Note Q - Leases

9 Months Ended

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

	Thirteen weeks ended						Thirty-nine weeks ended
	December 29, 2024			December 24, 2023			December 29, 2024			December 24, 2023
Operating lease cost	$	392		$	389		$	1,253		$	1,238
Variable lease cost		470			424			1,568			1,311
Less: Sublease income, net		(21	)		(21	)		(63	)		(65	)
Total net lease cost	$	841		$	792		$	2,758		$	2,484

The following table presents the components of the net lease cost on the Condensed Consolidated Statements of Earnings for the thirteen and thirty-nine week periods ended December 29, 2024 and December 24, 2023 (in thousands):

	Thirteen weeks ended						Thirty-nine weeks ended
	December 29, 2024			December 24, 2023			December 29, 2024			December 24, 2023
Restaurant operating expenses	$	659		$	613		$	2,207		$	1,960
General and administrative expenses		203			200			614			589
Less: Other income, net		(21	)		(21	)		(63	)		(65	)
Total net lease cost	$	841		$	792		$	2,758		$	2,484

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

	Thirteen weeks ended				Thirty-nine weeks ended
	December 29, 2024		December 24, 2023		December 29, 2024		December 24, 2023
Operating cash flows from operating leases	$	267	$	234	$	1,099	$	1,019

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

Weighted average remaining lease term (years):	3.8
Weighted average discount rate:	8.482	%

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

	Payments			Receipts
	Operating Leases			Subleases		Net Leases
Fiscal year:
2025 (a)	$	392		$	42	$	350
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	$	6,632		$	1,224	$	5,408
Less: Amount representing interest		(908	)
Present value of lease liabilities (b)	$	5,724

(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 $1,255 of lease commitments paid and received by the Company for the thirty-nine week period ended December 29, 2024.

(b) The present value of minimum operating lease payments of $1,915 and $3,809 are included in “Current portion of operating lease liabilities” and “Long-term operating lease liabilities,” respectively on the Condensed Consolidated Balance Sheets.

Company as lessor

The components of net lease income for the thirteen and thirty-nine week periods ended December 29, 2024 and December 24, 2023 were as follows (in thousands):

	Thirteen weeks ended				Thirty-nine weeks ended
	December 29, 2024		December 24, 2023		December 29, 2024		December 24, 2023
Operating lease income, net	$	21	$	21	$	63	$	65