Note R - Leases

3 Months Ended

Jun. 28, 2020

Notes to Financial Statements

Leases, Disclosure [Text Block]

NOTE R – LEASES

The Company is party as lessee to various leases for its Company-operated 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 period ended June 28, 2020 were as follows (in thousands):

	Thirteen weeks ended
	June 28, 2020		June 30, 2019
Statement of Earnings
Operating lease cost	$	415	$	342
Short term lease cost		-		6
Variable lease cost		338		423
Less: Sublease income, net		-		(21	)
Total net lease cost (a)	$	753	$	750

(a) the thirteen-week periods ended June 28, 2020 and June 30, 2019 include $579 and $550, net recorded to “Restaurant Operating Expenses” for leases for Company-operated restaurants, $174 and $170 recorded to “General and administrative expenses” for leases for corporate offices and equipment and $- and $21 recorded to “Other income, net” for leased properties that are leased to franchisees.

Cash paid for amounts included in the measurement of lease liabilities were as follows (in thousands):

	Thirteen weeks ended
	June 28, 2020		June 30, 2019
Operating cash flows from operating leases	$	205	$	160

The weighted average remaining lease term and weighted-average discount rate for operating leases as of June 28, 2020 were as follows:

Weighted average remaining lease term (years):
Operating leases	7.8
Weighted average discount rate:
Operating leases	8.876	%

Future lease commitments to be paid and received by the Company as of June 28, 2020 were as follows (in thousands):

	Payments		Receipts
	Operating Leases		Subleases		Net Leases
Fiscal year:
2021 (a)	$	1,164	$	170	$	994
2022		1,837		247		1,590
2023		1,849		168		1,681
2024		1,774		169		1,605
2025		1,678		169		1,509
Thereafter		5,473		352		5,121
Total lease commitments	$	13,775	$	1,275	$	12,500
Less: Amount representing interest		3,865
Present value of lease liabilities (b)	$	9,910

(a)	Represents future lease commitments to be paid and received by the Company for the remainder of the 2021 fiscal year. Amount does not include $338 of lease commitments paid and received by the Company for the thirteen-week period ended June 28, 2020.
(b)	The present value of minimum operating lease payments of $1,702 and $8,208 are included in “Current portion of operating lease liabilities” and “Long-term operating lease liabilities,” respectively.

Company as lessor

The components of lease income for the thirteen-week periods ended June 28, 2020 and June 30, 2019 were as follows (in thousands):

	Thirteen weeks ended
	June 28, 2020		June 30, 2019
Operating lease income, net	$	-	$	21