Note 11 - Leases

6 Months Ended

Mar. 26, 2024

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note 11. Leases

The Company determines if a contract contains a lease at inception. The Company’s material long-term operating lease agreements are for the land and buildings for our restaurants as well as our corporate office. The initial lease terms range from 10 years to 20 years, most of which include renewal options of 10 to 15 years.

Components of operating lease costs are as follows for the fiscal quarters ended March 26, 2024 and March 28, 2023:

Lease cost	Classification	March 26, 2024			March 28, 2023
Operating lease cost	Occupancy, Other restaurant operating costs and General and administrative expenses, net	$	1,908		$	1,853
Variable lease cost	Occupancy		10			-
Sublease income	Occupancy		(125	)		(143	)
		$	1,793		$	1,710

Weighted average lease term and discount rate are as follows:

	March 26, 2024			March 28, 2023
Weighted average remaining lease term (in years)		7.54			8.24
Weighted average discount rate		5.0	%		5.0	%

Supplemental cash flow disclosures:

	March 26, 2024		March 28, 2023
Cash paid for operating lease liabilities	$	3,865	$	3,734
Non-cash operating lease assets obtained in exchange for operating lease liabilities	$	452	$	184

Future minimum rent payments for our operating leases as of March 26, 2024 are as follows:

	Total
One Year	$	8,299
Two Years		8,094
Three Years		7,706
Four Years		7,291
Five Years		6,067
Thereafter		18,077
Total minimum lease payments		55,534
Less: imputed interest		(9,581	)
Present value of lease liabilities	$	45,953

The above future minimum rental amounts exclude the amortization of deferred lease incentives, renewal options that are not reasonably assured of renewal, and contingent rent. The Company generally has escalating rents over the term of the leases and records rent expense on a straight-line basis.