Note 16 - Income Taxes

12 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Income Tax Disclosure [Text Block]

16. Income Taxes

The following are the components of the provision for income taxes for the years ended September 30, 2025, 2024 and 2023, respectively, dollars in thousands:

	Year ended September 30,
	2025			2024			2023
Current federal income tax expense	$	12,575			10,413			5,291
Current state income tax expense		2,516			2,408			1,311
Total current income tax expense		15,091			12,821			6,602
Deferred federal income tax benefit		(2,246	)		(3,283	)		(1,334	)
Deferred state income tax benefit		(362	)		(672	)		(141	)
Total deferred income tax benefit		(2,608	)		(3,955	)		(1,475	)
Total provision for income taxes	$	12,483			8,866			5,127

The differences between the United States federal statutory income tax rate and the Company’s effective tax rate are as follows:

	Year ended September 30,
	2025			2024			2023
Statutory tax rate		21.0	%		21.0			21.0
State income taxes, net of federal income tax expense		2.9			2.9			3.1
Enhanced food deduction		(1.3	)		(1.9	)		(3.1	)
Deferred tax liability adjustment		0.3			0.8			—
Other, net		(1.7	)		(2.1	)		(2.9	)
Effective tax rate		21.2	%		20.7			18.1

Deferred taxes have been classified on the consolidated balance sheets as follows, dollars in thousands:

	As of September 30,
	2025			2024
Long-term assets	$	—			—
Long-term liabilities		(7,863	)		(10,471	)
Net deferred tax liabilities	$	(7,863	)		(10,471	)

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows, dollars in thousands:

	As of September 30,
	2025			2024
Deferred tax assets:
Trademarks	$	563			562
Finance lease liabilities		12,132			11,511
Operating lease liabilities		68,881			73,037
Research and experimental expenditures		855			955
Accrued paid time off		802			768
Equity compensation (1)		983			509
Other (1)		791			435
Gross deferred tax assets		85,007			87,777
Deferred tax liabilities:
Property and equipment		(15,790	)		(17,796	)
Finance lease assets		(10,461	)		(9,944	)
Operating lease assets		(63,442	)		(67,426	)
Leasehold improvements		(1,906	)		(1,919	)
Prepaid expenses (1)		(503	)		(635	)
Goodwill (1)		(737	)		(523	)
Other (1)		(31	)		(5	)
Gross deferred tax liabilities		(92,870	)		(98,248	)
Net deferred tax liabilities	$	(7,863	)		(10,471	)

⁽¹⁾ Equity compensation, prepaid expenses and goodwill at September 30, 2024 have been reclassified from other to be consistent with the current period presentation.

The Company believes that it is more likely than not that it will fully realize all deferred tax assets in the form of future deductions based on the nature of the deductible temporary differences and expected future taxable income.

The Company did not utilize any federal income tax loss or tax credit carryforwards for the years ended September 30, 2025, 2024 and 2023. The Company did not utilize any tax effected state income tax loss carryforwards for the years ended September 30, 2025, 2024 and 2023.

The Company did not have any uncertain tax positions as of September 30, 2025 and 2024.

The Company files income tax returns with federal, state and local tax authorities. With limited exceptions, the Company is no longer subject to federal income tax examinations for fiscal years 2021 and prior and is no longer subject to state and local income tax examinations for fiscal years 2020 and prior.