Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Mar. 30, 2024 | May 03, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 0-14616 | |
Entity Registrant Name | J&J SNACK FOODS CORP, | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-1935537 | |
Entity Address, Address Line One | 350 Fellowship Road | |
Entity Address, City or Town | Mt. Laurel | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08054 | |
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 (in shares) | 19,386,215 | |
Entity Central Index Key | 0000785956 | |
Current Fiscal Year End Date | --09-24 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 30, 2024 | Sep. 30, 2023 |
Current assets | ||
Cash and cash equivalents | $ 43,645 | $ 49,581 |
Accounts receivable, net | 178,312 | 198,129 |
Inventories | 188,709 | 171,539 |
Prepaid expenses and other | 9,944 | 10,963 |
Total current assets | 420,610 | 430,212 |
Property, plant and equipment, at cost | ||
Land | 3,684 | 3,684 |
Buildings | 50,075 | 45,538 |
Plant machinery and equipment | 470,836 | 445,299 |
Marketing equipment | 310,799 | 296,482 |
Transportation equipment | 15,078 | 14,367 |
Office equipment | 48,265 | 47,393 |
Improvements | 64,823 | 51,319 |
Construction in progress | 30,346 | 56,116 |
Total Property, plant and equipment, at cost | 993,906 | 960,198 |
Less accumulated depreciation and amortization | 601,876 | 574,295 |
Property, plant and equipment, net | 392,030 | 385,903 |
Other assets | ||
Goodwill | 185,070 | 185,070 |
Other intangible assets, net | 180,298 | 183,529 |
Operating lease right-of-use assets | 154,104 | 88,868 |
Other | 3,494 | 3,654 |
Total other assets | 522,966 | 461,121 |
Total Assets | 1,335,606 | 1,277,236 |
Current Liabilities | ||
Current finance lease liabilities | 170 | 201 |
Accounts payable | 95,844 | 90,758 |
Accrued insurance liability | 16,980 | 15,743 |
Accrued liabilities | 8,955 | 14,214 |
Current operating lease liabilities | 19,179 | 16,478 |
Accrued compensation expense | 19,218 | 23,341 |
Dividends payable | 14,249 | 14,209 |
Total current liabilities | 174,595 | 174,944 |
Long-term debt | 17,000 | 27,000 |
Noncurrent finance lease liabilities | 506 | 600 |
Noncurrent operating lease liabilities | 141,726 | 77,631 |
Deferred income taxes | 81,665 | 81,310 |
Other long-term liabilities | 4,462 | 4,233 |
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 19,386,000 and 19,332,000 respectively | 124,280 | 114,556 |
Accumulated other comprehensive loss | (7,883) | (10,166) |
Retained Earnings | 799,255 | 807,128 |
Total stockholders' equity | 915,652 | 911,518 |
Total Liabilities and Stockholders' Equity | $ 1,335,606 | $ 1,277,236 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Mar. 30, 2024 | Sep. 30, 2023 |
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) | 19,386,000 | 19,386,000 |
Common Stock, Shares, Outstanding (in shares) | 19,332,000 | 19,332,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Mar. 25, 2023 | Mar. 30, 2024 | Mar. 25, 2023 | |
Net sales | $ 359,734 | $ 337,854 | $ 708,042 | $ 689,197 |
Cost of goods sold | 251,491 | 247,470 | 505,214 | 507,958 |
Gross profit | 108,243 | 90,384 | 202,828 | 181,239 |
Operating Expenses [Abstract] | ||||
Marketing | 27,650 | 24,017 | 55,122 | 47,716 |
Distribution | 44,249 | 38,188 | 84,552 | 80,237 |
Administrative | 18,521 | 17,919 | 36,720 | 34,310 |
Other general expense | (81) | 67 | (1,153) | (545) |
Total operating expenses | 90,339 | 80,191 | 175,241 | 161,718 |
Operating Income | 17,904 | 10,193 | 27,587 | 19,521 |
Other income (expense) | ||||
Investment income | 684 | 401 | 1,482 | 1,086 |
Interest expense | (429) | (1,334) | (989) | (2,383) |
Earnings before income taxes | 18,159 | 9,260 | 28,080 | 18,224 |
Income tax expense | 4,830 | 2,389 | 7,469 | 4,720 |
NET EARNINGS | $ 13,329 | $ 6,871 | $ 20,611 | $ 13,504 |
Earnings per diluted share (in dollars per share) | $ 0.69 | $ 0.36 | $ 1.06 | $ 0.7 |
Weighted average number of diluted shares (in shares) | 19,418 | 19,295 | 19,411 | 19,285 |
Earnings per basic share (in dollars per share) | $ 0.69 | $ 0.36 | $ 1.06 | $ 0.7 |
Weighted average number of basic shares (in shares) | 19,380 | 19,238 | 19,362 | 19,230 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Mar. 25, 2023 | Mar. 30, 2024 | Mar. 25, 2023 | |
Net Earnings | $ 13,329 | $ 6,871 | $ 20,611 | $ 13,504 |
Foreign currency translation adjustments | 348 | 1,068 | 2,283 | 1,939 |
Total other comprehensive income, net of tax | 348 | 1,068 | 2,283 | 1,939 |
Comprehensive Income | $ 13,677 | $ 7,939 | $ 22,894 | $ 15,443 |
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 |
Common Stock, Shares, Outstanding (in shares) | 19,219,000 | |||
Balance at March 30, 2024 | $ 94,026 | $ (13,713) | $ 782,856 | $ 863,169 |
Balance (in shares) at Sep. 24, 2022 | 19,219,000 | |||
Balance at Sep. 24, 2022 | $ 94,026 | (13,713) | 782,856 | 863,169 |
Issuance of common stock upon exercise of stock options (in shares) | 10,000 | |||
Issuance of common stock upon exercise of stock options | $ 1,285 | 0 | 0 | 1,285 |
Foreign currency translation adjustment | 0 | 871 | 0 | 871 |
Dividends declared | 0 | 0 | (13,461) | (13,461) |
Share-based compensation | 1,239 | 0 | 0 | 1,239 |
Net Earnings | 0 | 0 | 6,633 | |
Dividends declared | 0 | 0 | 13,461 | 13,461 |
Share-based compensation | 1,239 | 0 | 0 | 1,239 |
Net earnings | $ 0 | 0 | 6,633 | |
Balance (in shares) at Dec. 24, 2022 | 19,229,000 | |||
Balance at Dec. 24, 2022 | $ 96,550 | (12,842) | 776,028 | 859,736 |
Balance (in shares) at Sep. 24, 2022 | 19,219,000 | |||
Balance at Sep. 24, 2022 | $ 94,026 | (13,713) | 782,856 | 863,169 |
Foreign currency translation adjustment | 1,939 | |||
Net Earnings | 13,504 | |||
Net earnings | 13,504 | |||
Balance (in shares) at Mar. 25, 2023 | 19,252,000 | |||
Balance at Mar. 25, 2023 | $ 100,637 | (11,774) | 769,424 | 858,287 |
Common Stock, Shares, Outstanding (in shares) | 19,229,000 | |||
Balance at March 30, 2024 | $ 96,550 | (12,842) | 776,028 | 859,736 |
Balance (in shares) at Dec. 24, 2022 | 19,229,000 | |||
Balance at Dec. 24, 2022 | $ 96,550 | (12,842) | 776,028 | 859,736 |
Issuance of common stock upon exercise of stock options (in shares) | 14,000 | |||
Issuance of common stock upon exercise of stock options | $ 1,713 | 0 | 0 | 1,713 |
Foreign currency translation adjustment | 0 | 1,068 | 0 | 1,068 |
Dividends declared | 0 | 0 | (13,475) | (13,475) |
Share-based compensation | 1,313 | 0 | 0 | 1,313 |
Net Earnings | $ 0 | 0 | 6,871 | 6,871 |
Issuance of common stock for employee stock purchase plan (in shares) | 9,000 | |||
Issuance of common stock for employee stock purchase plan | $ 1,061 | 0 | 0 | 1,061 |
Dividends declared | 0 | 0 | 13,475 | 13,475 |
Share-based compensation | 1,313 | 0 | 0 | 1,313 |
Net earnings | $ 0 | 0 | 6,871 | 6,871 |
Balance (in shares) at Mar. 25, 2023 | 19,252,000 | |||
Balance at Mar. 25, 2023 | $ 100,637 | (11,774) | 769,424 | 858,287 |
Common Stock, Shares, Outstanding (in shares) | 19,252,000 | |||
Balance at March 30, 2024 | $ 100,637 | (11,774) | 769,424 | $ 858,287 |
Common Stock, Shares, Outstanding (in shares) | 19,332,000 | 19,332,000 | ||
Balance at March 30, 2024 | $ 114,556 | (10,166) | 807,128 | $ 911,518 |
Balance (in shares) at Sep. 30, 2023 | 19,332,000 | 19,332,000 | ||
Balance at Sep. 30, 2023 | $ 114,556 | (10,166) | 807,128 | $ 911,518 |
Issuance of common stock upon exercise of stock options (in shares) | 35,000 | |||
Issuance of common stock upon exercise of stock options | $ 4,481 | 0 | 0 | 4,481 |
Foreign currency translation adjustment | 0 | 1,935 | 0 | 1,935 |
Dividends declared | 0 | 0 | (14,235) | (14,235) |
Share-based compensation | 1,480 | 0 | 0 | 1,480 |
Net Earnings | 0 | 0 | 7,282 | 7,282 |
Dividends declared | 0 | 0 | 14,235 | 14,235 |
Share-based compensation | 1,480 | 0 | 0 | 1,480 |
Net earnings | $ 0 | 0 | 7,282 | 7,282 |
Balance (in shares) at Dec. 30, 2023 | 19,367,000 | |||
Balance at Dec. 30, 2023 | $ 120,517 | (8,231) | 800,175 | $ 912,461 |
Balance (in shares) at Sep. 30, 2023 | 19,332,000 | 19,332,000 | ||
Balance at Sep. 30, 2023 | $ 114,556 | (10,166) | 807,128 | $ 911,518 |
Foreign currency translation adjustment | 2,283 | |||
Net Earnings | 20,611 | |||
Net earnings | $ 20,611 | |||
Balance (in shares) at Mar. 30, 2024 | 19,386,000 | 19,332,000 | ||
Balance at Mar. 30, 2024 | $ 124,280 | (7,883) | 799,255 | $ 915,652 |
Common Stock, Shares, Outstanding (in shares) | 19,367,000 | |||
Balance at March 30, 2024 | $ 120,517 | (8,231) | 800,175 | 912,461 |
Balance (in shares) at Dec. 30, 2023 | 19,367,000 | |||
Balance at Dec. 30, 2023 | $ 120,517 | (8,231) | 800,175 | 912,461 |
Issuance of common stock upon exercise of stock options (in shares) | 9,000 | |||
Issuance of common stock upon exercise of stock options | $ 715 | 0 | 0 | 715 |
Foreign currency translation adjustment | 0 | 348 | 0 | 348 |
Dividends declared | 0 | 0 | (14,249) | (14,249) |
Share-based compensation | 1,728 | 0 | 0 | 1,728 |
Net Earnings | $ 0 | 0 | 13,329 | 13,329 |
Issuance of common stock for employee stock purchase plan (in shares) | 10,000 | |||
Issuance of common stock for employee stock purchase plan | $ 1,320 | 0 | 0 | 1,320 |
Dividends declared | 0 | 0 | 14,249 | 14,249 |
Share-based compensation | 1,728 | 0 | 0 | 1,728 |
Net earnings | $ 0 | 0 | 13,329 | $ 13,329 |
Balance (in shares) at Mar. 30, 2024 | 19,386,000 | 19,332,000 | ||
