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Note 11 - Segment Information
 6 Months Ended
Mar. 29, 2025
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, DIPPIN’ DOTS Sundaes 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

   $ 50,012     $ 54,328     $ 102,551     $ 104,456  

Frozen novelties

     28,842       27,713       51,960       48,763  

Churros

     25,062       30,825       50,534       58,886  

Handhelds

     22,364       19,504       46,067       41,551  

Bakery

     94,007       91,907       202,753       193,889  

Other

     5,766       5,713       11,071       11,054  

Total Food Service

   $ 226,053     $ 229,990     $ 464,936     $ 458,599  
                                 

Retail Supermarket

                                

Soft pretzels

   $ 16,005     $ 16,453     $ 33,083     $ 34,900  

Frozen novelties

     27,148       23,676       43,261       36,537  

Biscuits

     5,892       6,207       12,855       13,239  

Handhelds

     5,148       7,194       10,286       12,704  

Coupon redemption

     (375 )     (769 )     (903 )     (1,101 )

Other

     30       129       (17 )     370  

Total Retail Supermarket

   $ 53,848     $ 52,890     $ 98,565     $ 96,649  
                                 

Frozen Beverages

                                

Beverages

   $ 41,503     $ 44,666     $ 86,157     $ 86,616  

Repair and maintenance service

     24,215       23,231       47,854       47,790  

Machines revenue

     9,616       8,221       19,663       17,110  

Other

     864       736       1,522       1,278  

Total Frozen Beverages

   $ 76,198     $ 76,854     $ 155,196     $ 152,794  
                                 

Consolidated sales

   $ 356,099     $ 359,734     $ 718,697     $ 708,042  
                                 

Depreciation and amortization:

                                

Food Service

   $ 11,939     $ 11,173       23,887     $ 21,846  

Retail Supermarket

     283       525       566       1,052  

Frozen Beverages

     5,544       5,702       11,057       11,294  

Total depreciation and amortization

   $ 17,766     $ 17,400     $ 35,510     $ 34,192  
                                 

Operating income:

                                

Food Service

   $ 1,245     $ 7,931     $ 2,917     $ 13,947  

Retail Supermarket

     2,772       5,110       3,164       5,562  

Frozen Beverages

     2,006       4,863       6,181       8,078  

Total operating income

   $ 6,023     $ 17,904     $ 12,262     $ 27,587  
                                 

Capital expenditures:

                                

Food Service

   $ 13,897     $ 9,364     $ 26,504     $ 21,229  

Retail Supermarket

     120       -       145       2  

Frozen Beverages

     5,448       7,332       11,881       15,395  

Total capital expenditures

   $ 19,465     $ 16,696     $ 38,530     $ 36,626  
                                 

Assets:

                                

Food Service

   $ 974,822     $ 963,870     $ 974,822     $ 963,870  

Retail Supermarket

     35,233       36,650       35,233       36,650  

Frozen Beverages

     347,542       335,086       347,542       335,086  

Total assets

   $ 1,357,597     $ 1,335,606     $ 1,357,597     $ 1,335,606