Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jun. 25, 2022 | Jul. 29, 2022 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000785956 | |
Entity Registrant Name | J&J SNACK FOODS CORP | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-25 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 25, 2022 | |
Document Transition Report | false | |
Entity File Number | 0-14616 | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-1935537 | |
Entity Address, Address Line One | 6000 Central Highway | |
Entity Address, City or Town | Pennsauken | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08109 | |
City Area Code | 856 | |
Local Phone Number | 665-9533 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | JJSF | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 19,192,251 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 25, 2022 | Sep. 25, 2021 |
Current assets | ||
Cash and cash equivalents | $ 81,283 | $ 283,192 |
Marketable securities held to maturity | 4,520 | 7,980 |
Accounts receivable, net | 253,469 | 162,939 |
Inventories | 173,948 | 123,160 |
Prepaid expenses and other | 10,519 | 7,498 |
Total current assets | 523,739 | 584,769 |
Property, plant and equipment, at cost | ||
Land | 3,714 | 2,494 |
Buildings | 34,742 | 26,582 |
Plant machinery and equipment | 367,297 | 343,716 |
Marketing equipment | 266,915 | 258,624 |
Transportation equipment | 11,780 | 10,315 |
Office equipment | 45,518 | 34,648 |
Improvements | 47,922 | 45,578 |
Construction in progress | 54,537 | 35,285 |
Total Property, plant and equipment, at cost | 832,425 | 757,242 |
Less accumulated depreciation and amortization | 513,851 | 490,055 |
Property, plant and equipment, net | 318,574 | 267,187 |
Other assets | ||
Balance at June 25, 2022 | 188,467 | 121,833 |
Other intangible assets, net | 196,407 | 77,776 |
Marketable securities held to maturity | 0 | 4,047 |
Marketable securities available for sale | 5,608 | 10,084 |
Operating lease right-of-use assets | 54,990 | 54,555 |
Other | 3,457 | 1,968 |
Total other assets | 448,929 | 270,263 |
Total Assets | 1,291,242 | 1,122,219 |
Current Liabilities | ||
Current finance lease liabilities | 189 | 182 |
Accounts payable | 128,551 | 96,789 |
Accrued insurance liability | 14,892 | 16,260 |
Accrued liabilities | 10,121 | 10,955 |
Current operating lease liabilities | 14,062 | 13,395 |
Accrued compensation expense | 19,038 | 17,968 |
Dividends payable | 12,138 | 12,080 |
Total current liabilities | 198,991 | 167,629 |
Long-term debt | 125,000 | 0 |
Noncurrent finance lease liabilities | 318 | 392 |
Noncurrent operating lease liabilities | 46,017 | 46,557 |
Deferred income taxes | 61,350 | 61,578 |
Other long-term liabilities | 3,667 | 409 |
Stockholders' Equity | ||
Preferred stock, $1 par value; authorized 10,000,000 shares; none issued | 0 | 0 |
Common stock, no par value; authorized, 50,000,000 shares; issued and outstanding 19,184,000 and 19,084,000 respectively | 90,274 | 73,597 |
Accumulated other comprehensive loss | (13,374) | (13,383) |
Retained Earnings | 778,999 | 785,440 |
Total stockholders' equity | 855,899 | 845,654 |
Total Liabilities and Stockholders' Equity | $ 1,291,242 | $ 1,122,219 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jun. 25, 2022 | Sep. 25, 2021 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 19,184,000 | 19,084,000 |
Common stock, shares outstanding (in shares) | 19,184,000 | 19,084,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Net sales | $ 380,227 | $ 324,344 | $ 980,230 | $ 821,519 |
Cost of goods sold | 271,151 | 228,170 | 726,431 | 614,324 |
Gross profit | 109,076 | 96,174 | 253,799 | 207,195 |
Operating expenses | ||||
Marketing | 24,002 | 20,502 | 65,945 | 56,995 |
Distribution | 48,157 | 27,311 | 109,821 | 75,643 |
Administrative | 15,724 | 10,348 | 37,812 | 29,004 |
Other general expense | (67) | (131) | 28 | (399) |
Total operating expenses | 87,816 | 58,030 | 213,606 | 161,243 |
Operating income | 21,260 | 38,144 | 40,193 | 45,952 |
Other income (expense) | ||||
Investment income | 106 | 470 | 537 | 2,419 |
Interest expense & other | (156) | (8) | (231) | (19) |
Earnings before income taxes | 21,210 | 38,606 | 40,499 | 48,352 |
Income taxes | 5,647 | 9,713 | 10,574 | 11,620 |
NET EARNINGS | $ 15,563 | $ 28,893 | $ 29,925 | $ 36,732 |
Earnings per diluted share (in dollars per share) | $ 0.81 | $ 1.51 | $ 1.56 | $ 1.92 |
Weighted average number of diluted shares (in shares) | 19,234 | 19,185 | 19,198 | 19,116 |
Earnings per basic share (in dollars per share) | $ 0.81 | $ 1.52 | $ 1.56 | $ 1.93 |
Weighted average number of basic shares (in shares) | 19,174 | 19,045 | 19,131 | 18,996 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Net earnings | $ 15,563 | $ 28,893 | $ 29,925 | $ 36,732 |
Foreign currency translation adjustments | (93) | 657 | 9 | 2,405 |
Total other comprehensive (loss) income | (93) | 657 | 9 | 2,405 |
Comprehensive income | $ 15,470 | $ 29,550 | $ 29,934 | $ 39,137 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock Including Additional Paid in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Sep. 26, 2020 | 18,915,000 | |||
Balance at Sep. 26, 2020 | $ 49,268 | $ (15,587) | $ 775,817 | $ 809,498 |
Issuance of common stock upon exercise of stock options (in shares) | 41,000 | |||
Issuance of common stock upon exercise of stock options | $ 4,390 | 0 | 0 | 4,390 |
Foreign currency translation adjustment | 0 | 2,279 | 0 | 2,279 |
Dividends declared | 0 | 0 | (10,900) | (10,900) |
Share-based compensation | 1,244 | 0 | 0 | 1,244 |
Net earnings | $ 0 | 0 | 1,778 | 1,778 |
Balance (in shares) at Dec. 26, 2020 | 18,956,000 | |||
Balance at Dec. 26, 2020 | $ 54,902 | (13,308) | 766,695 | 808,289 |
Balance (in shares) at Sep. 26, 2020 | 18,915,000 | |||
Balance at Sep. 26, 2020 | $ 49,268 | (15,587) | 775,817 | 809,498 |
Foreign currency translation adjustment | 2,405 | |||
Net earnings | 36,732 | |||
Balance (in shares) at Jun. 26, 2021 | 19,061,000 | |||
Balance at Jun. 26, 2021 | $ 69,572 | (13,182) | 778,640 | 835,030 |
Balance (in shares) at Dec. 26, 2020 | 18,956,000 | |||
Balance at Dec. 26, 2020 | $ 54,902 | (13,308) | 766,695 | 808,289 |
Issuance of common stock upon exercise of stock options (in shares) | 72,000 | |||
Issuance of common stock upon exercise of stock options | $ 8,384 | 0 | 0 | 8,384 |
Foreign currency translation adjustment | 0 | (531) | 0 | (531) |
Dividends declared | 0 | 0 | (10,943) | (10,943) |
Share-based compensation | 1,026 | 0 | 0 | 1,026 |
Net earnings | $ 0 | 0 | 6,061 | 6,061 |
Issuance of common stock for employee stock purchase plan (in shares) | 6,000 | |||
Issuance of common stock for employee stock purchase plan | $ 714 | 0 | 0 | 714 |
Balance (in shares) at Mar. 27, 2021 | 19,034,000 | |||
Balance at Mar. 27, 2021 | $ 65,026 | (13,839) | 761,813 | 813,000 |
Issuance of common stock upon exercise of stock options (in shares) | 27,000 | |||
Issuance of common stock upon exercise of stock options | $ 3,564 | 0 | 0 | 3,564 |
Foreign currency translation adjustment | 0 | 657 | 0 | 657 |
Dividends declared | 0 | 0 | (12,066) | (12,066) |
Share-based compensation | 982 | 0 | 0 | 982 |
Net earnings | $ 0 | 0 | 28,893 | 28,893 |
Balance (in shares) at Jun. 26, 2021 | 19,061,000 | |||
Balance at Jun. 26, 2021 | $ 69,572 | (13,182) | 778,640 | $ 835,030 |
Balance (in shares) at Sep. 25, 2021 | 19,084,000 | 19,084,000 | ||
Balance at Sep. 25, 2021 | $ 73,597 | (13,383) | 785,440 | $ 845,654 |
Issuance of common stock upon exercise of stock options (in shares) | 5,000 | |||
Issuance of common stock upon exercise of stock options | $ 706 | 0 | 0 | 706 |
Foreign currency translation adjustment | 0 | (444) | 0 | (444) |
Dividends declared | 0 | 0 | (12,092) | (12,092) |
Share-based compensation | 1,083 | 0 | 0 | 1,083 |
Net earnings | $ 0 | 0 | 11,091 | 11,091 |
Balance (in shares) at Dec. 25, 2021 | 19,089,000 | |||
Balance at Dec. 25, 2021 | $ 75,386 | (13,827) | 784,439 | $ 845,998 |
Balance (in shares) at Sep. 25, 2021 | 19,084,000 | 19,084,000 | ||
Balance at Sep. 25, 2021 | $ 73,597 | (13,383) | 785,440 | $ 845,654 |
Foreign currency translation adjustment | 9 | |||
Net earnings | $ 29,925 | |||
Balance (in shares) at Jun. 25, 2022 | 19,184,000 | 19,184,000 | ||
Balance at Jun. 25, 2022 | $ 90,274 | (13,374) | 778,999 | $ 855,899 |
Balance (in shares) at Dec. 25, 2021 | 19,089,000 | |||
Balance at Dec. 25, 2021 | $ 75,386 | (13,827) | 784,439 | 845,998 |
Issuance of common stock upon exercise of stock options (in shares) | 76,000 | |||
Issuance of common stock upon exercise of stock options | $ 10,012 | 0 | 0 | 10,012 |
Foreign currency translation adjustment | 0 | 546 | 0 | 546 |
Dividends declared | 0 | 0 | (12,136) | (12,136) |
Share-based compensation | 1,267 | 0 | 0 | 1,267 |
Net earnings | $ 0 | 0 | 3,271 | 3,271 |
Issuance of common stock for employee stock purchase plan (in shares) | 8,000 | |||
Issuance of common stock for employee stock purchase plan | $ 1,023 | 0 | 0 | 1,023 |
Balance (in shares) at Mar. 26, 2022 | 19,173,000 | |||
Balance at Mar. 26, 2022 | $ 87,688 | (13,281) | 775,574 | 849,981 |
Issuance of common stock upon exercise of stock options (in shares) | 11,000 | |||
Foreign currency translation adjustment | $ 0 | (93) | 0 | (93) |
Dividends declared | 0 | 0 | (12,138) | (12,138) |
Share-based compensation | 1,134 | 0 | 0 | 1,134 |
Net earnings | 0 | 0 | 15,563 | 15,563 |
Issuance of common stock for employee stock purchase plan | $ 1,452 | 0 | 0 | $ 1,452 |
Balance (in shares) at Jun. 25, 2022 | 19,184,000 | 19,184,000 | ||
Balance at Jun. 25, 2022 | $ 90,274 | $ (13,374) | $ 778,999 | $ 855,899 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 25, 2022 | Jun. 26, 2021 | |
Operating activities: | ||
Net earnings | $ 29,925,000 | $ 36,732,000 |
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: | ||
Depreciation of fixed assets | 36,292,000 | 36,278,000 |
