Note L - Income Taxes

9 Months Ended

Dec. 28, 2025

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE L – INCOME TAXES

The effective income tax rates for the thirteen weeks ended December 28, 2025 and December 29, 2024 were 35.0% and 26.0%, respectively. The effective income tax rate for the thirteen weeks ended December 28, 2025 reflected $1,664 of income tax expense recorded on $4,748 of pre-tax income. The effective income tax rate for the thirteen weeks ended December 29, 2024 reflected $1,575 of income tax expense recorded on $6,059 of pre-tax income.

The effective income tax rates for the thirty-nine weeks ended December 28, 2025 and December 29, 2024 were 28.4% and 26.5%, respectively. The effective income tax rate for the thirty-nine weeks ended December 28, 2025 reflected $6,815 of income tax expense recorded on $24,026 of pre-tax income. The effective income tax rate for the thirty-nine weeks ended December 29, 2024 reflected $7,151 of income tax expense recorded on $26,942 of pre-tax income.

The effective tax rates are higher than the United States Federal statutory rates primarily due to state and local taxes, as well as non-deductible compensation under the Internal Revenue Code Section 162(m). The effective income tax rates for the thirteen and thirty-nine weeks ended December 28, 2025 included unfavorable discrete tax adjustments of 5.3% and 1.0%, respectively, for non-deductible transaction costs.

The amount of unrecognized tax benefits included in Other liabilities at December 28, 2025 and March 30, 2025 was $491 and $532, respectively, all of which would impact the Company’s effective tax rate, if recognized. As of December 28, 2025 and March 30, 2025, the Company had approximately $438 and $395, respectively, of accrued interest and penalties in connection with unrecognized tax benefits.

On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (“OBBBA”). The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, and the business interest expense limitation. The OBBBA did not have a material impact to our provision for income taxes for the thirteen and thirty-nine weeks ended December 28, 2025. The Company is continuing to evaluate the full year impact of the OBBBA and, based on our preliminary analysis, we do not anticipate a material effect on our consolidated financial statements for the fiscal year ending March 29, 2026.