Balance at Mar. 30, 2024 | $ 124,280 | (7,883) | 799,255 | $ 915,652 |
Common Stock, Shares, Outstanding (in shares) | 19,386,000 | 19,332,000 | ||
Balance at March 30, 2024 | $ 124,280 | $ (7,883) | $ 799,255 | $ 915,652 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Mar. 25, 2023 | Mar. 30, 2024 | Mar. 25, 2023 | |
Operating activities: | ||||
Net earnings | $ 13,329,000 | $ 6,871,000 | $ 20,611,000 | $ 13,504,000 |
Adjustments to reconcile net earnings to net cash provided by operating activities | ||||
Depreciation of fixed assets | 15,800,000 | 13,800,000 | 30,960,000 | 27,236,000 |
Amortization of intangibles and deferred costs | 3,232,000 | 3,385,000 | ||
(Gain) loss from disposals of property & equipment | (17,000) | (354,000) | ||
Share-based compensation | 3,208,000 | 2,552,000 | ||
Deferred income taxes | 377,000 | (787,000) | ||
(Gain) loss on marketable securities | 0 | (59,000) | 0 | (22,000) |
Other | 160,000 | (255,000) | ||
Changes in assets and liabilities, net of effects from purchase of companies | ||||
Decrease in accounts receivable | 20,110,000 | 10,541,000 | ||
Decrease (Increase) in inventories | (17,027,000) | 823,000 | ||
Decrease in prepaid expenses | 1,046,000 | 4,787,000 | ||
(Decrease) in accounts payable and accrued liabilities | (962,000) | (25,739,000) | ||
Net cash provided by (used in) operating activities | 61,698,000 | 35,671,000 | ||
Investing activities: | ||||
Purchases of property, plant and equipment | (16,696,000) | (18,214,000) | (36,626,000) | (49,124,000) |
Proceeds from redemption and sales of marketable securities | 0 | 5,300,000 | ||
Proceeds from disposal of property and equipment | 152,000 | 797,000 | ||
Net cash (used in) investing activities | (36,474,000) | (43,027,000) | ||
Financing activities: | ||||
Proceeds from issuance of stock | 6,516,000 | 4,059,000 | ||
Borrowings under credit facility | 35,000,000 | 92,000,000 | ||
Repayment of borrowings under credit facility | (45,000,000) | (55,000,000) | ||
Payments on finance lease obligations | (25,000) | (32,000) | (110,000) | (71,000) |
Payment of cash dividend | (28,444,000) | (26,914,000) | ||
Net cash provided by (used in) financing activities | (32,038,000) | 14,074,000 | ||
Effect of exchange rates on cash and cash equivalents | 878,000 | 1,384,000 | ||
Net increase (decrease) in cash and cash equivalents | (5,936,000) | 8,102,000 | ||
Cash and cash equivalents at beginning of period | 49,581,000 | 35,181,000 | ||
Cash and cash equivalents at end of period | $ 43,645,000 | $ 43,283,000 | $ 43,645,000 | $ 43,283,000 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Mar. 30, 2024 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | Note 1 Basis of Presentation 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-Q and Rule 10-01 of Regulation S-X. They do not include all information and notes required by generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2023. 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 and six months ended March 30, 2024 and March 25, 2023 are not necessarily indicative of results for the full year. Sales of our frozen beverages and frozen novelties are generally higher in the fiscal third and fourth quarters due to warmer weather. While we believe that the disclosures presented are adequate to make the information not misleading, it is suggested that these consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023. |
Note 2- Revenue Recognition
Note 2- Revenue Recognition | 6 Months Ended |
Mar. 30, 2024 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | Note 2 Revenue Recognition We recognize revenue in accordance with ASC 606, “Revenue from Contracts with Customers.” 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 days. 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 contract liability on our balance sheet. 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 be more extended, presently the majority of our payment terms are 30 days. As a result, we have used the available practical expedient and, consequently, do not adjust our revenues for the effects of a significant financing component. 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 significant changes to our estimates of variable consideration when any related uncertainties are resolved with our customers. We review and update our estimates and related accruals of variable consideration each period based on historical experience. Our recorded liability for allowances, end-user pricing adjustments and trade spending was $21.9 million at March 30, 2024 and $18.9 million at September 30, 2023. 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 services beyond an assurance warranty are provided to our customers. We do not grant a general right of return. However, customers may return defective or non-conforming products. Customer remedies may include either a cash refund or an exchange of the product. We do not estimate a right of return and related refund liability as returns of our products are rare. Contract Balances Our customers are billed for service contracts in advance of performance and therefore we have contract liability on our balance sheet as follows: Three months ended Six months ended March 30, March 25, March 30, March 25, 2024 2023 2024 2023 (in thousands) (in thousands) Beginning balance $ 4,935 $ 4,767 $ 5,306 $ 4,926 Additions to contract liability 1,645 1,527 3,045 2,917 Amounts recognized as revenue (1,831 ) (1,465 ) (3,602 ) (3,014 ) Ending balance $ 4,749 $ 4,829 $ 4,749 $ 4,829 Disaggregation of Revenue See Note 10 for disaggregation of our net sales by class of similar product and type of customer. Allowance for Estimated Credit Losses The Company continuously monitors collections and payments from its customers and maintains a provision for estimated credit losses. The allowance for estimated credit losses considers a number of factors including the age of receivable balances, the history of losses, expectations of future credit losses, and the customers’ ability to pay off obligations. The allowance for estimated credit losses was $3.6 million and $3.2 million on March 30, 2024 and September 30, 2023, respectively. |
Note 3 - Depreciation and Amort
Note 3 - Depreciation and Amortization Expense | 6 Months Ended |
Mar. 30, 2024 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | Note 3 Depreciation and Amortization Expense 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, franchise agreements and technology arising from acquisitions are amortized by the straight-line method over periods ranging from 2 to 20 years. Depreciation expense was $15.8 million and $13.8 million for the three months ended March 30, 2024 and March 25, 2023, respectively and $31.0 million and $27.2 million for the six months ended March 30, 2024 and March 25, 2023, respectively. |
Note 4 - Earnings Per Share
Note 4 - Earnings Per Share | 6 Months Ended |
Mar. 30, 2024 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 4 Earnings per Share 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 and service share units (“RSU”)’s) or other contracts to issue common stock were exercised and converted into common stock. Our calculation of EPS is as follows: Three months ended March 30, 2024 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Basic EPS Net earnings available to common stockholders $ 13,329 19,380 $ 0.69 Effect of dilutive securities RSU's and options - 38 - Diluted EPS Net earnings available to common stockholders plus assumed conversions $ 13,329 19,418 $ 0.69 213,851 anti-dilutive shares have been excluded in the computation of EPS for the three months ended March 30, 2024. Six months ended March 30, 2024 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Basic EPS Net earnings available to common stockholders $ 20,611 19,362 $ 1.06 Effect of dilutive securities RSU's and options - 49 - Diluted EPS Net earnings available to common stockholders plus assumed conversions $ 20,611 19,411 $ 1.06 214,932 anti-dilutive shares have been excluded in the computation of EPS for the six months ended March 30, 2024. Three months ended March 25, 2023 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Basic EPS Net earnings available to common stockholders $ 6,871 19,238 $ 0.36 Effect of dilutive securities RSU's and options - 57 - Diluted EPS Net earnings available to common stockholders plus assumed conversions $ 6,871 19,295 $ 0.36 381,735 anti-dilutive shares have been excluded in the computation of EPS for the three months ended March 25, 2023. Six months ended March 25, 2023 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Basic EPS Net earnings available to common stockholders $ 13,504 19,230 $ 0.70 Effect of dilutive securities RSU's and options - 55 - Diluted EPS Net earnings available to common stockholders plus assumed conversions $ 13,504 19,285 $ 0.70 386,510 anti-dilutive shares have been excluded in the computation of EPS for the six months ended March 25, 2023. |
Note 5 - Share-based Compensati
Note 5 - Share-based Compensation and Post-retirement Benefits | 6 Months Ended |
