v3.25.2
Business Segment Information
 12 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information
Our financial results are presented as two reportable segments: Retail and Foodservice. Costs that are directly attributable to either Retail or Foodservice are charged directly to the appropriate segment. Costs that are deemed to be indirect, excluding corporate expenses and other unusual significant transactions, are allocated to the two reportable segments using a reasonable methodology that is consistently applied.
Retail - The vast majority of the products we sell in the Retail segment are sold through sales personnel, food brokers and distributors in the United States. We have products typically marketed in the shelf-stable section of the grocery store, which include licensed sauces and dressings, along with our own branded salad dressings and croutons. Within the frozen food section of the grocery store, we sell yeast rolls and garlic breads. We also have placement of products in grocery produce departments through our refrigerated salad dressings, licensed dressings, vegetable dips and fruit dips.
Foodservice - The vast majority of the products we sell in the Foodservice segment are sold through sales personnel, food brokers and distributors in the United States. Most of the products we sell in the Foodservice segment are custom-formulated sauces, salad dressings, frozen breads and yeast rolls. The majority of our Foodservice sales are products sold under private label to national chain restaurant accounts. We also manufacture and sell various branded Foodservice products to distributors. Finally, within this segment, for a period of up to twelve months commencing in March 2025, we are manufacturing and selling certain salad dressing and sauce products under a temporary supply agreement (“TSA”) resulting from the Atlanta plant acquisition.
Our Chief Operating Decision Maker (“CODM”) is our Chief Executive Officer. Our CODM evaluates segment performance based on net sales and operating income. On a monthly basis, our CODM reviews results in comparison to the annual operating plan (“AOP”), the latest forecast and prior-year results. Resource allocation decisions are primarily made through the forecasting process, including development of the AOP. As many of our products are similar between our two segments, our procurement, manufacturing, warehousing and distribution activities are substantially integrated across our operations in order to maximize efficiency and productivity. Consequently, we do not prepare, and our CODM does not review, separate balance sheets or property additions for the reportable segments. As such, our external reporting does not include the presentation of identifiable assets or depreciation and amortization separately by reportable segment.
The following table sets forth net sales disaggregated by class of similar products for the Retail and Foodservice segments in each of the years ended June 30:
202520242023
Retail
Shelf-stable dressings, sauces and croutons$431,197 $424,605 $422,646 
Frozen breads380,601 351,063 343,450 
Refrigerated dressings, dips and other191,611 212,756 199,274 
Total Retail net sales$1,003,409 $988,424 $965,370 
Foodservice
Dressings and sauces$664,013 $660,460 $642,153 
Frozen breads and other227,463 222,875 215,004 
Other dressings and sauces for TSA14,237 — — 
Total Foodservice net sales$905,713 $883,335 $857,157 
Total net sales$1,909,122 $1,871,759 $1,822,527 
The following table provides an additional disaggregation of Foodservice net sales by type of customer in each of the years ended June 30:
 202520242023
Foodservice
National accounts$693,583 $692,340 $676,665 
Branded and other197,893 190,995 180,492 
Other dressings and sauces for TSA14,237 — — 
Total Foodservice net sales$905,713 $883,335 $857,157 
The following tables provide financial information attributable to our reportable segments, including significant segment expenses, as well as certain amounts not allocated among our reportable segments. Net sales are predominately domestic. All intercompany transactions have been eliminated. Nonallocated corporate expenses include various expenses of a general corporate nature, costs related to certain divested or closed nonfood operations, and expenditures in 2024 and 2023 for Project Ascent.
For The Year Ended June 30, 2025
RetailFoodserviceTotal
Net Sales$1,003,409 $905,713 $1,909,122 
Cost of Sales700,254 753,222 
Selling, General and Administrative Expenses91,460 40,912 
Total Segment Operating Income$211,695 $111,579 $323,274 
Nonallocated Corporate Expenses97,855 
Nonallocated Restructuring and Impairment Charges (1)
5,102 
Operating Income$220,317 
Pension Settlement Charge(13,968)
Other, Net7,114 
Income Before Income Taxes$213,463 
(1)Nonallocated restructuring and impairment charges in 2025 resulted from our decision to close our Milpitas, California sauce and dressing manufacturing facility, as well as our decision to transition our internal transportation fleet operation to an external dedicated carrier.
