Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Sep. 25, 2022 | Nov. 03, 2022 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000069733 | |
Entity Registrant Name | NATHANS FAMOUS INC | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-26 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 25, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-35962 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 11-3166443 | |
Entity Address, Address Line One | One Jericho Plaza, Second Floor – Wing A | |
Entity Address, City or Town | Jericho | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11753 | |
City Area Code | 516 | |
Local Phone Number | 338-8500 | |
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | NATH | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,079,720 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 25, 2022 | Mar. 27, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents (Note E) | $ 53,857 | $ 50,063 |
Accounts and other receivables, net (Note G) | 16,171 | 13,374 |
Inventories | 723 | 522 |
Prepaid expenses and other current assets (Note H) | 868 | 1,441 |
Total current assets | 71,619 | 65,400 |
Property and equipment, net of accumulated depreciation of $10,694 and $10,344, respectively | 3,750 | 3,785 |
Operating lease assets (Note Q) | 6,804 | 7,416 |
Goodwill | 95 | 95 |
Intangible asset, net (Note I) | 956 | 1,043 |
Deferred income taxes | 567 | 582 |
Other assets | 182 | 195 |
Total assets | 83,973 | 78,516 |
CURRENT LIABILITIES | ||
Accounts payable | 4,945 | 6,381 |
Accrued expenses and other current liabilities (Note K) | 7,885 | 7,833 |
Current portion of operating lease liabilities (Note Q) | 1,849 | 1,849 |
Deferred franchise fees | 352 | 349 |
Total current liabilities | 15,031 | 16,412 |
Long-term debt, net of unamortized debt issuance costs of $1,563 and $1,817, respectively (Note P) | 108,437 | 108,183 |
Operating lease liabilities (Note Q) | 5,752 | 6,487 |
Other liabilities | 724 | 674 |
Deferred franchise fees | 1,486 | 1,748 |
Total liabilities | 131,430 | 133,504 |
COMMITMENTS AND CONTINGENCIES (Note R) | ||
STOCKHOLDERS’ DEFICIT | ||
Common stock, $.01 par value; 30,000,000 shares authorized; 9,369,235 shares issued; and 4,079,720 and 4,115,154 shares outstanding at September 25, 2022 and March 27, 2022, respectively | 94 | 94 |
Additional paid-in capital | 62,323 | 62,307 |
Accumulated deficit | (23,212) | (32,619) |
Stockholders’ equity before treasury stock | 39,205 | 29,782 |
Treasury stock, at cost, 5,289,515 and 5,254,081 shares at September 25, 2022 and March 27, 2022 | (86,662) | (84,770) |
Total stockholders’ deficit | (47,457) | (54,988) |
Total liabilities and stockholders’ deficit | $ 83,973 | $ 78,516 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 25, 2022 | Mar. 27, 2022 |
Property and equipment accumulated depreciation | $ 10,694 | $ 10,344 |
Long-term debt, unamortized debt costs | $ 1,563 | $ 1,817 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 9,369,235 | 9,369,235 |
Common stock, shares outstanding (in shares) | 4,079,720 | 4,115,154 |
Treasury stock, common shares (in shares) | 5,289,515 | 5,254,081 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 25, 2022 | Sep. 26, 2021 | |
REVENUES | ||||
Revenues | $ 37,497 | $ 32,878 | $ 77,217 | $ 64,197 |
COSTS AND EXPENSES | ||||
Cost of sales | 21,898 | 20,131 | 44,565 | 35,496 |
Restaurant operating expenses | 1,253 | 1,216 | 2,285 | 2,327 |
Depreciation and amortization | 301 | 270 | 534 | 548 |
General and administrative expenses | 3,372 | 3,269 | 6,961 | 6,727 |
Advertising fund expense | 759 | 553 | 1,178 | 958 |
Total costs and expenses | 27,583 | 25,439 | 55,523 | 46,056 |
Income from operations | 9,914 | 7,439 | 21,694 | 18,141 |
Interest expense | (1,943) | (2,651) | (3,887) | (5,301) |
Interest income | 80 | 28 | 102 | 64 |
Other income, net | 34 | 5 | 56 | 21 |
Income before provision for income taxes | 8,085 | 4,821 | 17,965 | 12,925 |
Provision for income taxes | 2,127 | 1,276 | 4,870 | 3,617 |
Net income | $ 5,958 | $ 3,545 | $ 13,095 | $ 9,308 |
Weighted average shares used in computing income per share: | ||||
Basic (in shares) | 4,083 | 4,115 | 4,098 | 4,115 |
Diluted (in shares) | 4,083 | 4,115 | 4,098 | 4,115 |
Income per share: | ||||
Basic (in dollars per share) | $ 1.46 | $ 0.86 | $ 3.20 | $ 2.26 |
Diluted (in dollars per share) | 1.46 | 0.86 | 3.20 | 2.26 |
Dividends declared per share (in dollars per share) | $ 0.45 | $ 0.35 | $ 90 | $ 70 |
Product [Member] | ||||
REVENUES | ||||
Revenues | $ 27,301 | $ 23,500 | $ 54,195 | $ 42,825 |
License [Member] | ||||
REVENUES | ||||
Revenues | 8,413 | 7,658 | 19,727 | 18,340 |
Franchise Fees and Royalties [Member] | ||||
REVENUES | ||||
Revenues | 1,199 | 1,167 | 2,292 | 2,074 |
Advertising Fund Revenue [Member] | ||||
REVENUES | ||||
Revenues | $ 584 | $ 553 | $ 1,003 | $ 958 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance (in shares) at Mar. 28, 2021 | 9,369,015 | 5,254,081 | |||
Balance at Mar. 28, 2021 | $ 94 | $ 62,240 | $ (40,042) | $ (84,770) | $ (62,478) |
Dividends on common stock | 0 | 0 | (2,880) | 0 | (2,880) |
Share-based compensation | 0 | 58 | 0 | 0 | 58 |
Net income | $ 0 | 0 | 9,308 | $ 0 | 9,308 |
Shares issued in connection with share-based compensation plans (in shares) | 220 | 0 | |||
Shares issued in connection with share-based compensation plans | $ 0 | 0 | 0 | $ 0 | 0 |
Withholding tax on net share settlement of share-based compensation plans | $ 0 | (7) | 0 | $ 0 | (7) |
Balance (in shares) at Sep. 26, 2021 | 9,369,235 | 5,254,081 | |||
Balance at Sep. 26, 2021 | $ 94 | 62,291 | (33,614) | $ (84,770) | (55,999) |
Balance (in shares) at Jun. 27, 2021 | 9,369,015 | 5,254,081 | |||
Balance at Jun. 27, 2021 | $ 94 | 62,269 | (35,719) | $ (84,770) | (58,126) |
Dividends on common stock | 0 | 0 | (1,440) | 0 | (1,440) |
Share-based compensation | 0 | 29 | 0 | 0 | 29 |
Net income | $ 0 | 0 | 3,545 | $ 0 | 3,545 |
Shares issued in connection with share-based compensation plans (in shares) | 220 | 0 | |||
Shares issued in connection with share-based compensation plans | $ 0 | 0 | 0 | $ 0 | 0 |
Withholding tax on net share settlement of share-based compensation plans | $ 0 | (7) | 0 | $ 0 | (7) |
Balance (in shares) at Sep. 26, 2021 | 9,369,235 | 5,254,081 | |||
Balance at Sep. 26, 2021 | $ 94 | 62,291 | (33,614) | $ (84,770) | $ (55,999) |
Balance (in shares) at Mar. 27, 2022 | 9,369,235 | 5,254,081 | 4,115,154 | ||
