J&J SNACK FOODS CORP Segments Disclosure

NOTE M – SEGMENT REPORTING

 

Our financial results are presented as three reportable segments: Food Service, Retail Supermarkets and Frozen Beverages. 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.

 

 

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.

 

We principally sell our products to the food service and retail supermarket industries. Sales and results of our frozen beverages business are monitored separately from the balance of our food service business because of different distribution and capital requirements. We maintain separate and discrete financial information for the three operating segments mentioned above which is available to our Chief Operating Decision Maker, who is our Chief Executive Officer. We have applied no aggregation criteria to any of these operating segments in order to determine reportable segments. All inter-segment net sales and expenses have been eliminated in computing net sales and operating income.

 

Our Chief Operating Decision Maker 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 when determining each segment and the company’s financial condition and operating performance.

 

 

Significant expenses are expenses which are regularly provided to the Chief Operating Decision Maker and are included in segment operating income. These consist of cost of sales, marketing and selling expenses, distribution expenses, administrative expenses, intangible asset impairment charges, and other general expenses. Cost of sales includes raw materials, direct labor and plant overhead costs. Distribution expenses include costs associated with the transportation of our product to customers. Marketing and selling expenses include costs to execute sales to customers, and costs related to the selling, marketing, advertising and promotional activities. Administrative expenses include costs that are not directly tied to the manufacturing, distribution, or marketing and selling of our products.

 

Costs that are directly attributable to our Food Service, Retail Supermarkets, or Frozen Beverages segments are charged directly to the appropriate segment. Costs that are deemed to be indirect, excluding unallocated corporate expenses and other unusual significant transactions such as gain on insurance proceeds received for damage to property, plant and equipment, and plant closure expenses, are allocated to the three reportable segments using a reasonable methodology that is consistently applied.

 

To align with how our Chief Operating Decision Maker currently reviews the monthly detailed operating income statements, we have reclassified certain corporate expenses that are not allocated to our three reportable segments.  This change in presentation resulted in an increase to our Food Service segment operating income of $24.8 million, to our Retail segment operating income of $2.6 million, and to our Frozen Beverages segment of $1.5 million in fiscal 2024, respectively, and an increase to our Food Service segment operating income of $23.0 million, to our Retail segment operating income of $2.4 million, and to our Frozen Beverages segment of $1.5 million in fiscal 2023, respectively, with the corresponding impacts of the presentation change seen within General corporate expenses in the table below. 

 

In addition, the Chief Operating Decision Maker reviews and evaluates capital spending of each segment on a quarterly basis to monitor cash flow and asset needs of each segment. Additionally, our Chief Operating Decision Maker considers variances of actual performance to our annual operating plan and periodic forecasts when making decisions.

 

Information regarding the operations in these three reportable segments is as follows:

 

		For the year ended September 27, 2025
		(in thousands)
		Food				Retail				Frozen
		Service				Supermarket				Beverages				Total
Net sales to external customers		$	1,001,361			$	213,809			$	368,063			$	1,583,233
Less:
Cost of goods sold			718,075				152,953				242,323				1,113,351
Segment gross profit			283,286				60,856				125,740				469,882
Marketing and selling			67,695				18,607				37,304				123,606
Distribution			117,874				25,246				25,185				168,305
Administrative			31,313				2,928				13,682				47,923
Intangible asset impairment charges			1,500				757				-				2,257
Other general expense			110				-				40				150
Segment operating income			64,794				13,318				49,529				127,641
General corporate expenses															29,864
Gain on insurance proceeds received for damage to property, plant, and equipment															(10,622	)
Plant closure expense															24,073
Operating income														$	84,326

 

		For the year ended September 28, 2024
		(in thousands)
		Food				Retail				Frozen
		Service				Supermarket				Beverages				Total
Net sales to external customers		$	985,195			$	221,308			$	368,252			$	1,574,755
Less:
Cost of goods sold			696,139				155,580				236,911				1,088,630
Segment gross profit			289,056				65,728				131,341				486,125
Marketing and selling			64,070				18,622				36,113				118,805
Distribution			123,373				25,718				26,510				175,601
Administrative			27,851				2,196				15,867				45,914
Intangible asset impairment charges			-				-				-				-
Other general expense			(452	)			-				(145	)			(597	)
Segment operating income			74,214				19,192				52,996				146,402
General corporate expenses															28,857
Gain on insurance proceeds received for damage to property, plant, and equipment															-
Plant closure expense															-
Operating income														$	117,545

