Note O - Share-based Compensation

9 Months Ended

Dec. 24, 2023

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

NOTE O – SHARE-BASED COMPENSATION

Total share-based compensation during each of the thirteen and thirty-nine week periods ended December 24, 2023 and December 25, 2022 was $187 and $65, and $546 and $81, respectively. Total share-based compensation is included in general and administrative expenses in our accompanying Consolidated Statements of Earnings. As of December 24, 2023, there was $2,848 of unamortized compensation expense related to share-based awards. We expect to recognize this expense over approximately forty-two months, which represents the weighted average remaining requisite service periods for such awards.

The Company recognizes compensation cost for unvested share-based awards on a straight-line basis over the requisite service period. Compensation expense under all share-based awards is as follows (in thousands):

	Thirteen weeks ended				Thirty-nine weeks ended
	December 24, 2023		December 25, 2022		December 24, 2023		December 25, 2022
Stock options	$	18	$	8	$	39	$	24
Restricted stock units		169		57		507		57
Total compensation cost	$	187	$	65	$	546	$	81

Stock options:

During the thirty-nine week period ended December 24, 2023, the Company granted options to purchase 10,000 shares at an exercise price of $78.00 per share, all of which expire five years from the date of grant. All such options vest ratably over a four-year period commencing August 11, 2023.

The weighted average option fair value, as determined using the Black-Scholes option valuation model, and the assumptions used to estimate these values for stock options granted during the thirty-nine week period ended December 24, 2023 are as follows:

Weighted average option fair values	$	16.23
Expected life (years)		4.4
Interest rate		4.31	%
Volatility		24.29	%
Dividend yield		2.56	%

The expected dividend yield is based on historical and projected dividend yields. The Company estimates volatility based primarily on historical monthly price changes of the Company’s stock equal to the expected life of the option. The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of grant. The expected option term is the number of years the Company estimates the options will be outstanding prior to exercise based on expected historical exercise patterns and employment termination behavior.

Transactions with respect to stock options for the thirty-nine weeks ended December 24, 2023 are as follows:

				Weighted-		Weighted-		Aggregate
				Average		Average		Intrinsic
				Exercise		Remaining		Value
	Shares			Price		Contractual Life		(in thousands)
Options outstanding at March 26, 2023		20,000		$	79.20		1.92	$	40
Granted		10,000		$	78.00		4.64		-
Expired		(10,000	)	$	89.90		-		-
Options outstanding at December 24, 2023		20,000		$	73.25		3.63	$	88
Options exercisable at December 24, 2023		5,000		$	68.50		2.63	$	44

Restricted stock units:

Transactions with respect to restricted stock units for the thirty-nine weeks ended December 24, 2023 are as follows:

				Weighted
				Average
				Grant-date Fair value
	Shares			Per share
Unvested restricted stock units at March 26, 2023		50,000		$	67.59
Granted		-		$	-
Vested		(10,000	)	$	67.59
Unvested restricted stock units at December 24, 2023		40,000		$	67.59