Balance at Mar. 27, 2022 | $ 94 | 62,307 | (32,619) | $ (84,770) | $ (54,988) |
Repurchase of common stock (in shares) | 0 | 35,434 | |||
Repurchase of common stock | $ 0 | 0 | 0 | $ (1,892) | (1,892) |
Dividends on common stock | 0 | 0 | (3,688) | 0 | (3,688) |
Share-based compensation | 0 | 16 | 0 | 0 | 16 |
Net income | $ 0 | 0 | 13,095 | $ 0 | $ 13,095 |
Balance (in shares) at Sep. 25, 2022 | 9,369,235 | 5,289,515 | 4,079,720 | ||
Balance at Sep. 25, 2022 | $ 94 | 62,323 | (23,212) | $ (86,662) | $ (47,457) |
Balance (in shares) at Jun. 26, 2022 | 9,369,235 | 5,274,451 | |||
Balance at Jun. 26, 2022 | $ 94 | 62,315 | (27,334) | $ (85,840) | (50,765) |
Repurchase of common stock (in shares) | 15,064 | ||||
Repurchase of common stock | $ (822) | (822) | |||
Dividends on common stock | 0 | 0 | (1,836) | 0 | (1,836) |
Share-based compensation | 0 | 8 | 0 | 0 | 8 |
Net income | $ 0 | 0 | 5,958 | $ 0 | $ 5,958 |
Balance (in shares) at Sep. 25, 2022 | 9,369,235 | 5,289,515 | 4,079,720 | ||
Balance at Sep. 25, 2022 | $ 94 | $ 62,323 | $ (23,212) | $ (86,662) | $ (47,457) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 25, 2022 | Sep. 26, 2021 | Mar. 27, 2022 | |
Cash flows from operating activities: | |||||
Net income | $ 5,958 | $ 3,545 | $ 13,095 | $ 9,308 | |
Adjustments to reconcile net income to net cash provided by operating activities | |||||
Depreciation and amortization | 301 | 270 | 534 | 548 | |
Gain on disposal of property and equipment | (14) | 0 | |||
Amortization of debt issuance costs | 254 | 346 | |||
Share-based compensation expense | 16 | 58 | |||
Provision for doubtful accounts | 80 | 27 | $ 186 | ||
Deferred income taxes | 15 | (16) | |||
Other non-cash items | (123) | 208 | |||
Changes in operating assets and liabilities: | |||||
Accounts and other receivables, net | (2,877) | (3,192) | |||
Inventories | (201) | (324) | |||
Prepaid expenses and other current assets | 573 | 713 | |||
Other assets | 13 | 10 | |||
Accounts payable, accrued expenses and other current liabilities | (1,384) | 830 | |||
Deferred franchise fees | (259) | 346 | |||
Other liabilities | 50 | 60 | |||
Net cash provided by operating activities | 9,772 | 8,922 | |||
Cash flows from investing activities: | |||||
Insurance proceeds for property and equipment | 42 | 0 | |||
Purchase of property and equipment | (440) | (343) | |||
Net cash used in investing activities | (398) | (343) | |||
Cash flows from financing activities: | |||||
Dividends paid to stockholders | (3,688) | (2,880) | |||
Payments of withholding tax on net share settlement of share-based compensation plans | 0 | (7) | |||
Repurchase of treasury stock | (1,892) | 0 | |||
Net cash used in financing activities | (5,580) | (2,887) | |||
Net increase in cash and cash equivalents | 3,794 | 5,692 | |||
Cash and cash equivalents, beginning of period | 50,063 | 81,064 | 81,064 | ||
Cash and cash equivalents, end of period | $ 53,857 | $ 86,756 | 53,857 | 86,756 | $ 50,063 |
Cash paid during the period for: | |||||
Interest | 3,644 | 4,969 | |||
Income taxes | $ 3,576 | $ 2,673 | |||
Non-cash financing activity: | |||||
Dividends declared per share (in dollars per share) | $ 0.45 | $ 0.35 | $ 90 | $ 70 |
Note A - Basis of Presentation
Note A - Basis of Presentation | 6 Months Ended |
Sep. 25, 2022 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE A - BASIS OF PRESENTATION The accompanying consolidated financial statements of Nathan's Famous, Inc. and subsidiaries (collectively “Nathan’s,” the “Company,” “we,” “us” or “our”) as of and for the thirteen twenty-six September 25, 2022 September 26, 2021 not Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to the requirements of the U.S. Securities and Exchange Commission (“SEC”). Management believes that the disclosures included in the accompanying consolidated interim financial statements and footnotes are adequate to make the information not 10 March 27, 2022 June 10, 2022. Our significant interim accounting policies include the recognition of advertising fund expense in proportion to advertising funds revenue, and the recognition of income taxes using an estimated annual effective tax rate. A summary of the Company’s significant accounting policies is identified in Note B of the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10 March 27, 2022. COVID- 19 In March 2020, 19 19 may During fiscal 2022, 2023. twenty-six September 25, 2022 twenty-six September 26, 2021. The Company’s franchisees and Branded Menu Program operators also have experienced some disruptions and challenges as a result of the pandemic including workforce absences, as well as changes in the availability and cost of labor, including higher wages and overtime costs. There is continued uncertainty due to the COVID- 19 not The extent to which COVID- 19 19 may may Such impacts may |
Note B - New Accounting Standar
Note B - New Accounting Standard Not Yet Adopted | 6 Months Ended |
Sep. 25, 2022 | |
Notes to Financial Statements | |
New Accounting Pronouncements Not yet Adopted [Text Block] | NOTE B – NEW ACCOUNTING STANDARD NOT In June 2016, 2016 13, Financial Instruments Credit Losses (Topic 326 November 2019, December 15, 2022. first June 2023) March 31, 2024. The Company does not not |
Note C - Revenues
Note C - Revenues | 6 Months Ended |
Sep. 25, 2022 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | NOTE C – REVENUES The Company’s disaggregated revenues for the thirteen twenty-six September 25, 2022 September 26, 2021 Thirteen weeks ended Twenty-six weeks ended September 25, 2022 September 26, 2021 September 25, 2022 September 26, 2021 Branded Products $ 22,030 $ 19,063 $ 45,201 $ 35,059 Company-owned restaurants 5,271 4,437 8,994 7,766 Total sales 27,301 23,500 54,195 42,825 License royalties 8,413 7,658 19,727 18,340 Franchise royalties 1,055 1,037 1,956 1,837 Franchise fees 144 130 336 237 Total franchise fees and royalties 1,199 1,167 2,292 2,074 Advertising fund revenue 584 553 1,003 958 Total revenues $ 37,497 $ 32,878 $ 77,217 $ 64,197 The following table disaggregates revenues by primary geographical market (in thousands): Thirteen weeks ended Twenty-six weeks ended September 25, 2022 September 26, 2021 September 25, 2022 September 26, 2021 United States $ 36,095 $ 31,878 $ 74,012 $ 62,479 International 1,402 1,000 3,205 1,718 Total revenues $ 37,497 $ 32,878 $ 77,217 $ 64,197 Contract balances The following table provides