v3.25.1
Note I - Segment Information
 12 Months Ended
Mar. 30, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE I – SEGMENT INFORMATION

 

Nathan’s considers itself to be a brand marketer of the Nathan’s Famous signature products to the foodservice industry pursuant to its various business structures. Nathan’s sells its products directly to consumers through its Restaurant Operations segment consisting of Company-owned and franchised restaurants, including virtual kitchens, to distributors that resell our products to the foodservice industry through the Branded Product Program and by third party manufacturers pursuant to license agreements that sell our products to supermarkets, club stores and grocery stores nationwide.

 

The Company’s Chief Executive Officer has been identified as the Chief Operating Decision Maker (“CODM”) who regularly reviews operating results, evaluates performance and allocates resources for the Branded Product Program, Product Licensing and Restaurant Operations segments based upon a number of factors, the primary profit measure being income from operations as reported on the Consolidated Statement of Earnings. The CODM regularly reviews revenues, gross profit and income from operations by segment when evaluating the financial performance of each segment. Significant segment expenses are monitored by the CODM and included in the tables below. Segment asset information is not used by the CODM to assess performance and allocate resources and therefore is not presented. Certain administrative expenses are not allocated to the segments and are reported within the Corporate segment.

 

Branded Product Program – This segment derives revenue principally from the sale of hot dog products either directly to foodservice operators or to various foodservice distributors who resell the products to foodservice operators.

 

Product licensing – This segment derives revenue, primarily in the form of royalties, from licensing a broad variety of Nathan’s Famous branded products, including our hot dogs, frozen crinkle-cut French fries and additional products through retail supermarkets, grocery channels and club stores throughout the United States.

 

Restaurant operations – This segment derives revenue from the sale of our products at Company-owned restaurants and earns fees and royalties from its franchised restaurants, including its virtual kitchens.

 

Revenues from operating segments are from transactions with unaffiliated third parties and do not include any intersegment revenues.

 

Interest expense, loss on debt extinguishment, interest and dividend income and other income, net, are managed centrally at the corporate level, and, accordingly, such items are not presented by segment since they are excluded from the measure of profitability reviewed by the CODM.

 

The following tables summarize segment information and reconcile our segment results to our consolidated results as reported on our Consolidated Statement of Earnings:

 

March 30, 2025

  

Branded

Product

Program

    

Product

Licensing

    

Restaurant

Operations

    

Corporate

    

Total

  
                                         

Revenues

     91,828       37,418       16,862       2,074       148,182  

Less:

                                        

Cost of sales

     82,461       -       7,246       -       89,707  

Segment gross profit

     9,367       37,418       9,616       2,074       58,475  

Less (1):

                                        

Restaurant operating expenses (2)

     -       -       4,379       -       4,379  

Department expenses (3)

     956       182       713       410       2,261  

Other general and administration expenses (4)

     -       -       -       6,204       6,204  

Payroll expense

     1,127       -       1,457       3,481       6,065  

Depreciation and amortization

     148       -       636       173       957  

Advertising fund expense

     -       -       -       2,112       2,112  

Income from operations

     7,136       37,236       2,431       (10,306 )     36,497  

Interest expense

     -       -       -       (4,106 )     (4,106 )

Loss on debt extinguishment

     -       -       -       (389 )     (389 )

Interest and dividend income

     -       -       -       672       672  

Other income, net

     -       -       87       -       87  

Income before provision for income taxes

     7,136       37,236       2,518       (14,129 )     32,761  

 

March 31, 2024

  

Branded

Product

Program

    

Product

Licensing

    

Restaurant

Operations

    

Corporate

    

Total

  
                                         

Revenues

     86,489       33,581       16,459       2,081       138,610  

Less:

                                        

Cost of sales

     75,966       -       7,216       -       83,182  

Segment gross profit

     10,523       33,581       9,243       2,081       55,428  

Less (1):

                                        

Restaurant operating expenses (2)

     -       -       4,177       -       4,177  

Department expenses (3)

     944       182       1,062       403       2,591  

Other general and administration expenses (4)

     -       -       -       5,783       5,783  

Payroll expense

     1,151       -       1,643       4,444       7,238  

Depreciation and amortization

     144       -       700       291       1,135  

Advertising fund expense

     -       -       -       1,998       1,998  

Income from operations

     8,284       33,399       1,661       (10,838 )     32,506  

Interest expense

     -       -       -       (5,355 )     (5,355 )

Loss on debt extinguishment

     -       -       -       (169 )     (169 )

Interest and dividend income

     -       -       -       383       383  

Other income, net

     -       -       86       -    

 86

  

Income before provision for income taxes

     8,284       33,399       1,747       (15,979 )     27,451  

 

 

(1)

The significant expense categories and amounts align with segment-level information that is regularly provided to the CODM.
 

(2)

Includes occupancy expenses, insurance expenses, utility costs, repair and maintenance expense and other Company-owned restaurant expenses.
 

(3)

Includes travel expense, marketing and trade show expense and certain other overhead expenses.
 

(4)

Includes incentive compensation expense, share-based compensation expense, professional fees, occupancy expenses, provision for credit losses and certain other overhead expenses.