XML 39 R25.htm IDEA: XBRL DOCUMENT v3.25.3
Note M - Segment Reporting
 12 Months Ended
Sep. 27, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE M – SEGMENT REPORTING

 

Our financial results are presented as three reportable segments: Food Service, Retail Supermarkets and Frozen Beverages. 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.

 

 

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.

 

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, who is our Chief Executive Officer. We have applied no aggregation criteria to any of these operating segments in order to determine reportable segments. All inter-segment net sales and expenses have been eliminated in computing net sales and operating income.

 

Our Chief Operating Decision Maker 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 when determining each segment and the company’s financial condition and operating performance.

 

 

Significant expenses are expenses which are regularly provided to the Chief Operating Decision Maker and are included in segment operating income. These consist of cost of sales, marketing and selling expenses, distribution expenses, administrative expenses, intangible asset impairment charges, and other general expenses. Cost of sales includes raw materials, direct labor and plant overhead costs. Distribution expenses include costs associated with the transportation of our product to customers. Marketing and selling expenses include costs to execute sales to customers, and costs related to the selling, marketing, advertising and promotional activities. Administrative expenses include costs that are not directly tied to the manufacturing, distribution, or marketing and selling of our products.

 

Costs that are directly attributable to our Food Service, Retail Supermarkets, or Frozen Beverages segments are charged directly to the appropriate segment. Costs that are deemed to be indirect, excluding unallocated corporate expenses and other unusual significant transactions such as gain on insurance proceeds received for damage to property, plant and equipment, and plant closure expenses, are allocated to the three reportable segments using a reasonable methodology that is consistently applied.

 

To align with how our Chief Operating Decision Maker currently reviews the monthly detailed operating income statements, we have reclassified certain corporate expenses that are not allocated to our three reportable segments.  This change in presentation resulted in an increase to our Food Service segment operating income of $24.8 million, to our Retail segment operating income of $2.6 million, and to our Frozen Beverages segment of $1.5 million in fiscal 2024, respectively, and an increase to our Food Service segment operating income of $23.0 million, to our Retail segment operating income of $2.4 million, and to our Frozen Beverages segment of $1.5 million in fiscal 2023, respectively, with the corresponding impacts of the presentation change seen within General corporate expenses in the table below. 

 

In addition, the Chief Operating Decision Maker reviews and evaluates capital spending of each segment on a quarterly basis to monitor cash flow and asset needs of each segment. Additionally, our Chief Operating Decision Maker considers variances of actual performance to our annual operating plan and periodic forecasts when making decisions.

 

Information regarding the operations in these three reportable segments is as follows:

 

   

For the year ended September 27, 2025

  
   

(in thousands)

  
   

Food

    

Retail

    

Frozen

          
   

Service

    

Supermarket

    

Beverages

    

Total

  

Net sales to external customers

   $ 1,001,361     $ 213,809     $ 368,063     $ 1,583,233  
                                 

Less:

                                

Cost of goods sold

     718,075       152,953       242,323       1,113,351  

Segment gross profit

     283,286       60,856       125,740       469,882  
                                 

Marketing and selling

     67,695       18,607       37,304       123,606  

Distribution

     117,874       25,246       25,185       168,305  

Administrative

     31,313       2,928       13,682       47,923  
Intangible asset impairment charges     1,500       757       -       2,257  

Other general expense

     110       -       40       150  

Segment operating income

     64,794       13,318       49,529       127,641  
                                 

General corporate expenses

                             29,864  

Gain on insurance proceeds received for damage to property, plant, and equipment

                             (10,622 )

Plant closure expense

                             24,073  

Operating income

                           $ 84,326  

 

   

For the year ended September 28, 2024

  
   

(in thousands)

  
   

Food

    

Retail

    

Frozen

          
   

Service

    

Supermarket

    

Beverages

    

Total

  

Net sales to external customers

   $ 985,195     $ 221,308     $ 368,252     $ 1,574,755  
                                 

Less:

                                

Cost of goods sold

     696,139       155,580       236,911       1,088,630  

Segment gross profit

     289,056       65,728       131,341       486,125  
                                 

Marketing and selling

     64,070       18,622       36,113       118,805  

Distribution

     123,373       25,718       26,510       175,601  

Administrative

     27,851       2,196       15,867       45,914  
Intangible asset impairment charges     -       -       -       -  

Other general expense

     (452 )     -       (145 )     (597 )

Segment operating income

     74,214       19,192       52,996       146,402  
                                 

General corporate expenses

                             28,857  

Gain on insurance proceeds received for damage to property, plant, and equipment

                             -  

Plant closure expense

                             -  

Operating income

                           $ 117,545  

 

   

For the year ended September 30, 2023

  
   

(in thousands)

  
   

Food

    