information about contract receivables and liabilities (deferred franchise fees) from contracts with customers (in thousands): September 25, 2022 March 27, 2022 Receivables, which are included in “Accounts and other receivables, net” (a) $ - $ 312 Deferred franchise fees (b) $ 1,838 $ 2,097 (a) Includes receivables related to “franchise fees and royalties” (b) Deferred franchise fees of $352 and $1,486 September 25, 2022 March 27, 2022 Significant changes in deferred franchise fees are as follows (in thousands): Twenty-six weeks ended September 25, 2022 September 26, 2021 Deferred franchise fees at beginning of period 2,097 1,773 New deferrals due to cash received and other 77 583 Revenue recognized during the period (336 ) (237 ) Deferred franchise fees at end of period $ 1,838 $ 2,119 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 2023 (a) $ 177 2024 344 2025 325 2026 291 2027 169 Thereafter 532 Total $ 1,838 (a) Represents franchise fees expected to be recognized for the remainder of the 2023 one not twenty-six September 25, 2022. We have applied the optional exemption, as provided for under ASC Topic 606, Revenues from Contracts with Customers not |
Note D - Income Per Share
Note D - Income Per Share | 6 Months Ended |
Sep. 25, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE D – INCOME PER SHARE Basic income per common share is calculated by dividing income by the weighted-average number of common shares outstanding and excludes any dilutive effect of stock options. Diluted income per common share gives effect to all potentially dilutive common shares that were outstanding during the period. Dilutive common shares used in the computation of diluted income per common share result from the assumed exercise of stock options and warrants, as determined using the treasury stock method. The following chart provides a reconciliation of information used in calculating the per-share amounts for the thirteen twenty-six September 25, 2022 September 26, 2021, Thirteen weeks Net Income Net Income Number of Shares Per Share 2022 2021 2022 2021 2022 2021 (in thousands) (in thousands) Basic EPS Basic calculation $ 5,958 $ 3,545 4,083 4,115 $ 1.46 $ 0.86 Effect of dilutive employee stock options - - - - - - Diluted EPS Diluted calculation $ 5,958 $ 3,545 4,083 4,115 $ 1.46 $ 0.86 Twenty-six weeks Net Income Net Income Number of Shares Per Share 2022 2021 2022 2021 2022 2021 (in thousands) (in thousands) Basic EPS Basic calculation $ 13,095 $ 9,308 4,098 4,115 $ 3.20 $ 2.26 Effect of dilutive employee stock options - - - - - - Diluted EPS Diluted calculation $ 13,095 $ 9,308 4,098 4,115 $ 3.20 $ 2.26 Options to purchase 20,000 shares of common stock in the thirteen twenty-six September 25, 2022 September 26, 2021 not |
Note E - Cash and Cash Equivale
Note E - Cash and Cash Equivalents | 6 Months Ended |
Sep. 25, 2022 | |
Notes to Financial Statements | |
Cash and Cash Equivalents Disclosure [Text Block] | NOTE E – CASH AND CASH EQUIVALENTS The Company considers all highly liquid instruments purchased with an original maturity of three not September 25, 2022 March 27, 2022. At September 25, 2022 March 27, 2022, not |
Note F - Fair Value Measurement
Note F - Fair Value Measurements | 6 Months Ended |
Sep. 25, 2022 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | NOTE F – FAIR VALUE MEASUREMENTS Nathan’s follows a three three ● Level 1 ● Level 2 ● Level 3 The face value and fair value of long-term debt as of September 25, 2022 March 27, 2022 September 25, 2022 March 27, 2022 Face value Fair value Face value Fair value Long-term debt $ 110,000 $ 109,520 $ 110,000 $ 111,346 The Company estimates the fair value of its long-term debt based upon review of observable pricing in secondary markets as of the last trading day of the fiscal period. Accordingly, the Company classifies its long-term debt as Level 2. The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturity of the instruments. Certain non-financial assets and liabilities are measured at fair value on a non-recurring basis; that is, the assets and liabilities are not September 25, 2022, no |
Note G - Accounts and Other Rec
Note G - Accounts and Other Receivables, Net | 6 Months Ended |
Sep. 25, 2022 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE G – ACCOUNTS AND OTHER RECEIVABLES, NET Accounts and other receivables, net, consist of the following (in thousands): September 25, March 27, 2022 2022 Branded product sales $ 12,007 $ 9,318 Franchise and license royalties 3,218 3,923 Other 1,200 391 16,425 13,632 Less: allowance for doubtful accounts 254 258 Accounts and other receivables, net $ 16,171 $ 13,374 Accounts receivable are generally due within 30 days and are stated at amounts due from franchisees, including virtual kitchens, retail licensees and Branded Product Program customers, net of an allowance for doubtful accounts. Accounts that are outstanding longer than the contractual payment terms are generally considered past due. The Company does not not The Company individually reviews each past due account and determines its allowance for doubtful accounts by considering a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history, the customer’s current and expected future ability to pay its obligation to the Company, the condition of the general economy and the industry as a whole. Based on management’s assessment, the Company provides for estimated uncollectible amounts through a charge to earnings. After the Company has used reasonable collection efforts, it writes off accounts receivable through a charge to the allowance for doubtful accounts. Changes in the Company’s allowance for doubtful accounts for the twenty-six September 25, 2022 March 27, 2022 September 25, 2022 March 27, 2022 Beginning balance $ 258 $ 345 Bad debt expense 80 186 Write offs and other (84 ) (273 ) Ending balance $ 254 $ 258 |
Note H - Prepaid Expenses and O
Note H - Prepaid Expenses and Other Current Assets | 6 Months Ended |
Sep. 25, 2022 | |
Notes to Financial Statements | |
Other Current Assets [Text Block] | NOTE H – PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following (in thousands): September 25, March 27, 2022 2022 Real estate taxes $ 80 $ 71 Insurance 129 327 Marketing 348 653 Other 311 390 Total prepaid expenses and other current assets $ 868 $ 1,441 |
Note I - Intangible Assets
Note I - Intangible Assets | 6 Months Ended |
