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Note 11
 9 Months Ended
Jun. 25, 2022
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 11

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

    

Nine Months Ended

  
   

June 25,

    

June 26,

    

June 25,

    

June 26,

  
   

2022

    

2021

    

2022

    

2021

  
                                 
                                 

Sales to external customers:

                                

Food Service

                                

Soft pretzels

   $ 55,946     $ 50,895     $ 149,628     $ 120,356  

Frozen novelties

     17,155       13,927       32,917       30,812  

Churros

     25,614       20,096       62,550       46,358  

Handhelds

     25,740       18,971       64,741       56,574  

Bakery

     95,495       85,706       287,293       257,580  

Other

     7,892       6,884       18,785       14,546  

Total Food Service

   $ 227,842     $ 196,479     $ 615,914     $ 526,226  
                                 

Retail Supermarket

                                

Soft pretzels

   $ 11,696     $ 11,193     $ 43,642     $ 40,871  

Frozen novelties

     41,865       36,898       78,586       71,600  

Biscuits

     6,066       4,562       20,024       18,717  

Handhelds

     1,589       1,191       3,934       6,215  

Coupon redemption

     (605 )     (513 )     (2,227 )     (2,196 )

Other

     397       526       501       1,652  

Total Retail Supermarket

   $ 61,008     $ 53,857     $ 144,460     $ 136,859  
                                 

Frozen Beverages

                                

Beverages

   $ 57,791     $ 42,279     $ 126,919     $ 76,663  

Repair and

                                

maintenance service

     22,892       22,789       65,903       59,903  

Machines revenue

     9,868       8,404       25,257       20,556  

Other

     826       536       1,777       1,312  

Total Frozen Beverages

   $ 91,377     $ 74,008     $ 219,856     $ 158,434  
                                 

Consolidated sales

   $ 380,227     $ 324,344     $ 980,230     $ 821,519  
                                 

Depreciation and amortization:

                                

Food Service

   $ 7,097     $ 6,817     $ 20,436     $ 20,334  

Retail Supermarket

     405       378       1,157       1,147  

Frozen Beverages

     5,514       5,469       16,474       16,893  

Total depreciation and amortization

   $ 13,016     $ 12,664     $ 38,067     $ 38,374  
                                 

Operating income:

                                

Food Service

   $ 2,640     $ 17,644     $ 12,177     $ 29,879  

Retail Supermarket

     2,341       9,080       8,416       20,167  

Frozen Beverages

     16,279       11,420       19,600       (4,094 )

Total operating income

   $ 21,260     $ 38,144     $ 40,193     $ 45,952  
                                 

Capital expenditures:

                                

Food Service

   $ 21,673     $ 10,383     $ 45,757     $ 25,915  

Retail Supermarket

     2,815       93       6,438       194  

Frozen Beverages

     4,437       5,151       12,036       8,347  

Total capital expenditures

   $ 28,925     $ 15,627     $ 64,231     $ 34,456  
                                 

Assets:

                                

Food Service

   $ 957,719     $ 779,730     $ 957,719     $ 779,730  

Retail Supermarket

     29,147       33,405       29,147       33,405  

Frozen Beverages

     304,376       288,411       304,376       288,411  

Total assets

   $ 1,291,242     $ 1,101,546     $ 1,291,242     $ 1,101,546