Note R - Leases

9 Months Ended

Dec. 26, 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 and thirty-nine week periods ended December 26, 2021 and December 27, 2020 were as follows (in thousands):

	Thirteen weeks ended						Thirty-nine weeks ended
	December 26, 2021			December 27, 2020			December 26, 2021			December 27, 2020
Statement of Earnings
Operating lease cost	$	378		$	370		$	1,223		$	1,181
Variable lease cost		57			292			1,023			1,007
Less: Sublease income, net		(41	)		(9	)		(62	)		(31	)
Total net lease cost (a)	$	394		$	653		$	2,184		$	2,157

(a) Includes $243, net and $502, net for the thirteen week periods ended December 26, 2021 and December 27, 2020, respectively, and $1,713, net and $1,696, net for the thirty-nine week periods ended December 26, 2021 and December 27, 2020, respectively, recorded to “Restaurant Operating Expenses” for leases for Company-owned restaurants.

Includes $192 and $160 for the thirteen week periods ended December 26, 2021 and December 27, 2020, respectively, and $533 and $492 for the thirty-nine week periods ended December 26, 2021 and December 27, 2020, respectively, recorded to “General and administrative expenses” for leases for corporate offices and equipment.

Also includes $41 and $9 for the thirteen week periods ended December 26, 2021 and December 27, 2020, respectively, and $62 and $31 for the thirty-nine week periods ended December 26, 2021 and December 27, 2020, 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				Thirty-nine weeks ended
	December 26, 2021		December 27, 2020		December 26, 2021		December 27, 2020
Operating cash flows from operating leases	$	187	$	153	$	544	$	560

The weighted average remaining lease term and weighted average discount rate for operating leases as of December 26, 2021 were as follows:

Weighted average remaining lease term (years):
Operating leases	6.5
Weighted average discount rate:
Operating leases	8.875	%

Future lease commitments to be paid and received by the Company as of December 26, 2021 were as follows (in thousands):

	Payments		Receipts
	Operating Leases		Subleases		Net Leases
Fiscal year:
2022 (a)	$	381	$	38	$	343
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	$	11,156	$	896	$	10,260
Less: Amount representing interest		2,628
Present value of lease liabilities (b)	$	8,528

(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 $1,222 of lease commitments paid and received by the Company for the thirty-nine week period ended December 26, 2021.
(b)	The present value of minimum operating lease payments of $1,848 and $6,680 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 and thirty-nine week periods ended December 26, 2021 and December 27, 2020 were as follows (in thousands):

	Thirteen weeks ended				Thirty-nine weeks ended
	December 26, 2021		December 27, 2020		December 26, 2021		December 27, 2020
Operating lease income, net	$	41	$	9	$	62	$	31