Sep. 25, 2022 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE I - INTANGIBLE ASSET The Company’s definite-lived intangible asset consists of trademarks, and the trade name and other intellectual property in connection with its Arthur Treacher’s co-branding agreements. Based upon review of the current Arthur Treacher’s co-branding agreements, the Company determined that the remaining useful lives of these agreements is six 2028, may may There have been no thirteen twenty-six September 25, 2022 may September 25, 2022. |
Note J - Long Lived Assets
Note J - Long Lived Assets | 6 Months Ended |
Sep. 25, 2022 | |
Notes to Financial Statements | |
Asset Impairment Charges [Text Block] | NOTE J - LONG LIVED ASSETS Long-lived assets on a restaurant-by-restaurant basis are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not Long-lived assets include property, equipment and right of use assets for operating leases with finite useful lives. Assets are grouped at the individual restaurant level which represents the lowest level for which cash flows can be identified largely independent of the cash flows of other assets and liabilities. The Company generally considers a history of restaurant operating losses to be its primary indicator of potential impairment for individual restaurant locations. The Company tests for recoverability based on the projected undiscounted cash flows to be derived from such assets. If the projected undiscounted future cash flows are less than the carrying value of the asset, the Company will record on a restaurant-by-restaurant basis, an impairment loss, if any, based on the difference between the estimated fair value and the carrying value of the asset. The Company generally measures fair value by considering discounted estimated future cash flows from such assets. Cash flow projections and fair value estimates require significant estimates and assumptions by management. Should the estimates and assumptions prove to be incorrect, the Company may There have been no thirteen twenty-six September 25, 2022 may September 25, 2022. |
Note K - Accrued Expenses and O
Note K - Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Sep. 25, 2022 | |
Notes to Financial Statements | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | NOTE K – ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following (in thousands): September 25, March 27, 2022 2022 Payroll and other benefits $ 2,077 $ 3,109 Accrued rebates 327 166 Rent and occupancy costs 175 90 Deferred revenue 200 876 Construction costs - 58 Interest 2,958 2,968 Professional fees 281 129 Sales, use and other taxes 207 39 Corporate income taxes 1,331 103 Other 329 295 Total accrued expenses and other current liabilities $ 7,885 $ 7,833 |
Note L - Income Taxes
Note L - Income Taxes | 6 Months Ended |
Sep. 25, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE L – INCOME TAXES The effective income tax rates for the thirteen September 25, 2022 September 26, 2021 thirteen September 25, 2022 thirteen September 26, 2021 The effective income tax rates for the twenty-six September 25, 2022 September 26, 2021 twenty-six September 25, 2022 twenty-six September 26, 2021 The effective income tax rates for the thirteen twenty-six September 25, 2022 September 26, 2021 The amount of unrecognized tax benefits included in Other Liabilities at September 25, 2022 March 27, 2022 September 25, 2022 March 27, 2022, |
Note M - Segment Information
Note M - Segment Information | 6 Months Ended |
Sep. 25, 2022 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE M – SEGMENT INFORMATION Nathan’s considers itself to be a brand marketer of the Nathan’s Famous signature products to the foodservice industry pursuant to its various business structures. Nathan’s sells its products directly to consumers through its restaurant operations segment consisting of Company-owned and franchised restaurants, including virtual kitchens, to distributors that resell our products to the foodservice industry through the Branded Product Program and by third not Branded Product Program Product licensing Restaurant operations Revenues from operating segments are from transactions with unaffiliated third not Income from operations attributable to Corporate consists principally of administrative expenses not Interest expense, interest income, and other income, net, are managed centrally at the corporate level, and, accordingly, such items are not Operating segment information is as follows (in thousands): Thirteen weeks ended Twenty-six weeks ended September 25, 2022 September 26, 2021 September 25, 2022 September 26, 2021 Revenues Branded Product Program $ 22,030 $ 19,063 $ 45,201 $ 35,059 Product licensing 8,413 7,658 19,727 18,340 Restaurant operations 6,470 5,604 11,286 9,840 Corporate (1) 584 553 1,003 958 Total revenues $ 37,497 $ 32,878 $ 77,217 $ 64,197 Income from operations Branded Product Program $ 2,485 $ 1,161 $ 4,552 $ 3,415 Product licensing 8,367 7,612 19,636 18,249 Restaurant operations 1,476 694 2,117 692 Corporate (2,414 ) (2,028 ) (4,611 ) (4,215 ) Income from operations $ 9,914 $ 7,439 $ 21,694 $ 18,141 Interest expense (1,943 ) (2,651 ) (3,887 ) (5,301 ) Interest income 80 28 102 64 Other income, net 34 5 56 21 Income before provision for income taxes $ 8,085 $ 4,821 $ 17,965 $ 12,925 ( 1 Represents advertising fund revenue |
Note N - Share-based Compensati
Note N - Share-based Compensation | 6 Months Ended |
Sep. 25, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | NOTE N – SHARE-BASED COMPENSATION Total share-based compensation during the thirteen twenty-six September 25, 2022 September 26, 2021 September 25, 2022, seventeen The Company recognizes compensation cost for unvested stock-based incentive awards on a straight-line basis over the requisite service period. Compensation cost charged to expense under all stock-based incentive awards is as follows (in thousands): Thirteen weeks ended Twenty-six weeks ended September 25, 2022 September 26, 2021 September 25, 2022 September 26, 2021 Stock options $ 8 $ 23 $ 16 $ 44 Restricted stock - 6 - 14 Total compensation cost $ 8 $ 29 $ 16 $ 58 Stock options: There were no twenty-six September 25, 2022. Transactions with respect to stock options for the twenty-six September 25, 2022 : Weighted- Weighted- Aggregate Average Average Intrinsic Exercise Remaining Value Shares Price Contractual Life (in thousands) Options outstanding at March 27, 2022 20,000 $ 79.20 2.92 - Granted - - - - Exercised - - - - Options outstanding at September 25, 2022 20,000 $ 79.20 2.42 - Options exercisable at September 25, 2022 12,500 $ 85.62 1.54 - |