Amortization of intangibles and deferred costs | 1,775,000 | 2,096,000 |
Loss from disposals of property & equipment | 50,000 | 0 |
Share-based compensation | 3,484,000 | 3,252,000 |
Deferred income taxes | (227,000) | (188,000) |
Loss (Gain) on marketable securities | 412,000 | (926,000) |
Other | (212,000) | (305,000) |
Changes in assets and liabilities net of effects from purchase of companies | ||
Increase in accounts receivable | (78,058,000) | (27,940,000) |
Increase in inventories | (42,784,000) | (5,964,000) |
(Increase) decrease in prepaid expenses | (102,000) | 5,710,000 |
Increase in accounts payable and accrued liabilities | 19,798,000 | 24,823,000 |
Net cash (used in) provided by operating activities | (29,647,000) | 73,568,000 |
Investing activities: | ||
Payments for purchases of companies, net of cash acquired | (221,301,000) | 0 |
Purchases of property, plant and equipment | (64,231,000) | (34,456,000) |
Proceeds from redemption and sales of marketable securities | 11,526,000 | 54,191,000 |
Proceeds from disposal of property and equipment | 1,147,000 | 2,079,000 |
Other | 0 | 42,000 |
Net cash (used in) provided by investing activities | (272,859,000) | 21,856,000 |
Financing activities: | ||
Proceeds from issuance of stock | 12,168,000 | 17,178,000 |
Borrowings under credit facility | 125,000,000 | 0 |
Payments for debt issue costs | (225,000) | 0 |
Payments on finance lease obligations | (150,000) | (48,000) |
Payment of cash dividend | (36,299,000) | (32,719,000) |
Net cash provided by (used in) financing activities | 100,494,000 | (15,589,000) |
Effect of exchange rate on cash and cash equivalents | 103,000 | 624,000 |
Net (decrease) increase in cash and cash equivalents | (201,909,000) | 80,459,000 |
Cash and cash equivalents at beginning of period | 283,192,000 | 195,809,000 |
Cash and cash equivalents at end of period | $ 81,283,000 | $ 276,268,000 |
Note 1
Note 1 | 9 Months Ended |
Jun. 25, 2022 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | Note 1 The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10 10 01 X. not no 10 September 25, 2021. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the Company’s financial position and the results of operations and cash flows. The results of operations for the three nine June 25, 2022 June 26, 2021 not third fourth 2/3 19. 19 While we believe that the disclosures presented are adequate to make the information not 10 September 25, 2021. |
Note 2
Note 2 | 9 Months Ended |
Jun. 25, 2022 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note 2 On June 21, 2022, one hundred may Dippin’ Dots is a leading producer of flash-frozen beaded ice cream treats, and the acquisition will leverage synergies in entertainment and amusement locations, theaters, and convenience to continue to expand our business. The acquisition also includes the Doc Popcorn business operated by Dippin’ Dots. The financial results of Dippin’ Dots have been included in our consolidated financial statements since the date of the acquisition. Sales and net earnings of Dippin’ Dots since the date of acquisition were $2,218,000 and $621,000 for the three nine June 25, 2022. Upon acquisition, the assets and liabilities of Dippin’ Dots were adjusted to their respective fair values as of the closing date of the transaction, including the identifiable intangible assets acquired. In addition, the excess of the purchase price over the fair value of the net assets acquired has been recorded as goodwill. The fair value estimates used in valuing certain acquired assets and liabilities are based, in part, on inputs that are unobservable. For intangible assets, these include, but are not The purchase price allocation as of the date of acquisition was based on a preliminary valuation and is subject to revision as more detailed analyses are completed and additional information about the fair value of assets acquired and liabilities assumed becomes available. The major classes of assets and liabilities to which we have preliminarily allocated the purchase price were as follows: Preliminary Dippin' Dots Purchase Price Allocation ( 1 (in thousands) June 21, 2022 Cash and cash equivalents $ 2,259 Accounts receivable, net 12,257 Inventories 8,812 Prepaid expenses and other 1,215 Property, plant and equipment, net 24,622 Intangible assets 120,400 Goodwill (2) 66,634 Operating lease right-of-use assets 3,514 Other noncurrent assets 243 Total assets acquired 239,956 Liabilities assumed: Current lease liabilities 619 Accounts payable 6,005 Other current liabilities 3,532 Noncurrent lease liabilities 2,954 Other noncurrent liabilities 3,285 Total liabilities acquired 16,395 Purchase price $ 223,561 ( 1 Due to the limited time since the date of the acquisition, the purchase price allocation remains preliminary. ( 2 Goodwill was assigned to our Food Services segment and was primarily attributed to the assembled workforce of the acquired business and to our expectations of favorable growth opportunities in entertainment and amusement locations, theaters, and convenience based on increased synergies that are expected to be achieved from the integration of Dippin’ Dots. Acquired Intangible Assets (in thousands) Weighted average June 21, life (years) 2022 Amortizable Trade name indefinite 76,900 Customer relationships 10 12,100 Technology 10 22,900 Franchise agreements 10 8,500 Total acquired intangible assets 120,400 Dippin' Dots Results Included in the Company's Consolidated Results (in thousands) Three Months ended Nine Months ended June 25, June 25, 2022 2022 Net sales $ 2,218 $ 2,218 Net earnings $ 621 $ 621 The following unaudited pro forma information presents the consolidated results of operations as if the business combination in 2022 September 27, 2020, 1 2 3 4 September 27, 2020; 5 J & J Snack Foods Corp and Dippin' Dots Unaudited Pro Forma Combined Financial Information (in thousands) Three Months ended Nine Months ended June 25, June 26, June 25, June 26, 2022 2021 2022 2021 Net sales $ 404,182 $ 349,722 $ 1,028,079 $ 861,536 Net earnings $ 17,838 $ 33,980 $ 31,501 $ 35,893 Earnings per diluted share $ 0.93 $ 1.77 $ 1.64 $ 1.88 Weighted average number of diluted shares 19,234 19,185 19,198 19,116 The pro forma information does not not |
Note 3
Note 3 | 9 Months Ended |
Jun. 25, 2022 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | Note 3 Revenue Recognition When Performance Obligations Are Satisfied A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account for revenue recognition. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The singular performance obligation of our customer contracts for product and machine sales is determined by each individual purchase order and the respective products ordered, with revenue being recognized at a point-in-time when the obligation under the terms of the agreement is satisfied and product control is transferred to our customer. Specifically, control transfers to our customers when the product is delivered to, installed, or picked up by our customers based upon applicable shipping terms, as our customers can direct the use and obtain substantially all of the remaining benefits from the product at this point in time. The performance obligations in our customer contracts for product are generally satisfied within 30 The singular performance obligation of our customer contracts for time and material repair and maintenance equipment service is the performance of the repair and maintenance with revenue being recognized at a point-in-time when the repair and maintenance is completed. The singular performance obligation of our customer repair and maintenance equipment service contracts is the performance of the repair and maintenance with revenue being recognized over the time the service is expected to be performed. Our customers are billed for service contracts in advance of performance and therefore we have a contract liability recorded within Accrued liabilities on our balance sheet. The Company is entitled to royalties under its agreements with franchisees. Sales-based royalties are related entirely to the Company’s performance obligation under the franchise agreements and are recognized on a monthly basis. Purchase-based royalties are related entirely to the Company’s performance obligation under the franchise agreements and are recognized on a weekly basis. Under franchise agreements, the Company provides franchisees with a franchise license allowing the use of brand intellectual property and certain ongoing services. As the performance obligations are satisfied, over time, franchise, renewal and transfer fees are recognized on a straight-line basis over the terms of the franchise agreement. Significant Payment Terms In general, within our customer contracts, the purchase order identifies the product, quantity, price, pick-up allowances, payment terms and final delivery terms. Although some payment terms may 30 not Shipping All amounts billed to customers related to shipping and handling are classified as revenues; therefore, we recognize revenue for shipping and handling fees at the time the products are shipped or when services are performed. The cost of shipping products to the customer is recognized at the time the products are shipped to the customer and our policy is to classify them as Distribution expenses. Variable Consideration In addition to fixed contract consideration, our contracts include some form of variable consideration, including sales discounts, trade promotions and certain other sales and consumer incentives, including rebates and coupon redemptions. In general, variable consideration is treated as a reduction in revenue when the related revenue is recognized. Depending on the specific type of variable consideration, we use the most likely amount method to determine the variable consideration. We