 

		For the year ended September 30, 2023
		(in thousands)
		Food				Retail				Frozen
		Service				Supermarket				Beverages				Total
Net sales to external customers		$	981,840			$	215,428			$	361,561			$	1,558,829
Less:
Cost of goods sold			698,603				154,504				235,857				1,088,964
Segment gross profit			283,237				60,924				125,704				469,865
Marketing and selling			55,929				18,523				35,806				110,258
Distribution			120,106				28,164				24,534				172,804
Administrative			32,662				2,354				13,480				48,496
Intangible asset impairment charges			1,678				-				-				1,678
Other general expense			53				88				41				182
Segment operating income			72,809				11,795				51,843				136,447
General corporate expenses															26,929
Gain on insurance proceeds received for damage to property, plant, and equipment															-
Plant closure expense															-
Operating income														$	109,518

 

Total depreciation and amortization expense, capital expenditures, and total assets by segment, reflecting our current segment structure for all periods presented, were:

 

		September 27,				September 28,				September 30,
		2025				2024				2023
		(52 weeks)				(52 weeks)				(53 weeks)
		(in thousands)
Depreciation and amortization:
Food Service		$	48,099			$	44,280			$	37,777
Retail Supermarket			1,145				1,736				1,966
Frozen Beverages			22,244				22,734				21,417
Corporate			1,844				1,851				1,981
Total depreciation and amortization		$	73,332			$	70,601			$	63,141
Capital expenditures:
Food Service		$	59,321			$	45,535			$	78,829
Retail Supermarket			303				21				1,824
Frozen Beverages			23,176				27,421				23,525
Corporate			73				592				559
Total capital expenditures		$	82,873			$	73,569			$	104,737
Assets:
Food Service		$	961,092			$	954,747			$	885,017
Retail Supermarket			30,327				34,609				34,232
Frozen Beverages			364,473				358,892				339,486
Corporate			25,609				16,853				18,501
Total assets		$	1,381,501			$	1,365,101			$	1,277,236

 

 

Geographic data for net sales (recognized in the countries where products were sold from) and total assets were:

 

		September 27,				September 28,				September 30,
		2025				2024				2023
		(52 weeks)				(52 weeks)				(53 weeks)
		(in thousands)
Net sales to external customers:
United States		$	1,513,585			$	1,501,326			$	1,488,622
Other			69,648				73,429				70,207
Total net sales to external customers		$	1,583,233			$	1,574,755			$	1,558,829
Assets:
United States		$	1,302,387			$	1,297,531			$	1,215,744
Other			79,114				67,570				61,492
Total assets		$	1,381,501			$	1,365,101			$	1,277,236

 

Net sales by product category, reflecting our current segment structure for all periods presented, were:

 

		September 27,				September 28,				September 30,
		2025				2024				2023
		(52 weeks)				(52 weeks)				(53 weeks)
		(in thousands)
Sales to external customers:
Food Service
Soft pretzels		$	230,070			$	222,237			$	235,572
Frozen novelties			149,884				147,995				145,425
Churros			97,867				114,306				108,927
Handhelds			92,018				86,053				82,292
Bakery			405,909				387,129				378,149
Other			25,613				27,475				31,475
Total Food Service		$	1,001,361			$	985,195			$	981,840
Retail Supermarket
Soft pretzels		$	61,713			$	61,744			$	60,272
Frozen novelties			110,286				112,192				115,807
Biscuits			23,123				24,229				25,074
Handhelds			21,578				26,253				16,655
Coupon redemption			(2,707	)			(3,162	)			(2,561	)
Other			(184	)			52				181
Total Retail Supermarket		$	213,809			$	221,308			$	215,428
Frozen Beverages
Beverages		$	219,312			$	230,030			$	224,655
Repair and maintenance service			97,392				96,589				95,941
Machines revenue			47,807				38,188				37,933
Other			3,552				3,445				3,032
Total Frozen Beverages		$	368,063			$	368,252			$	361,561
Consolidated sales		$	1,583,233			$	1,574,755			$	1,558,829