Note Q - Leases

6 Months Ended

Sep. 25, 2022

Notes to Financial Statements

Leases, Disclosure [Text Block]

NOTE Q – LEASES

The Company is party as lessee to various leases for its Company-owned 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 25, 2022 and September 26, 2021 were as follows (in thousands):

	Thirteen weeks ended						Twenty-six weeks ended
	September 25, 2022			September 26, 2021			September 25, 2022			September 26, 2021
Operating lease cost	$	408		$	413		$	836		$	845
Variable lease cost		482			524			850			966
Less: Sublease income, net		(20	)		(5	)		(42	)		(21	)
Total net lease cost	$	870		$	932		$	1,644		$	1,790

The following table presents the components of the net lease cost on the Consolidated Statements of Earnings for the thirteen and twenty-six week periods ended September 25, 2022 and September 26, 2021 (in thousands):

	Thirteen weeks ended						Twenty-six weeks ended
	September 25, 2022			September 26, 2021			September 25, 2022			September 26, 2021
Restaurant operating expenses	$	712		$	770		$	1,319		$	1,470
General and administrative expenses		178			167			367			341
Less: Other income, net		(20	)		(5	)		(42	)		(21	)
Total net lease cost	$	870		$	932		$	1,644		$	1,790

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

	Thirteen weeks ended				Twenty-six weeks ended
	September 25, 2022		September 26, 2021		September 25, 2022		September 26, 2021
Operating cash flows from operating leases	$	370	$	183	$	734	$	357

The weighted average remaining lease term and weighted-average discount rate for operating leases as of September 25, 2022 were as follows:

Weighted average remaining lease term (years):	5.8
Weighted average discount rate:	8.881	%

Future lease commitments to be paid and received by the Company as of September 25, 2022 were as follows (in thousands):

	Payments		Receipts
	Operating Leases		Subleases		Net Leases
Fiscal year:
2023 (a)	$	762	$	84	$	678
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	$	9,688	$	1,812	$	7,876
Less: Amount representing interest		2,087
Present value of lease liabilities (b)	$	7,601

(a)	Represents future lease commitments to be paid and received by the Company for the remainder of the 2023 fiscal year. Amount does not include $884 of lease commitments paid and received by the Company for the twenty-six week period ended September 25, 2022.
(b)	The present value of minimum operating lease payments of $1,849 and $5,752 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 net lease income for the thirteen and twenty-six week periods ended September 25, 2022 and September 26, 2021 were as follows (in thousands):

	Thirteen weeks ended				Twenty-six weeks ended
	September 25, 2022		September 26, 2021		September 25, 2022		September 26, 2021
Operating lease income, net	$	20	$	5	$	42	$	21