Note Q - Leases

9 Months Ended

Dec. 28, 2025

Notes to Financial Statements

Leases, Disclosure [Text Block]

NOTE Q – LEASES

The Company is party as lessee to various leases for land, buildings and certain office equipment for its Company-owned restaurants and corporate office. The Company previously leased and subleased one property; this arrangement was terminated on November 4, 2025. In connection with the termination, the Company received $84,000 in settlement income which is included in Other income, net on the Condensed Consolidated Statements of Earnings.

Company as lessee

The components of the net lease cost for the thirteen and thirty-nine week periods ended December 28, 2025 and December 29, 2024 were as follows (in thousands):

	Thirteen weeks ended						Thirty-nine weeks ended
	December 28, 2025			December 29, 2024			December 28, 2025			December 29, 2024
Operating lease cost	$	389		$	392		$	1,244		$	1,253
Variable lease cost		464			470			1,573			1,568
Less: Sublease income, net		(7	)		(21	)		(49	)		(63	)
Total net lease cost	$	846		$	841		$	2,768		$	2,758

The components of the net lease cost are included in the Condensed Consolidated Statements of Earnings for the thirteen and thirty-nine week periods ended December 28, 2025 and December 29, 2024 as follows (in thousands):

	Thirteen weeks ended						Thirty-nine weeks ended
	December 28, 2025			December 29, 2024			December 28, 2025			December 29, 2024
Restaurant operating expenses	$	646		$	659		$	2,186		$	2,207
General and administrative expenses		207			203			631			614
Less: Other income, net		(7	)		(21	)		(49	)		(63	)
Total net lease cost	$	846		$	841		$	2,768		$	2,758

Cash paid for amounts included in the measurement of lease liabilities for the thirteen and thirty-nine week periods ended December 28, 2025 and December 29, 2024 were as follows (in thousands):

	Thirteen weeks ended				Thirty-nine weeks ended
	December 28, 2025		December 29, 2024		December 28, 2025		December 29, 2024
Operating cash flows from operating leases	$	402	$	391	$	1,524	$	1,495

The weighted average remaining lease term and weighted average discount rate for operating leases as of December 28, 2025 were as

follows:

Weighted average remaining lease term (years):	2.8
Weighted average discount rate:	8.459	%

Future lease commitments to be paid and received by the Company as of December 28, 2025 were as follows (in thousands):

	Payments			Receipts
	Operating Leases			Subleases		Net Leases
Fiscal year:
2026 (a)	$	402		$	-	$	402
2027		1,940			112		1,828
2028		1,790			115		1,675
2029		440			-		440
2030		171			-		171
Total lease commitments	$	4,743		$	227	$	4,516
Less: Amount representing interest		(486	)
Present value of lease liabilities (b)	$	4,257

(a) Represents future lease commitments to be paid and received by the Company for the remainder of the 2026 fiscal year. Amount does not include $1,302 of lease commitments paid and received by the Company for the thirty-nine week period ended December 28, 2025.

(b) The present value of minimum operating lease payments of $1,937 and $2,320 are included in “Current portion of operating lease liabilities” and “Long-term portion of operating lease liabilities,” respectively on the Condensed Consolidated Balance Sheet.

Company as lessor

The components of net lease income for the thirteen and thirty-nine week periods ended December 28, 2025 and December 29, 2024 were as follows (in thousands):

	Thirteen weeks ended				Thirty-nine weeks ended
	December 28, 2025		December 29, 2024		December 28, 2025		December 29, 2024
Operating lease income, net	$	7	$	21	$	49	$	63