believe there will be no June 25, 2022 September 25, 2021. Warranties & Returns We provide all customers with a standard or assurance type warranty. Either stated or implied, we provide assurance the related products will comply with all agreed-upon specifications and other warranties provided under the law. No We do not may may not Contract Balances Contract liabilities consist of deferred revenue resulting from service contracts in our Frozen Beverages segment where our customers are billed for service in advance of performance. Contract liabilities also consist of deferred revenue in our Food Service segment resulting from initial franchise fees paid by franchisees, as well as renewal and transfer fees paid by franchisees and license fees paid by licensees which are generally recognized on a straight-line basis over the term of the underlying agreement. Therefore, we have contract liabilities on our balance sheet as follows: (in thousands) Three Months Ended Nine Months Ended June 25, June 26, June 25, June 26, 2022 2021 2022 2021 Beginning Balance $ 1,092 $ 1,090 $ 1,097 $ 1,327 Additions to contract liability 2,270 1,237 4,843 4,182 Amounts recognized as revenue (1,276 ) (1,283 ) (3,854 ) (4,465 ) Ending Balance $ 2,086 $ 1,044 $ 2,086 $ 1,044 Disaggregation of Revenue See Note 11 Allowance for Doubtful Receivables We provide an allowance for doubtful receivables after taking into consideration historical experience and other factors. On September 27, 2020, 2016 13, Measurement of Credit Losses on Financial Instruments not June 25, 2022 September 25, 2021, |
Note 4
Note 4 | 9 Months Ended |
Jun. 25, 2022 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | Note 4 Depreciation of equipment and buildings is provided for by the straight-line method over the assets’ estimated useful lives. Amortization of improvements is provided for by the straight-line method over the term of the lease or the assets’ estimated useful lives, whichever is shorter. Licenses and rights, customer relationships, technology, and non-compete agreements arising from acquisitions are amortized by the straight-line method over periods ranging from 2 to 20 years. Depreciation expense was $12,424,000 and $12,025,000 for the three June 25, 2022 June 26, 2021, nine June 25, 2022 June 26, 2021, |
Note 5
Note 5 | 9 Months Ended |
Jun. 25, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 5 Basic earnings per common share (EPS) excludes dilution and is computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. Diluted EPS takes into consideration the potential dilution that could occur if securities (stock options) or other contracts to issue common stock were exercised and converted into common stock. Our calculation of EPS is as follows: Three Months Ended June 25, 2022 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Basic EPS Net earnings available to common stockholders $ 15,563 19,174 $ 0.81 Effect of dilutive securities Options - 60 - Diluted EPS Net earnings available to common stockholders plus assumed conversions $ 15,563 19,234 $ 0.81 382,431 anti-dilutive shares have been excluded in the computation of EPS for the three June 25, 2022. Nine Months ended June 25, 2022 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Basic EPS Net earnings available to common stockholders $ 29,925 19,131 $ 1.56 Effect of dilutive securities Options - 67 - Diluted EPS Net earnings available to common stockholders plus assumed conversions $ 29,925 19,198 $ 1.56 302,674 anti-dilutive shares have been excluded in the computation of EPS for the nine June 25, 2022. Three Months Ended June 26, 2021 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Basic EPS Net earnings available to common stockholders $ 28,893 19,045 $ 1.52 Effect of dilutive securities Options - 140 - Diluted EPS Net earnings available to common stockholders plus assumed conversions $ 28,893 19,185 $ 1.51 20,800 anti-dilutive shares have been excluded in the computation of EPS for the three June 26, 2021. Nine Months Ended June 26, 2021 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Basic EPS Net earnings available to common stockholders $ 36,732 18,996 $ 1.93 Effect of dilutive securities Options - 120 - Diluted EPS Net earnings available to common stockholders plus assumed conversions $ 36,732 19,116 $ 1.92 289,692 anti-dilutive shares have been excluded in the computation of EPS for the nine June 26, 2021. |
Note 6
Note 6 | 9 Months Ended |
Jun. 25, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | Note 6 At June 25, 2022, three Three Months Ended Nine Months Ended June 25, June 26, June 25, June 26, 2022 2021 2022 2021 Stock options $ 693 $ 523 $ 2,115 $ 1,538 Stock purchase plan 90 171 240 513 Restricted stock issued to employees 152 23 376 70 Performance stock issued to employees 83 - 204 - Total share-based compensation $ 1,018 $ 717 $ 2,935 $ 2,121 The above compensation is net of tax benefits $ 116 $ 265 $ 549 $ 1,131 The fair value of each option grant is estimated on the date of grant using the Black-Scholes options-pricing model. During the fiscal year 2022 nine During the fiscal year 2021 nine The Company issued 327 service share units (“RSU”)’s in the three June 25, 2022, nine June 25, 2022. one three nine June 26, 2021. In November 2021, may two three June 25, 2022 three nine June 26, 2021. Expected volatility is based on the historical volatility of the price of our common shares over the past 51 months for 5 10 |
Note 7
Note 7 | 9 Months Ended |
Jun. 25, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 7 We account for our income taxes under the liability method. Under the liability method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Deferred tax expense is the result of changes in deferred tax assets and liabilities. Additionally, we recognize a liability for income taxes and associated penalties and interest for tax positions taken or expected to be taken in a tax return which are more likely than not not The total amount of gross unrecognized tax benefits is $343,000 on both June 25, 2022 September 25, 2021, June 25, 2022, September 25, 2021, In addition to our federal tax return and tax returns for Mexico and Canada, we file tax returns in all states that have a corporate income tax with virtually all open for examination for three four Our effective tax rate was 26% for the nine June 25, 2022 nine June 26, 2021. three June 25, 2022 three June 26, 2021. |
Note 8
Note 8 | 9 Months Ended |
Jun. 25, 2022 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | Note 8 In June 2016, 2016 13, Measurement of Credit Losses on Financial Instruments The Company adopted this guidance in the first 2021 2016 13 not |
Note 9
Note 9 | 9 Months Ended |
Jun. 25, 2022 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 9 In December 2021, December 2026. Interest accrues, at the Company’s election at (i) the BSBY Rate (as defined in the Credit Agreement) plus an applicable margin, based upon the Consolidated Net Leverage Ratio, as defined in the Credit Agreement, or (ii) the Alternate Base Rate (a rate based on the higher of (a) the prime rate announced from time-to-time by the Administrative Agent, (b) the Federal Reserve System’s federal funds rate, plus 0.50% or (c) the Daily BSBY Rate, plus an applicable margin. The Alternate Base Rate is defined in the Credit Agreement. The Credit Agreement requires the Company to comply with various affirmative and negative covenants, including without limitation (i) covenants to maintain a minimum specified interest coverage ratio and maximum specified net leverage ratio, and (ii) subject to certain exceptions, covenants that prevent or restrict the Company’s ability to pay dividends, engage in certain mergers or acquisitions, make certain investments or loans, incur future indebtedness, alter its capital structure or line of business, prepay subordinated indebtedness, engage in certain transactions with affiliates, or amend its organizational documents. As of June 25, 2022, On June 21, 2022, not As of June 25, 2022, June 25, 2022, September 25, 2021, |
Note 10
Note 10 | 9 Months Ended |
Jun. 25, 2022 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 10 Inventories consist of the following: June 25, September 25, 2022 2021 (unaudited) (in thousands) Finished goods $ 83,201 $ 49,756 Raw materials 39,856 29,529 Packaging materials 15,832 11,168 Equipment parts and other 35,059 32,707 Total inventories $ 173,948 $ 123,160 |
Note 11
Note 11 | 9 Months Ended |