For The Year Ended June 30, 2024
RetailFoodserviceTotal
Net Sales$988,424 $883,335 $1,871,759 
Cost of Sales690,247 749,210 
Selling, General and Administrative Expenses90,517 37,031 
Total Segment Operating Income$207,660 $97,094 $304,754 
Nonallocated Corporate Expenses90,517 
Nonallocated Restructuring and Impairment Charges (1)
14,874 
Operating Income$199,363 
Other, Net6,152 
Income Before Income Taxes$205,515 
(1)Nonallocated restructuring and impairment charges in 2024 resulted from our decision to exit our perimeter-of-the-store bakery product lines.
For The Year Ended June 30, 2023
RetailFoodserviceTotal
Net Sales$965,370 $857,157 $1,822,527 
Cost of Sales718,878 715,081 
Selling, General and Administrative Expenses82,059 35,727 
Restructuring and Impairment Charges (1)
24,969 — 
Total Segment Operating Income$139,464 $106,349 $245,813 
Nonallocated Corporate Expenses104,305 
Operating Income$141,508 
Other, Net1,789 
Income Before Income Taxes$143,297 
(1)Restructuring and impairment charges in 2023 related to the intangible assets of Flatout due to lowered expectations for the projected sales and profitability of the Flatout product lines that we subsequently exited in 2024. These charges were reflected in our Retail segment.
The following table sets forth reconciliations of our reportable segments’ total identifiable assets to the consolidated totals as of June 30 and our reportable segments’ total depreciation and amortization expenses to the consolidated totals for each of the years ended June 30:
202520242023
Identifiable Assets (1)
Retail & Foodservice (2)
$1,083,381 $1,015,454 $984,341 
Corporate191,343 191,477 128,653 
Total$1,274,724 $1,206,931 $1,112,994 
Depreciation and Amortization
Retail & Foodservice (2)
$57,095 $51,386 $47,001 
Corporate5,073 4,510 4,209 
Total$62,168 $55,896 $51,210 
(1)Long-lived assets are predominately domestic. Retail and Foodservice identifiable assets include those assets used in our operations and other intangible assets allocated to purchased businesses, most notably goodwill. The increase in Retail and Foodservice identifiable assets from June 30, 2024 to June 30, 2025 reflects the acquisition of the Atlanta plant. The increase in Retail and Foodservice identifiable assets from June 30, 2023 to June 30, 2024 reflected a new operating lease right-of-use asset for a warehouse in Union City, Georgia. Corporate assets consist principally of cash and equivalents. The increase in Corporate assets from June 30, 2023 to June 30, 2024 reflected higher cash and equivalents.
(2)As discussed above, we do not present identifiable assets or depreciation and amortization separately by reportable segment.
Our relationship with Chick-fil-A, Inc. (“Chick-fil-A”), one of our national chain restaurant accounts, represents a significant portion of our consolidated net sales. In Foodservice, we primarily supply Chick-fil-A indirectly through multiple distributors with the remainder supplied directly to Chick-fil-A. None of these individual customers amounts to more than 10% of our consolidated net sales. Chick-fil-A is also a significant contributor to our Retail sales as we sell their sauce and dressing products into the retail channel through an exclusive license agreement. Retail segment net sales attributed to Walmart also represent a significant portion of our consolidated net sales. Total net sales attributable to Chick-fil-A, including the Retail sales resulting from the exclusive license agreement and the Foodservice sales, and Retail segment net sales attributable to Walmart for each of the years ended June 30 were as follows:
202520242023
Net sales attributable to Chick-fil-A$548,222 $519,818 $480,973 
As a percentage of consolidated net sales29 %28 %26 %
Net sales attributable to Walmart$367,274 $338,764 $323,718 
As a percentage of consolidated net sales19 %18 %18 %