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Note 10 - Segment Information
 9 Months Ended
Jun. 29, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 10

Segment Information

 

Our reportable segments are Food Service, Retail Supermarkets and Frozen Beverages. 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. 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; 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, 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:

 

   

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Sales to external customers:

                                

Food Service

                                

Soft pretzels

   $ 59,529     $ 63,527     $ 163,985     $ 171,242  

Frozen novelties

     51,701       47,410       100,464       95,782  

Churros

     30,269       30,470       89,155       81,147  

Handhelds

     21,300       17,003       62,851       60,884  

Bakery

     93,566       87,582       287,455       281,830  

Other

     8,081       8,988       19,135       20,673  

Total Food Service

   $ 264,446     $ 254,980     $ 723,045     $ 711,558  
                                 

Retail Supermarket

                                

Soft pretzels

   $ 11,110     $ 10,269     $ 46,010     $ 40,767  

Frozen novelties

     46,210       41,684       82,747       80,423  

Biscuits

     4,839       5,135       18,078       18,906  

Handhelds

     7,562       4,452       20,266       11,443  

Coupon redemption

     (931 )     (385 )     (2,032 )     (936 )

Other

     (67 )     (5 )     303       (20 )

Total Retail Supermarket

   $ 68,723     $ 61,150     $ 165,372     $ 150,583  
                                 

Frozen Beverages

                                

Beverages

   $ 72,092     $ 72,878     $ 158,708     $ 153,336  

Repair and maintenance service

     23,748       24,144       71,538       70,556  

Machines revenue

     9,769       11,554       26,879       26,817  

Other

     1,179       1,063       2,457       2,116  

Total Frozen Beverages

   $ 106,788     $ 109,639     $ 259,582     $ 252,825  
                                 

Consolidated sales

   $ 439,957     $ 425,769     $ 1,147,999     $ 1,114,966  
                                 

Depreciation and amortization:

                                

Food Service

   $ 12,130     $ 9,797     $ 33,976     $ 28,852  

Retail Supermarket

     396       540       1,448       1,423  

Frozen Beverages

     5,667       5,426       16,961       16,109  

Total depreciation and amortization

   $ 18,193     $ 15,763     $ 52,385     $ 46,384  
                                 

Operating Income:

                                

Food Service

   $ 20,247     $ 20,786     $ 34,194     $ 32,306  

Retail Supermarket

     7,812       4,168       13,374       5,766  

Frozen Beverages

     22,057       23,340       30,135       29,743  

Total operating income

   $ 50,116     $ 48,294     $ 77,703     $ 67,815  
                                 

Capital expenditures:

                                

Food Service

   $ 12,717     $ 20,015     $ 33,946     $ 58,621  

Retail Supermarket

     -       345       2       1,824  

Frozen Beverages

     7,028       6,988       22,423       16,027  

Total capital expenditures

   $ 19,745     $ 27,348     $ 56,371     $ 76,472  
                                 

Assets:

                                

Food Service

   $ 991,815     $ 959,657     $ 991,815     $ 959,657  

Retail Supermarket

     36,719       12,327       36,719       12,327  

Frozen Beverages

     352,141       332,113       352,141       332,113  

Total assets

   $ 1,380,675     $ 1,304,097     $ 1,380,675     $ 1,304,097