Jun. 25, 2022 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 11 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 Our three reportable segments are Food Service, Retail Supermarkets and Frozen Beverages. 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 outlets; 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. Retail Supermarkets The primary products sold to the retail supermarket channel are soft pretzel products – including SUPERPRETZEL, frozen novelties including LUIGI’S Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, WHOLE FRUIT frozen fruit bars and sorbet, PHILLY SWIRL cups and sticks, ICEE Squeeze-Up Tubes and handheld products. Within the retail supermarket channel, our frozen and prepackaged products are purchased by the consumer for consumption at home. Frozen Beverages The Company markets frozen beverages primarily under the names ICEE, SLUSH PUPPIE and PARROT ICE which are sold primarily in the United States, Mexico and Canada. We also provide repair and maintenance service to customers for customers’ 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 Three Months Ended Nine Months Ended June 25, June 26, June 25, June 26, 2022 2021 2022 2021 Sales to external customers: Food Service Soft pretzels $ 55,946 $ 50,895 $ 149,628 $ 120,356 Frozen novelties 17,155 13,927 32,917 30,812 Churros 25,614 20,096 62,550 46,358 Handhelds 25,740 18,971 64,741 56,574 Bakery 95,495 85,706 287,293 257,580 Other 7,892 6,884 18,785 14,546 Total Food Service $ 227,842 $ 196,479 $ 615,914 $ 526,226 Retail Supermarket Soft pretzels $ 11,696 $ 11,193 $ 43,642 $ 40,871 Frozen novelties 41,865 36,898 78,586 71,600 Biscuits 6,066 4,562 20,024 18,717 Handhelds 1,589 1,191 3,934 6,215 Coupon redemption (605 ) (513 ) (2,227 ) (2,196 ) Other 397 526 501 1,652 Total Retail Supermarket $ 61,008 $ 53,857 $ 144,460 $ 136,859 Frozen Beverages Beverages $ 57,791 $ 42,279 $ 126,919 $ 76,663 Repair and maintenance service 22,892 22,789 65,903 59,903 Machines revenue 9,868 8,404 25,257 20,556 Other 826 536 1,777 1,312 Total Frozen Beverages $ 91,377 $ 74,008 $ 219,856 $ 158,434 Consolidated sales $ 380,227 $ 324,344 $ 980,230 $ 821,519 Depreciation and amortization: Food Service $ 7,097 $ 6,817 $ 20,436 $ 20,334 Retail Supermarket 405 378 1,157 1,147 Frozen Beverages 5,514 5,469 16,474 16,893 Total depreciation and amortization $ 13,016 $ 12,664 $ 38,067 $ 38,374 Operating income: Food Service $ 2,640 $ 17,644 $ 12,177 $ 29,879 Retail Supermarket 2,341 9,080 8,416 20,167 Frozen Beverages 16,279 11,420 19,600 (4,094 ) Total operating income $ 21,260 $ 38,144 $ 40,193 $ 45,952 Capital expenditures: Food Service $ 21,673 $ 10,383 $ 45,757 $ 25,915 Retail Supermarket 2,815 93 6,438 194 Frozen Beverages 4,437 5,151 12,036 8,347 Total capital expenditures $ 28,925 $ 15,627 $ 64,231 $ 34,456 Assets: Food Service $ 957,719 $ 779,730 $ 957,719 $ 779,730 Retail Supermarket 29,147 33,405 29,147 33,405 Frozen Beverages 304,376 288,411 304,376 288,411 Total assets $ 1,291,242 $ 1,101,546 $ 1,291,242 $ 1,101,546 |
Note 12
Note 12 | 9 Months Ended |
Jun. 25, 2022 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 12 Our reportable segments are Food Service, Retail Supermarkets and Frozen Beverages. The carrying amounts of acquired intangible assets for the Food Service, Retail Supermarkets and Frozen Beverages segments as of June 25, 2022 September 25, 2021 June 25, 2022 September 25, 2021 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization (in thousands) FOOD SERVICE Indefinite lived intangible assets Trade names $ 86,496 $ - $ 10,408 $ 812 Amortized intangible assets Non compete agreements 670 670 670 670 Franchise agreements 8,500 - - - Customer relationships 25,100 7,163 13,000 6,188 Technology 22,900 - - - License and rights 1,690 1,460 1,690 1,396 TOTAL FOOD SERVICE $ 145,356 $ 9,293 $ 25,768 $ 9,066 RETAIL SUPERMARKETS Indefinite lived intangible assets Trade names $ 12,316 $ - $ 12,777 $ 461 Amortized intangible Assets Trade names 649 649 649 649 Customer relationships 7,907 6,500 7,907 5,931 TOTAL RETAIL SUPERMARKETS $ 20,872 $ 7,149 $ 21,333 $ 7,041 FROZEN BEVERAGES Indefinite lived intangible assets Trade names $ 9,315 $ - $ 9,315 $ - Distribution rights 36,100 - 36,100 - Amortized intangible assets Customer relationships 1,439 509 1,439 400 Licenses and rights 1,400 1,124 1,400 1,072 TOTAL FROZEN BEVERAGES $ 48,254 $ 1,633 $ 48,254 $ 1,472 CONSOLIDATED $ 214,482 $ 18,075 $ 95,355 $ 17,579 Amortizing intangible assets are being amortized by the straight-line method over periods ranging from 2 to 20 years and amortization expense is reflected throughout operating expenses. Aggregate amortization expense of intangible assets for the three June 25, 2022 June 26, 2021 nine June 25, 2022 June 26, 2021 Estimated amortization expense for the next five 2022, 2023, 2024, 2025, 2026. The weighted amortization period of the intangible assets, in total, is 10.4 years. The weighted amortization period by intangible asset class is 10 years for Technology, 10 years for Customer relationships, 20 years for Licenses & rights, and 10 years for Franchise agreements. Goodwill The carrying amounts of goodwill for the Food Service, Retail Supermarket and Frozen Beverages segments are as follows: Food Retail Frozen Service Supermarket Beverages Total (in thousands) Balance at June 25, 2022 $ 127,823 $ 4,146 $ 56,498 $ 188,467 Balance at September 25, 2021 $ 61,189 $ 4,146 $ 56,498 $ 121,833 |
Note 13
Note 13 | 9 Months Ended |
Jun. 25, 2022 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 13 We have classified our investment securities as marketable securities held to maturity and available for sale. The FASB defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the FASB has established three may Level 1 Observable input such as quoted prices in active markets for identical assets or liabilities; Level 2 Observable inputs, other than Level 1 Level 3 Unobservable inputs for which there is little or no Marketable securities held to maturity and available for sale consist primarily of investments in mutual funds, preferred stock, and corporate bonds. The fair values of mutual funds are based on quoted market prices in active markets and are classified within Level 1 not 2 The amortized cost, unrealized gains and losses, and fair market values of our investment securities held to maturity at June 25, 2022 Gross Gross Fair Amortized Unrealized Unrealized Market Cost Gains Losses Value (in thousands) Corporate bonds $ 4,520 $ - $ 52 $ 4,468 Total marketable securities held to maturity $ 4,520 $ - $ 52 $ 4,468 The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at June 25, 2022 Gross Gross Fair Amortized Unrealized Unrealized Market Cost Gains Losses Value (in thousands) Mutual funds $ 3,588 $ - $ 742 $ 2,846 Preferred stock 2,816 15 69 2,762 Total marketable securities available for sale $ 6,404 $ 15 $ 811 $ 5,608 The mutual funds seek current income with an emphasis on maintaining low volatility and overall moderate duration. The Fixed-to-Floating Perpetual Preferred Stock generate fixed income to call dates in 2025 not not one may 2022 2023, The amortized cost, unrealized gains and losses, and fair market values of our investment securities held to maturity at September 25, 2021 Gross Gross Fair Amortized Unrealized Unrealized Market Cost Gains Losses Value (in thousands) Corporate bonds 12,027 123 18 12,132 Total marketable securities held to maturity $ 12,027 $ 123 $ 18 $ 12,132 The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at September 25, 2021 Gross Gross Fair Amortized Unrealized Unrealized Market Cost Gains Losses Value (in thousands) Mutual funds $ 3,588 $ - $ 536 $ 3,052 Preferred stock 6,892 175 35 7,032 Total marketable securities available for sale $ 10,480 $ 175 $ 571 $ 10,084 The amortized cost and fair value of the Company’s held to maturity securities by contractual maturity at June 25, 2022 September 25, 2021 June 25, 2022 September 25, 2021 Fair Fair Amortized Market Amortized Market Cost Value Cost Value (in thousands) Due in one year or less $ 4,520 $ 4,468 $ 7,980 $ 8,080 Due after one year through five years - - 4,047 4,052 Total held to maturity securities $ 4,520 $ 4,468 $ 12,027 $ 12,132 Less current portion 4,520 4,468 7,980 8,080 Long term held to maturity securities $ - $ - $ 4,047 $ 4,052 Proceeds from the redemption and sale of marketable securities were $0 and $11,526,000 in the three nine June 25, 2022 three nine June 26, 2021, three nine June 25, 2022, three nine June 26, 2021. nine June 25, 2022 June 26, 2021, three June 25, 2022, June 26, 2021, Total marketable securities held to maturity as of June 25, 2022, June 30, 2022. |
Note 14
Note 14 | 9 Months Ended |
Jun. 25, 2022 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | Note 14 Changes to the components of accumulated other comprehensive loss are as follows: Three Months Ended Nine Months Ended June 25, 2022 June 25, 2022 Foreign Currency Foreign Currency Translation Translation Adjustments Adjustments (unaudited) (unaudited) (in thousands) (in thousands) Beginning balance $ (13,281 ) $ (13,383 ) Other comprehensive (loss) income (93 ) 9 Ending balance $ (13,374 ) $ (13,374 ) Three Months Ended Nine Months Ended June 26, 2021 June 26, 2021 Foreign Currency Foreign Currency Translation Translation Adjustments Adjustments (unaudited) (unaudited) (in thousands) (in thousands) Beginning balance $ (13,839 ) $ (15,587 ) Other comprehensive income 657 2,405 Ending balance $ (13,182 ) $ (13,182 ) |
Note 15 - Leases
Note 15 - Leases | 9 Months Ended |
Jun. 25, 2022 | |
Notes to Financial Statements | |
Lessee, Leases [Text Block] | Note 15 Leases General Lease Description We have operating leases with initial noncancelable lease terms in excess of one We have finance leases with initial noncancelable lease terms in excess of one Significant Assumptions and Judgments Contract Contains a Lease In evaluating our contracts to determine whether a contract is or contains a lease, we considered the following: • Whether explicitly or implicitly identified assets have been deployed in the contract; and • Whether we obtain substantially all of the economic benefits from the use of that underlying asset, and we can direct how and for what purpose the asset is used during the term of the contract. Allocation of Consideration In determining how to allocate consideration between lease and non-lease components in a contract that was deemed to contain a lease, we used judgment and consistent application of assumptions to reasonably allocate the consideration. Options to Extend or Terminate Leases We have leases which contain options to extend or terminate the leases. On a lease-by-lease basis, we have determined if the extension should be considered reasonably certain to be exercised and thus a right-of-use asset and a lease liability should be recorded. Discount Rate The discount rate for leases, if not We used the discount rate to calculate the present value of the lease liability at the date of adoption. In the development of the discount rate, we considered our incremental borrowing rate as provided by our lender which was based on cash collateral and credit risk specific to us, and our lease portfolio