Note C - Revenues

6 Months Ended

Sep. 29, 2024

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE C – REVENUES

The Company’s disaggregated revenues for the thirteen and twenty-six weeks ended September 29, 2024 and September 24, 2023 are as follows (in thousands):

	Thirteen weeks ended				Twenty-six weeks ended
	September 29, 2024		September 24, 2023		September 29, 2024		September 24, 2023
Branded Products	$	24,536	$	23,352	$	50,682	$	48,522
Company-owned restaurants		5,348		5,193		9,547		8,851
License royalties		9,491		8,339		22,412		19,997
Franchise royalties		1,066		1,148		2,047		2,128
Franchise fees		108		143		200		238
Advertising fund revenue		560		569		988		993
Total revenues	$	41,109	$	38,744	$	85,876	$	80,729

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

	Thirteen weeks ended				Twenty-six weeks ended
	September 29, 2024		September 24, 2023		September 29, 2024		September 24, 2023
United States	$	40,464	$	37,444	$	83,760	$	77,326
International		645		1,300		2,116		3,403
Total revenues	$	41,109	$	38,744	$	85,876	$	80,729

Contract balances

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

	September 29, 2024		March 31, 2024
Deferred franchise fees (a)	$	1,101	$	1,226
Deferred revenues, which are included in
“Accrued expenses and other current liabilities” (b)	$	600	$	1,375

(a) Deferred franchise fees of $318 and $783 as of September 29, 2024 and $327 and $899 as of March 31, 2024 are included in Deferred franchise fees – current and long term, respectively.

(b) Includes $100 of deferred license royalties and $500 of deferred advertising fund revenue as of September 29, 2024 and $875 of deferred license royalties and $500 of deferred advertising fund revenue as of March 31, 2024.

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

	Twenty-six weeks ended
	September 29, 2024			September 24, 2023
Deferred franchise fees at beginning of period	$	1,226		$	1,608
New deferrals due to cash received and other		75			46
Revenue recognized during the period		(200	)		(238	)
Deferred franchise fees at end of period	$	1,101		$	1,416

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

	Twenty-six weeks ended
	September 29, 2024			September 24, 2023
Deferred revenues at beginning of period	$	1,375		$	1,406
New deferrals due to cash received and other		500			500
Revenue recognized during the period		(1,275	)		(1,164	)
Deferred revenues at end of period	$	600		$	742

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
2025 (a)	$	165
2026		303
2027		189
2028		93
2029		62
Thereafter		289
Total	$	1,101

(a) Represents franchise fees expected to be recognized for the remainder of the 2025 fiscal year, which includes international development fees expected to be recognized over the duration of one year or less. Amount does not include $200 of franchise fee revenue recognized for the twenty-six weeks ended September 29, 2024.

We have applied the optional exemption, as provided for under ASC 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.