Note K - Leases

12 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Leases, Disclosure [Text Block]

NOTE K – 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 fiscal years ended March 31, 2024 and March 26, 2023 were as follows:

	March 31,			March 26,
	2024			2023
Operating lease cost	$	1,580		$	1,548
Variable lease cost		1,751			1,614
Less: Sublease income, net		(87	)		(85	)
Total net lease cost	$	3,244		$	3,077

The components of the net lease cost on the Consolidated Statement of Earnings for the fiscal years ended March 31, 2024 and March 26, 2023 were as follows:

	March 31,			March 26,
	2024			2023
Restaurant operating expenses	$	2,535		$	2,416
General and administrative expenses		796			746
Less: Other income, net		(87	)		(85	)
Total net lease cost	$	3,244		$	3,077

Cash paid for amounts included in the measurement of lease liabilities for the fiscal years ended March 31, 2024 and March 26, 2023 were as follows:

	March 31,		March 26,
	2024		2023
Operating cash flows from operating leases	$	1,259	$	1,171

The weighted average remaining lease term and weighted average discount rate for operating leases for the fiscal years ended March 31, 2024 and March 26, 2023 were as follows:

	March 31,			March 26,
	2024			2023
Weighted average remaining lease term (years):		4.4			5.3
Weighted average discount rate:		8.480	%		8.859	%

Future lease commitments to be paid and received by the Company as of March 31, 2024 were as follows:

	Payments			Receipts
	Operating Leases			Subleases		Net Leases
Fiscal year:
2025	$	1,887		$	274	$	1,613
2026		1,923			278		1,645
2027		1,931			281		1,650
2028		1,781			129		1,652
2029		434			118		316
Thereafter		171			376		(205	)
Total lease commitments	$	8,127		$	1,456	$	6,671
Less: Amount representing interest		(1,303	)
Present value of lease liabilities (a)	$	6,824

(a) The present value of minimum operating lease payments of $1,887 and $4,937 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 lease income for the fiscal years ended March 31, 2024 and March 26, 2023 were as follows:

	March 31,		March 26,
	2024		2023
Operating lease income, net	$	87	$	85