Mar. 30, 2024 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | Note 5 Share-Based Compensation and Post-Retirement Benefits At March 30, 2024, the Company has three stock-based employee compensation plans. Share-based compensation expense was recognized as follows: Three months ended Six months ended March 30, March 25, March 30, March 25, 2024 2023 2024 2023 (in thousands) (in thousands) Stock options $ 364 $ 559 $ 727 $ 1,179 Stock purchase plan 139 197 238 424 Stock issued to outside directors 34 27 74 27 Service share units issued to employees 444 193 826 374 Performance share units issued to employees 372 171 647 243 Total share-based compensation $ 1,353 $ 1,147 $ 2,512 $ 2,247 The above compensation is net of tax benefits $ 375 $ 166 $ 696 $ 305 The fair value of each option grant is estimated on the date of grant using the Black-Scholes options-pricing model. Expected volatility is based on the historical volatility of the price of our common shares over the past 51 months for 5-year options and 10 years for 10-year options. We use historical information to estimate expected life and forfeitures within the valuation model. The expected term of awards represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Compensation cost is recognized using a straight-line method over the vesting or service period and is net of estimated forfeitures. The Company did not During the three and six months ended March 30, 2024, the Company issued 1,795 and 11,546 service share units (“RSU”)’s, respectively. During the six months ended March 25, 2023, the Company issued 9,900 RSU’s. Each RSU entitles the awardee to one share of common stock upon vesting. The fair value of the RSU’s was determined based upon the closing price of the Company’s common stock on the date of grant. No During the three and six months ended March 30, 2024, the Company also issued 1,795 and 11,538 performance share units (“PSU”)’s, respectively. During the six months ended March 25, 2023, the Company issued 18,641 PSU’s. Each PSU may result in the issuance of up to two shares of common stock upon vesting, dependent upon the level of achievement of the applicable Performance Goal. The fair value of the PSU’s was determined based upon the closing price of the Company’s common stock on the date of grant. Additionally, the Company applies a quarterly probability assessment in computing this non-cash compensation expense, and any change in estimate is reflected as a cumulative adjustment to expense in the quarter of the change. No |
Note 6 - Income Taxes
Note 6 - Income Taxes | 6 Months Ended |
Mar. 30, 2024 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 6 Income Taxes 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 to be overturned by taxing authorities (“uncertain tax positions”). We have not recognized a tax benefit in our financial statements for these uncertain tax positions. The total amount of gross unrecognized tax benefits is $0.3 million on both March 30, 2024 and September 30, 2023, respectively, all of which would impact our effective tax rate over time, if recognized. We recognize interest and penalties related to uncertain tax positions as a part of the provision for income taxes. As of March 30, 2024 and September 30, 2023, the Company has $0.3 million of accrued interest and penalties, respectively. 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. Virtually all the returns noted above are open for examination for three to four years. Our effective tax rate was 26.6% for the three months ended March 30, 2024, as compared with 25.8% in the prior year period. Our effective tax rate was 26.6% for the six months ended March 30, 2024, as compared with 25.9% in the prior year period. |
Note 7 - New Accounting Pronoun
Note 7 - New Accounting Pronouncements and Policies | 6 Months Ended |
Mar. 30, 2024 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | Note 7 New Accounting Pronouncements and Policies In December 2022, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848", to provide optional guidance to temporarily ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. Preceding the issuance of ASU 2020-04, which established ASC 848, the United Kingdom's Financial Conduct Authority ("FCA") announced that it would no longer need to persuade or compel banks to submit to LIBOR after December 31, 2021. In response, the FASB established December 31, 2022 as the expiration date for ASC 848. In March 2021, the FCA announced the intended cessation date of the overnight 1-, 3-, 6-, and 12-month USD LIBOR would be June 30, 2023. Because the current relief in Topic 848 may not cover a period of time during which a significant number of modifications may take place, this update deferred the sunset date in Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. This guidance is not expected to have a material impact on our consolidated financial statements and disclosures. In September 2022, the FASB issued ASU No. 2022-04 “Liabilities – Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations”. This guidance requires annual and interim disclosures for entities that use supplier finance programs in connection with the purchase of goods and services. These amendments are effective for fiscal years beginning after December 15, 2022, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company adopted this guidance during the three months ended December 30, 2023. The adoption of this guidance did not have a material impact on our consolidated financial statements and disclosures. In November 2023, the FASB issued ASU No. 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This guidance requires all public entities to provide enhanced disclosures about significant segment expenses. The amendments in this ASU are to be applied retrospectively and are effective for fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024. We are currently assessing the impact of the guidance on our consolidated financial statements and disclosures. In December 2023, the FASB issued ASU No. 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This guidance enhances the transparency around income tax information through improvements to income tax disclosures, primarily related to the effective rate reconciliation and income taxes paid, to improve the overall effectiveness of income tax disclosures. The amendments in the ASU are effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently assessing the impact of the guidance on our consolidated financial statements and disclosures. In March 2024, the SEC adopted final rules to require disclosures about certain climate-related information in registration statements and annual reports. In April 2024, the SEC issued an order to stay the rules pending the completion of judicial review of multiple petitions challenging the rules. The rules will require disclosure of, amongst other things, material climate-related risks, how the board of directors and management oversee such risks, and the actual and potential material impacts of such risks. The rules also require disclosure around material climate-related targets and goals, Scope 1 and Scope 2 green-house gas emissions, and the financial impacts of severe weather events and other natural conditions. If the rules are ultimately implemented, their adoption will be phased, and accordingly, we would be required to begin to make certain disclosures for our annual period ending September 26, 2026, applied prospectively. We are currently assessing the impact of the guidance on our consolidated financial statements and disclosures. |
Note 8 - Long-term Debt
Note 8 - Long-term Debt | 6 Months Ended |
Mar. 30, 2024 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 8 Long-Term Debt In December 2021, the Company entered into an amended and restated loan agreement (the “Credit Agreement”) with our existing banks which provided for up to a $50 million revolving credit facility repayable in 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 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 March 30, 2024, the Company is in compliance with all financial covenant terms of the Credit Agreement. On June 21, 2022, the Company entered into an amendment to the Credit Agreement, the “Amended Credit Agreement” which provided for an incremental increase of $175 million in available borrowings. The Amended Credit Agreement also includes an option to increase the size of the revolving credit facility by up to an amount not to exceed in the aggregate the greater of $225 million or $50 million, plus the Consolidated EBITDA of the Borrowers, subject to the satisfaction of certain terms and conditions. As of March 30, 2024, $17.0 million was outstanding under the Amended Credit Agreement with a weighted average interest rate of 6.94%. These borrowings have been classified as Long-Term Debt on the Company’s Balance Sheet. As of March 30, 2024, the amount available under the Amended Credit Agreement was $198.2 million, after giving effect to the outstanding letters of credit. As of September 30, 2023, $27.0 million was outstanding under the Credit Agreement. As of September 30, 2023, the amount available under the Amended Agreement was $188.2 million, after giving effect to the outstanding letters of credit. |
Note 9 - Inventory
Note 9 - Inventory | 6 Months Ended |
Mar. 30, 2024 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 9 Inventory Inventories consist of the following: March 30, September 30, 2024 2023 (unaudited) (in thousands) Finished goods $ 100,638 $ 86,472 Raw materials 31,001 30,537 Packaging materials 13,675 12,484 Equipment parts and other 43,395 42,046 Total inventories $ 188,709 $ 171,539 |