Retail

    

Frozen

          
   

Service

    

Supermarket

    

Beverages

    

Total

  

Net sales to external customers

   $ 981,840     $ 215,428     $ 361,561     $ 1,558,829  
                                 

Less:

                                

Cost of goods sold

     698,603       154,504       235,857       1,088,964  

Segment gross profit

     283,237       60,924       125,704       469,865  
                                 

Marketing and selling

     55,929       18,523       35,806       110,258  

Distribution

     120,106       28,164       24,534       172,804  

Administrative

     32,662       2,354       13,480       48,496  
Intangible asset impairment charges     1,678       -       -       1,678  

Other general expense

     53       88       41       182  

Segment operating income

     72,809       11,795       51,843       136,447  
                                 

General corporate expenses

                             26,929  

Gain on insurance proceeds received for damage to property, plant, and equipment

                             -  

Plant closure expense

                             -  

Operating income

                           $ 109,518  

 

Total depreciation and amortization expense, capital expenditures, and total assets by segment, reflecting our current segment structure for all periods presented, were:

 

   

September 27,

    

September 28,

    

September 30,

  
   

2025

    

2024

    

2023

  
   

(52 weeks)

    

(52 weeks)

    

(53 weeks)

  
   

(in thousands)

  

Depreciation and amortization:

                        

Food Service

   $ 48,099     $ 44,280     $ 37,777  

Retail Supermarket

     1,145       1,736       1,966  

Frozen Beverages

     22,244       22,734       21,417  

Corporate

     1,844       1,851       1,981  

Total depreciation and amortization

   $ 73,332     $ 70,601     $ 63,141  
                         

Capital expenditures:

                        

Food Service

   $ 59,321     $ 45,535     $ 78,829  

Retail Supermarket

     303       21       1,824  

Frozen Beverages

     23,176       27,421       23,525  

Corporate

     73       592       559  

Total capital expenditures

   $ 82,873     $ 73,569     $ 104,737  
                         

Assets:

                        

Food Service

   $ 961,092     $ 954,747     $ 885,017  

Retail Supermarket

     30,327       34,609       34,232  

Frozen Beverages

     364,473       358,892       339,486  

Corporate

     25,609       16,853       18,501  

Total assets

   $ 1,381,501     $ 1,365,101     $ 1,277,236  

 

 

Geographic data for net sales (recognized in the countries where products were sold from) and total assets were:

 

   

September 27,

    

September 28,

    

September 30,

  
   

2025

    

2024

    

2023

  
   

(52 weeks)

    

(52 weeks)

    

(53 weeks)

  
   

(in thousands)

  

Net sales to external customers:

                        

United States

   $ 1,513,585     $ 1,501,326     $ 1,488,622  

Other

     69,648       73,429       70,207  

Total net sales to external customers

   $ 1,583,233     $ 1,574,755     $ 1,558,829  
                         
                         

Assets:

                        

United States

   $ 1,302,387     $ 1,297,531     $ 1,215,744  

Other

     79,114       67,570       61,492  

Total assets

   $ 1,381,501     $ 1,365,101     $ 1,277,236  

 

Net sales by product category, reflecting our current segment structure for all periods presented, were:

 

   

September 27,

    

September 28,

    

September 30,

  
   

2025

    

2024

    

2023

  
   

(52 weeks)

    

(52 weeks)

    

(53 weeks)

  
   

(in thousands)

  

Sales to external customers:

                        

Food Service

                        

Soft pretzels

   $ 230,070     $ 222,237     $ 235,572  

Frozen novelties

     149,884       147,995       145,425  

Churros

     97,867       114,306       108,927  

Handhelds

     92,018       86,053       82,292  

Bakery

     405,909       387,129       378,149  

Other

     25,613       27,475       31,475  

Total Food Service

   $ 1,001,361     $ 985,195     $ 981,840  
                         

Retail Supermarket

                        

Soft pretzels

   $ 61,713     $ 61,744     $ 60,272  

Frozen novelties

     110,286       112,192       115,807  

Biscuits

     23,123       24,229       25,074  

Handhelds

     21,578       26,253       16,655  

Coupon redemption

     (2,707 )     (3,162 )     (2,561 )

Other

     (184 )     52       181  

Total Retail Supermarket

   $ 213,809     $ 221,308     $ 215,428  
                         

Frozen Beverages

                        

Beverages

   $ 219,312     $ 230,030     $ 224,655  

Repair and maintenance service

     97,392       96,589       95,941  

Machines revenue

     47,807       38,188       37,933  

Other

     3,552       3,445       3,032  

Total Frozen Beverages

   $ 368,063     $ 368,252     $ 361,561  
                         

Consolidated sales

   $ 1,583,233     $ 1,574,755     $ 1,558,829