Note O - Stockholders' Equity
Note O - Stockholders' Equity | 6 Months Ended |
Sep. 25, 2022 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE O – STOCKHOLDERS’ EQUITY 1. Dividends Effective June 10, 2022, first 2023, June 24, 2022 June 20, 2022. Effective August 5, 2022, second 2023, September 2, 2022 August 22, 2022. Effective November 3, 2022, third 2023 December 2, 2022 November 21, 2022. Our ability to pay future dividends is limited by the terms of the Indenture with U.S. Bank National Association, as trustee and collateral trustee. In addition to the terms of the Indenture, the declaration and payment of any cash dividends in the future is subject to final determination of the Board and will be dependent upon our earnings and financial requirements. 2 . Stock Repurchase Programs In 2016, sixth September 25, 2022, sixth September 25, 2022 sixth not may no On June 14, 2022, 10b5 1 “10b5 1 September 13, 2022. During the twenty-six September 25, 2022, 10b5 1 |
Note P - Long-term Debt
Note P - Long-term Debt | 6 Months Ended |
Sep. 25, 2022 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE P – LONG-TERM DEBT Long-term debt consists of the following (in thousands): September 25, March 27, 2022 2022 6.625 $ 110,000 $ 110,000 Less: unamortized debt issuance costs (1,563 ) (1,817 ) Long-term debt, net $ 108,437 $ 108,183 |
Note Q - Leases
Note Q - Leases | 6 Months Ended |
Sep. 25, 2022 | |
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 Company as lessee The components of the net lease cost for the thirteen twenty-six September 25, 2022 September 26, 2021 Thirteen weeks ended Twenty-six weeks ended September 25, 2022 September 26, 2021 September 25, 2022 September 26, 2021 Operating lease cost $ 408 $ 413 $ 836 $ 845 Variable lease cost 482 524 850 966 Less: Sublease income, net (20 ) (5 ) (42 ) (21 ) Total net lease cost $ 870 $ 932 $ 1,644 $ 1,790 The following table presents the components of the net lease cost on the Consolidated Statements of Earnings for the thirteen twenty-six September 25, 2022 September 26, 2021 ( Thirteen weeks ended Twenty-six weeks ended September 25, 2022 September 26, 2021 September 25, 2022 September 26, 2021 Restaurant operating expenses $ 712 $ 770 $ 1,319 $ 1,470 General and administrative expenses 178 167 367 341 Less: Other income, net (20 ) (5 ) (42 ) (21 ) Total net lease cost $ 870 $ 932 $ 1,644 $ 1,790 Cash paid for amounts included in the measurement of lease liabilities were as follows (in thousands): Thirteen weeks ended Twenty-six weeks ended September 25, 2022 September 26, 2021 September 25, 2022 September 26, 2021 Operating cash flows from operating leases $ 370 $ 183 $ 734 $ 357 The weighted average remaining lease term and weighted-average discount rate for operating leases as of September 25, 2022 Weighted average remaining lease term (years): 5.8 Weighted average discount rate: 8.881 % Future lease commitments to be paid and received by the Company as of September 25, 2022 Payments Receipts Operating Leases Subleases Net Leases Fiscal year: 2023 (a) $ 762 $ 84 $ 678 2024 1,774 271 1,503 2025 1,678 274 1,404 2026 1,712 278 1,434 2027 1,726 281 1,445 Thereafter 2,036 624 1,412 Total lease commitments $ 9,688 $ 1,812 $ 7,876 Less: Amount representing interest 2,087 Present value of lease liabilities (b) $ 7,601 (a) Represents future lease commitments to be paid and received by the Company for the remainder of the 2023 not twenty-six September 25, 2022. (b) The present value of minimum operating lease payments of $1,849 and $5,752 Company as lessor The components of net lease income for the thirteen twenty-six September 25, 2022 September 26, 2021 Thirteen weeks ended Twenty-six weeks ended September 25, 2022 September 26, 2021 September 25, 2022 September 26, 2021 Operating lease income, net $ 20 $ 5 $ 42 $ 21 |
Note R - Commitments and Contin
Note R - Commitments and Contingencies | 6 Months Ended |
Sep. 25, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE R – COMMITMENTS AND CONTINGENCIES 1. The Company and its subsidiaries are from time to time involved in ordinary and routine litigation. Management presently believes that the ultimate outcome of these proceedings, individually or in the aggregate, will not |
Note S - Subsequent Events
Note S - Subsequent Events | 6 Months Ended |
Sep. 25, 2022 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE S – SUBSEQUENT EVENTS The Company evaluated subsequent events through the date the Consolidated Financial Statements were issued and filed with the SEC. There were no |
Note C - Revenues (Tables)
Note C - Revenues (Tables) | 6 Months Ended |
Sep. 25, 2022 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Thirteen weeks ended Twenty-six weeks ended September 25, 2022 September 26, 2021 September 25, 2022 September 26, 2021 Branded Products $ 22,030 $ 19,063 $ 45,201 $ 35,059 Company-owned restaurants 5,271 4,437 8,994 7,766 Total sales 27,301 23,500 54,195 42,825 License royalties 8,413 7,658 19,727 18,340 Franchise royalties 1,055 1,037 1,956 1,837 Franchise fees 144 130 336 237 Total franchise fees and royalties 1,199 1,167 2,292 2,074 Advertising fund revenue 584 553 1,003 958 Total revenues $ 37,497 $ 32,878 $ 77,217 $ 64,197 |
Revenue from External Customers by Geographic Areas [Table Text Block] | Thirteen weeks ended Twenty-six weeks ended September 25, 2022 September 26, 2021 September 25, 2022 September 26, 2021 United States $ 36,095 $ 31,878 $ 74,012 $ 62,479 International 1,402 1,000 3,205 1,718 Total revenues $ 37,497 $ 32,878 $ 77,217 $ 64,197 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | September 25, 2022 March 27, 2022 Receivables, which are included in “Accounts and other receivables, net” (a) $ - $ 312 Deferred franchise fees (b) $ 1,838 $ 2,097 |
Contract with Customer, Deferred Franchise Fees [Table Text Block] | Twenty-six weeks ended September 25, 2022 September 26, 2021 Deferred franchise fees at beginning of period 2,097 1,773 New deferrals due to cash received and other 77 583 Revenue recognized during the period (336 ) (237 ) Deferred franchise fees at end of period $ 1,838 $ 2,119 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Estimate for fiscal year 2023 (a) $ 177 2024 344 2025 325 2026 291 2027 169 Thereafter 532 Total $ 1,838 |
