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Note 9
 6 Months Ended
Mar. 27, 2021
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 Makers.

 

 

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 group are soft pretzels, frozen juice treats and desserts, churros, dough enrobed handheld products and baked goods. Our customers in the food service industry include snack bars and food stands in chain, department and discount stores; malls and shopping centers; 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 and related products 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 and operating income are key variables 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:

 

   

Three months ended

    

Six months ended

  
   

March 27,

   

March 28,

   

March 27,

   

March 28,

  
   

2021

    

2020

    

2021

    

2020

  
                                 
                                 

Sales to External Customers:

                                

Food Service

                                

Soft pretzels

   $ 36,776     $ 45,660     $ 69,463     $ 95,601  

Frozen juices and ices

     10,590       9,491       16,885       16,534  

Churros

     14,720       14,754       26,262       31,145  

Handhelds

     19,992       7,447       37,603       14,636  

Bakery

     82,910       89,407       171,874       185,779  

Other

     4,336       4,573       7,662       11,085  

Total Food Service

   $ 169,324     $ 171,332     $ 329,749     $ 354,780  
                                 

Retail Supermarket

                                

Soft pretzels

   $ 15,789     $ 12,332     $ 29,677     $ 22,158  

Frozen juices and ices

     19,386       15,864       34,702       25,957  

Biscuits

     6,495       6,630       14,155       13,608  

Handhelds

     2,243       3,117       5,023       5,878  

Coupon redemption

     (608 )     (866 )     (1,683 )     (1,409 )

Other

     601       494       1,126       805  

Total Retail Supermarket

   $ 43,906     $ 37,571     $ 83,000     $ 66,997  
                                 

Frozen Beverages

                                

Beverages

   $ 18,529     $ 31,895     $ 34,384     $ 67,150  

Repair and maintenance service

     18,218       21,779       37,114       44,265  

Machines revenue

     5,663       8,910       12,152       20,891  

Other

     538       555       776       856  

Total Frozen Beverages

   $ 42,948     $ 63,139     $ 84,426     $ 133,162  
                                 

Consolidated Sales

   $ 256,178     $ 272,042     $ 497,175     $ 554,939  
                                 

Depreciation and Amortization:

                                

Food Service

   $ 7,116     $ 7,240     $ 13,902     $ 14,158  

Retail Supermarket

     384       329       770       688  

Frozen Beverages

     5,648       6,188       11,424       11,641  

Total Depreciation and Amortization

   $ 13,148     $ 13,757     $ 26,096     $ 26,487  
                                 

Operating Income :

                                

Food Service

   $ 6,055     $ 7,951     $ 12,235     $ 25,985  

Retail Supermarket

     6,364       4,337       11,087       6,554  

Frozen Beverages

     (5,189 )     (1,306 )     (15,514 )     146  

Total Operating Income

   $ 7,230     $ 10,982     $ 7,808     $ 32,685  
                                 

Capital Expenditures:

                                

Food Service

   $ 7,246     $ 10,331     $ 15,532     $ 18,734  

Retail Supermarket

     80       275       101       1,235  

Frozen Beverages

     1,827       8,774       3,196       17,016  

Total Capital Expenditures

   $ 9,153     $ 19,380     $ 18,829     $ 36,985  
                                 

Assets:

                                

Food Service

   $ 760,557     $ 740,318     $ 760,557     $ 740,318  

Retail Supermarket

     33,395       31,636       33,395       31,636  

Frozen Beverages

     270,963       305,983       270,963       305,983  

Total Assets

   $ 1,064,915     $ 1,077,937     $ 1,064,915     $ 1,077,937