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Note 9
 9 Months Ended
Jun. 26, 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. 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

    

Nine months ended

  
   

June 26

    

June 27

    

June 26

    

June 27

  
   

2021

    

2020

    

2021

    

2020

  
                                 
                                 

Sales to External Customers:

                                

Food Service

                                

Soft pretzels

   $ 50,895     $ 21,384     $ 120,359     $ 116,985  

Frozen juices and ices

     13,927       8,688       30,812       25,222  

Churros

     20,096       7,321       46,358       38,466  

Handhelds

     18,971       7,448       56,574       22,084  

Bakery

     85,706       69,237       257,580       255,016  

Other

     6,884       2,543       14,546       13,628  

Total Food Service

   $ 196,478     $ 116,621     $ 526,226     $ 471,401  
                                 

Retail Supermarket

                                

Soft pretzels

   $ 11,193     $ 12,716     $ 40,871     $ 34,874  

Frozen juices and ices

     36,898       33,322       71,600       59,279  

Biscuits

     4,562       8,151       18,717       21,759  

Handhelds

     1,191       3,257       6,215       9,135  

Coupon redemption

     (513 )     (807 )     (2,196 )     (2,216 )

Other

     526       863       1,652       1,668  

Total Retail Supermarket

   $ 53,857     $ 57,502     $ 136,859     $ 124,499  
                                 

Frozen Beverages

                                

Beverages

   $ 42,279     $ 16,456     $ 76,663     $ 83,606  

Repair and maintenance service

     22,789       17,259       59,903       61,524  

Machines revenue

     8,404       6,363       20,556       27,254  

Other

     536       362       1,312       1,218  

Total Frozen Beverages

   $ 74,009     $ 40,440     $ 158,434     $ 173,602  
                                 

Consolidated Sales

   $ 324,344     $ 214,563     $ 821,519     $ 769,502  
                                 

Depreciation and Amortization:

                                

Food Service

   $ 6,817     $ 7,050     $ 20,334     $ 21,208  

Retail Supermarket

     378       468       1,147       1,156  

Frozen Beverages

     5,469       5,864       16,893       17,505  

Total Depreciation and Amortization

   $ 12,664     $ 13,382     $ 38,374     $ 39,869  
                                 

Operating Income :

                                

Food Service

   $ 17,644     $ (18,242 )   $ 29,879     $ 7,743  

Retail Supermarket

     9,080       7,910       20,167       14,464  

Frozen Beverages

     11,420       (9,088 )     (4,094 )     (8,942 )

Total Operating Income (Loss)

   $ 38,144     $ (19,420 )   $ 45,952     $ 13,265  
                                 

Capital Expenditures:

                                

Food Service

   $ 10,383     $ 7,865     $ 25,915     $ 26,599  

Retail Supermarket

     93       390       194       1,625  

Frozen Beverages

     5,151       2,397       8,347       19,413  

Total Capital Expenditures

   $ 15,627     $ 10,652     $ 34,456     $ 47,637  
                                 

Assets:

                                

Food Service

   $ 779,730     $ 729,331     $ 779,730     $ 729,331  

Retail Supermarket

     33,405       33,766       33,405       33,766  

Frozen Beverages

     288,411       294,189       288,411       294,189  

Total Assets

   $ 1,101,546     $ 1,057,286     $ 1,101,546     $ 1,057,286