Note Q - Leases

6 Months Ended

Sep. 24, 2023

Notes to Financial Statements

Leases, Disclosure [Text Block]

NOTE Q – 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 thirteen and twenty-six week periods ended September 24, 2023 and September 25, 2022 were as follows (in thousands):

	Thirteen weeks ended						Twenty-six weeks ended
	September 24, 2023			September 25, 2022			September 24, 2023			September 25, 2022
Operating lease cost	$	423		$	408		$	849		$	836
Variable lease cost		499			482			887			850
Less: Sublease income, net		(23	)		(20	)		(44	)		(42	)
Total net lease cost	$	899		$	870		$	1,692		$	1,644

The following table presents the components of the net lease cost on the Consolidated Statements of Earnings for the thirteen and twenty-six week periods ended September 24, 2023 and September 25, 2022 (in thousands):

	Thirteen weeks ended						Twenty-six weeks ended
	September 24, 2023			September 25, 2022			September 24, 2023			September 25, 2022
Restaurant operating expenses	$	732		$	712		$	1,347		$	1,319
General and administrative expenses		190			178			389			367
Less: Other income, net		(23	)		(20	)		(44	)		(42	)
Total net lease cost	$	899		$	870		$	1,692		$	1,644

Cash paid for amounts included in the measurement of lease liabilities for the thirteen and twenty-six week periods ended September 24, 2023 and September 25, 2022 were as follows (in thousands):

	Thirteen weeks ended				Twenty-six weeks ended
	September 24, 2023		September 25, 2022		September 24, 2023		September 25, 2022
Operating cash flows from operating leases	$	392	$	370	$	785	$	734

The weighted average remaining lease term and weighted average discount rate for operating leases as of September 24, 2023 were as follows:

Weighted average remaining lease term (years):	4.9
Weighted average discount rate:	8.498	%

Future lease commitments to be paid and received by the Company as of September 24, 2023 were as follows (in thousands):

	Payments			Receipts
	Operating Leases			Subleases		Net Leases
Fiscal year:
2024 (a)	$	773		$	84	$	689
2025		1,884			274		1,610
2026		1,919			278		1,641
2027		1,928			281		1,647
2028		1,778			129		1,649
Thereafter		602			495		107
Total lease commitments	$	8,884		$	1,541	$	7,343
Less: Amount representing interest		(1,601	)
Present value of lease liabilities (b)	$	7,283

(a) Represents future lease commitments to be paid and received by the Company for the remainder of the 2024 fiscal year. Amount does not include $895 of lease commitments paid and received by the Company for the twenty-six week period ended September 24, 2023.

(b) The present value of minimum operating lease payments of $1,875 and $5,408 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 and twenty-six week periods ended September 24, 2023 and September 25, 2022 were as follows (in thousands):

	Thirteen weeks ended				Twenty-six weeks ended
	September 24, 2023		September 25, 2022		September 24, 2023		September 25, 2022
Operating lease income, net	$	23	$	20	$	44	$	42