XML 111 R29.htm IDEA: XBRL DOCUMENT v3.24.0.1
Segment Reporting
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Reporting
NOTE 19 — Segment Reporting
Segment information is prepared on the same basis that the Company’s CEO, who is the chief operating decision maker (the CODM), manages the segments, evaluates financial results and makes key operating decisions. The Company’s CEO evaluates the financial performance of the Company based on two operating segments: Company-operated shops and Franchising and other. The Company-operated shops segment includes coffee shop sales to customers. The Franchising and other segment includes bean and product sales to franchise partners and includes the initial franchise fees, royalties, and marketing fees.
The CODM reviews segment performance and allocates resources based upon segment contribution, which is defined as segment gross profit before depreciation and amortization.
All segment revenue is earned in the United States, and there are no intersegment revenues. The CODM does not evaluate operating segments using discrete asset information, and we do not identify or allocate assets by operating segments.
Selling, general and administrative expenses primarily consist of the Company’s unallocated corporate expenses. Unallocated corporate expenses include corporate administrative functions that support the segments but are not directly attributable to or managed by any segment and are not included in the reported financial results of the segments.
No changes have been made to the Company’s segments during the year ended December 31, 2023. In addition, no customer represented 10% or more of total revenue for the three years ended December 31, 2023.
Financial information for the Company’s reportable segments was as follows for the periods presented:
 Year Ended December 31,
(in thousands)202320222021
Revenues:
Company-operated shops$857,939 $639,710 $403,746 
Franchising and other107,837 99,302 94,130 
Total revenues965,776 739,012 497,876 
Cost of sales:
Company-operated shops677,704 518,383 317,045 
Franchising and other36,776 39,713 27,528 
Total cost of sales714,480 558,096 344,573 
Segment contribution:
Company-operated shops242,323 157,633 102,992 
Franchising and other76,459 65,295 72,865 
Total segment contribution$318,782 $222,928 $175,857 
Depreciation and amortization:
Company-operated shops62,088 36,306 16,291 
Franchising and other5,398 5,706 6,263 
Total depreciation and amortization67,486 42,012 22,554 
Selling, general and administrative(205,074)(183,528)(264,529)
Interest expense, net(32,321)(18,018)(7,093)
Other income (expense), net
3,018 3,976 (1,240)
Income (loss) before income taxes$16,919 $(16,654)$(119,559)