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Note 11 - Segment Information
 3 Months Ended
Dec. 24, 2022
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 11

Segment Information

 

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 below which is available to our Chief Operating Decision Maker.

 

Our 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 or for take-away.

 

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, DOGSTERS, 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 24,

    

December 25,

  
   

2022

    

2021

  
   

(unaudited)

  

 

  

(in thousands)

  
Sales to External Customers:                
Food Service                

Soft pretzels

   $ 52,223     $ 50,421  

Frozen novelties

     21,765       8,457  

Churros

     25,757       19,489  

Handhelds

     23,572       18,495  

Bakery

     108,948       107,831  

Other

     6,032       7,039  

Total Food Service

   $ 238,297     $ 211,732  
                 
Retail Supermarket                

Soft pretzels

   $ 14,485     $ 16,194  

Frozen novelties

     17,969       17,802  

Biscuits

     7,913       8,271  

Handhelds

     2,892       1,276  

Coupon redemption

     (176 )     (896 )

Other

     (10 )     48  

Total Retail Supermarket

   $ 43,073     $ 42,695  
                 
Frozen Beverages                

Beverages

   $ 38,659     $ 33,763  

Repair and maintenance service

     23,827       22,011  

Machines revenue

     7,011       7,847  

Other

     476       442  

Total Frozen Beverages

   $ 69,973     $ 64,063  
                 

Consolidated Sales

   $ 351,343     $ 318,490  
                 
Depreciation and Amortization:                

Food Service

   $ 9,458     $ 6,669  

Retail Supermarket

     391       366  

Frozen Beverages

     5,332       5,476  

Total Depreciation and Amortization

   $ 15,181     $ 12,511  
                 
Operating Income :                

Food Service

   $ 6,387     $ 9,001  

Retail Supermarket

     1,111       4,984  

Frozen Beverages

     1,830       860  

Total Operating Income

   $ 9,328     $ 14,845  
                 
Capital Expenditures:                

Food Service

   $ 24,862     $ 10,233  

Retail Supermarket

     1,374       2,529  

Frozen Beverages

     4,674       3,338  

Total Capital Expenditures

   $ 30,910     $ 16,100  
                 
Assets:                

Food Service

   $ 907,736     $ 794,819  

Retail Supermarket

     16,941       29,802  

Frozen Beverages

     302,871       287,285  

Total Assets

   $ 1,227,548     $ 1,111,906