Note 10 - Segment Information
Note 10 - Segment Information | 6 Months Ended |
Mar. 30, 2024 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 10 Segment Information 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 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 and casual dining restaurants; stadiums and sports arenas; leisure and theme parks; convenience stores; movie theatres; warehouse club stores; schools, colleges and other institutions. Within the food service industry, our products are purchased by the consumer primarily for consumption at the point-of-sale or for take-away. Retail Supermarkets The primary products sold to the retail supermarket channel are soft pretzel products – including SUPERPRETZEL and AUNTIE ANNE’S, frozen novelties including LUIGI’S Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, WHOLE FRUIT frozen fruit bars and sorbet, DOGSTERS ice cream style treats for dogs, PHILLY SWIRL cups and sticks, ICEE Squeeze-Up Tubes and handheld products. Within the retail supermarket channel, our frozen and prepackaged products are purchased by the consumer for consumption at home. Frozen Beverages We sell frozen beverages to the foodservice industry primarily under the names ICEE, SLUSH PUPPIE and PARROT ICE in the United States, Mexico and Canada. We also provide repair and maintenance services to customers for customer-owned equipment. The Chief Operating Decision Maker for Food Service, Retail Supermarkets and Frozen Beverages reviews monthly detailed operating income statements and sales reports in order to assess performance and allocate resources to each individual segment. Sales and operating income are key variables monitored by the Chief Operating Decision Maker and management when determining each segment’s and the company’s financial condition and operating performance. In addition, the Chief Operating Decision Maker reviews and evaluates depreciation, capital spending and assets of each segment on a quarterly basis to monitor cash flow and asset needs of each segment. Information regarding the operations in these three Three months ended Six months ended March 30, March 25, March 30, March 25, 2024 2023 2024 2023 (unaudited) (unaudited) (in thousands) (in thousands) Sales to external customers: Food Service Soft pretzels $ 54,328 $ 55,492 $ 104,456 $ 107,715 Frozen novelties 27,713 26,607 48,763 48,372 Churros 30,825 24,920 58,886 50,677 Handhelds 19,504 20,309 41,551 43,881 Bakery 91,907 85,300 193,889 194,248 Other 5,713 5,653 11,054 11,685 Total Food Service $ 229,990 $ 218,281 $ 458,599 $ 456,578 Retail Supermarket Soft pretzels $ 16,453 $ 16,013 $ 34,900 $ 30,498 Frozen novelties 23,676 20,770 36,537 38,739 Biscuits 6,207 5,858 13,239 13,771 Handhelds 7,194 4,099 12,704 6,991 Coupon redemption (769 ) (375 ) (1,101 ) (551 ) Other 129 (5 ) 370 (15 ) Total Retail Supermarket $ 52,890 $ 46,360 $ 96,649 $ 89,433 Frozen Beverages Beverages $ 44,666 $ 41,799 $ 86,616 $ 80,458 Repair and maintenance service 23,231 22,585 47,790 46,412 Machines revenue 8,221 8,252 17,110 15,263 Other 736 577 1,278 1,053 Total Frozen Beverages $ 76,854 $ 73,213 $ 152,794 $ 143,186 Consolidated sales $ 359,734 $ 337,854 $ 708,042 $ 689,197 Depreciation and amortization: Food Service $ 11,173 $ 9,597 $ 21,846 $ 19,055 Retail Supermarket 525 492 1,052 883 Frozen Beverages 5,702 5,351 11,294 10,683 Total depreciation and amortization $ 17,400 $ 15,440 $ 34,192 $ 30,621 Operating Income: Food Service $ 7,931 $ 5,133 $ 13,947 $ 11,520 Retail Supermarket 5,110 487 5,562 1,598 Frozen Beverages 4,863 4,573 8,078 6,403 Total operating income $ 17,904 $ 10,193 $ 27,587 $ 19,521 Capital expenditures: Food Service $ 9,364 $ 13,744 $ 21,229 $ 38,606 Retail Supermarket - 105 2 1,479 Frozen Beverages 7,332 4,365 15,395 9,039 Total capital expenditures $ 16,696 $ 18,214 $ 36,626 $ 49,124 Assets: Food Service $ 963,870 $ 910,573 $ 963,870 $ 910,573 Retail Supermarket 36,650 12,162 36,650 12,162 Frozen Beverages 335,086 302,222 335,086 302,222 Total assets $ 1,335,606 $ 1,224,957 $ 1,335,606 $ 1,224,957 |
Note 11 - Goodwill and Intangib
Note 11 - Goodwill and Intangible Assets | 6 Months Ended |
Mar. 30, 2024 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 11 Goodwill and Intangible Assets Intangible Assets 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 March 30, 2024 and September 30, 2023 are as follows: March 30, 2024 September 30, 2023 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization (in thousands) FOOD SERVICE Indefinite lived intangible assets Trade names $ 84,194 $ - $ 84,194 $ - Amortized intangible assets Franchise agreements 8,500 1,488 8,500 1,063 Customer relationships 22,900 11,224 22,900 10,080 Technology 23,110 4,024 23,110 2,879 License and rights 1,690 1,608 1,690 1,565 TOTAL FOOD SERVICE $ 140,394 $ 18,344 $ 140,394 $ 15,587 RETAIL SUPERMARKETS Indefinite lived intangible assets Trade names $ 11,938 $ - $ 11,938 $ - Amortized intangible Assets Customer relationships 7,687 7,623 7,687 7,256 TOTAL RETAIL SUPERMARKETS $ 19,625 $ 7,623 $ 19,625 $ 7,256 FROZEN BEVERAGES Indefinite lived intangible assets Trade names $ 9,315 $ - $ 9,315 $ - Distribution rights 36,100 - 36,100 - Amortized intangible assets Customer relationships 1,439 761 1,439 689 Licenses and rights 1,400 1,247 1,400 1,212 TOTAL FROZEN BEVERAGES $ 48,254 $ 2,008 $ 48,254 $ 1,901 CONSOLIDATED $ 208,273 $ 27,975 $ 208,273 $ 24,744 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 months ended March 30, 2024 and March 25, 2023 was $1.6 million and $1.7 million, respectively. Aggregate amortization expense of intangible assets for the six months ended March 30, 2024 and March 25, 2023 was $3.2 million and $3.4 million, respectively. Estimated amortization expense for the next five fiscal years is approximately $3.1 million in 2024 (excluding the six months ended March 30, 2024), $5.6 million in 2025 and 2026, $4.6 million in 2027, and $4.2 million in 2028. 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 Beverage segments are as follows: Food Retail Frozen Service Supermarket Beverages Total (in thousands) March 30, 2024 $ 124,426 $ 4,146 $ 56,498 $ 185,070 September 30, 2023 $ 124,426 $ 4,146 $ 56,498 $ 185,070 |
Note 12- Investments
Note 12- Investments | 6 Months Ended |
Mar. 30, 2024 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 12 Investments 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 levels of inputs that may be used to measure fair value: Level 1 Observable input such as quoted prices in active markets for identical assets or liabilities; Level 2 Observable inputs, other than Level 1 inputs in active markets, that are observable either directly or indirectly; and Level 3 Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. 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 of the fair value hierarchy. The fair values of preferred stock and corporate bonds are based on quoted prices for identical or similar instruments in markets that are not active. As a result, preferred stock and corporate bonds are classified within Level 2 of the fair value hierarchy. As of March 30, 2024, and September 30, 2023, the Company held no As of March 30, 2024, and September 30, 2023, the Company held no There were no No |
Note 13 - Accumulated Other Com
Note 13 - Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Mar. 30, 2024 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | Note 13 Accumulated Other Comprehensive Income (Loss) Changes to the components of accumulated other comprehensive loss are as follows: Three months ended Six months ended March 30, 2024 March 30, 2024 (in thousands) (in thousands) Foreign Currency Foreign Currency Translation Adjustments Translation Adjustments Beginning balance $ (8,231 ) $ (10,166 ) Other comprehensive income 348 2,283 Ending balance $ (7,883 ) $ (7,883 ) Three months ended Six months ended March 25, 2023 March 25, 2023 (in thousands) (in thousands) Foreign Currency Foreign Currency Translation Adjustments Translation Adjustments Beginning balance $ (12,842 ) $ (13,713 ) Other comprehensive income 1,068 1,939 Ending balance $ (11,774 ) $ (11,774 ) |
Note 14 - Leases
Note 14 - Leases | 6 Months Ended |
Mar. 30, 2024 | |
Notes to Financial Statements | |