characteristics. As of June 25, 2022, June 26, 2021, Practical Expedients and Accounting Policy Elections We elected the package of practical expedients that permits us not 12 Amounts Recognized in the Financial Statements The components of lease expense were as follows: Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 (in thousands) (in thousands) (in thousands) (in thousands) Operating lease cost in cost of goods sold and operating expenses $ 3,630 $ 3,846 $ 11,550 $ 11,747 Finance lease cost: Amortization of assets in cost of goods sold and operating expenses 19 62 141 216 Interest on lease liabilities in Interest expense & other 1 5 8 30 Total finance lease cost $ 20 $ 67 $ 149 $ 246 Short-term lease cost in cost of goods sold and operating expenses - - - - Total net lease cost $ 3,650 $ 3,913 $ 11,699 $ 11,993 Supplemental balance sheet information related to leases is as follows: June 25, 2022 September 25, 2021 (in thousands) (in thousands) Operating Leases Operating lease right-of-use assets $ 54,990 $ 54,555 Current operating lease liabilities $ 14,062 $ 13,395 Noncurrent operating lease liabilities 46,017 46,557 Total operating lease liabilities $ 60,079 $ 59,952 Finance Leases Finance lease right-of-use assets in property, plant and equipment, net $ 441 $ 561 Current finance lease liabilities $ 189 $ 182 Noncurrent finance lease liabilities 318 392 Total finance lease liabilities $ 507 $ 574 Supplemental cash flow information related to leases is as follows: Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 (in thousands) (in thousands) (in thousands) (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,181 $ 3,860 $ 12,189 $ 11,847 Operating cash flows from finance leases $ 1 $ 64 $ 8 $ 237 Financing cash flows from finance leases $ 39 $ 23 $ 150 $ 48 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets $ 4,652 $ 1,317 $ 11,717 $ 2,671 Supplemental noncash information on lease liabilities removed due to purchase of leased asset $ - $ - $ - $ - As of June 25, 2022, (in thousands) Operating Leases Finance Leases Three months ending September 24, 2022 $ 4,187 $ 64 2023 14,973 181 2024 12,251 140 2025 8,753 65 2026 5,666 39 Thereafter 20,515 33 Total minimum payments $ 66,345 $ 522 Less amount representing interest (6,266 ) (15 ) Present value of lease obligations $ 60,079 $ 507 |
Note 16
Note 16 | 9 Months Ended |
Jun. 25, 2022 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 16 We have related party expenses for distribution and shipping related costs with NFI Industries, Inc. Our director, Sidney R. Brown, is CEO of NFI Industries, Inc. The Company paid $12,004,000 and $15,984,000 to NFI in the three nine June 25, 2022 three nine June 26, 2021. three nine June 25, 2022, three nine June 26, 2021. third June 25, 2022 September 25, 2021. |
Note 2 (Tables)
Note 2 (Tables) | 9 Months Ended |
Jun. 25, 2022 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | (in thousands) June 21, 2022 Cash and cash equivalents $ 2,259 Accounts receivable, net 12,257 Inventories 8,812 Prepaid expenses and other 1,215 Property, plant and equipment, net 24,622 Intangible assets 120,400 Goodwill (2) 66,634 Operating lease right-of-use assets 3,514 Other noncurrent assets 243 Total assets acquired 239,956 Liabilities assumed: Current lease liabilities 619 Accounts payable 6,005 Other current liabilities 3,532 Noncurrent lease liabilities 2,954 Other noncurrent liabilities 3,285 Total liabilities acquired 16,395 Purchase price $ 223,561 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | Acquired Intangible Assets (in thousands) Weighted average June 21, life (years) 2022 Amortizable Trade name indefinite 76,900 Customer relationships 10 12,100 Technology 10 22,900 Franchise agreements 10 8,500 Total acquired intangible assets 120,400 |
Business Acquisition, Pro Forma Information [Table Text Block] | (in thousands) Three Months ended Nine Months ended June 25, June 25, 2022 2022 Net sales $ 2,218 $ 2,218 Net earnings $ 621 $ 621 (in thousands) Three Months ended Nine Months ended June 25, June 26, June 25, June 26, 2022 2021 2022 2021 Net sales $ 404,182 $ 349,722 $ 1,028,079 $ 861,536 Net earnings $ 17,838 $ 33,980 $ 31,501 $ 35,893 Earnings per diluted share $ 0.93 $ 1.77 $ 1.64 $ 1.88 Weighted average number of diluted shares 19,234 19,185 19,198 19,116 |
Note 3 (Tables)
Note 3 (Tables) | 9 Months Ended |
Jun. 25, 2022 | |
Notes Tables | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | (in thousands) Three Months Ended Nine Months Ended June 25, June 26, June 25, June 26, 2022 2021 2022 2021 Beginning Balance $ 1,092 $ 1,090 $ 1,097 $ 1,327 Additions to contract liability 2,270 1,237 4,843 4,182 Amounts recognized as revenue (1,276 ) (1,283 ) (3,854 ) (4,465 ) Ending Balance $ 2,086 $ 1,044 $ 2,086 $ 1,044 |
Note 5 (Tables)
Note 5 (Tables) | 9 Months Ended |
Jun. 25, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 25, 2022 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Basic EPS Net earnings available to common stockholders $ 15,563 19,174 $ 0.81 Effect of dilutive securities Options - 60 - Diluted EPS Net earnings available to common stockholders plus assumed conversions $ 15,563 19,234 $ 0.81 Nine Months ended June 25, 2022 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Basic EPS Net earnings available to common stockholders $ 29,925 19,131 $ 1.56 Effect of dilutive securities Options - 67 - Diluted EPS Net earnings available to common stockholders plus assumed conversions $ 29,925 19,198 $ 1.56 Three Months Ended June 26, 2021 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Basic EPS Net earnings available to common stockholders $ 28,893 19,045 $ 1.52 Effect of dilutive securities Options - 140 - Diluted EPS Net earnings available to common stockholders plus assumed conversions $ 28,893 19,185 $ 1.51 Nine Months Ended June 26, 2021 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Basic EPS Net earnings available to common stockholders $ 36,732 18,996 $ 1.93 Effect of dilutive securities Options - 120 - Diluted EPS Net earnings available to common stockholders plus assumed conversions $ 36,732 19,116 $ 1.92 |
Note 6 (Tables)
Note 6 (Tables) | 9 Months Ended |
Jun. 25, 2022 | |
Notes Tables | |
Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award [Table Text Block] | Three Months Ended Nine Months Ended June 25, June 26, June 25, June 26, 2022 2021 2022 2021 Stock options $ 693 $ 523 $ 2,115 $ 1,538 Stock purchase plan 90 171 240 513 Restricted stock issued to employees 152 23 376 70 Performance stock issued to employees 83 - 204 - Total share-based compensation $ 1,018 $ 717 $ 2,935 $ 2,121 The above compensation is net of tax benefits $ 116 $ 265 $ 549 $ 1,131 |
Note 10 (Tables)
Note 10 (Tables) | 9 Months Ended |
Jun. 25, 2022 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 25, September 25, 2022 2021 (unaudited) (in thousands) Finished goods $ 83,201 $ 49,756 Raw materials 39,856 29,529 Packaging materials 15,832 11,168 Equipment parts and other 35,059 32,707 Total inventories $ 173,948 $ 123,160 |
Note 11 (Tables)
Note 11 (Tables) | 9 Months Ended |
Jun. 25, 2022 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Nine Months Ended June 25, June 26, June 25, June 26, 2022 2021 2022 2021 Sales to external customers: Food Service Soft pretzels $ 55,946 $ 50,895 $ 149,628 $ 120,356 Frozen novelties 17,155 13,927 32,917 30,812 Churros 25,614 20,096 62,550 46,358 Handhelds 25,740 18,971 64,741 56,574 Bakery 95,495 85,706 287,293 257,580 Other 7,892 6,884 18,785 14,546 Total Food Service $ 227,842 $ 196,479 $ 615,914 $ 526,226 Retail Supermarket Soft pretzels $ 11,696 $ 11,193 $ 43,642 $ 40,871 Frozen novelties 41,865 36,898 78,586 71,600 Biscuits 6,066 4,562 20,024 18,717 Handhelds 1,589 1,191 3,934 6,215 Coupon redemption (605 ) (513 ) (2,227 ) (2,196 ) Other 397 526 501 1,652 Total Retail Supermarket $ 61,008 $ 53,857 $ 144,460 $ 136,859 Frozen Beverages Beverages $ 57,791 $ 42,279 $ 126,919 $ 76,663 Repair and maintenance service 22,892 22,789 65,903 59,903 Machines revenue 9,868 8,404 25,257 20,556 Other 826 536 1,777 1,312 Total Frozen Beverages $ 91,377 $ 74,008 $ 219,856 $ 158,434 Consolidated sales $ 380,227 $ 324,344 $ 980,230 $ 821,519 Depreciation and amortization: Food Service $ 7,097 $ 6,817 $ 20,436 $ 20,334 Retail Supermarket 405 378 1,157 1,147 Frozen Beverages 5,514 5,469 16,474 16,893 Total depreciation and amortization $ 13,016 $ 12,664 $ 38,067 $ 38,374 Operating income: Food Service $ 2,640 $ 17,644 $ 12,177 $ 29,879 Retail Supermarket 2,341 9,080 8,416 20,167 Frozen Beverages 16,279 11,420 19,600 (4,094 ) Total operating income $ 21,260 $ 38,144 $ 40,193 $ 45,952 Capital expenditures: Food Service $ 21,673 $ 10,383 $ 45,757 $ 25,915 Retail Supermarket 2,815 93 6,438 194 Frozen Beverages 4,437 5,151 12,036 8,347 Total capital expenditures $ 28,925 $ 15,627 $ 64,231 $ 34,456 Assets: Food Service $ 957,719 $ 779,730 $ 957,719 $ 779,730 Retail Supermarket 29,147 33,405 29,147 33,405 Frozen Beverages 304,376 288,411 304,376 288,411 Total assets $ 1,291,242 $ 1,101,546 $ 1,291,242 $ 1,101,546 |
Note 12 (Tables)
Note 12 (Tables) | 9 Months Ended |
Jun. 25, 2022 | |
Notes Tables | |
Schedule of Acquired Finite-lived and Indefinite Lived Intangible Assets by Reportable Segment and Major Class [Table Text Block] | June 25, 2022 September 25, 2021 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization (in thousands) FOOD SERVICE Indefinite lived intangible assets Trade names $ 86,496 $ - $ 10,408 $ 812 Amortized intangible assets Non compete agreements 670 670 670 670 Franchise agreements 8,500 - - - Customer relationships 25,100 7,163 13,000 6,188 Technology 22,900 - - - License and rights 1,690 1,460 1,690 1,396 TOTAL FOOD SERVICE $ 145,356 $ 9,293 $ 25,768 $ 9,066 RETAIL SUPERMARKETS Indefinite lived intangible assets Trade names $ 12,316 $ - $ 12,777 $ 461 Amortized intangible Assets Trade names 649 649 649 649 Customer relationships 7,907 6,500 7,907 5,931 TOTAL RETAIL SUPERMARKETS $ 20,872 $ 7,149 $ 21,333 $ 7,041 FROZEN BEVERAGES Indefinite lived intangible assets Trade names $ 9,315 $ - $ 9,315 $ - Distribution rights 36,100 - 36,100 - Amortized intangible assets Customer relationships 1,439 509 1,439 400 Licenses and rights 1,400 1,124 1,400 1,072 TOTAL FROZEN BEVERAGES $ 48,254 $ 1,633 $ 48,254 $ 1,472 CONSOLIDATED $ 214,482 $ 18,075 $ 95,355 $ 17,579 |