Note D - Income Per Share (Tabl
Note D - Income Per Share (Tables) | 6 Months Ended |
Sep. 25, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Thirteen weeks Net Income Net Income Number of Shares Per Share 2022 2021 2022 2021 2022 2021 (in thousands) (in thousands) Basic EPS Basic calculation $ 5,958 $ 3,545 4,083 4,115 $ 1.46 $ 0.86 Effect of dilutive employee stock options - - - - - - Diluted EPS Diluted calculation $ 5,958 $ 3,545 4,083 4,115 $ 1.46 $ 0.86 Twenty-six weeks Net Income Net Income Number of Shares Per Share 2022 2021 2022 2021 2022 2021 (in thousands) (in thousands) Basic EPS Basic calculation $ 13,095 $ 9,308 4,098 4,115 $ 3.20 $ 2.26 Effect of dilutive employee stock options - - - - - - Diluted EPS Diluted calculation $ 13,095 $ 9,308 4,098 4,115 $ 3.20 $ 2.26 |
Note F - Fair Value Measureme_2
Note F - Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 25, 2022 | |
Notes Tables | |
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block] | September 25, 2022 March 27, 2022 Face value Fair value Face value Fair value Long-term debt $ 110,000 $ 109,520 $ 110,000 $ 111,346 |
Note G - Accounts and Other R_2
Note G - Accounts and Other Receivables, Net (Tables) | 6 Months Ended |
Sep. 25, 2022 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | September 25, March 27, 2022 2022 Branded product sales $ 12,007 $ 9,318 Franchise and license royalties 3,218 3,923 Other 1,200 391 16,425 13,632 Less: allowance for doubtful accounts 254 258 Accounts and other receivables, net $ 16,171 $ 13,374 |
Financing Receivable, Current, Allowance for Credit Loss [Table Text Block] | September 25, 2022 March 27, 2022 Beginning balance $ 258 $ 345 Bad debt expense 80 186 Write offs and other (84 ) (273 ) Ending balance $ 254 $ 258 |
Note H - Prepaid Expenses and_2
Note H - Prepaid Expenses and Other Current Assets (Tables) | 6 Months Ended |
Sep. 25, 2022 | |
Notes Tables | |
Schedule of Other Current Assets [Table Text Block] | September 25, March 27, 2022 2022 Real estate taxes $ 80 $ 71 Insurance 129 327 Marketing 348 653 Other 311 390 Total prepaid expenses and other current assets $ 868 $ 1,441 |
Note K - Accrued Expenses and_2
Note K - Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Sep. 25, 2022 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | September 25, March 27, 2022 2022 Payroll and other benefits $ 2,077 $ 3,109 Accrued rebates 327 166 Rent and occupancy costs 175 90 Deferred revenue 200 876 Construction costs - 58 Interest 2,958 2,968 Professional fees 281 129 Sales, use and other taxes 207 39 Corporate income taxes 1,331 103 Other 329 295 Total accrued expenses and other current liabilities $ 7,885 $ 7,833 |
Note M - Segment Information (T
Note M - Segment Information (Tables) | 6 Months Ended |
Sep. 25, 2022 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Thirteen weeks ended Twenty-six weeks ended September 25, 2022 September 26, 2021 September 25, 2022 September 26, 2021 Revenues Branded Product Program $ 22,030 $ 19,063 $ 45,201 $ 35,059 Product licensing 8,413 7,658 19,727 18,340 Restaurant operations 6,470 5,604 11,286 9,840 Corporate (1) 584 553 1,003 958 Total revenues $ 37,497 $ 32,878 $ 77,217 $ 64,197 Income from operations Branded Product Program $ 2,485 $ 1,161 $ 4,552 $ 3,415 Product licensing 8,367 7,612 19,636 18,249 Restaurant operations 1,476 694 2,117 692 Corporate (2,414 ) (2,028 ) (4,611 ) (4,215 ) Income from operations $ 9,914 $ 7,439 $ 21,694 $ 18,141 Interest expense (1,943 ) (2,651 ) (3,887 ) (5,301 ) Interest income 80 28 102 64 Other income, net 34 5 56 21 Income before provision for income taxes $ 8,085 $ 4,821 $ 17,965 $ 12,925 |
Note N - Share-based Compensa_2
Note N - Share-based Compensation (Tables) | 6 Months Ended |
Sep. 25, 2022 | |
Notes Tables | |
Share-Based Payment Arrangement, Cost by Plan [Table Text Block] | Thirteen weeks ended Twenty-six weeks ended September 25, 2022 September 26, 2021 September 25, 2022 September 26, 2021 Stock options $ 8 $ 23 $ 16 $ 44 Restricted stock - 6 - 14 Total compensation cost $ 8 $ 29 $ 16 $ 58 |
Share-Based Payment Arrangement, Activity [Table Text Block] | Weighted- Weighted- Aggregate Average Average Intrinsic Exercise Remaining Value Shares Price Contractual Life (in thousands) Options outstanding at March 27, 2022 20,000 $ 79.20 2.92 - Granted - - - - Exercised - - - - Options outstanding at September 25, 2022 20,000 $ 79.20 2.42 - Options exercisable at September 25, 2022 12,500 $ 85.62 1.54 - |
Note P - Long-term Debt (Tables
Note P - Long-term Debt (Tables) | 6 Months Ended |
Sep. 25, 2022 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | September 25, March 27, 2022 2022 6.625 $ 110,000 $ 110,000 Less: unamortized debt issuance costs (1,563 ) (1,817 ) Long-term debt, net $ 108,437 $ 108,183 |
Note Q - Leases (Tables)
Note Q - Leases (Tables) | 6 Months Ended |
Sep. 25, 2022 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Thirteen weeks ended Twenty-six weeks ended September 25, 2022 September 26, 2021 September 25, 2022 September 26, 2021 Operating lease cost $ 408 $ 413 $ 836 $ 845 Variable lease cost 482 524 850 966 Less: Sublease income, net (20 ) (5 ) (42 ) (21 ) Total net lease cost $ 870 $ 932 $ 1,644 $ 1,790 Thirteen weeks ended Twenty-six weeks ended September 25, 2022 September 26, 2021 September 25, 2022 September 26, 2021 Restaurant operating expenses $ 712 $ 770 $ 1,319 $ 1,470 General and administrative expenses 178 167 367 341 Less: Other income, net (20 ) (5 ) (42 ) (21 ) Total net lease cost $ 870 $ 932 $ 1,644 $ 1,790 |
Leases, Cash Flows [Table Text Block] | Thirteen weeks ended Twenty-six weeks ended September 25, 2022 September 26, 2021 September 25, 2022 September 26, 2021 Operating cash flows from operating leases $ 370 $ 183 $ 734 $ 357 |
Lessee, Operating Leases, Weighted Average Remaining Lease Term and Discount Rate [Table Text Block] | Weighted average remaining lease term (years): 5.8 Weighted average discount rate: 8.881 % |
Operating Lease, Maturity [Table Text Block] | Payments Receipts Operating Leases Subleases Net Leases Fiscal year: 2023 (a) $ 762 $ 84 $ 678 2024 1,774 271 1,503 2025 1,678 274 1,404 2026 1,712 278 1,434 2027 1,726 281 1,445 Thereafter 2,036 624 1,412 Total lease commitments $ 9,688 $ 1,812 $ 7,876 Less: Amount representing interest 2,087 Present value of lease liabilities (b) $ 7,601 |
