Note C - Revenues

6 Months Ended

Sep. 24, 2023

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE C – REVENUES

The Company’s disaggregated revenues for the thirteen and twenty-six weeks ended September 24, 2023 and September 25, 2022 are as follows (in thousands):

	Thirteen weeks ended				Twenty-six weeks ended
	September 24, 2023		September 25, 2022		September 24, 2023		September 25, 2022
Branded Products	$	23,352	$	22,030	$	48,522	$	45,201
Company-owned restaurants		5,193		5,271		8,851		8,994
Total sales		28,545		27,301		57,373		54,195
License royalties		8,339		8,413		19,997		19,727
Franchise royalties		1,148		1,055		2,128		1,956
Franchise fees		143		144		238		336
Total franchise fees and royalties		1,291		1,199		2,366		2,292
Advertising fund revenue		569		584		993		1,003
Total revenues	$	38,744	$	37,497	$	80,729	$	77,217

The following table disaggregates revenues by primary geographical market (in thousands):

	Thirteen weeks ended				Twenty-six weeks ended
	September 24, 2023		September 25, 2022		September 24, 2023		September 25, 2022
United States	$	37,444	$	36,095	$	77,326	$	74,012
International		1,300		1,402		3,403		3,205
Total revenues	$	38,744	$	37,497	$	80,729	$	77,217

Contract balances

The following table provides information about contract liabilities from contracts with customers (in thousands):

	September 24, 2023		March 26, 2023
Deferred franchise fees (a)	$	1,416	$	1,608
Deferred revenues, which are included in
“Accrued expenses and other current liabilities” (b)	$	742	$	1,406

(a) Deferred franchise fees of $336 and $1,080 as of September 24, 2023 and $336 and $1,272 as of March 26, 2023 are included in Deferred franchise fees – current and long term, respectively.

(b) Includes $242 of deferred license royalties and $500 of deferred advertising fund revenue as of September 24, 2023 and $906 of deferred license royalties and $500 of deferred advertising fund revenue as of March 26, 2023.

Significant changes in deferred franchise fees are as follows (in thousands):

	Twenty-six weeks ended
	September 24, 2023			September 25, 2022
Deferred franchise fees at beginning of period	$	1,608		$	2,097
New deferrals due to cash received and other		46			77
Revenue recognized during the period		(238	)		(336	)
Deferred franchise fees at end of period	$	1,416		$	1,838

Significant changes in deferred revenues are as follows (in thousands):

	Twenty-six weeks ended
	September 24, 2023			September 25, 2022
Deferred revenues at beginning of period	$	1,406		$	876
New deferrals due to cash received and other		500			-
Revenue recognized during the period		(1,164	)		(676	)
Deferred revenues at end of period	$	742		$	200

Anticipated future recognition of deferred franchise fees

The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period (in thousands):

	Estimate for fiscal year
2024 (a)	$	170
2025		330
2026		298
2027		185
2028		93
Thereafter		340
Total	$	1,416

(a) Represents franchise fees expected to be recognized for the remainder of the 2024 fiscal year, which includes international development fees expected to be recognized over the duration of one year or less. Amount does not include $238 of franchise fee revenue recognized for the twenty-six weeks ended September 24, 2023.

We have applied the optional exemption, as provided for under ASC Topic 606 “Revenues from Contracts with Customers,” which allows us to not disclose the transaction price allocated to unsatisfied performance obligations when the transaction price is a sales-based royalty.