Lessee, Leases [Text Block] | Note 14 Leases General Lease Description We have operating leases with initial noncancelable lease terms in excess of one year covering the rental of various facilities and equipment. Certain of these leases contain renewal options and some provide options to purchase during the lease term. Our operating leases include leases for real estate for some of our office and manufacturing facilities as well as manufacturing and non-manufacturing equipment used in our business. The remaining lease terms for these operating leases range from 1 month to 20 years. We have finance leases with initial noncancelable lease terms in excess of one year covering the rental of various equipment. These leases are generally for manufacturing and non-manufacturing equipment used in our business. The remaining lease terms for these finance leases range from 1 year to 5 years. 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 explicitly stated in the lease, is the incremental borrowing rate, which is the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. 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 March 30, 2024, the weighted-average discount rate of our operating and finance leases was 5.4% and 3.9%, respectively. As of September 30, 2023, the weighted-average discount rate of our operating and finance leases was 4.4% and 3.9%, respectively. Practical Expedients and Accounting Policy Elections We elected the package of practical expedients that permits us not to reassess our prior conclusions about lease identification, lease classification and initial direct costs and made an accounting policy election to exclude short-term leases with an initial term of 12 months or less from our Consolidated Balance Sheets. Amounts Recognized in the Financial Statements The components of lease expense were as follows: Three months ended Three months ended Six months ended Six months ended March 30, 2024 March 25, 2023 March 30, 2024 March 25, 2023 Operating lease cost in Cost of goods sold and Operating Expenses $ 7,101 $ 3,778 $ 12,995 $ 7,750 Finance lease cost: Amortization of assets in Cost of goods sold and Operating Expenses $ 53 $ 22 $ 106 $ 56 Interest on lease liabilities in Interest expense & other 7 2 15 4 Total finance lease cost $ 60 $ 24 $ 121 $ 60 Short-term lease cost in Cost of goods sold and Operating Expenses - - - - Total net lease cost $ 7,161 $ 3,802 $ 13,116 $ 7,810 Supplemental balance sheet information related to leases is as follows: March 30, 2024 September 30, 2023 Operating Leases Operating lease right-of-use assets $ 154,104 $ 88,868 Current operating lease liabilities $ 19,179 $ 16,478 Noncurrent operating lease liabilities 141,726 77,631 Total operating lease liabilities $ 160,905 $ 94,109 Finance Leases Finance lease right-of-use assets in Property, plant and equipment, net $ 776 $ 789 Current finance lease liabilities $ 170 $ 201 Noncurrent finance lease liabilities 506 600 Total finance lease liabilities $ 676 $ 801 Supplemental cash flow information related to leases is as follows: Three months ended Three months ended Six months ended Six months ended March 30, 2024 March 25, 2023 March 30, 2024 March 25, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,722 $ 3,861 $ 11,694 $ 7,779 Operating cash flows from finance leases $ 7 $ 2 $ 15 $ 4 Financing cash flows from finance leases $ 25 $ 32 $ 110 $ 71 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets $ 25,567 $ 3,821 $ 75,421 $ 6,497 Supplemental noncash information on lease liabilities removed due to purchase of leased asset $ - $ - $ - $ - As of March 30, 2024, the maturities of lease liabilities were as follows: Operating Leases Finance Leases Six months ending September 28, 2024 $ 13,595 $ 116 2025 23,889 189 2026 20,722 154 2027 19,824 153 2028 16,682 104 Thereafter 134,027 20 Total minimum payments 228,739 736 Less amount representing interest (67,834 ) (60 ) Present value of lease obligations $ 160,905 $ 676 As of March 30, 2024 the weighted-average remaining term of our operating and finance leases was 15.8 years and 3.8 years, respectively. As of September 30, 2023 the weighted-average remaining term of our operating and finance leases was 10.3 years and 4.2 years, respectively. |
Note 15 - Related Parties
Note 15 - Related Parties | 6 Months Ended |
Mar. 30, 2024 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 15 Related Parties We have related party expenses for distribution and shipping related costs with NFI Industries, Inc. and its affiliated entities (“NFI”). Our director, Sidney R. Brown, is CEO and an owner of NFI Industries, Inc. The Company paid $14.8 million and $29.4 million to NFI in the three and six months ended March 30, 2024 and paid $13.3 million and $27.6 million through the three and six months ended March 25, 2023. Of the amounts paid to NFI, the amount related to transportation management services performed by NFI was $0.2 million and $0.5 million in the three and six months ended March 30, 2024, respectively, and $0.2 million and $0.3 million in the three and six months ended March 25, 2023, respectively. Of the amounts paid to NFI, the amount related to labor management services performed by NFI was $2.2 million and $3.5 million in the three and six months ended March 30, 2024. No In June 2023, the Company began leasing a regional distribution center in Terrell, Texas that was constructed by, and is owned by, a subsidiary of NFI. The distribution center will be operated by NFI for the Company, pursuant to a Service Labor Management Agreement. Under the Service Labor Management Agreement, NFI will provide logistics and warehouse management services. NFI will continue to perform transportation-related management services for the Company as well. At the lease commencement date, $28.7 million was recorded as an operating right-of-use asset, $0.2 million was recorded as a current operating lease liability, and $28.5 million was recorded as a non-current operating lease liability. As of March 30, 2024, $27.9 million was recorded as an operating right-of-use asset, $0.6 million was recorded as a current operating lease liability, and $28.2 million was recorded as a non-current operating lease liability. As of September 30, 2023, $28.4 million was recorded as an operating right-of-use asset, $0.5 million was recorded as a current operating lease liability, and $28.5 million was recorded as a non-current operating lease liability. Lease payments totaling $0.4 and $0.9 million were made to NFI during the three and six-month periods ended March 30, 2024. In October 2023 and February 2024, the Company began leasing regional distribution centers in Woolwich Township, New Jersey, and Glendale, Arizona, respectively. The distribution centers are operated by NFI for the Company, pursuant to the Service Labor Management Agreement noted in the paragraph above. All agreements with NFI include terms that are consistent with those that we believe would have been negotiated at an arm’s length with an independent party. |
Note 16 - Subsequent Events
Note 16 - Subsequent Events | 6 Months Ended |
Mar. 30, 2024 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 16 Subsequent Events Events occurring after March 30, 2024, and through the date that these consolidated financial statements were issued, were evaluated to ensure that any subsequent events that met the criteria for recognition have been included, and are as follows: On April 8, 2024, the Company acquired the Thinsters cookie business from Hain Celestial Group for approximately $7.7 million in cash, subject to certain adjustments. Given the timing of the completion of the acquisition, we are currently in the process of valuing the assets acquired in the acquisition. As a result, we are unable to provide the amounts recognized as of the acquisition date for the major classes of assets acquired and liabilities assumed, and other disclosures. |
Insider Trading Arrangements
Insider Trading Arrangements | 6 Months Ended | |
Mar. 30, 2024 | Mar. 30, 2024 | |
Insider Trading Arr Line Items | ||
Material Terms of Trading Arrangement [Text Block] | Item 5. Other Information During the three months ended March 30, 2024, none | |
Rule 10b5-1 Arrangement Adopted [Flag] | false | |
Rule 10b5-1 Arrangement Terminated [Flag] | false | |
Non-Rule 10b5-1 Arrangement Adopted [Flag] | false | |
Non-Rule 10b5-1 Arrangement Terminated [Flag] | false |
Note 2- Revenue Recognition (Ta
Note 2- Revenue Recognition (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Notes Tables | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Three months ended Six months ended March 30, March 25, March 30, March 25, 2024 2023 2024 2023 (in thousands) (in thousands) Beginning balance $ 4,935 $ 4,767 $ 5,306 $ 4,926 Additions to contract liability 1,645 1,527 3,045 2,917 Amounts recognized as revenue (1,831 ) (1,465 ) (3,602 ) (3,014 ) Ending balance $ 4,749 $ 4,829 $ 4,749 $ 4,829 |
Note 4 - Earnings Per Share (Ta
Note 4 - Earnings Per Share (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended March 30, 2024 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Basic EPS Net earnings available to common stockholders $ 13,329 19,380 $ 0.69 Effect of dilutive securities RSU's and options - 38 - Diluted EPS Net earnings available to common stockholders plus assumed conversions $ 13,329 19,418 $ 0.69 Six months ended March 30, 2024 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Basic EPS Net earnings available to common stockholders $ 20,611 19,362 $ 1.06 Effect of dilutive securities RSU's and options - 49 - Diluted EPS Net earnings available to common stockholders plus assumed conversions $ 20,611 19,411 $ 1.06 Three months ended March 25, 2023 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Basic EPS Net earnings available to common stockholders $ 6,871 19,238 $ 0.36 Effect of dilutive securities RSU's and options - 57 - Diluted EPS Net earnings available to common stockholders plus assumed conversions $ 6,871 19,295 $ 0.36 Six months ended March 25, 2023 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Basic EPS Net earnings available to common stockholders $ 13,504 19,230 $ 0.70 Effect of dilutive securities RSU's and options - 55 - Diluted EPS Net earnings available to common stockholders plus assumed conversions $ 13,504 19,285 $ 0.70 |
Note 5 - Share-based Compensa_2
