Note R - Leases

3 Months Ended

Jun. 27, 2021

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 periods ended June 27, 2021 and June 28, 2020 were as follows (in thousands):

	Thirteen weeks ended
	June 27, 2021			June 28, 2020
Statement of Earnings
Operating lease cost	$	432		$	415
Short term lease cost		-			-
Variable lease cost		442			338
Less: Sublease income, net		(16	)		-
Total net lease cost (a)	$	858		$	753

(a) the thirteen week periods ended June 27, 2021 and June 28, 2020 include $700 and $579, net recorded to “Restaurant Operating Expenses” for leases for Company-operated restaurants, $174 and $174 recorded to “General and administrative expenses” for leases for corporate offices and equipment, and $16 and $- 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 27, 2021		June 28, 2020
Operating cash flows from operating leases	$	174	$	205

The weighted average remaining lease term and weighted-average discount rate for operating leases as of June 27, 2021 were as follows:

Weighted average remaining lease term (years):
Operating leases	6.9
Weighted average discount rate:
Operating leases	8.876	%

Future lease commitments to be paid and received by the Company as of June 27, 2021 were as follows (in thousands):

	Payments		Receipts
	Operating Leases		Subleases		Net Leases
Fiscal year:
2022 (a)	$	1,298	$	171	$	1,127
2023		1,849		168		1,681
2024		1,774		169		1,605
2025		1,678		169		1,509
2026		1,712		169		1,543
Thereafter		3,762		183		3,579
Total lease commitments	$	12,073	$	1,029	$	11,044
Less: Amount representing interest		3,017
Present value of lease liabilities (b)	$	9,056

(a)	Represents future lease commitments to be paid and received by the Company for the remainder of the 2022 fiscal year. Amount does not include $457 of lease commitments paid and received by the Company for the thirteen week period ended June 27, 2021.
(b)	The present value of minimum operating lease payments of $1,842 and $7,214 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 27, 2021 and June 28, 2020 were as follows (in thousands):

	Thirteen weeks ended
	June 27, 2021		June 28, 2020
Operating lease income, net	$	16	$	-