Schedule of Goodwill [Table Text Block] | Food Retail Frozen Service Supermarket Beverages Total (in thousands) Balance at June 25, 2022 $ 127,823 $ 4,146 $ 56,498 $ 188,467 Balance at September 25, 2021 $ 61,189 $ 4,146 $ 56,498 $ 121,833 |
Note 13 (Tables)
Note 13 (Tables) | 9 Months Ended |
Jun. 25, 2022 | |
Notes Tables | |
Unrealized Gain (Loss) on Investments [Table Text Block] | Gross Gross Fair Amortized Unrealized Unrealized Market Cost Gains Losses Value (in thousands) Corporate bonds $ 4,520 $ - $ 52 $ 4,468 Total marketable securities held to maturity $ 4,520 $ - $ 52 $ 4,468 Gross Gross Fair Amortized Unrealized Unrealized Market Cost Gains Losses Value (in thousands) Mutual funds $ 3,588 $ - $ 742 $ 2,846 Preferred stock 2,816 15 69 2,762 Total marketable securities available for sale $ 6,404 $ 15 $ 811 $ 5,608 Gross Gross Fair Amortized Unrealized Unrealized Market Cost Gains Losses Value (in thousands) Corporate bonds 12,027 123 18 12,132 Total marketable securities held to maturity $ 12,027 $ 123 $ 18 $ 12,132 Gross Gross Fair Amortized Unrealized Unrealized Market Cost Gains Losses Value (in thousands) Mutual funds $ 3,588 $ - $ 536 $ 3,052 Preferred stock 6,892 175 35 7,032 Total marketable securities available for sale $ 10,480 $ 175 $ 571 $ 10,084 |
Investments Classified by Contractual Maturity Date [Table Text Block] | June 25, 2022 September 25, 2021 Fair Fair Amortized Market Amortized Market Cost Value Cost Value (in thousands) Due in one year or less $ 4,520 $ 4,468 $ 7,980 $ 8,080 Due after one year through five years - - 4,047 4,052 Total held to maturity securities $ 4,520 $ 4,468 $ 12,027 $ 12,132 Less current portion 4,520 4,468 7,980 8,080 Long term held to maturity securities $ - $ - $ 4,047 $ 4,052 |
Note 14 (Tables)
Note 14 (Tables) | 9 Months Ended |
Jun. 25, 2022 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Three Months Ended Nine Months Ended June 25, 2022 June 25, 2022 Foreign Currency Foreign Currency Translation Translation Adjustments Adjustments (unaudited) (unaudited) (in thousands) (in thousands) Beginning balance $ (13,281 ) $ (13,383 ) Other comprehensive (loss) income (93 ) 9 Ending balance $ (13,374 ) $ (13,374 ) Three Months Ended Nine Months Ended June 26, 2021 June 26, 2021 Foreign Currency Foreign Currency Translation Translation Adjustments Adjustments (unaudited) (unaudited) (in thousands) (in thousands) Beginning balance $ (13,839 ) $ (15,587 ) Other comprehensive income 657 2,405 Ending balance $ (13,182 ) $ (13,182 ) |
Note 15 - Leases (Tables)
Note 15 - Leases (Tables) | 9 Months Ended |
Jun. 25, 2022 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 (in thousands) (in thousands) (in thousands) (in thousands) Operating lease cost in cost of goods sold and operating expenses $ 3,630 $ 3,846 $ 11,550 $ 11,747 Finance lease cost: Amortization of assets in cost of goods sold and operating expenses 19 62 141 216 Interest on lease liabilities in Interest expense & other 1 5 8 30 Total finance lease cost $ 20 $ 67 $ 149 $ 246 Short-term lease cost in cost of goods sold and operating expenses - - - - Total net lease cost $ 3,650 $ 3,913 $ 11,699 $ 11,993 |
Assets and Liabilities, Lessee [Table Text Block] | June 25, 2022 September 25, 2021 (in thousands) (in thousands) Operating Leases Operating lease right-of-use assets $ 54,990 $ 54,555 Current operating lease liabilities $ 14,062 $ 13,395 Noncurrent operating lease liabilities 46,017 46,557 Total operating lease liabilities $ 60,079 $ 59,952 Finance Leases Finance lease right-of-use assets in property, plant and equipment, net $ 441 $ 561 Current finance lease liabilities $ 189 $ 182 Noncurrent finance lease liabilities 318 392 Total finance lease liabilities $ 507 $ 574 |
Lessee, Cash Flow Information [Table Text Block] | Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 (in thousands) (in thousands) (in thousands) (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,181 $ 3,860 $ 12,189 $ 11,847 Operating cash flows from finance leases $ 1 $ 64 $ 8 $ 237 Financing cash flows from finance leases $ 39 $ 23 $ 150 $ 48 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets $ 4,652 $ 1,317 $ 11,717 $ 2,671 Supplemental noncash information on lease liabilities removed due to purchase of leased asset $ - $ - $ - $ - |
Lessee, Lease Liability, Maturity [Table Text Block] | (in thousands) Operating Leases Finance Leases Three months ending September 24, 2022 $ 4,187 $ 64 2023 14,973 181 2024 12,251 140 2025 8,753 65 2026 5,666 39 Thereafter 20,515 33 Total minimum payments $ 66,345 $ 522 Less amount representing interest (6,266 ) (15 ) Present value of lease obligations $ 60,079 $ 507 |
Note 2 (Details Textual)
Note 2 (Details Textual) - Dippin’ Dots Holding, L.L.C. [Member] - USD ($) | 3 Months Ended | 9 Months Ended | |
Jun. 21, 2022 | Jun. 25, 2022 | Jun. 25, 2022 | |
Business Acquisition, Percentage of Voting Interests Acquired | 100% | ||
Payments to Acquire Businesses, Gross | $ 223,561,000 | ||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 2,218,000 | $ 2,218,000 | |
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 621,000 | $ 621,000 | |
General and Administrative Expense [Member] | |||
Business Combination, Acquisition Related Costs | $ 3,088,000 |
Note 2 - Purchase Price Allocat
Note 2 - Purchase Price Allocation for Acquisitions (Details) - USD ($) $ in Thousands | Jun. 25, 2022 | Jun. 20, 2022 | Sep. 25, 2021 | |
Goodwill | $ 188,467 | $ 121,833 | ||
Dippin’ Dots Holding, L.L.C. [Member] | ||||
Cash and cash equivalents | [1] | $ 2,259 | ||
Accounts receivable, net | [1] | 12,257 | ||
Inventories | [1] | 8,812 | ||
Prepaid expenses and other | [1] | 1,215 | ||
Property, plant and equipment, net | [1] | 24,622 | ||
Intangible assets | [1] | 120,400 | ||
Goodwill | [1],[2] | 66,634 | ||
Operating lease right-of-use assets | [1] | 3,514 | ||
Other noncurrent assets | [1] | 243 | ||
Total assets acquired | [1] | 239,956 | ||
Liabilities assumed: | ||||
Current lease liabilities | [1] | 619 | ||
Accounts payable | [1] | 6,005 | ||
Other current liabilities | [1] | 3,532 | ||
Noncurrent lease liabilities | [1] | 2,954 | ||
Other noncurrent liabilities | [1] | 3,285 | ||
Total liabilities acquired | [1] | 16,395 | ||
Purchase price | [1] | $ 223,561 | ||
[1](1) Due to the limited time since the date of the acquisition, the purchase price allocation remains preliminary.[2]Goodwill was assigned to our Food Services segment and was primarily attributed to the assembled workforce of the acquired business and to our expectations of favorable growth opportunities in entertainment and amusement locations, theaters, and convenience based on increased synergies that are expected to be achieved from the integration of Dippin’ Dots. |
Note 2 - Acquired Intangible As
Note 2 - Acquired Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Jun. 20, 2022 | Jun. 25, 2022 | ||
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year) | 10 years 4 months 24 days | ||
Customer Relationships [Member] | |||
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year) | 10 years | ||
Technology-Based Intangible Assets [Member] | |||
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year) | 10 years | ||
Franchise Rights [Member] | |||
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year) | 10 years | ||
Dippin’ Dots Holding, L.L.C. [Member] | |||
Intangible assets | [1] | $ 120.4 | |
Dippin’ Dots Holding, L.L.C. [Member] | Customer Relationships [Member] | |||
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year) | 10 years | ||
Acquired Finite-Lived Intangible Assets | $ 12.1 | ||
Dippin’ Dots Holding, L.L.C. [Member] | Technology-Based Intangible Assets [Member] | |||
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year) | 10 years | ||
Acquired Finite-Lived Intangible Assets | $ 22.9 | ||
Dippin’ Dots Holding, L.L.C. [Member] | Franchise Rights [Member] | |||
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year) | 10 years | ||
Acquired Finite-Lived Intangible Assets | $ 8.5 | ||
Trade Names [Member] | Dippin’ Dots Holding, L.L.C. [Member] | |||
Acquired indefinite-Lived Intangible Assets | $ 76.9 | ||
[1](1) Due to the limited time since the date of the acquisition, the purchase price allocation remains preliminary. |
Note 2 - Proforma Results from
Note 2 - Proforma Results from Acquisitions (Details) - Dippin’ Dots Holding, L.L.C. [Member] - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 2,218,000 | $ 2,218,000 | ||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 621,000 | 621,000 | ||
Net sales | 404,182,000 | $ 349,722,000 | 1,028,079,000 | $ 861,536,000 |
Net earnings | $ 17,838,000 | $ 33,980,000 | $ 31,501,000 | $ 35,893,000 |
Earnings per diluted share (in dollars per share) | $ 930 | $ 1,770 | $ 1,640 | $ 1,880 |
Weighted average number of diluted shares (in shares) | 19,234 | 19,185 | 19,198 | 19,116 |
Note 3 (Details Textual)
Note 3 (Details Textual) - USD ($) | Jun. 25, 2022 | Sep. 25, 2021 |
Contract with Customer, Asset, Allowance for Deductions | $ 16,907,000 | $ 14,646,000 |
Accounts Receivable, Allowance for Credit Loss, Ending Balance | $ 1,629,000 | $ 1,405,000 |
Note 3 - Contract Liability (De
Note 3 - Contract Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Beginning Balance | $ 1,092 | $ 1,090 | $ 1,097 | $ 1,327 |
