v3.25.2
Note 11 - Segment Information
 9 Months Ended
Jun. 28, 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:

 

   

Three months ended

    

Nine months ended

  
   

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June 29,

    

June 28,

    

June 29,

  
   

2025

    

2024

    

2025

    

2024

  
   

(unaudited)

    

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(in thousands)

    

(in thousands)

  

Sales to external customers:

                                

Food Service

                                

Soft pretzels

   $ 67,142     $ 59,529     $ 169,693     $ 163,985  

Frozen novelties

     52,804       51,701       104,764       100,464  

Churros

     26,269       30,269       76,803       89,155  

Handhelds

     21,281       21,300       67,348       62,851  

Bakery

     101,744       93,566       304,497       287,455  

Other

     7,930       8,081       19,001       19,135  

Total Food Service

   $ 277,170     $ 264,446     $ 742,106     $ 723,045  
                                 

Retail Supermarket

                                

Soft pretzels

   $ 11,482     $ 11,110     $ 44,565     $ 46,010  

Frozen novelties

     42,297       46,210       85,558       82,747  

Biscuits

     4,440       4,839       17,295       18,078  

Handhelds

     5,957       7,562       16,243       20,266  

Coupon redemption

     (506 )     (931 )     (1,409 )     (2,032 )

Other

     190       (67 )     173       303  

Total Retail Supermarket

   $ 63,860     $ 68,723     $ 162,425     $ 165,372  
                                 

Frozen Beverages

                                

Beverages

   $ 71,040     $ 72,092     $ 157,197     $ 158,708  

Repair and maintenance service

     24,378       23,748       72,232       71,538  

Machines revenue

     16,940       9,769       36,603       26,879  

Other

     905       1,179       2,427       2,457  

Total Frozen Beverages

   $ 113,263     $ 106,788     $ 268,459     $ 259,582  
                                 

Consolidated sales

   $ 454,293     $ 439,957     $ 1,172,990     $ 1,147,999  
                                 

Depreciation and amortization:

                                

Food Service

   $ 12,752     $ 12,130       36,639     $ 33,976  

Retail Supermarket

     289       396       855       1,448  

Frozen Beverages

     5,616       5,667       16,673       16,961  

Total depreciation and amortization

   $ 18,657     $ 18,193     $ 54,167     $ 52,385  
                                 

Operating income:

                                

Food Service

   $ 31,515     $ 20,247     $ 34,432     $ 34,194  

Retail Supermarket

     5,755       7,812       8,919       13,374  

Frozen Beverages

     23,327       22,057       29,508       30,135  

Total operating income

   $ 60,597     $ 50,116     $ 72,859     $ 77,703  
                                 

Capital expenditures:

                                

Food Service

   $ 16,764     $ 12,717     $ 43,268     $ 33,946  

Retail Supermarket

     44       -       189       2  

Frozen Beverages

     5,926       7,028       17,807       22,423  

Total capital expenditures

   $ 22,734     $ 19,745     $ 61,264     $ 56,371  
                                 

Assets:

                                

Food Service

   $ 1,010,849     $ 991,815     $ 1,010,849     $ 991,815  

Retail Supermarket

     33,116       36,719       33,116       36,719  

Frozen Beverages

     369,964       352,141       369,964       352,141  

Total assets

   $ 1,413,929     $ 1,380,675     $ 1,413,929     $ 1,380,675