Note K - Leases

12 Months Ended

Mar. 26, 2023

Notes to Financial Statements

Leases, Disclosure [Text Block]

NOTE K – LEASES

The Company is party as lessee to various leases for its Company-owned 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 fiscal years ended March 26, 2023 and March 27, 2022 were as follows:

	March 26, 2023			March 27, 2022
Operating lease cost	$	1,548		$	1,553
Variable lease cost		1,614			1,356
Less: Sublease income, net		(85	)		(88	)
Total net lease cost	$	3,077		$	2,821

The components of the net lease cost on the Consolidated Statement of Earnings for the fiscal years ended March 26, 2023 and March 27, 2022 were as follows:

	March 26, 2023			March 27, 2022
Restaurant operating expenses	$	2,416		$	2,199
General and administrative expenses		746			710
Less: Other income, net		(85	)		(88	)
Total net lease cost	$	3,077		$	2,821

Cash paid for amounts included in the measurement of lease liabilities for the fiscal years ended March 26, 2023 and March 27, 2022 were as follows:

	March 26, 2023		March 27, 2022
Operating cash flows from operating leases	$	1,171	$	1,058

The weighted average remaining lease term and weighted average discount rate for operating leases for the fiscal years ended March 26, 2023 and March 27, 2022 were as follows:

	March 26, 2023			March 27, 2022
Weighted average remaining lease term (years):		5.3			6.3
Weighted average discount rate:		8.859	%		8.867	%

Future lease commitments to be paid and received by the Company as of March 26, 2023 were as follows:

	Payments		Receipts
	Operating Leases		Subleases		Net Leases
Fiscal year:
2024	$	1,782	$	271	$	1,511
2025		1,687		274		1,413
2026		1,717		278		1,439
2027		1,726		281		1,445
2028		1,573		129		1,444
Thereafter		462		495		(33	)
Total lease commitments	$	8,947	$	1,728	$	7,219
Less: Amount representing interest		1,759
Present value of lease liabilities (a)	$	7,188

(a) The present value of minimum operating lease payments of $1,782 and $5,406 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 lease income for the fiscal years ended March 26, 2023 and March 27, 2022 were as follows:

	March 26, 2023		March 27, 2022
Operating lease income, net		$85		$88