Note 5 - Share-based Compensation and Post-retirement Benefits (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Notes Tables | |
Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award [Table Text Block] | Three months ended Six months ended March 30, March 25, March 30, March 25, 2024 2023 2024 2023 (in thousands) (in thousands) Stock options $ 364 $ 559 $ 727 $ 1,179 Stock purchase plan 139 197 238 424 Stock issued to outside directors 34 27 74 27 Service share units issued to employees 444 193 826 374 Performance share units issued to employees 372 171 647 243 Total share-based compensation $ 1,353 $ 1,147 $ 2,512 $ 2,247 The above compensation is net of tax benefits $ 375 $ 166 $ 696 $ 305 |
Note 9 - Inventory (Tables)
Note 9 - Inventory (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | March 30, September 30, 2024 2023 (unaudited) (in thousands) Finished goods $ 100,638 $ 86,472 Raw materials 31,001 30,537 Packaging materials 13,675 12,484 Equipment parts and other 43,395 42,046 Total inventories $ 188,709 $ 171,539 |
Note 10 - Segment Information (
Note 10 - Segment Information (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three months ended Six months ended March 30, March 25, March 30, March 25, 2024 2023 2024 2023 (unaudited) (unaudited) (in thousands) (in thousands) Sales to external customers: Food Service Soft pretzels $ 54,328 $ 55,492 $ 104,456 $ 107,715 Frozen novelties 27,713 26,607 48,763 48,372 Churros 30,825 24,920 58,886 50,677 Handhelds 19,504 20,309 41,551 43,881 Bakery 91,907 85,300 193,889 194,248 Other 5,713 5,653 11,054 11,685 Total Food Service $ 229,990 $ 218,281 $ 458,599 $ 456,578 Retail Supermarket Soft pretzels $ 16,453 $ 16,013 $ 34,900 $ 30,498 Frozen novelties 23,676 20,770 36,537 38,739 Biscuits 6,207 5,858 13,239 13,771 Handhelds 7,194 4,099 12,704 6,991 Coupon redemption (769 ) (375 ) (1,101 ) (551 ) Other 129 (5 ) 370 (15 ) Total Retail Supermarket $ 52,890 $ 46,360 $ 96,649 $ 89,433 Frozen Beverages Beverages $ 44,666 $ 41,799 $ 86,616 $ 80,458 Repair and maintenance service 23,231 22,585 47,790 46,412 Machines revenue 8,221 8,252 17,110 15,263 Other 736 577 1,278 1,053 Total Frozen Beverages $ 76,854 $ 73,213 $ 152,794 $ 143,186 Consolidated sales $ 359,734 $ 337,854 $ 708,042 $ 689,197 Depreciation and amortization: Food Service $ 11,173 $ 9,597 $ 21,846 $ 19,055 Retail Supermarket 525 492 1,052 883 Frozen Beverages 5,702 5,351 11,294 10,683 Total depreciation and amortization $ 17,400 $ 15,440 $ 34,192 $ 30,621 Operating Income: Food Service $ 7,931 $ 5,133 $ 13,947 $ 11,520 Retail Supermarket 5,110 487 5,562 1,598 Frozen Beverages 4,863 4,573 8,078 6,403 Total operating income $ 17,904 $ 10,193 $ 27,587 $ 19,521 Capital expenditures: Food Service $ 9,364 $ 13,744 $ 21,229 $ 38,606 Retail Supermarket - 105 2 1,479 Frozen Beverages 7,332 4,365 15,395 9,039 Total capital expenditures $ 16,696 $ 18,214 $ 36,626 $ 49,124 Assets: Food Service $ 963,870 $ 910,573 $ 963,870 $ 910,573 Retail Supermarket 36,650 12,162 36,650 12,162 Frozen Beverages 335,086 302,222 335,086 302,222 Total assets $ 1,335,606 $ 1,224,957 $ 1,335,606 $ 1,224,957 |
Note 11 - Goodwill and Intang_2
Note 11 - Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Notes Tables | |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | March 30, 2024 September 30, 2023 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization (in thousands) FOOD SERVICE Indefinite lived intangible assets Trade names $ 84,194 $ - $ 84,194 $ - Amortized intangible assets Franchise agreements 8,500 1,488 8,500 1,063 Customer relationships 22,900 11,224 22,900 10,080 Technology 23,110 4,024 23,110 2,879 License and rights 1,690 1,608 1,690 1,565 TOTAL FOOD SERVICE $ 140,394 $ 18,344 $ 140,394 $ 15,587 RETAIL SUPERMARKETS Indefinite lived intangible assets Trade names $ 11,938 $ - $ 11,938 $ - Amortized intangible Assets Customer relationships 7,687 7,623 7,687 7,256 TOTAL RETAIL SUPERMARKETS $ 19,625 $ 7,623 $ 19,625 $ 7,256 FROZEN BEVERAGES Indefinite lived intangible assets Trade names $ 9,315 $ - $ 9,315 $ - Distribution rights 36,100 - 36,100 - Amortized intangible assets Customer relationships 1,439 761 1,439 689 Licenses and rights 1,400 1,247 1,400 1,212 TOTAL FROZEN BEVERAGES $ 48,254 $ 2,008 $ 48,254 $ 1,901 CONSOLIDATED $ 208,273 $ 27,975 $ 208,273 $ 24,744 |
Schedule of Goodwill [Table Text Block] | Food Retail Frozen Service Supermarket Beverages Total (in thousands) March 30, 2024 $ 124,426 $ 4,146 $ 56,498 $ 185,070 September 30, 2023 $ 124,426 $ 4,146 $ 56,498 $ 185,070 |
Note 13 - Accumulated Other C_2
Note 13 - Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Three months ended Six months ended March 30, 2024 March 30, 2024 (in thousands) (in thousands) Foreign Currency Foreign Currency Translation Adjustments Translation Adjustments Beginning balance $ (8,231 ) $ (10,166 ) Other comprehensive income 348 2,283 Ending balance $ (7,883 ) $ (7,883 ) Three months ended Six months ended March 25, 2023 March 25, 2023 (in thousands) (in thousands) Foreign Currency Foreign Currency Translation Adjustments Translation Adjustments Beginning balance $ (12,842 ) $ (13,713 ) Other comprehensive income 1,068 1,939 Ending balance $ (11,774 ) $ (11,774 ) |
Note 14 - Leases (Tables)
Note 14 - Leases (Tables) | 6 Months Ended |
Mar. 30, 2024 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three months ended Three months ended Six months ended Six months ended March 30, 2024 March 25, 2023 March 30, 2024 March 25, 2023 Operating lease cost in Cost of goods sold and Operating Expenses $ 7,101 $ 3,778 $ 12,995 $ 7,750 Finance lease cost: Amortization of assets in Cost of goods sold and Operating Expenses $ 53 $ 22 $ 106 $ 56 Interest on lease liabilities in Interest expense & other 7 2 15 4 Total finance lease cost $ 60 $ 24 $ 121 $ 60 Short-term lease cost in Cost of goods sold and Operating Expenses - - - - Total net lease cost $ 7,161 $ 3,802 $ 13,116 $ 7,810 |
Assets and Liabilities, Lessee [Table Text Block] | March 30, 2024 September 30, 2023 Operating Leases Operating lease right-of-use assets $ 154,104 $ 88,868 Current operating lease liabilities $ 19,179 $ 16,478 Noncurrent operating lease liabilities 141,726 77,631 Total operating lease liabilities $ 160,905 $ 94,109 Finance Leases Finance lease right-of-use assets in Property, plant and equipment, net $ 776 $ 789 Current finance lease liabilities $ 170 $ 201 Noncurrent finance lease liabilities 506 600 Total finance lease liabilities $ 676 $ 801 |
Lessee, Cash Flow Information [Table Text Block] | Three months ended Three months ended Six months ended Six months ended March 30, 2024 March 25, 2023 March 30, 2024 March 25, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,722 $ 3,861 $ 11,694 $ 7,779 Operating cash flows from finance leases $ 7 $ 2 $ 15 $ 4 Financing cash flows from finance leases $ 25 $ 32 $ 110 $ 71 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets $ 25,567 $ 3,821 $ 75,421 $ 6,497 Supplemental noncash information on lease liabilities removed due to purchase of leased asset $ - $ - $ - $ - |
Lessee, Lease Liability, Maturity [Table Text Block] | Operating Leases Finance Leases Six months ending September 28, 2024 $ 13,595 $ 116 2025 23,889 189 2026 20,722 154 2027 19,824 153 2028 16,682 104 Thereafter 134,027 20 Total minimum payments 228,739 736 Less amount representing interest (67,834 ) (60 ) Present value of lease obligations $ 160,905 $ 676 |
Note 2- Revenue Recognition (De
Note 2- Revenue Recognition (Details Textual) - USD ($) $ in Millions | Mar. 30, 2024 | Sep. 30, 2023 |
Contract with Customer, Asset, Allowance for Deductions | $ 21.9 | $ 18.9 |
Accounts Receivable, Allowance for Credit Loss | $ 3.6 | $ 3.2 |
Note 2 - Revenue Recognition -
Note 2 - Revenue Recognition - Contract Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Mar. 25, 2023 | Mar. 30, 2024 | Mar. 25, 2023 | |
Beginning Balance | $ 4,935 | $ 4,767 | $ 5,306 | $ 4,926 |
Additions to contract liability | 1,645 | 1,527 | 3,045 | 2,917 |
Amounts recognized as revenue | (1,831) | (1,465) | (3,602) | (3,014) |
Ending Balance | $ 4,749 | $ 4,829 | $ 4,749 | $ 4,829 |
Note 3 - Depreciation and Amo_2
Note 3 - Depreciation and Amortization Expense (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Mar. 25, 2023 | Mar. 30, 2024 | Mar. 25, 2023 | |
Depreciation | $ 15,800 | $ 13,800 | $ 30,960 | $ 27,236 |
Minimum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 2 years | 2 years | ||
Maximum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 20 years | 20 years |
Note 4 - Earnings Per Share (De
Note 4 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Mar. 25, 2023 | Mar. 30, 2024 | Mar. 25, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 213,851 | 381,735 | 214,932 | 386,510 |
Note 4 - Earnings Per Share - C
Note 4 - Earnings Per Share - Calculation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Mar. 25, 2023 | Mar. 30, 2024 | Mar. 25, 2023 | |
Net earnings available to common stockholders | $ 13,329 | $ 6,871 | $ 20,611 | $ 13,504 |
Net earnings available to common stockholders (in shares) | 19,380 | 19,238 | 19,362 | 19,230 |
Net earnings available to common stockholders | $ 13,329 | $ 6,871 | $ 20,611 | $ 13,504 |
Net earnings available to common stockholders (in dollars per share) | $ 0.69 | $ 0.36 | $ 1.06 | $ 0.7 |
Weighted average number of basic shares (in shares) | 19,380 | 19,238 | 19,362 | 19,230 |