Additions to contract liability | 2,270 | 1,237 | 4,843 | 4,182 |
Amounts recognized as revenue | (1,276) | (1,283) | (3,854) | (4,465) |
Ending Balance | $ 2,086 | $ 1,044 | $ 2,086 | $ 1,044 |
Note 4 (Details Textual)
Note 4 (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Depreciation, Total | $ 12,424,000 | $ 12,025,000 | $ 36,292,000 | $ 36,278,000 |
Minimum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life (Year) | 2 years | |||
Maximum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life (Year) | 20 years |
Note 5 (Details Textual)
Note 5 (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 382,431 | 20,800 | 302,674 | 289,692 |
Note 5 - Calculation of EPS (De
Note 5 - Calculation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Net earnings available to common stockholders | $ 15,563 | $ 28,893 | $ 29,925 | $ 36,732 |
Weighted average number of basic shares (in shares) | 19,174 | 19,045 | 19,131 | 18,996 |
Earnings (loss) per basic share (in dollars per share) | $ 0.81 | $ 1.52 | $ 1.56 | $ 1.93 |
Options | $ 0 | $ 0 | $ 0 | $ 0 |
Options, shares (in shares) | 60 | 140 | 67 | 120 |
Options, per share (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Net earnings available to common stockholders plus assumed conversions | $ 15,563 | $ 28,893 | $ 29,925 | $ 36,732 |
Weighted average number of diluted shares (in shares) | 19,234 | 19,185 | 19,198 | 19,116 |
Earnings (loss) per diluted share (in dollars per share) | $ 0.81 | $ 1.51 | $ 1.56 | $ 1.92 |
Note 6 (Details Textual)
Note 6 (Details Textual) - $ / shares | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 115,700 | 138,432 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 23.36 | $ 31.20 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term (Month) | 51 months | ||||
Share Based Compensation Arrangement by Share Based Payment Award Fair Value Assumptions Volatility Calculation Term (Year) | 10 years | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in shares) | 327 | 0 | 9,200 | 0 | |
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in shares) | 8,868 | 0 | 0 | 0 |
Note 6 - Summary of Share-based
Note 6 - Summary of Share-based Compensation Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Employee share-based compensation | $ 1,018 | $ 717 | $ 2,935 | $ 2,121 |
The above compensation is net of tax benefits | 116 | 265 | 549 | 1,131 |
Share-Based Payment Arrangement, Option [Member] | ||||
Employee share-based compensation | 693 | 523 | 2,115 | 1,538 |
Stock Purchase Plan [Member] | ||||
Employee share-based compensation | 90 | 171 | 240 | 513 |
Restricted Stock [Member] | ||||
Employee share-based compensation | 152 | 23 | 376 | 70 |
Performance Shares [Member] | ||||
Employee share-based compensation | $ 83 | $ 0 | $ 204 | $ 0 |
Note 7 (Details Textual)
Note 7 (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | Sep. 25, 2021 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 343,000 | $ 343,000 | $ 343,000 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | $ 267,000 | $ 267,000 | $ 267,000 | ||
Effective Income Tax Rate Reconciliation, Percent, Total (Rate) | 27% | 25% | 26% | 24% |
Note 9 (Details Textual)
Note 9 (Details Textual) - USD ($) | 3 Months Ended | |||
Jun. 25, 2022 | Jun. 21, 2022 | Dec. 31, 2021 | Sep. 25, 2021 | |
The Credit Agreement [Member] | ||||
Long-Term Line of Credit, Total | $ 0 | |||
The Credit Agreement [Member] | Federal Funds Rate [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||
The Amended Credit Agreement [Member] | ||||
Long-Term Line of Credit, Total | $ 125,000,000 | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 91,225,000 | |||
Revolving Credit Facility [Member] | The Credit Agreement [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000,000 | |||
Revolving Credit Facility [Member] | The Amended Credit Agreement [Member] | ||||
Line Of Credit Facility Increase In Maximum Borrowing Capacity | $ 175,000,000 | |||
Line of Credit Facility, Options to Increase Size of Credit Facility, Value 1 | 225,000,000 | |||
Line of Credit Facility, Options to Increase Size of Credit Facility, Value 2 | $ 50,000,000 |
Note 10 - Summary of Inventorie
Note 10 - Summary of Inventories (Details) - USD ($) $ in Thousands | Jun. 25, 2022 | Sep. 25, 2021 |
Finished goods | $ 83,201 | $ 49,756 |
Raw materials | 39,856 | 29,529 |
Packaging materials | 15,832 | 11,168 |
Equipment parts and other | 35,059 | 32,707 |
Total inventories | $ 173,948 | $ 123,160 |
Note 11 (Details Textual)
Note 11 (Details Textual) | 9 Months Ended |
Jun. 25, 2022 | |
Number of Reportable Segments | 3 |
Note 11 - Operations Informatio
Note 11 - Operations Information by Reporting Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | Sep. 25, 2021 | |
Sales | $ 380,227 | $ 324,344 | $ 980,230 | $ 821,519 | |
Depreciation and amortization | 13,016 | 12,664 | 38,067 | 38,374 | |
Operating income | 21,260 | 38,144 | 40,193 | 45,952 | |
Capital expenditures | 28,925 | 15,627 | 64,231 | 34,456 | |
Assets | 1,291,242 | 1,101,546 | 1,291,242 | 1,101,546 | $ 1,122,219 |
Food Service [Member] | |||||
Sales | 227,842 | 196,479 | 615,914 | 526,226 | |
Depreciation and amortization | 7,097 | 6,817 | 20,436 | 20,334 | |
Operating income | 2,640 | 17,644 | 12,177 | 29,879 | |
Capital expenditures | 21,673 | 10,383 | 45,757 | 25,915 | |
Assets | 957,719 | 779,730 | 957,719 | 779,730 | |
Retail Supermarket [Member] | |||||
Sales | 61,008 | 53,857 | 144,460 | 136,859 | |
Depreciation and amortization | 405 | 378 | 1,157 | 1,147 | |
Operating income | 2,341 | 9,080 | 8,416 | 20,167 | |
Capital expenditures | 2,815 | 93 | 6,438 | 194 | |
Assets | 29,147 | 33,405 | 29,147 | 33,405 | |
Frozen Beverages [Member] | |||||
Sales | 91,377 | 74,008 | 219,856 | 158,434 | |
Depreciation and amortization | 5,514 | 5,469 | 16,474 | 16,893 | |
Operating income | 16,279 | 11,420 | 19,600 | (4,094) | |
Capital expenditures | 4,437 | 5,151 | 12,036 | 8,347 | |
Assets | 304,376 | 288,411 | 304,376 | 288,411 | |
Soft Pretzels [Member] | Food Service [Member] | |||||
Sales | 55,946 | 50,895 | 149,628 | 120,356 | |
Soft Pretzels [Member] | Retail Supermarket [Member] | |||||
Sales | 11,696 | 11,193 | 43,642 | 40,871 | |
Frozen Juices and Ices [Member] | Food Service [Member] | |||||
Sales | 17,155 | 13,927 | 32,917 | 30,812 | |
Frozen Juices and Ices [Member] | Retail Supermarket [Member] | |||||
Sales | 41,865 | 36,898 | 78,586 | 71,600 | |
Churros [Member] | Food Service [Member] | |||||
Sales | 25,614 | 20,096 | 62,550 | 46,358 | |
Handhelds [Member] | Food Service [Member] | |||||
Sales | 25,740 | 18,971 | 64,741 | 56,574 | |
Handhelds [Member] | Retail Supermarket [Member] | |||||
Sales | 1,589 | 1,191 | 3,934 | 6,215 | |
Bakery [Member] | Food Service [Member] | |||||
Sales | 95,495 | 85,706 | 287,293 | 257,580 | |
Other Products [Member] | Food Service [Member] | |||||
Sales | 7,892 | 6,884 | 18,785 | 14,546 | |
Other Products [Member] | Retail Supermarket [Member] | |||||
Sales | 397 | 526 | 501 | 1,652 | |
Other Products [Member] | Frozen Beverages [Member] | |||||
Sales | 826 | 536 | 1,777 | 1,312 | |
Biscuits [Member] | Retail Supermarket [Member] | |||||
Sales | 6,066 | 4,562 | 20,024 | 18,717 | |
Coupon Redemtion [Member] | Retail Supermarket [Member] | |||||
Sales | (605) | (513) | (2,227) | (2,196) | |
Beverage [Member] | Frozen Beverages [Member] | |||||
Sales | 57,791 | 42,279 | 126,919 | 76,663 | |
Repair and Maintenance Service [Member] | Frozen Beverages [Member] | |||||
Sales | 22,892 | 22,789 | 65,903 | 59,903 | |
Machine Sales [Member] | Frozen Beverages [Member] | |||||
Sales | $ 9,868 | $ 8,404 | $ 25,257 | $ 20,556 |
Note 12 (Details Textual)
Note 12 (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Mar. 26, 2022 | Mar. 27, 2021 | Mar. 26, 2022 | Mar. 27, 2021 | Jun. 25, 2022 | |
Amortization of Intangible Assets | $ 584,000 | $ 639,000 | $ 1,766,000 | $ 2,096,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Year One | $ 3,500,000 | ||||
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 6,700,000 | ||||
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 6,400,000 | ||||
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 5,800,000 | ||||
Finite-Lived Intangible Asset, Expected Amortization, Year Five | $ 5,800,000 | ||||
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year) | 10 years 4 months 24 days | ||||
Technology-Based Intangible Assets [Member] | |||||
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year) | 10 years | ||||
Customer Relationships [Member] | |||||
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year) | 10 years | ||||
License and Rights [Member] | |||||
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year) | 20 years | ||||
Franchise Rights [Member] | |||||
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year) | 10 years | ||||
Minimum [Member] | |||||
Finite-Lived Intangible Asset, Useful Life (Year) | 2 years | ||||
Maximum [Member] | |||||
Finite-Lived Intangible Asset, Useful Life (Year) | 20 years |
Note 12 - Intangible Assets by
Note 12 - Intangible Assets by Reporting Segment (Details) - USD ($) $ in Thousands | Jun. 25, 2022 | Sep. 25, 2021 |
Finite-lived intangible assets, accumulated amortization | $ 18,075 | $ 17,579 |
Intangible assets | 214,482 | 95,355 |
Food Service [Member] | ||
Finite-lived intangible assets, accumulated amortization | 9,293 | 9,066 |
Intangible assets | 145,356 | 25,768 |
Food Service [Member] | Noncompete Agreements [Member] | ||
Finite-lived intangible assets, accumulated amortization | 670 | 670 |
Finite-lived intangible assets, gross | 670 | 670 |
Food Service [Member] | Franchise Rights [Member] | ||
Finite-lived intangible assets, accumulated amortization | 0 | 0 |
Finite-lived intangible assets, gross | 8,500 | 0 |
Food Service [Member] | Customer Relationships [Member] | ||
Finite-lived intangible assets, accumulated amortization | 7,163 | 6,188 |
