v3.22.4
Segment Reporting
 6 Months Ended
Dec. 25, 2022
Segment Reporting [Abstract]  
Segment Reporting

Note H - Segment Reporting

The Company has three reportable operating segments as determined by management using the “management approach” as defined by ASC 280 Disclosures about Segments of an Enterprise and Related Information: (1) Pizza Inn Franchising, (2) Pie Five Franchising and (3) 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 three operating segments. Other revenue consists of nonrecurring items.

The Pizza Inn and Pie Five Franchising segments establish franchisees, licensees and territorial rights. Revenue for these segments are derived from franchise royalties, franchise fees, sale of area development and foreign master license rights, incentive payments from third party suppliers and distributors, advertising funds, and supplier convention funds. Assets for these segments include equipment, furniture and fixtures.

The Company-Owned Restaurants 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. As of December 25, 2022, the Company did not operate any 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 the three and six months ended December 25, 2022 and December 26, 2021 (in thousands):

   
Three Months Ended
    
Six Months Ended
  
   
December 25,
2022
    
December 26,
2021
    
December 25,
2022
    
December 26,
2021
  
Net sales and operating revenues:
                        
Pizza Inn Franchising
  
$
2,351
    
$
2,154
    
$
4,820
    
$
4,188
  
Pie Five Franchising
    
470
      
496
      
958
      
968
  
Company-Owned Restaurants
     —       —       —       —  
Corporate administration and other
    
45
      
46
      
93
      
93
  
Consolidated revenues
  
$
2,866
    
$
2,696
    
$
5,871
    
$
5,249
  
                                 
Depreciation and amortization:
                                
Corporate administration and other
  
$
53
    
$
48
    
$
104
    
$
92
  
Depreciation and amortization
  
$
53
    
$
48
    
$
104
    
$
92
  
                                 
Income before taxes:
                                
Pizza Inn Franchising   $ 1,695     $ 1,583     $ 3,206     $ 2,858  
Pie Five Franchising
    
259
      
283
      
503
      
528
  
Company-Owned Restaurants
    
—
   
(1
)
    
—
   
(2
)
Combined
    
1,954
      
1,865
      
3,709
      
3,384
  
Corporate administration and other
    
(1,466
)
    
(1,404
)
    
(2,822
)
    
(2,635
)
Income before taxes
  
$
488
    
$
461
    
$
887
    
$
749
  
                                 
Geographic information (revenues):
                                
United States
  
$
2,799
    
$
2,620
    
$
5,728
    
$
5,096
  
Foreign countries
    
67
      
76
      
143
      
153
  
Consolidated revenues
  
$
2,866
    
$
2,696
    
$
5,871
    
$
5,249