stores; movie theatres; warehouse club stores; schools, colleges and other institutions. Within the food service industry, our products are purchased by the consumer primarily for consumption at the point-of-sale.

Retail Supermarkets

The primary products sold to the retail supermarket channel are soft pretzel products – including SUPERPRETZEL, frozen novelties including LUIGI’S Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, WHOLE FRUIT frozen fruit bars and sorbet, PHILLY SWIRL cups and sticks, ICEE Squeeze-Up Tubes and handheld products. Within the retail supermarket channel, our frozen and prepackaged products are purchased by the consumer for consumption at home.

Frozen Beverages

The Company markets frozen beverages primarily under the names ICEE, SLUSH PUPPIE and PARROT ICE which are sold primarily in the United States, Mexico and Canada. We also provide repair and maintenance service to customers for customers’ owned equipment.

The Chief Operating Decision Maker for Food Service, Retail Supermarkets and Frozen Beverages reviews monthly detailed operating income statements and sales reports in order to assess performance and allocate resources to each individual segment. Sales and operating income are key variables monitored by the Chief Operating Decision Maker and management when determining each segment’s, and the Company’s, financial condition and operating performance. In addition, the Chief Operating Decision Maker reviews and evaluates depreciation, capital spending and assets of each segment on a quarterly basis to monitor cash flow and asset needs of each segment. Information regarding the operations in these three reportable segments is as follows:

	Three Months Ended						Six Months Ended
	March 26,			March 27,			March 26,			March 27,
	2022			2021			2022			2021
Sales to external customers:
Food Service
Soft pretzels	$	43,261		$	36,776		$	93,682		$	69,463
Frozen novelties		7,305			10,590			15,762			16,885
Churros		17,447			14,720			36,936			26,262
Handhelds		20,506			19,992			39,001			37,603
Bakery		83,967			82,910			191,798			171,874
Other		3,854			4,336			10,893			7,662
Total Food Service	$	176,340		$	169,324		$	388,072		$	329,749
Retail Supermarket
Soft pretzels	$	15,752		$	15,789		$	31,946		$	29,677
Frozen novelties		18,919			19,386			36,721			34,702
Biscuits		5,687			6,495			13,958			14,155
Handhelds		1,069			2,243			2,345			5,023
Coupon redemption		(726	)		(608	)		(1,622	)		(1,683	)
Other		56			601			104			1,126
Total Retail Supermarket	$	40,757		$	43,906		$	83,452		$	83,000
Frozen Beverages
Beverages	$	35,365		$	18,529		$	69,128		$	34,384
Repair and maintenance service		21,000			18,218			43,011			37,114
Machines revenue		7,542			5,663			15,389			12,152
Other		509			538			951			776
Total Frozen Beverages	$	64,416		$	42,948		$	128,479		$	84,426
Consolidated sales	$	281,513		$	256,178		$	600,003		$	497,175
Depreciation and amortization:
Food Service	$	6,670		$	7,116		$	13,339		$	13,902
Retail Supermarket		386			384			752			770
Frozen Beverages		5,484			5,648			10,960			11,424
Total depreciation and amortization	$	12,540		$	13,148		$	25,051		$	26,096
Operating income:
Food Service	$	536		$	6,055		$	9,537		$	12,235
Retail Supermarket		1,091			6,364			6,075			11,087
Frozen Beverages		2,461			(5,189	)		3,321			(15,514	)
Total operating income	$	4,088		$	7,230		$	18,933		$	7,808
Capital expenditures:
Food Service	$	13,851		$	7,246		$	24,084		$	15,532
Retail Supermarket		1,094			80			3,623			101
Frozen Beverages		4,261			1,827			7,599			3,196
Total capital expenditures	$	19,206		$	9,153		$	35,306		$	18,829
Assets:
Food Service	$	799,710		$	760,557		$	799,710		$	760,557
Retail Supermarket		33,206			33,395			33,206			33,395
Frozen Beverages		290,412			270,963			290,412			270,963
Total assets	$	1,123,328		$	1,064,915		$	1,123,328		$	1,064,915