Operating Lease, Lease Income [Table Text Block] | Thirteen weeks ended Twenty-six weeks ended September 25, 2022 September 26, 2021 September 25, 2022 September 26, 2021 Operating lease income, net $ 20 $ 5 $ 42 $ 21 |
Note A - Basis of Presentation
Note A - Basis of Presentation (Details Textual) | 6 Months Ended |
Sep. 26, 2021 | |
Virtual Kitchens [Member] | |
Cost of Product, Increase, Percent | 8% |
Note C - Revenues 1 (Details Te
Note C - Revenues 1 (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Mar. 27, 2022 | |
Contract with Customer, Liability, Current | $ 352 | $ 349 | |
Contract with Customer, Liability, Noncurrent | 1,486 | $ 1,748 | |
Contract with Customer, Liability, Revenue Recognized | $ 336 | $ 237 |
Note C - Revenues 2 (Details Te
Note C - Revenues 2 (Details Textual) | Sep. 25, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-09-26 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-03-27 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-03-31 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-03-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-03-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year |
Note C - Revenues - Disaggregat
Note C - Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 25, 2022 | Sep. 26, 2021 | |
Revenues | $ 37,497 | $ 32,878 | $ 77,217 | $ 64,197 |
Branded Products [Member] | ||||
Revenues | 22,030 | 19,063 | 45,201 | 35,059 |
Company-operated Restaurants [Member] | ||||
Revenues | 5,271 | 4,437 | 8,994 | 7,766 |
Product [Member] | ||||
Revenues | 27,301 | 23,500 | 54,195 | 42,825 |
License [Member] | ||||
Revenues | 8,413 | 7,658 | 19,727 | 18,340 |
Franchise Royalties [Member] | ||||
Revenues | 1,055 | 1,037 | 1,956 | 1,837 |
Franchise [Member] | ||||
Revenues | 144 | 130 | 336 | 237 |
Franchise Fees and Royalties [Member] | ||||
Revenues | 1,199 | 1,167 | 2,292 | 2,074 |
Advertising Fund Revenue [Member] | ||||
Revenues | $ 584 | $ 553 | $ 1,003 | $ 958 |
Note C - Revenues - Revenues by
Note C - Revenues - Revenues by Geographical Market (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 25, 2022 | Sep. 26, 2021 | |
Revenues | $ 37,497 | $ 32,878 | $ 77,217 | $ 64,197 |
UNITED STATES | ||||
Revenues | 36,095 | 31,878 | 74,012 | 62,479 |
Non-US [Member] | ||||
Revenues | $ 1,402 | $ 1,000 | $ 3,205 | $ 1,718 |
Note C - Revenues - Contract Li
Note C - Revenues - Contract Liabilities From Contracts With Customers (Details) - USD ($) $ in Thousands | Sep. 25, 2022 | Mar. 27, 2022 | |
Receivables, which are included in “Accounts and other receivables, net” (a) | [1] | $ 0 | $ 312 |
Deferred franchise fees (b) | [2] | $ 1,838 | $ 2,097 |
[1]Includes receivables related to "franchise fees and royalties"[2]Deferred franchise fees of $352 and $1,486 as of September 25, 2022 and $349 and $1,748 as of March 27, 2022 are included in Deferred franchise fees – current and long term, respectively. |
Note C - Revenues - Significant
Note C - Revenues - Significant Changes in Deferred Franchise Fees (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 25, 2022 | Sep. 26, 2021 | |
Deferred franchise fees, balance | $ 2,097 | $ 1,773 |
New deferrals due to cash received and other | 77 | 583 |
Revenue recognized during the period | (336) | (237) |
Deferred franchise fees, balance | $ 1,838 | $ 2,119 |
Note C - Revenues - Remaining P
Note C - Revenues - Remaining Performance Obligations (Details) $ in Thousands | Sep. 25, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Amount | $ 1,838 |
Note C - Revenues - Remaining_2
Note C - Revenues - Remaining Performance Obligations 2 (Details) $ in Thousands | Sep. 25, 2022 USD ($) | |
Revenue, Remaining Performance Obligation, Amount | $ 1,838 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-09-26 | ||
Revenue, Remaining Performance Obligation, Amount | 177 | [1] |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-03-27 | ||
Revenue, Remaining Performance Obligation, Amount | 344 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | ||
Revenue, Remaining Performance Obligation, Amount | 325 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-03-31 | ||
Revenue, Remaining Performance Obligation, Amount | 291 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-03-30 | ||
Revenue, Remaining Performance Obligation, Amount | 169 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-03-29 | ||
Revenue, Remaining Performance Obligation, Amount | $ 532 | |
[1]Represents franchise fees expected to be recognized for the remainder of the 2023 fiscal year, which includes international development fees expected to be recognized over the duration of one year or less. Amount does not include $336 of franchise fee revenue recognized for the twenty-six weeks ended September 25, 2022. |
Note D - Income Per Share (Deta
Note D - Income Per Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended |
Sep. 25, 2022 | Sep. 25, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 20,000 | 20,000 |
Note D - Income Per Share - Ear
Note D - Income Per Share - Earnings Per Share Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 25, 2022 | Sep. 26, 2021 | |
Net income, basic calculation | $ 5,958 | $ 3,545 | $ 13,095 | $ 9,308 |
Number of shares, basic calculation (in shares) | 4,083 | 4,115 | 4,098 | 4,115 |
Net income per share, basic calculation (in dollars per share) | $ 1.46 | $ 0.86 | $ 3.20 | $ 2.26 |
Effect of dilutive employee stock options (in shares) | 0 | 0 | 0 | 0 |
Effect of dilutive employee stock options (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Net income, diluted calculation | $ 5,958 | $ 3,545 | $ 13,095 | $ 9,308 |
Number of shares, diluted calculation (in shares) | 4,083 | 4,115 | 4,098 | 4,115 |
Net income per share, diluted calculation (in dollars per share) | $ 1.46 | $ 0.86 | $ 3.20 | $ 2.26 |
Note E - Cash and Cash Equiva_2
Note E - Cash and Cash Equivalents (Details Textual) - USD ($) $ in Thousands | Sep. 25, 2022 | Mar. 27, 2022 |
Cash Equivalents, at Carrying Value, Total | $ 0 | $ 0 |
Note F - Fair Value Measureme_3
Note F - Fair Value Measurements - Face Value and Fair Value of Long-term Debt (Details) - USD ($) $ in Thousands | Sep. 25, 2022 | Mar. 27, 2022 |
Long-term debt, face value | $ 110,000 | $ 110,000 |
Long-term debt, fair value | $ 109,520 | $ 111,346 |
Note G - Accounts and Other R_3
Note G - Accounts and Other Receivables, Net (Details Textual) | 6 Months Ended |
Sep. 25, 2022 | |
Accounts Receivable Payment Terms (Day) | 30 days |
Note G - Accounts and Other R_4
