Note C - Revenues

3 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE C – REVENUES

The Company’s disaggregated revenues for the thirteen weeks ended June 30, 2024 and June 25, 2023 are as follows (in thousands):

	Thirteen weeks ended
	June 30, 2024		June 25, 2023
Branded Products	$	26,146	$	25,170
Company-owned restaurants		4,199		3,658
License royalties		12,921		11,658
Franchise royalties		981		980
Franchise fees		92		95
Advertising fund revenue		428		424
Total revenues	$	44,767	$	41,985

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

	Thirteen weeks ended
	June 30, 2024		June 25, 2023
United States	$	43,296	$	39,882
International		1,471		2,103
Total revenues	$	44,767	$	41,985

Contract balances

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

	June 30, 2024		March 31, 2024
Deferred franchise fees (a)	$	1,146	$	1,226
Deferred revenues, which are included in
“Accrued expenses and other current liabilities” (b)	$	723	$	1,375

(a) Deferred franchise fees of $322 and $824 as of June 30, 2024 and $327 and $899 as of March 31, 2024 are included in Deferred franchise fees – current and long term, respectively.

(b) Includes $473 of deferred license royalties and $250 of deferred advertising fund revenue as of June 30, 2024 and $875 of deferred license royalties and $500 of deferred advertising fund revenue as of March 31, 2024.

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

	Thirteen weeks ended
	June 30, 2024			June 25, 2023
Deferred franchise fees at beginning of period	$	1,226		$	1,608
New deferrals due to cash received and other		12			43
Revenue recognized during the period		(92	)		(95	)
Deferred franchise fees at end of period	$	1,146		$	1,556

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

	Thirteen weeks ended
	June 30, 2024			June 25, 2023
Deferred revenues at beginning of period	$	1,375		$	1,406
Revenue recognized during the period		(652	)		(609	)
Deferred revenues at end of period	$	723		$	797

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
2025 (a)	$	246
2026		299
2027		186
2028		95
2029		63
Thereafter		257
Total	$	1,146

(a) Represents franchise fees expected to be recognized for the remainder of the 2025 fiscal year, which includes international development fees expected to be recognized over the duration of one year or less. Amount does not include $92 of franchise fee revenue recognized for the thirteen weeks ended June 30, 2024.

We have applied the optional exemption, as provided for under 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.