Note C - Revenues

9 Months Ended

Dec. 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 thirty-nine weeks ended December 29, 2024 and December 24, 2023 are as follows (in thousands):

	Thirteen weeks ended				Thirty-nine weeks ended
	December 29, 2024		December 24, 2023		December 29, 2024		December 24, 2023
Branded Products	$	21,099	$	19,688	$	71,781	$	68,210
Company-owned restaurants		1,804		1,661		11,351		10,512
License royalties		7,105		6,078		29,517		26,075
Franchise royalties		897		868		2,944		2,996
Franchise fees		94		87		294		325
Advertising fund revenue		520		508		1,508		1,501
Total revenues	$	31,519	$	28,890	$	117,395	$	109,619

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

	Thirteen weeks ended				Thirty-nine weeks ended
	December 29, 2024		December 24, 2023		December 29, 2024		December 24, 2023
United States	$	30,659	$	27,644	$	114,419	$	104,970
International		860		1,246		2,976		4,649
Total revenues	$	31,519	$	28,890	$	117,395	$	109,619

Contract balances

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

	December 29, 2024		March 31, 2024
Deferred franchise fees (a)	$	1,026	$	1,226
Deferred revenues, which are included in
“Accrued expenses and other current liabilities” (b)	$	250	$	1,375

(a) Deferred franchise fees of $312 and $714 as of December 29, 2024 and $327 and $899 as of March 31, 2024 are included in Deferred franchise fees – current and long term, respectively.

(b) Includes $250 of deferred advertising fund revenue as of December 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):

	Thirty-nine weeks ended
	December 29, 2024			December 24, 2023
Deferred franchise fees at beginning of period	$	1,226		$	1,608
New deferrals due to cash received and other		94			69
Revenue recognized during the period		(294	)		(325	)
Deferred franchise fees at end of period	$	1,026		$	1,352

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

	Thirty-nine weeks ended
	December 29, 2024			December 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		(1,625	)		(1,656	)
Deferred revenues at end of period	$	250		$	250

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)	$	83
2026		304
2027		193
2028		98
2029		66
Thereafter		282
Total	$	1,026

(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 $294 of franchise fee revenue recognized for the thirty-nine weeks ended December 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.