Note R - Leases

6 Months Ended

Sep. 27, 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 and twenty-six week periods ended September 27, 2020 and September 29, 2019 were as follows (in thousands):

	Thirteen weeks ended			Thirteen weeks ended			Twenty-six weeks ended			Twenty-six weeks ended
	September 27, 2020			September 29, 2019			September 27, 2020			September 29, 2019
Statement of Earnings
Operating lease cost	$	396		$	278		$	811		$	560
Short term lease cost		-			4			-			10
Variable lease cost		377			537			715			960
Less: Sublease income, net		(22	)		(20	)		(22	)		(41	)
Total net lease cost (a)	$	751		$	799		$	1,504		$	1,489

(a) The thirteen and twenty-six week periods ended September 27, 2020 and September 29, 2019 include $614, net and $1,194, net and $669, net and $1,209, net, respectively, recorded to “Restaurant Operating Expenses” for leases for Company-operated restaurants; $159 and $332, and $150 and $321, respectively, recorded to “General and administrative expenses” for leases for corporate offices and equipment; and $22 and $22, and $20 and $41, respectively, 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		Thirteen weeks ended		Twenty-six weeks ended		Twenty-six weeks ended
	September 27, 2020		September 29, 2019		September 27, 2020		September 29, 2019
Operating cash flows from operating leases	$	202	$	131	$	407	$	291

The weighted average remaining lease term and weighted-average discount rate for operating leases as of September 27, 2020 were as follows:

Weighted average remaining lease term (years):
Operating leases	7.7
Weighted average discount rate:
Operating leases	8.883	%

Future lease commitments to be paid and received by the Company as of September 27, 2020 were as follows (in thousands):

	Payments		Receipts
	Operating Leases		Subleases		Net Leases
Fiscal year:
2021 (a)	$	744	$	77	$	667
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		5,474		352		5,122
Total lease commitments	$	13,356	$	1,182	$	12,174
Less: Amount representing interest		3,648
Present value of lease liabilities (b)	$	9,708

(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 $633 of lease commitments paid and received by the Company for the twenty-six week period ended September 27, 2020.

(b) The present value of minimum operating lease payments of $1,821 and $7,887 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 and twenty-six week periods ended September 27, 2020 and September 29, 2019 were as follows (in thousands):

	Thirteen weeks ended September 27, 2020		Thirteen weeks ended September 29, 2019		Twenty-six weeks ended September 27, 2020		Twenty-six weeks ended September 29, 2019
Operating lease income, net	$	22	$	20	$	22	$	41