Note Q - Leases

3 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Leases, Disclosure [Text Block]

NOTE Q – 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 week periods ended June 30, 2024 and June 25, 2023 were as follows (in thousands):

	Thirteen weeks ended
	June 30, 2024			June 25, 2023
Operating lease cost	$	441		$	426
Variable lease cost		460			388
Less: Sublease income, net		(21	)		(21	)
Total net lease cost	$	880		$	793

The components of the net lease cost on the Consolidated Statement of Earnings for the thirteen week periods ended June 30, 2024 and June 25, 2023 were as follows (in thousands):

	Thirteen weeks ended
	June 30, 2024			June 25, 2023
Restaurant operating expenses	$	687		$	615
General and administrative expenses		214			199
Less: Other income, net		(21	)		(21	)
Total net lease cost	$	880		$	793

Cash paid for amounts included in the measurement of lease liabilities for the thirteen week periods ended June 30, 2024 and June 25, 2023 were as follows (in thousands):

	Thirteen weeks ended
	June 30, 2024		June 25, 2023
Operating cash flows from operating leases	$	412	$	393

The weighted average remaining lease term and weighted average discount rate for operating leases as of June 30, 2024 were as follows:

Weighted average remaining lease term (years):	4.3
Weighted average discount rate:	8.484	%

Future lease commitments to be paid and received by the Company as of June 30, 2024 were as follows (in thousands):

	Payments			Receipts
	Operating Leases			Subleases		Net Leases
Fiscal year:
2025 (a)	$	1,336		$	190	$	1,146
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	$	7,576		$	1,372	$	6,204
Less: Amount representing interest		(1,166	)
Present value of lease liabilities (b)	$	6,410

(a)	Represents future lease commitments to be paid and received by the Company for the remainder of the 2025 fiscal year. Amount does not include $466 of lease commitments paid and received by the Company for the thirteen week period ended June 30, 2024.
(b)	The present value of minimum operating lease payments of $1,897 and $4,513 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 thirteen week periods ended June 30, 2024 and June 25, 2023 were as follows (in thousands):

	Thirteen weeks ended
	June 30, 2024		June 25, 2023
Operating lease income, net	$	21	$	21