Finite-lived intangible assets, gross | 25,100 | 13,000 |
Food Service [Member] | Technology-Based Intangible Assets [Member] | ||
Finite-lived intangible assets, accumulated amortization | 0 | 0 |
Finite-lived intangible assets, gross | 22,900 | 0 |
Food Service [Member] | License and Rights [Member] | ||
Finite-lived intangible assets, accumulated amortization | 1,460 | 1,396 |
Finite-lived intangible assets, gross | 1,690 | 1,690 |
Retail Supermarket [Member] | ||
Finite-lived intangible assets, accumulated amortization | 7,149 | 7,041 |
Intangible assets | 20,872 | 21,333 |
Retail Supermarket [Member] | Customer Relationships [Member] | ||
Finite-lived intangible assets, accumulated amortization | 6,500 | 5,931 |
Finite-lived intangible assets, gross | 7,907 | 7,907 |
Retail Supermarket [Member] | Finite-lived Trade Names [Member] | ||
Finite-lived intangible assets, accumulated amortization | 649 | 649 |
Finite-lived intangible assets, gross | 649 | 649 |
Frozen Beverages [Member] | ||
Finite-lived intangible assets, accumulated amortization | 1,633 | 1,472 |
Intangible assets | 48,254 | 48,254 |
Frozen Beverages [Member] | Customer Relationships [Member] | ||
Finite-lived intangible assets, accumulated amortization | 509 | 400 |
Finite-lived intangible assets, gross | 1,439 | 1,439 |
Frozen Beverages [Member] | License and Rights [Member] | ||
Finite-lived intangible assets, accumulated amortization | 1,124 | 1,072 |
Finite-lived intangible assets, gross | 1,400 | 1,400 |
Trade Names [Member] | Food Service [Member] | ||
Indefinite-lived intangible assets, gross | 86,496 | 10,408 |
Finite-lived intangible assets, accumulated amortization | 0 | 812 |
Trade Names [Member] | Retail Supermarket [Member] | ||
Indefinite-lived intangible assets, gross | 12,316 | 12,777 |
Finite-lived intangible assets, accumulated amortization | 0 | 461 |
Trade Names [Member] | Frozen Beverages [Member] | ||
Indefinite-lived intangible assets, gross | 9,315 | 9,315 |
Distribution Rights, Indefinite-lived [Member] | Frozen Beverages [Member] | ||
Indefinite-lived intangible assets, gross | $ 36,100 | $ 36,100 |
Note 12 - Goodwill by Reporting
Note 12 - Goodwill by Reporting Segment (Details) - USD ($) $ in Thousands | Jun. 25, 2022 | Sep. 25, 2021 |
Balance at June 25, 2022 | $ 188,467 | $ 121,833 |
Food Service [Member] | ||
Balance at June 25, 2022 | 127,823 | 61,189 |
Retail Supermarket [Member] | ||
Balance at June 25, 2022 | 4,146 | 4,146 |
Frozen Beverages [Member] | ||
Balance at June 25, 2022 | $ 56,498 | $ 56,498 |
Note 13 (Details Textual)
Note 13 (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | Sep. 25, 2021 | |
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss, Total | $ 4,520,000 | $ 4,520,000 | $ 12,027,000 | ||
Proceeds from Sale and Maturity of Marketable Securities | 0 | $ 12,854,000 | 11,526,000 | $ 54,191,000 | |
Marketable Securities, Gain (Loss) | (343,000) | 21,000 | (412,000) | 139,000 | |
Marketable Securities, Unrealized Gain (Loss) | (401,000) | $ (343,000) | 786,000 | $ 137,000 | |
External Credit Rating, Investment Grade [Member] | |||||
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss, Total | 4,520,000 | 4,520,000 | |||
Corporate Bond Securities [Member] | |||||
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss, Total | $ 4,500,000 | $ 4,500,000 | |||
Investment Securities Maturity Term (Month) | 12 months |
Note 13 - Investment Securities
Note 13 - Investment Securities - Summary of Securities (Details) - USD ($) $ in Thousands | Jun. 25, 2022 | Sep. 25, 2021 |
Held-to-maturity securities, amortized cost | $ 4,520 | $ 12,027 |
Held-to-maturity securities, gross unrealized gains | 0 | 123 |
Held-to-maturity securities, gross unrealized losses | 52 | 18 |
Held-to-maturity securities, fair market value | 4,468 | 12,132 |
Investment securities, cost | 6,404 | 10,480 |
Investment securities, gross unrealized gains | 15 | 175 |
Investment securities, gross unrealized losses | 811 | 571 |
Investment securities, fair market value | 5,608 | 10,084 |
Corporate Bond Securities [Member] | ||
Held-to-maturity securities, amortized cost | 4,520 | 12,027 |
Held-to-maturity securities, gross unrealized gains | 0 | 123 |
Held-to-maturity securities, gross unrealized losses | 52 | 18 |
Held-to-maturity securities, fair market value | 4,468 | 12,132 |
Mutual Funds [Member] | ||
Investment securities, cost | 3,588 | 3,588 |
Investment securities, gross unrealized gains | 0 | 0 |
Investment securities, gross unrealized losses | 742 | 536 |
Investment securities, fair market value | 2,846 | 3,052 |
Preferred Stock [Member] | ||
Investment securities, cost | 2,816 | 6,892 |
Investment securities, gross unrealized gains | 15 | 175 |
Investment securities, gross unrealized losses | 69 | 35 |
Investment securities, fair market value | $ 2,762 | $ 7,032 |
Note 13 - Investment Securiti_2
Note 13 - Investment Securities - Held-to-maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 25, 2022 | Sep. 25, 2021 |
Due in one year or less, amortized cost | $ 4,520 | $ 7,980 |
Due in one year or less, fair market value | 4,468 | 8,080 |
Due after one year through five years, amortized cost | 4,047 | |
Due after one year through five years, fair market value | 4,052 | |
Total held to maturity securities, amortized cost | 4,520 | 12,027 |
Total held to maturity securities, fair market value | 4,468 | 12,132 |
Less current portion, amortized cost | 4,520 | 7,980 |
Less current portion, fair market value | 4,468 | 8,080 |
Long term held to maturity securities, amortized cost | $ 0 | 4,047 |
Long term held to maturity securities, fair market value | $ 4,052 |
Note 14 - Changes to the Compon
Note 14 - Changes to the Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Balance | $ 849,981 | $ 813,000 | $ 845,654 | $ 809,498 |
Other comprehensive (loss) income | (93) | 657 | 9 | 2,405 |
Balance | 855,899 | 835,030 | 855,899 | 835,030 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Balance | (13,281) | (13,839) | (13,383) | (15,587) |
Other comprehensive (loss) income | (93) | 657 | 9 | 2,405 |
Balance | $ (13,374) | $ (13,182) | $ (13,374) | $ (13,182) |
Note 15 - Leases (Details Textu
Note 15 - Leases (Details Textual) | Jun. 25, 2022 | Jun. 26, 2021 |
Operating Lease, Weighted Average Discount Rate, Percent | 3.30% | 3.20% |
Finance Lease, Weighted Average Discount Rate, Percent | 3.20% | 3.20% |
Minimum [Member] | ||
Lessee, Operating Lease, Remaining Lease Term (Month) | 1 month | |
Lessee, Finance Lease, Remaining Lease Term (Year) | 1 year | |
Maximum [Member] | ||
Lessee, Operating Lease, Remaining Lease Term (Month) | 13 years | |
Lessee, Finance Lease, Remaining Lease Term (Year) | 5 years |
Note 15 - Leases - Components o
Note 15 - Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Operating lease cost in cost of goods sold and operating expenses | $ 3,630 | $ 3,846 | $ 11,550 | $ 11,747 |
Amortization of assets in cost of goods sold and operating expenses | 19 | 62 | 141 | 216 |
Interest on lease liabilities in Interest expense & other | 1 | 5 | 8 | 30 |
Total finance lease cost | 20 | 67 | 149 | 246 |
Short-term lease cost in cost of goods sold and operating expenses | 0 | 0 | 0 | 0 |
Total net lease cost | $ 3,650 | $ 3,913 | $ 11,699 | $ 11,993 |
Note 15 - Leases - Supplemental
Note 15 - Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 25, 2022 | Sep. 25, 2021 |
Operating lease right-of-use assets | $ 54,990 | $ 54,990 | $ 54,555 |
Current operating lease liabilities | 14,062 | 14,062 | 13,395 |
Noncurrent operating lease liabilities | 46,017 | 46,017 | 46,557 |
Total operating lease liabilities | 60,079 | 60,079 | 59,952 |
Current finance lease liabilities | 189 | 189 | 182 |
Noncurrent finance lease liabilities | 318 | 318 | 392 |
Total finance lease liabilities | 507 | $ 507 | 574 |
Property, Plant and Equipment, Net [Member] | |||
Finance lease right-of-use assets in property, plant and equipment, net | $ 441 | $ 561 |
Note 15 - Leases - Supplement_2
Note 15 - Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Operating cash flows from operating leases | $ 4,181 | $ 3,860 | $ 12,189 | $ 11,847 |
Operating cash flows from finance leases | 1 | 64 | 8 | 237 |
Financing cash flows from finance leases | 39 | 23 | 150 | 48 |
Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets | $ 4,652 | $ 1,317 | $ 11,717 | $ 2,671 |
Note 15 - Leases - Maturities o
Note 15 - Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 25, 2022 | Sep. 25, 2021 |
Three months ending September 24, 2022, operating leases | $ 4,187 | ||
Three months ending September 24, 2022, finance leases | 64 | ||
2023, operating leases | 14,973 | ||
2023, finance leases | 181 | ||
2024, operating leases | 12,251 | ||
2024, finance leases | 140 | ||
2025, operating leases | 8,753 | ||
2025, finance leases | 65 | ||
2026, operating leases | 5,666 | ||
2026, finance leases | 39 | ||
Thereafter | 20,515 | ||
Thereafter, finance leases | 33 | ||
Total minimum payments, operating leases | 66,345 | ||
Total minimum payments, finance leases | 522 | ||
Less amount representing interest, operating leases | (6,266) | ||
Less amount representing interest, finance leases | (15) | ||
Present value of lease obligations, operating leases | $ 60,079 | 60,079 | $ 59,952 |
Present value of lease obligations, finance leases | $ 507 | $ 507 | $ 574 |
Note 16 (Details Textual)
Note 16 (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | Sep. 25, 2021 | |
Accounts Payable, Related Parties | $ 3,305,000 | $ 3,305,000 | $ 0 | ||
NFI [Member] | Distribution and Shipping Costs [Member] | |||||
Related Party Transaction, Amounts of Transaction | 12,004,000 | $ 15,984,000 | 19,000 | $ 115,000 | |
NFI [Member] | Management Services [Member] | |||||
Related Party Transaction, Amounts of Transaction | $ 149,000 | $ 19,000 | $ 403,000 | $ 115,000 |