Note R - Leases

6 Months Ended

Sep. 26, 2021

Notes to Financial Statements

Leases, Disclosure [Text Block]

NOTE R – LEASES

The Company is party as lessee to various leases for its Company-operated restaurants and lessee/sublessor to one franchised location property, including land and buildings, as well as leases for its corporate office and certain office equipment.

Company as lessee

The components of the net lease cost for the thirteen and twenty-six week periods ended September 26, 2021 and September 27, 2020 were as follows (in thousands):

	Thirteen weeks ended						Twenty-six weeks ended
	September 26, 2021			September 27, 2020			September 26, 2021			September 27, 2020
Statement of Earnings
Operating lease cost	$	413		$	396		$	845		$	811
Variable lease cost		524			377			966			715
Less: Sublease income, net		(5	)		(22	)		(21	)		(22	)
Total net lease cost (a)	$	932		$	751		$	1,790		$	1,504

(a) The thirteen and twenty-six week periods ended September 26, 2021 and September 27, 2020 include $770, net and $1,470, net and $614, net and $1,194, net, respectively, recorded to “Restaurant Operating Expenses” for leases for Company-operated restaurants; $167 and $341, and $159 and $332, respectively, recorded to “General and administrative expenses” for leases for corporate offices and equipment; and $5 and $21, and $22 and $22, respectively, recorded to “Other income, net” for leased properties that are leased to franchisees.

Cash paid for amounts included in the measurement of lease liabilities were as follows (in thousands):

	Thirteen weeks ended				Twenty-six weeks ended
	September 26, 2021		September 27, 2020		September 26, 2021		September 27, 2020
Operating cash flows from operating leases	$	183	$	202	$	357	$	407

The weighted average remaining lease term and weighted-average discount rate for operating leases as of September 26, 2021 were as follows:

Weighted average remaining lease term (years):	6.7
Weighted average discount rate:	8.882	%

Future lease commitments to be paid and received by the Company as of September 26, 2021 were as follows (in thousands):

	Payments		Receipts
	Operating Leases		Subleases		Net Leases
Fiscal year:
2022 (a)	$	760	$	77	$	683
2023		1,849		168		1,681
2024		1,774		169		1,605
2025		1,678		169		1,509
2026		1,712		169		1,543
Thereafter		3,762		183		3,579
Total lease commitments	$	11,535	$	935	$	10,600
Less: Amount representing interest		2,822
Present value of lease liabilities (b)	$	8,713

(a)	Represents future lease commitments to be paid and received by the Company for the remainder of the 2022 fiscal year. Amount does not include $890 of lease commitments paid and received by the Company for the twenty-six week period ended September 26, 2021.
(b)	The present value of minimum operating lease payments of $1,846 and $6,867 are included in “Current portion of operating lease liabilities” and “Long-term operating lease liabilities,” respectively on the Consolidated Balance Sheet.

Company as lessor

The components of net lease income for the thirteen week and twenty-six week periods ended September 26, 2021 and September 27, 2020 were as follows (in thousands):

	Thirteen weeks ended				Twenty-six weeks ended
	September 26, 2021		September 27, 2020		September 26, 2021		September 27, 2020
Operating lease income, net	$	5	$	22	$	21	$	22