Note R - Leases

9 Months Ended

Dec. 24, 2023

Notes to Financial Statements

Leases, Disclosure [Text Block]

NOTE R – 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 thirty-nine week periods ended December 24, 2023 and December 25, 2022 were as follows (in thousands):

	Thirteen weeks ended						Thirty-nine weeks ended
	December 24, 2023			December 25, 2022			December 24, 2023			December 25, 2022
Operating lease cost	$	389		$	378		$	1,238		$	1,214
Variable lease cost		424			396			1,311			1,246
Less: Sublease income, net		(21	)		(22	)		(65	)		(64	)
Total net lease cost	$	792		$	752		$	2,484		$	2,396

The following table presents the components of the net lease cost on the Consolidated Statement of Earnings for the thirteen and thirty-nine week periods ended December 24, 2023 and December 25, 2022 (in thousands):

	Thirteen weeks ended						Thirty-nine weeks ended
	December 24, 2023			December 25, 2022			December 24, 2023			December 25, 2022
Restaurant operating expenses	$	613		$	589		$	1,960		$	1,908
General and administrative expenses		200			185			589			552
Less: Other income, net		(21	)		(22	)		(65	)		(64	)
Total net lease cost	$	792		$	752		$	2,484		$	2,396

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

	Thirteen weeks ended				Thirty-nine weeks ended
	December 24, 2023		December 25, 2022		December 24, 2023		December 25, 2022
Operating cash flows from operating leases	$	234	$	216	$	1,019	$	950

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

Weighted average remaining lease term (years):	4.7
Weighted average discount rate:	8.492	%

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

	Payments			Receipts
	Operating Leases			Subleases		Net Leases
Fiscal year:
2024 (a)	$	387		$	42	$	345
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	$	8,498		$	1,499	$	6,999
Less: Amount representing interest		(1,449	)
Present value of lease liabilities (b)	$	7,049

(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 $1,234 of lease commitments paid and received by the Company for the thirty-nine week period ended December 24, 2023.
(b)	The present value of minimum operating lease payments of $1,880 and $5,169 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 thirty-nine week periods ended December 24, 2023 and December 25, 2022 were as follows (in thousands):

	Thirteen weeks ended				Thirty-nine weeks ended
	December 24, 2023		December 25, 2022		December 24, 2023		December 25, 2022
Operating lease income, net	$	21	$	22	$	65	$	64