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Note 11 - Segment Information
 3 Months Ended
Dec. 28, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 11

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 below 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; 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 28,

    

December 30,

  
   

2024

    

2023

  

 

  

(in thousands)

  

Sales to External Customers:

                

Food Service

                

Soft pretzels

   $ 52,539     $ 50,128  

Frozen novelties

     23,118       21,050  

Churros

     25,472       28,061  

Handhelds

     23,703       22,047  

Bakery

     108,746       101,982  

Other

     5,305       5,341  

Total Food Service

   $ 238,883     $ 228,609  
                 

Retail Supermarket

                

Soft pretzels

   $ 17,078     $ 18,447  

Frozen novelties

     16,113       12,861  

Biscuits

     6,963       7,032  

Handhelds

     5,138       5,510  

Coupon redemption

     (528 )     (332 )

Other

     (47 )     241  

Total Retail Supermarket

   $ 44,717     $ 43,759  
                 

Frozen Beverages

                

Beverages

   $ 44,654     $ 41,950  

Repair and maintenance service

     23,639       24,559  

Machines revenue

     10,047       8,889  

Other

     658       542  

Total Frozen Beverages

   $ 78,998     $ 75,940  
                 

Consolidated Sales

   $ 362,598     $ 348,308  
                 

Depreciation and Amortization:

                

Food Service

   $ 11,948     $ 10,673  

Retail Supermarket

     283       527  

Frozen Beverages

     5,513       5,592  

Total Depreciation and Amortization

   $ 17,744     $ 16,792  
                 

Operating Income :

                

Food Service

   $ 1,672     $ 6,016  

Retail Supermarket

     392       452  

Frozen Beverages

     4,175       3,215  

Total Operating Income

   $ 6,239     $ 9,683  
                 

Capital Expenditures:

                

Food Service

   $ 12,607     $ 11,865  

Retail Supermarket

     25       2  

Frozen Beverages

     6,433       8,063  

Total Capital Expenditures

   $ 19,065     $ 19,930  
                 

Assets:

                

Food Service

   $ 973,260     $ 930,533  

Retail Supermarket

     34,459       36,219  

Frozen Beverages

     339,068       325,805  

Total Assets

   $ 1,346,787     $ 1,292,557