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Note 10 - Segment Information
 3 Months Ended
Dec. 30, 2023
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 10

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 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:

 

   

Three months ended

  
   

December 30,

    

December 24,

  
   

2023

    

2022

  

 

  

(in thousands)

  

Sales to External Customers:

                

Food Service

                

Soft pretzels

   $ 50,128     $ 52,223  

Frozen novelties

     21,050       21,765  

Churros

     28,061       25,757  

Handhelds

     22,047       23,572  

Bakery

     101,982       108,948  

Other

     5,341       6,032  

Total Food Service

   $ 228,609     $ 238,297  
                 

Retail Supermarket

                

Soft pretzels

   $ 18,447     $ 14,485  

Frozen novelties

     12,861       17,969  

Biscuits

     7,032       7,913  

Handhelds

     5,510       2,892  

Coupon redemption

     (332 )     (176 )

Other

     241       (10 )

Total Retail Supermarket

   $ 43,759     $ 43,073  
                 

Frozen Beverages

                

Beverages

   $ 41,950     $ 38,659  

Repair and maintenance service

     24,559       23,827  

Machines revenue

     8,889       7,011  

Other

     542       476  

Total Frozen Beverages

   $ 75,940     $ 69,973  
                 

Consolidated Sales

   $ 348,308     $ 351,343  
                 

Depreciation and Amortization:

                

Food Service

   $ 10,673     $ 9,458  

Retail Supermarket

     527       391  

Frozen Beverages

     5,592       5,332  

Total Depreciation and Amortization

   $ 16,792     $ 15,181  
                 

Operating Income :

                

Food Service

   $ 6,016     $ 6,387  

Retail Supermarket

     452       1,111  

Frozen Beverages

     3,215       1,830  

Total Operating Income

   $ 9,683     $ 9,328  
                 

Capital Expenditures:

                

Food Service

   $ 11,865     $ 24,862  

Retail Supermarket

     2       1,374  

Frozen Beverages

     8,063       4,674  

Total Capital Expenditures

   $ 19,930     $ 30,910  
                 

Assets:

                

Food Service

   $ 930,533     $ 907,736  

Retail Supermarket

     36,219       16,941  

Frozen Beverages

     325,805       302,871  

Total Assets

   $ 1,292,557     $ 1,227,548