Note Q - Leases

6 Months Ended

Sep. 29, 2024

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 29, 2024 and September 24, 2023 were as follows (in thousands):

	Thirteen weeks ended						Twenty-six weeks ended
	September 29, 2024			September 24, 2023			September 29, 2024			September 24, 2023
Operating lease cost	$	420		$	423		$	861		$	849
Variable lease cost		638			499			1,098			887
Less: Sublease income, net		(21	)		(23	)		(42	)		(44	)
Total net lease cost	$	1,037		$	899		$	1,917		$	1,692

The components of the net lease cost on the Consolidated Statements of Earnings for the thirteen and twenty-six week periods ended September 29, 2024 and September 24, 2023 (in thousands):

	Thirteen weeks ended						Twenty-six weeks ended
	September 29, 2024			September 24, 2023			September 29, 2024			September 24, 2023
Restaurant operating expenses	$	861		$	732		$	1,548		$	1,347
General and administrative expenses		197			190			411			389
Less: Other income, net		(21	)		(23	)		(42	)		(44	)
Total net lease cost	$	1,037		$	899		$	1,917		$	1,692

Cash paid for amounts included in the measurement of lease liabilities for the thirteen and twenty-six week periods ended September 29, 2024 and September 24, 2023 were as follows (in thousands):

	Thirteen weeks ended				Twenty-six weeks ended
	September 29, 2024		September 24, 2023		September 29, 2024		September 24, 2023
Operating cash flows from operating leases	$	420	$	392	$	832	$	785

The weighted average remaining lease term and weighted average discount rate for operating leases as of September 29, 2024 were as follows:

Weighted average remaining lease term (years):	4.0
Weighted average discount rate:	8.49	%

Future lease commitments to be paid and received by the Company as of September 29, 2024 were as follows (in thousands):

	Payments			Receipts
	Operating Leases			Subleases		Net Leases
Fiscal year:
2025 (a)	$	784		$	84	$	700
2026		1,923			278		1,645
2027		1,931			281		1,650
2028		1,781			129		1,652
2029		434			118		316
Thereafter		171			376		(205	)
Total lease commitments	$	7,024		$	1,266	$	5,758
Less: Amount representing interest		(1,033	)
Present value of lease liabilities (b)	$	5,991

(a)	Represents future lease commitments to be paid and received by the Company for the remainder of the 2025 fiscal year. Amount does not include $908 of lease commitments paid and received by the Company for the twenty-six week period ended September 29, 2024.
(b)	The present value of minimum operating lease payments of $1,907 and $4,084 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 29, 2024 and September 24, 2023 were as follows (in thousands):

	Thirteen weeks ended				Twenty-six weeks ended
	September 29, 2024		September 24, 2023		September 29, 2024		September 24, 2023
Operating lease income, net	$	21	$	23	$	42	$	44