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Note 9
 3 Months Ended
Dec. 25, 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 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

 
  

December 25,

  

December 26,

 
  

2021

  

2020

 

 

 (unaudited) 
  (in thousands) 

Sales to External Customers:

        

Food Service

        

Soft pretzels

 $50,421  $32,687 

Frozen novelties

  8,457   6,295 

Churros

  19,489   11,542 

Handhelds

  18,495   17,611 

Bakery

  107,831   88,964 

Other

  7,039   3,326 

Total Food Service

 $211,732  $160,425 
         

Retail Supermarket

        

Soft pretzels

 $16,194  $13,888 

Frozen novelties

  17,802   15,316 

Biscuits

  8,271   7,660 

Handhelds

  1,276   2,780 

Coupon redemption

  (896)  (1,075)

Other

  48   525 

Total Retail Supermarket

 $42,695  $39,094 
         

Frozen Beverages

        

Beverages

 $33,763  $15,855 

Repair and maintenance service

  22,011   18,896 

Machines revenue

  7,847   6,489 

Other

  442   238 

Total Frozen Beverages

 $64,063  $41,478 
         

Consolidated Sales

 $318,490  $240,997 
         

Depreciation and Amortization:

        

Food Service

 $6,669  $6,786 

Retail Supermarket

  366   386 

Frozen Beverages

  5,476   5,776 

Total Depreciation and Amortization

 $12,511  $12,948 
         

Operating Income :

        

Food Service

 $9,001  $6,180 

Retail Supermarket

  4,984   4,723 

Frozen Beverages

  860   (10,325)

Total Operating Income

 $14,845  $578 
         

Capital Expenditures:

        

Food Service

 $10,233  $8,286 

Retail Supermarket

  2,529   21 

Frozen Beverages

  3,338   1,369 

Total Capital Expenditures

 $16,100  $9,676 
         

Assets:

        

Food Service

 $794,819  $744,277 

Retail Supermarket

  29,802   31,668 

Frozen Beverages

  287,285   275,898 

Total Assets

 $1,111,906  $1,051,843