Earnings per basic share (in dollars per share) | $ 0.69 | $ 0.36 | $ 1.06 | $ 0.7 |
RSU's and options | $ 0 | $ 0 | $ 0 | $ 0 |
RSU's and options | $ 0 | $ 0 | $ 0 | $ 0 |
RSU's and options (in shares) | 38 | 57 | 49 | 55 |
RSU's and options (in shares) | 38 | 57 | 49 | 55 |
RSU's and options (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
RSU's and options (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Net earnings available to common stockholders plus assumed conversions | $ 13,329 | $ 6,871 | $ 20,611 | $ 13,504 |
Net earnings available to common stockholders plus assumed conversions | $ 13,329 | $ 6,871 | $ 20,611 | $ 13,504 |
Net earnings available to common stockholders plus assumed conversions (in shares) | 19,418 | 19,295 | 19,411 | 19,285 |
Weighted average number of diluted shares (in shares) | 19,418 | 19,295 | 19,411 | 19,285 |
Net earnings available to common stockholders plus assumed conversions (in dollars per share) | $ 0.69 | $ 0.36 | $ 1.06 | $ 0.7 |
Earnings per diluted share (in dollars per share) | $ 0.69 | $ 0.36 | $ 1.06 | $ 0.7 |
Note 5 - Share-based Compensa_3
Note 5 - Share-based Compensation and Post-retirement Benefits (Details Textual) - shares | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Mar. 30, 2023 | Mar. 30, 2024 | Mar. 25, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 0 | 0 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period (in shares) | 1,795 | |||
Five Year Options [Member] | ||||
Share Based Compensation Arrangement by Share Based Payment Award Fair Value Assumptions Volatility Calculation Term | 51 months | |||
Ten Year Options [Member] | ||||
Share Based Compensation Arrangement by Share Based Payment Award Fair Value Assumptions Volatility Calculation Term | 10 years | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period (in shares) | 1,795 | 11,546 | 9,900 | |
Performance Shares [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period (in shares) | 0 | 0 | 11,538 | 18,641 |
Note 5 - Share-based Compensa_4
Note 5 - Share-based Compensation and Post-retirement Benefits - Summary of Share-based Compensation Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Mar. 25, 2023 | Mar. 30, 2024 | Mar. 25, 2023 | |
Employee share-based compensation | $ 1,353 | $ 1,147 | $ 2,512 | $ 2,247 |
The above compensation is net of tax benefits | 375 | 166 | 696 | 305 |
Share-Based Payment Arrangement, Option [Member] | ||||
Employee share-based compensation | 364 | 559 | 727 | 1,179 |
Stock Purchase Plan [Member] | ||||
Employee share-based compensation | 139 | 197 | 238 | 424 |
Stock Issued to Outside Directors [Member] | ||||
Employee share-based compensation | 34 | 27 | 74 | 27 |
Restricted Stock Units (RSUs) [Member] | ||||
Employee share-based compensation | 444 | 193 | 826 | 374 |
Performance Shares [Member] | ||||
Employee share-based compensation | $ 372 | $ 171 | $ 647 | $ 243 |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 30, 2024 | Mar. 25, 2023 | Mar. 30, 2024 | Mar. 25, 2023 | Sep. 30, 2023 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 0.3 | $ 0.3 | $ 0.3 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 0.3 | $ 0.3 | $ 0.3 | ||
Effective Income Tax Rate Reconciliation, Percent | 26.60% | 25.80% | 26.60% | 25.90% |
Note 8 - Long-term Debt (Detail
Note 8 - Long-term Debt (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Mar. 30, 2024 | Sep. 30, 2023 | Jun. 21, 2022 | |
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] | Federal Funds Rate [Member] | |||
The Amended Credit Agreement [Member] | ||||
Long-Term Line of Credit | $ 17 | $ 27 | ||
Debt, Weighted Average Interest Rate | 6.94% | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 198.2 | $ 188.2 | ||
The Amended Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50 | |||
Line Of Credit Facility Increase In Maximum Borrowing Capacity | $ 175 | |||
Line of Credit Facility, Options to Increase Size of Credit Facility, Value 1 | 225 | |||
Line of Credit Facility, Options to Increase Size of Credit Facility, Value 2 | $ 50 | |||
The Credit Agreement [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
Note 9 - Inventory - Summary of
Note 9 - Inventory - Summary of Inventories (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Sep. 30, 2023 |
Finished goods | $ 100,638 | $ 86,472 |
Raw materials | 31,001 | 30,537 |
Packaging materials | 13,675 | 12,484 |
Equipment parts and other | 43,395 | 42,046 |
Total Inventories | $ 188,709 | $ 171,539 |
Note 10 - Segment Information_2
Note 10 - Segment Information (Details Textual) | 3 Months Ended |
Mar. 30, 2024 | |
Number of Operating Segments | 3 |
Number of Reportable Segments | 3 |
Note 10 - Segment Information -
Note 10 - Segment Information - Operations Information by Reporting Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 30, 2024 | Mar. 25, 2023 | Mar. 30, 2024 | Mar. 25, 2023 | Sep. 30, 2023 | |
Sales | $ 359,734 | $ 337,854 | $ 708,042 | $ 689,197 | |
Depreciation and amortization | 17,400 | 15,440 | 34,192 | 30,621 | |
Operating income | 17,904 | 10,193 | 27,587 | 19,521 | |
Capital expenditures | 16,696 | 18,214 | 36,626 | 49,124 | |
Assets | 1,335,606 | 1,224,957 | 1,335,606 | 1,224,957 | $ 1,277,236 |
Food Service [Member] | |||||
Sales | 229,990 | 218,281 | 458,599 | 456,578 | |
Depreciation and amortization | 11,173 | 9,597 | 21,846 | 19,055 | |
Operating income | 7,931 | 5,133 | 13,947 | 11,520 | |
Capital expenditures | 9,364 | 13,744 | 21,229 | 38,606 | |
Assets | 963,870 | 910,573 | 963,870 | 910,573 | |
Retail Supermarket [Member] | |||||
Sales | 52,890 | 46,360 | 96,649 | 89,433 | |
Depreciation and amortization | 525 | 492 | 1,052 | 883 | |
Operating income | 5,110 | 487 | 5,562 | 1,598 | |
Capital expenditures | 0 | 105 | 2 | 1,479 | |
Assets | 36,650 | 12,162 | 36,650 | 12,162 | |
Frozen Beverages [Member] | |||||
Sales | 76,854 | 73,213 | 152,794 | 143,186 | |
Depreciation and amortization | 5,702 | 5,351 | 11,294 | 10,683 | |
Operating income | 4,863 | 4,573 | 8,078 | 6,403 | |
Capital expenditures | 7,332 | 4,365 | 15,395 | 9,039 | |
Assets | 335,086 | 302,222 | 335,086 | 302,222 | |
Soft Pretzels [Member] | Food Service [Member] | |||||
Sales | 54,328 | 55,492 | 104,456 | 107,715 | |
Soft Pretzels [Member] | Retail Supermarket [Member] | |||||
Sales | 16,453 | 16,013 | 34,900 | 30,498 | |
Frozen Juices and Ices [Member] | Food Service [Member] | |||||
Sales | 27,713 | 26,607 | 48,763 | 48,372 | |
Frozen Juices and Ices [Member] | Retail Supermarket [Member] | |||||
Sales | 23,676 | 20,770 | 36,537 | 38,739 | |
Churros [Member] | Food Service [Member] | |||||
Sales | 30,825 | 24,920 | 58,886 | 50,677 | |
Handhelds [Member] | Food Service [Member] | |||||
Sales | 19,504 | 20,309 | 41,551 | 43,881 | |
Handhelds [Member] | Retail Supermarket [Member] | |||||
Sales | 7,194 | 4,099 | 12,704 | 6,991 | |
Bakery [Member] | Food Service [Member] | |||||
Sales | 91,907 | 85,300 | 193,889 | 194,248 | |
Other Products [Member] | Food Service [Member] | |||||
Sales | 5,713 | 5,653 | 11,054 | 11,685 | |
Other Products [Member] | Retail Supermarket [Member] | |||||
Sales | 129 | (5) | 370 | (15) | |
Other Products [Member] | Frozen Beverages [Member] | |||||
Sales | 736 | 577 | 1,278 | 1,053 | |
Biscuits [Member] | Retail Supermarket [Member] | |||||
Sales | 6,207 | 5,858 | 13,239 | 13,771 | |
Coupon Redemtion [Member] | Retail Supermarket [Member] | |||||
Coupon redemption | (769) | (375) | (1,101) | (551) | |
Beverage [Member] | Frozen Beverages [Member] | |||||
Sales | 44,666 | 41,799 | 86,616 | 80,458 | |
Repair and Maintenance Service [Member] | Frozen Beverages [Member] | |||||
Sales | 23,231 | 22,585 | 47,790 | 46,412 | |
Machine Sales [Member] | Frozen Beverages [Member] | |||||
Sales | $ 8,221 | $ 8,252 | $ 17,110 | $ 15,263 |
Note 11 - Goodwill and Intang_3
Note 11 - Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Mar. 25, 2023 | Mar. 30, 2024 | Mar. 25, 2023 | |
Amortization of Intangible Assets | $ 1.6 | $ 1.7 | $ 3.2 | $ 3.4 |
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year | 3.1 | 3.1 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year One | 5.6 | 5.6 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 4.6 | 4.6 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Four | $ 4.2 | $ 4.2 | ||
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life | 10 years 4 months 24 days | |||
Technology-Based Intangible Assets [Member] | ||||
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life | 10 years | |||
Customer Relationships [Member] | ||||
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life | 10 years | |||
License and Rights [Member] | ||||
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life | 20 years | |||
Franchise Rights [Member] | ||||
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life | 10 years | |||
Minimum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 2 years | 2 years | ||
Maximum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 20 years | 20 years |
Note 11 - Goodwill and Intang_4
Note 11 - Goodwill and Intangible Assets - Intangible Assets by Reporting Segment (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Sep. 30, 2023 |
Finite-lived intangible assets, accumulated amortization | $ 27,975 | $ 24,744 |
Intangible assets | 208,273 | 208,273 |
Food Service [Member] | ||
