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Note O - Segment Reporting
 12 Months Ended
Sep. 24, 2016
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
NOTE O – SEGMENT REPORTING
 
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 Makers. We have applied no aggregation criteria to any of these operating segments in order to determine reportable segments. 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 juice treats and desserts, churros, dough enrobed 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 juice treats and desserts 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 dough enrobed handheld products including PATIO burritos. Within the retail supermarket channel, our frozen and prepackaged products are purchased by the consumer for consumption at home.
 
Frozen Beverages
 
We sell frozen beverages to the food service industry primarily under the names ICEE, SLUSH PUPPIE and PARROT ICE 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 and
Retail Supermarkets and the Chief Operating Decision Maker for Frozen Beverages monthly review detailed operating income statements and sales reports in order to assess performance and allocate resources to each individual segment. Sales is considered to be the one and only key variable monitored by the Chief Operating Decision Makers and management when determining each segment’s and the company’s financial condition and operating performance. In addition, the Chief Operating Decision Makers review and evaluate 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:
 
 
 
Fiscal year ended
 
                         
 
 
September 24,
 
 
September 26,
 
 
September 27,
 
 
 
2016
 
 
2015
 
 
2014
 
 
 
(52 weeks)
 
 
(52 weeks)
 
 
(52 weeks)
 
   
(in thousands)
  
Sales to External Customers:
                        
Food Service
                        
Soft pretzels
   $ 170,155     $ 168,970     $ 164,680  
Frozen juices and ices
     51,798       54,454       53,888  
Churros
     57,318       56,602       55,929  
Handhelds
     27,427       21,817       24,248  
Bakery
     294,518       301,135       281,556  
Other
     20,313       13,657       11,597  
Total Food Service
   $ 621,529     $ 616,635     $ 591,898  
                         
Retail Supermarket
                        
Soft pretzels
   $ 33,279     $ 35,727     $ 34,830  
Frozen juices and ices
     68,924       72,174       59,404  
Handhelds
     15,347       18,957       21,354  
Coupon redemption
     (4,430 )     (4,725 )     (3,807 )
Other
     4,469       1,244       863  
Total Retail Supermarket
   $ 117,589     $ 123,377     $ 112,644  
                         
Frozen Beverages
                        
Beverages
   $ 150,118     $ 142,705     $ 133,283  
Repair and
maintenance service
     71,123       65,765       59,805  
Machines sales
     31,155       26,413       20,224  
Other
     1,267       1,361       1,597  
Total Frozen Beverages
   $ 253,663     $ 236,244     $ 214,909  
                         
Consolidated Sales
   $ 992,781     $ 976,256     $ 919,451  
                         
Depreciation and Amortization:
                        
Food Service
   $ 22,912     $ 21,289     $ 20,882  
Retail Supermarket
     1,031       1,132       492  
Frozen Beverages
     16,180       15,850       15,719  
Total Depreciation and Amortization
  $ 40,123     $ 38,271     $ 37,093  
                         
Operating Income:
                        
Food Service
   $ 76,539     $ 75,286     $ 73,731  
Retail Supermarket
     9,618       11,020       11,201  
Frozen Beverages
     26,653       24,582       21,916  
Total Operating Income
   $ 112,810     $ 110,888     $ 106,848  
                         
Capital Expenditures:
                        
Food Service
   $ 24,759     $ 28,228     $ 21,594  
Retail Supermarket
     369       112       26  
Frozen Beverages
     23,581       20,301       17,765  
Total Capital Expenditures
   $ 48,709     $ 48,641     $ 39,385  
                         
Assets:
                        
Food Service
   $ 589,854     $ 543,851     $ 516,916  
Retail Supermarket
     22,090       24,209       25,917  
Frozen Beverages
     178,543       171,609       161,940  
Total Assets
   $ 790,487     $ 739,669     $ 704,773