Note K - Leases

12 Months Ended

Mar. 27, 2022

Notes to Financial Statements

Leases, Disclosure [Text Block]

NOTE K – 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 fiscal years ended March 27, 2022 and March 28, 2021 were as follows:

	March 27, 2022			March 28, 2021
Statement of Earnings
Operating lease cost	$	1,553		$	1,444
Variable lease cost		1,356			1,194
Less: Sublease income, net		(88	)		(47	)
Total net lease cost (a)	$	2,821		$	2,591

(a) Includes $2,199, net and $1,981, net, for the fiscal years ended March 27, 2022 and March 28, 2021, respectively, recorded to “Restaurant operating expenses” for leases for Company-operated restaurants;

Includes $710 and $657 for the fiscal years ended March 27, 2022 and March 28, 2021, respectively, recorded to “General and administrative expenses” for leases for corporate offices and equipment;

Also includes $88 and $47, for the fiscal years ended March 27, 2022 and March 28, 2021, 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 for the fiscal years ended March 27, 2022 and March 28, 2021 were as follows:

	March 27, 2022		March 28, 2021
Operating cash flows from operating leases	$	737	$	727

The weighted average remaining lease term and weighted-average discount rate for operating leases for the fiscal years ended March 27, 2022 and March 28, 2021 were as follows:

	March 27, 2022			March 28, 2021
Weighted average remaining lease term (years):		6.3			7.2
Weighted average discount rate:		8.867	%		8.870	%

Future lease commitments to be paid and received by the Company as of March 27, 2022 were as follows:

	Payments		Receipts
	Operating Leases		Subleases		Net Leases
Fiscal year:
2023	$	1,849	$	267	$	1,582
2024		1,774		271		1,503
2025		1,678		274		1,404
2026		1,712		278		1,434
2027		1,726		281		1,445
Thereafter		2,036		624		1,412
Total lease commitments	$	10,775	$	1,995	$	8,780
Less: Amount representing interest		2,439
Present value of lease liabilities (a)	$	8,336

(a) The present value of minimum operating lease payments of $1,849 and $6,487 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 fiscal years ended March 27, 2022 and March 28, 2021 were as follows:

	March 27, 2022		March 28, 2021
Operating lease income, net	$	88	$	47