Finite-lived intangible assets, accumulated amortization | 18,344 | 15,587 |
Intangible assets | 140,394 | 140,394 |
Retail Supermarket [Member] | ||
Finite-lived intangible assets, accumulated amortization | 7,623 | 7,256 |
Intangible assets | 19,625 | 19,625 |
Frozen Beverages [Member] | ||
Finite-lived intangible assets, accumulated amortization | 2,008 | 1,901 |
Intangible assets | 48,254 | 48,254 |
Trade Names [Member] | Food Service [Member] | ||
Indefinite-lived intangible assets, gross | 84,194 | 84,194 |
Trade Names [Member] | Retail Supermarket [Member] | ||
Finite-lived intangible assets, gross | 11,938 | 11,938 |
Finite-lived intangible assets, accumulated amortization | 0 | 0 |
Trade Names [Member] | Frozen Beverages [Member] | ||
Indefinite-lived intangible assets, gross | 9,315 | 9,315 |
Franchise Rights [Member] | Food Service [Member] | ||
Finite-lived intangible assets, gross | 8,500 | 8,500 |
Finite-lived intangible assets, accumulated amortization | 1,488 | 1,063 |
Customer Relationships [Member] | Food Service [Member] | ||
Finite-lived intangible assets, gross | 22,900 | 22,900 |
Finite-lived intangible assets, accumulated amortization | 11,224 | 10,080 |
Customer Relationships [Member] | Retail Supermarket [Member] | ||
Finite-lived intangible assets, gross | 7,687 | 7,687 |
Finite-lived intangible assets, accumulated amortization | 7,623 | 7,256 |
Customer Relationships [Member] | Frozen Beverages [Member] | ||
Finite-lived intangible assets, gross | 1,439 | 1,439 |
Finite-lived intangible assets, accumulated amortization | 761 | 689 |
Developed Technology Rights [Member] | Food Service [Member] | ||
Finite-lived intangible assets, gross | 23,110 | 23,110 |
Finite-lived intangible assets, accumulated amortization | 4,024 | 2,879 |
Food Service [Member] | License and Rights [Member] | ||
Finite-lived intangible assets, gross | 1,690 | 1,690 |
Finite-lived intangible assets, accumulated amortization | 1,608 | 1,565 |
Distribution Rights [Member] | Frozen Beverages [Member] | ||
Finite-lived intangible assets, gross | 36,100 | 36,100 |
Finite-lived intangible assets, accumulated amortization | 0 | 0 |
License and Rights [Member] | Frozen Beverages [Member] | ||
Finite-lived intangible assets, gross | 1,400 | 1,400 |
Finite-lived intangible assets, accumulated amortization | $ 1,247 | $ 1,212 |
Note 11 -Goodwill and Intangibl
Note 11 -Goodwill and Intangible Assets - Goodwill by Reporting Segment (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Sep. 30, 2023 |
Goodwill | $ 185,070 | $ 185,070 |
Food Service [Member] | ||
Goodwill | 124,426 | 124,426 |
Retail Supermarket [Member] | ||
Goodwill | 4,146 | 4,146 |
Frozen Beverages [Member] | ||
Goodwill | $ 56,498 | $ 56,498 |
Note 12- Investments (Details T
Note 12- Investments (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Mar. 30, 2024 | Mar. 30, 2023 | Mar. 25, 2023 | Mar. 30, 2024 | Mar. 30, 2023 | Mar. 25, 2023 | Sep. 30, 2023 | |
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss | $ 0 | $ 0 | |||||
Investments | $ 0 | ||||||
Proceeds from Sale and Maturity of Marketable Securities | $ 2,000,000 | 0 | $ 5,300,000 | $ 5,300,000 | |||
Marketable Securities, Gain (Loss) | $ 0 | $ 59,000 | $ 0 | 22,000 | |||
Marketable Security, Unrealized Gain (Loss) | $ 59,000 | $ 19,000 |
Note 13 - Accumulated Other C_3
Note 13 - Accumulated Other Comprehensive Income (Loss) - Changes to the Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Mar. 25, 2023 | Mar. 30, 2024 | Mar. 25, 2023 | |
Balance | $ 912,461 | $ 859,736 | $ 911,518 | $ 863,169 |
Other comprehensive income (loss) | 348 | 1,068 | 2,283 | 1,939 |
Balance | 915,652 | 858,287 | 915,652 | 858,287 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Balance | (8,231) | (12,842) | (10,166) | (13,713) |
Other comprehensive income (loss) | 348 | 1,068 | 2,283 | 1,939 |
Balance | $ (7,883) | $ (11,774) | $ (7,883) | $ (11,774) |
Note 14 - Leases (Details Textu
Note 14 - Leases (Details Textual) | Mar. 30, 2024 | Sep. 30, 2023 |
Operating Lease, Weighted Average Discount Rate, Percent | 5.40% | 4.40% |
Finance Lease, Weighted Average Discount Rate, Percent | 3.90% | 3.90% |
Operating Lease, Weighted Average Remaining Lease Term | 15 years 9 months 18 days | 10 years 3 months 18 days |
Finance Lease, Weighted Average Remaining Lease Term | 3 years 9 months 18 days | 4 years 2 months 12 days |
Minimum [Member] | ||
Lessee, Operating Lease, Remaining Lease Term | 1 month | |
Lessee, Finance Lease, Remaining Lease Term | 1 year | |
Maximum [Member] | ||
Lessee, Operating Lease, Remaining Lease Term | 20 years | |
Lessee, Finance Lease, Remaining Lease Term | 5 years |
Note 14 - Leases - Components o
Note 14 - Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Mar. 25, 2023 | Mar. 30, 2024 | Mar. 25, 2023 | |
Operating lease cost in Cost of goods sold and Operating Expenses | $ 7,101 | $ 3,778 | $ 12,995 | $ 7,750 |
Amortization of assets in Cost of goods sold and Operating Expenses | 53 | 22 | 106 | 56 |
Interest on lease liabilities in Interest expense & other | 7 | 2 | 15 | 4 |
Total finance lease cost | 60 | 24 | 121 | 60 |
Short-term lease cost in Cost of goods sold and Operating Expenses | 0 | 0 | 0 | 0 |
Total net lease cost | $ 7,161 | $ 3,802 | $ 13,116 | $ 7,810 |
Note 14 - Leases - Supplemental
Note 14 - Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Sep. 28, 2024 | Mar. 30, 2024 | Sep. 30, 2023 |
Operating lease right-of-use assets | $ 154,104 | $ 88,868 | |
Current operating lease liabilities | 19,179 | 16,478 | |
Noncurrent operating lease liabilities | 141,726 | 77,631 | |
Total operating lease liabilities | $ 160,905 | $ 160,905 | $ 94,109 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | us-gaap_PropertyPlantAndEquipmentNet | us-gaap_PropertyPlantAndEquipmentNet | |
Finance lease right-of-use assets in Property, plant and equipment, net | $ 776 | $ 789 | |
Current finance lease liabilities | 170 | 201 | |
Noncurrent finance lease liabilities | 506 | 600 | |
Total finance lease liabilities | $ 676 | $ 676 | $ 801 |
Note 14 - Leases - Supplement_2
Note 14 - Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2024 | Mar. 25, 2023 | Mar. 30, 2024 | Mar. 25, 2023 | |
Operating cash flows from operating leases | $ 5,722 | $ 3,861 | $ 11,694 | $ 7,779 |
Operating cash flows from finance leases | 7 | 2 | 15 | 4 |
Financing cash flows from finance leases | 25 | 32 | 110 | 71 |
Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets | 25,567 | 3,821 | 75,421 | 6,497 |
Supplemental noncash information on lease liabilities removed due to purchase of leased asset | $ 0 | $ 0 | $ 0 | $ 0 |
Note 14 - Leases - Maturities o
Note 14 - Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 28, 2024 | Mar. 30, 2024 | Sep. 30, 2023 |
2024, operating leases | $ 13,595 | ||
2024, finance leases | 116 | ||
2025, operating leases | 23,889 | ||
2025, finance leases | 189 | ||
2026, operating leases | 20,722 | ||
2026, finance leases | 154 | ||
2027, operating leases | 19,824 | ||
2027, finance leases | 153 | ||
2028, operating leases | 16,682 | ||
2028, finance leases | 104 | ||
Thereafter, operating leases | 134,027 | ||
Thereafter, finance leases | 20 | ||
Total minimum payments, operating leases | 228,739 | ||
Total minimum payments, finance leases | 736 | ||
Less amount representing interest, operating leases | (67,834) | ||
Less amount representing interest, finance leases | (60) | ||
Present value of lease obligations, operating leases | 160,905 | $ 160,905 | $ 94,109 |
Present value of lease obligations, finance leases | $ 676 | $ 676 | $ 801 |
Note 15 - Related Parties (Deta
Note 15 - Related Parties (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 30, 2024 | Mar. 25, 2023 | Mar. 30, 2024 | Mar. 25, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | |
Operating Lease, Right-of-Use Asset | $ 154,104 | $ 154,104 | $ 88,868 | |||
Operating Lease, Liability, Current | 19,179 | 19,179 | 16,478 | |||
Operating Lease, Liability, Noncurrent | 141,726 | 141,726 | 77,631 | |||
Operating Lease, Payments | 5,722 | $ 3,861 | 11,694 | $ 7,779 | ||
NFI [Member] | ||||||
Operating Lease, Right-of-Use Asset | 28,400 | |||||
Operating Lease, Liability, Current | 500 | |||||
Operating Lease, Liability, Noncurrent | 28,500 | |||||
NFI [Member] | ||||||
Operating Lease, Right-of-Use Asset | 27,900 | 27,900 | $ 28,700 | |||
Operating Lease, Liability, Current | 600 | 600 | 200 | |||
Operating Lease, Liability, Noncurrent | 28,200 | 28,200 | $ 28,500 | |||
Operating Lease, Payments | 400 | 900 | ||||
NFI [Member] | Distribution and Shipping Costs [Member] | ||||||
Related Party Transaction, Amounts of Transaction | 14,800 | 13,300 | 29,400 | 27,600 | ||
NFI [Member] | Management Services [Member] | ||||||
Related Party Transaction, Amounts of Transaction | 200 | 200 | 500 | $ 300 | ||
NFI [Member] | Labor Management Services [Member] | ||||||
Related Party Transaction, Amounts of Transaction | 2,200 | 3,500 | ||||
Labor Management Services [Member] | NFI [Member] | ||||||
Related Party Transaction, Amounts of Transaction | $ 0 | |||||
Related Party [Member] | ||||||
Accounts Payable, Trade | $ 4,700 | $ 4,700 | $ 3,400 |
Note 16 - Subsequent Events (De
Note 16 - Subsequent Events (Details Textual) $ in Millions | Apr. 08, 2024 USD ($) |
Subsequent Event [Member] | Thinsters Cookie Business [Member] | |
Payments to Acquire Businesses, Gross | $ 7.7 |