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Note N - Segment Information
 12 Months Ended
Sep. 28, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE N – SEGMENT REPORTING

 

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. We have applied no aggregation criteria to any of these operating segments in order to determine reportable segments. 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 and casual dining restaurants; 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 and AUNTIE ANNE’S, frozen novelties including LUIGI’S Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, WHOLE FRUIT frozen fruit bars and sorbet, DOGSTERS ice cream style treats for dogs, 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

 

We sell frozen beverages to the foodservice industry primarily under the names ICEE, SLUSH PUPPIE and PARROT ICE in the United States, Mexico and Canada. We also provide repair and maintenance services to customers for customer-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:

 

   

September 28,

    

September 30,

    

September 24,

  
   

2024

    

2023

    

2022

  
   

(52 weeks)

    

(53 weeks)

    

(52 weeks)

  
   

(in thousands)

 

Sales to external customers:

                        

Food Service

                        

Soft pretzels

   $ 222,237     $ 235,572     $ 205,752  

Frozen novelties

     147,995       145,425       78,183  

Churros

     114,306       108,927       88,242  

Handhelds

     86,053       82,292       92,130  

Bakery

     387,129       378,149       381,526  

Other

     27,475       31,475       26,854  

Total Food Service

   $ 985,195     $ 981,840     $ 872,687  
                         

Retail Supermarket

                        

Soft pretzels

   $ 61,744     $ 60,272     $ 61,925  

Frozen novelties

     112,192       115,807       108,911  

Biscuits

     24,229       25,074       24,695  

Handhelds

     26,253       16,655       5,640  

Coupon redemption

     (3,162 )     (2,561 )     (3,713 )

Other

     52       181       485  

Total Retail Supermarket

   $ 221,308     $ 215,428     $ 197,943  
                         

Frozen Beverages

                        

Beverages

   $ 230,030     $ 224,655     $ 184,063  

Repair and maintenance service

     96,589       95,941       89,840  

Machines revenue

     38,188       37,933       33,601  

Other

     3,445       3,032       2,522  

Total Frozen Beverages

   $ 368,252     $ 361,561     $ 310,026  
                         

Consolidated sales

   $ 1,574,755     $ 1,558,829     $ 1,380,656  
                         

Depreciation and amortization:

                        

Food Service

     46,131       39,758     $ 29,807  

Retail Supermarket

     1,736       1,966       1,536  

Frozen Beverages

     22,734       21,417       21,780  

Total depreciation and amortization

   $ 70,601     $ 63,141     $ 53,123  
                         

Operating Income:

                        

Food Service

   $ 49,454     $ 49,778     $ 18,512  

Retail Supermarket

     16,632       9,375       9,487  

Frozen Beverages

     51,459       50,365       33,800  

Total operating income

   $ 117,545     $ 109,518     $ 61,799  
                         

Capital expenditures:

                        

Food Service

   $ 46,127     $ 79,388     $ 61,738  

Retail Supermarket

     21       1,824       8,885  

Frozen Beverages

     27,421       23,525       16,668  

Total capital expenditures

   $ 73,569     $ 104,737     $ 87,291  
                         

Assets:

                        

Food Service

   $ 971,600     $ 903,518     $ 893,045  

Retail Supermarket

     34,609       34,232       20,302  

Frozen Beverages

     358,892       339,486       303,619  

Total assets

   $ 1,365,101     $ 1,277,236     $ 1,216,966