Note D - Revenues

9 Months Ended

Dec. 24, 2023

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE D – REVENUES

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

	Thirteen weeks ended				Thirty-nine weeks ended
	December 24, 2023		December 25, 2022		December 24, 2023		December 25, 2022
Branded Products	$	19,688	$	16,661	$	68,210	$	61,862
Company-owned restaurants		1,661		1,679		10,512		10,673
Total sales		21,349		18,340		78,722		72,535
License royalties		6,078		6,337		26,075		26,064
Franchise royalties		868		829		2,996		2,785
Franchise fees		87		147		325		483
Total franchise fees and royalties		955		976		3,321		3,268
Advertising fund revenue		508		501		1,501		1,504
Total revenues	$	28,890	$	26,154	$	109,619	$	103,371

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

	Thirteen weeks ended				Thirty-nine weeks ended
	December 24, 2023		December 25, 2022		December 24, 2023		December 25, 2022
United States	$	27,644	$	24,824	$	104,970	$	98,836
International		1,246		1,330		4,649		4,535
Total revenues	$	28,890	$	26,154	$	109,619	$	103,371

Contract balances

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

	December 24, 2023		March 26, 2023
Deferred franchise fees (a)	$	1,352	$	1,608
Deferred revenues, which are included in
“Accrued expenses and other current liabilities” (b)	$	250	$	1,406

(a) Deferred franchise fees of $338 and $1,014 as of December 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 $250 of deferred advertising fund revenue as of December 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):

	Thirty-nine weeks ended
	December 24, 2023			December 25, 2022
Deferred franchise fees at beginning of period	$	1,608		$	2,097
New deferrals due to cash received and other		69			107
Revenue recognized during the period		(325	)		(483	)
Deferred franchise fees at end of period	$	1,352		$	1,721

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

	Thirty-nine weeks ended
	December 24, 2023			December 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		(1,656	)		(876	)
Deferred revenues at end of period	$	250		$	-

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)	$	86
2025		336
2026		304
2027		191
2028		99
Thereafter		336
Total	$	1,352

(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 $325 of franchise fee revenue recognized for the thirty-nine weeks ended December 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.