Note Q - Leases

3 Months Ended

Jun. 25, 2023

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 week periods ended June 25, 2023 and June 26, 2022 were as follows (in thousands):

	Thirteen weeks ended
	June 25, 2023			June 26, 2022
Operating lease cost	$	426		$	428
Variable lease cost		388			368
Less: Sublease income, net		(21	)		(22	)
Total net lease cost	$	793		$	774

The components of the net lease cost on the Consolidated Statement of Earnings for the thirteen week periods ended June 25, 2023 and June 26, 2022 were as follows (in thousands):

	Thirteen weeks ended
	June 25, 2023			June 26, 2022
Restaurant operating expenses	$	615		$	607
General and administrative expenses		199			189
Less: Other income, net		(21	)		(22	)
Total net lease cost	$	793		$	774

Cash paid for amounts included in the measurement of lease liabilities for the thirteen week periods ended June 25, 2023 and June 26, 2022 were as follows (in thousands):

	Thirteen weeks ended
	June 25, 2023		June 26, 2022
Operating cash flows from operating leases	$	393	$	364

The weighted average remaining lease term and weighted average discount rate for operating leases as of June 25, 2023 were as follows:

Weighted average remaining lease term (years):	5.1
Weighted average discount rate:	8.862	%

Future lease commitments to be paid and received by the Company as of June 25, 2023 were as follows (in thousands):

	Payments			Receipts
	Operating Leases			Subleases		Net Leases
Fiscal year:
2024 (a)	$	1,240		$	188	$	1,052
2025		1,690			274		1,416
2026		1,721			278		1,443
2027		1,726			281		1,445
2028		1,572			129		1,443
Thereafter		462			495		(33	)
Total lease commitments	$	8,411		$	1,645	$	6,766
Less: Amount representing interest		(1,610	)
Present value of lease liabilities (b)	$	6,801

(a) Represents future lease commitments to be paid and received by the Company for the remainder of the 2024 fiscal year. Amount does not include $459 of lease commitments paid and received by the Company for the thirteen week period ended June 25, 2023.

(b) The present value of minimum operating lease payments of $1,743 and $5,058 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 25, 2023 and June 26, 2022 were as follows (in thousands):

	Thirteen weeks ended
	June 25, 2023		June 26, 2022
Operating lease income, net	$	21	$	22