Note C - Revenues

3 Months Ended

Jun. 25, 2023

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE C – REVENUES

The Company’s disaggregated revenues for the thirteen weeks ended June 25, 2023 and June 26, 2022 are as follows (in thousands):

	Thirteen weeks ended
	June 25, 2023		June 26, 2022
Branded Products	$	25,170	$	23,171
Company-owned restaurants		3,658		3,723
Total sales		28,828		26,894
License royalties		11,658		11,314
Royalties		980		901
Franchise fees		95		192
Total franchise fees and royalties		1,075		1,093
Advertising fund revenue		424		419
Total revenues	$	41,985	$	39,720

The following table disaggregates revenues by primary geographical market (in thousands):

	Thirteen weeks ended
	June 25, 2023		June 26, 2022
United States	$	39,882	$	37,917
International		2,103		1,803
Total revenues	$	41,985	$	39,720

Contract balances

The following table provides information about contract liabilities from contracts with customers (in thousands):

	June 25, 2023		March 26, 2023
Deferred franchise fees (a)	$	1,556	$	1,608
Deferred revenues, which are included in
“Accrued expenses and other current liabilities” (b)	$	797	$	1,406

(a) Deferred franchise fees of $339 and $1,217 as of June 25, 2023 and $336 and $1,272 as of March 26, 2023 are included in Deferred franchise fees – current and long term, respectively.

(b) Includes $547 of deferred license royalties and $250 of deferred advertising fund revenue as of June 25, 2023 and $906 of deferred license royalties and $500 of deferred advertising fund revenue as of March 26, 2023.

Significant changes in deferred franchise fees are as follows (in thousands):

	Thirteen weeks ended
	June 25, 2023			June 26, 2022
Deferred franchise fees at beginning of period	$	1,608		$	2,097
New deferrals due to cash received and other		43			58
Revenue recognized during the period		(95	)		(192	)
Deferred franchise fees at end of period	$	1,556		$	1,963

Significant changes in deferred revenues are as follows (in thousands):

	Thirteen weeks ended
	June 25, 2023			June 26, 2022
Deferred revenues at beginning of period	$	1,406		$	876
Revenue recognized during the period		(609	)		(351	)
Deferred revenues at end of period	$	797		$	525

Anticipated future recognition of deferred franchise fees

The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period (in thousands):

	Estimate for fiscal year
2024 (a)	$	256
2025		324
2026		301
2027		181
2028		87
Thereafter		407
Total	$	1,556

(a) Represents franchise fees expected to be recognized for the remainder of the 2024 fiscal year, which includes international development fees expected to be recognized over the duration of one year or less. Amount does not include $95 of franchise fee revenue recognized for the thirteen weeks ended June 25, 2023.

We have applied the optional exemption, as provided for under Topic 606 “Revenues from Contracts with Customers,” which allows us to not disclose the transaction price allocated to unsatisfied performance obligations when the transaction price is a sales-based royalty.