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L. SEGMENT REPORTING

12 Months Ended

Jun. 25, 2017

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE L– SEGMENT REPORTING:

The Company has two reportable operating segments as determined by management using the “management approach” as defined by the authoritative guidance on Disclosures about Segments of an Enterprise and Related Information: (1) Franchising and Food and Supply Distribution, and (2) Company-owned Restaurants. These segments are a result of differences in the nature of the products and services sold. Corporate administration costs, which include, but are not limited to, general accounting, human resources, legal and credit and collections, are partially allocated to the two operating segments. Other revenue consists of nonrecurring items.

The Franchising and Food and Supply Distribution segment establishes franchisees and franchise territorial rights and sells and distributes proprietary and non-proprietary food and other items to franchisees. Revenue for this segment is derived from the sale of distributed products and franchise royalties, franchise fees and sale of area development and foreign master license rights. Assets for this segment include equipment, furniture and fixtures.

The Company-owned Restaurant segment includes sales and operating results for all Company-owned restaurants. Assets for this segment include equipment, furniture and fixtures for the Company-owned restaurants.

Corporate administration and other assets primarily include cash and short-term investments, as well as furniture and fixtures located at the corporate office and trademarks and other intangible assets. All assets are located within the United States.

Summarized in the following tables are net sales and operating revenues, depreciation and amortization expense, income from continuing operations before taxes, capital expenditures and assets for the Company's reportable segments as of and for the fiscal years ended June 25, 2017 and June 26, 2016 (in thousands):

<BTB>				Fiscal Year Ended
				June 25,		June 26,
				2017		2016
Net sales and operating revenues:
Franchising and food and supply distribution				$ 41,880		$ 40,324
Company-owned restaurants (1)				15,233		19,629
	Consolidated revenues			$ 57,113		$ 59,953

Depreciation and amortization:
Franchising and food and supply distribution				$ 11		$ 23
Company-owned restaurants (1)				1,987		2,458
	Combined			1,998		2,481
Corporate administration and other				458		241
	Depreciation and amortization			$ 2,456		$ 2,722

Loss from continuing operations before taxes
Franchising and food and supply distribution (2)				$ 2,294		$ 2,927
Company-owned restaurants (1) (2)				(3,797)		(4,293)
	Combined			(1,503)		(1,366)
Impairment of long-lived assets and other lease charges				(5,877)		(1,698)
Corporate administration and other (2)				(4,734)		(2,769)
	Loss from continuing operations before taxes			$ (12,114)		$ (5,833)

Capital Expenditures:
Franchising and food and supply distribution				$ -		$ -
Company-owned restaurants				337		7,497
Corporate administration				236		613
	Combined capital expenditures			$ 573		$ 8,110

Assets:
Franchising and food and supply distribution				$ 3,326		$ 3,187
Company-owned restaurants				3,346		12,817
Corporate administration				2,874		2,501
	Combined assets			$ 9,546		$ 18,505

(1)		Company stores that were closed are included in discontinued operations in the accompanying Condensed
		Consolidated Statement of Operations.

(2)		Portions of corporate administration and other have been allocated to segments.

The following table provides information on our foreign and domestic revenues:


Geographic information (revenues):
United States				$ 56,509		$ 59,402
Foreign countries				604		551
	Consolidated total			$ 57,113		$ 59,953