Note G - Accounts and Other Receivables, Net - Summary of Accounts and Other Receivables (Details) - USD ($) $ in Thousands | Sep. 25, 2022 | Mar. 27, 2022 | Mar. 28, 2021 |
Accounts receivable, gross, current | $ 16,425 | $ 13,632 | |
Less: allowance for doubtful accounts | 254 | 258 | $ 345 |
Accounts and other receivables, net | 16,171 | 13,374 | |
Branded Product Sales [Member] | |||
Accounts receivable, gross, current | 12,007 | 9,318 | |
Franchise and License Royalties [Member] | |||
Accounts receivable, gross, current | 3,218 | 3,923 | |
Other Receivables [Member] | |||
Accounts receivable, gross, current | $ 1,200 | $ 391 |
Note G - Accounts and Other R_5
Note G - Accounts and Other Receivables, Net - Changes in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Sep. 25, 2022 | Sep. 26, 2021 | Mar. 27, 2022 | |
Balance | $ 258 | $ 345 | $ 345 |
Bad debt expense | 80 | $ 27 | 186 |
Write offs and other | (84) | (273) | |
Balance | $ 254 | $ 258 |
Note H - Prepaid Expenses and_3
Note H - Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 25, 2022 | Mar. 27, 2022 |
Real estate taxes | $ 80 | $ 71 |
Insurance | 129 | 327 |
Marketing | 348 | 653 |
Other | 311 | 390 |
Total prepaid expenses and other current assets | $ 868 | $ 1,441 |
Note I - Intangible Assets (Det
Note I - Intangible Assets (Details Textual) | 6 Months Ended |
Sep. 25, 2022 | |
Finite-Lived Intangible Assets, Remaining Amortization Period (Year) | 6 years |
Note K - Accrued Expenses and_3
Note K - Accrued Expenses and Other Current Liabilities - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 25, 2022 | Mar. 27, 2022 |
Payroll and other benefits | $ 2,077 | $ 3,109 |
Accrued rebates | 327 | 166 |
Rent and occupancy costs | 175 | 90 |
Construction costs | 0 | 58 |
Interest | 2,958 | 2,968 |
Professional fees | 281 | 129 |
Sales, use and other taxes | 207 | 39 |
Corporate income taxes | 1,331 | 103 |
Other | 329 | 295 |
Total accrued expenses and other current liabilities | 7,885 | 7,833 |
Deferred Franchise Fees And Other Deferred Revenue [Member] | ||
Deferred revenue | $ 200 | $ 876 |
Note L - Income Taxes (Details
Note L - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 25, 2022 | Sep. 26, 2021 | Mar. 27, 2022 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 26.30% | 26.50% | 27.10% | 28% | |
Income Tax Expense (Benefit), Total | $ 2,127 | $ 1,276 | $ 4,870 | $ 3,617 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | 8,085 | $ 4,821 | 17,965 | $ 12,925 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 430 | 430 | $ 422 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | $ 305 | $ 305 | $ 271 |
Note M - Segment Information -
Note M - Segment Information - Operating Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 25, 2022 | Sep. 26, 2021 | ||
Revenues | $ 37,497 | $ 32,878 | $ 77,217 | $ 64,197 | |
Income from operations | 9,914 | 7,439 | 21,694 | 18,141 | |
Interest expense | (1,943) | (2,651) | (3,887) | (5,301) | |
Interest income | 80 | 28 | 102 | 64 | |
Other income, net | 34 | 5 | 56 | 21 | |
Income before provision for income taxes | 8,085 | 4,821 | 17,965 | 12,925 | |
Corporate, Non-Segment [Member] | |||||
Revenues | [1] | 584 | 553 | 1,003 | 958 |
Income from operations | (2,414) | (2,028) | (4,611) | (4,215) | |
Branded Product Program [Member] | Operating Segments [Member] | |||||
Revenues | 22,030 | 19,063 | 45,201 | 35,059 | |
Income from operations | 2,485 | 1,161 | 4,552 | 3,415 | |
Product Licensing [Member] | Operating Segments [Member] | |||||
Revenues | 8,413 | 7,658 | 19,727 | 18,340 | |
Income from operations | 8,367 | 7,612 | 19,636 | 18,249 | |
Restaurant Operations [Member] | Operating Segments [Member] | |||||
Revenues | 6,470 | 5,604 | 11,286 | 9,840 | |
Income from operations | $ 1,476 | $ 694 | $ 2,117 | $ 692 | |
[1]Represents advertising fund revenue |
Note N - Share-based Compensa_3
Note N - Share-based Compensation (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 25, 2022 | Sep. 26, 2021 | |
Share-Based Payment Arrangement, Expense | $ 8 | $ 29 | $ 16 | $ 58 |
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 98 | $ 98 | ||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Month) | 17 months |
Note N - Share-based Compensa_4
Note N - Share-based Compensation - Compensation Cost Charged to Expense Under All Stock-based Incentive Awards (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 25, 2022 | Sep. 26, 2021 | |
Share-based compensation expense | $ 8 | $ 29 | $ 16 | $ 58 |
Share-Based Payment Arrangement, Option [Member] | ||||
Share-based compensation expense | 8 | 23 | 16 | 44 |
Restricted Stock [Member] | ||||
Share-based compensation expense | $ 0 | $ 6 | $ 0 | $ 14 |
Note N - Share-based Compensa_5
Note N - Share-based Compensation - Outstanding Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Sep. 25, 2022 | Mar. 27, 2022 | |
Options outstanding (in shares) | 20,000 | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 79.20 | |
Options outstanding, weighted average remaining contractual life (Year) | 2 years 5 months 1 day | 2 years 11 months 1 day |
Exercised, aggregate intrinsic value | $ 0 | |
Options outstanding (in shares) | 20,000 | 20,000 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 79.20 | $ 79.20 |
Options outstanding, aggregate intrinsic value | $ 0 | |
Options exercisable (in shares) | 12,500 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 85.62 | |
Options exercisable, weighted average remaining contractual life (Year) | 1 year 6 months 14 days | |
Options exercisable, aggregate intrinsic value | $ 0 |
Note O - Stockholders' Equity (
Note O - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 78 Months Ended | ||||||
Nov. 04, 2022 | Aug. 05, 2022 | Jun. 10, 2022 | Sep. 25, 2022 | Sep. 26, 2021 | Sep. 25, 2022 | Sep. 26, 2021 | Sep. 25, 2022 | Mar. 11, 2016 | |
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.35 | $ 90 | $ 70 | |||
Treasury Stock, Value, Acquired, Cost Method | $ 822 | $ 1,892 | |||||||
Sixth Stock Repurchase Plan [Member] | |||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased (in shares) | 1,200,000 | ||||||||
Treasury Stock, Shares, Acquired (in shares) | 1,101,884 | ||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 39,000 | ||||||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased (in shares) | 98,116 | 98,116 | 98,116 | ||||||
Plan 10b5-1 [Member] | |||||||||
Treasury Stock, Shares, Acquired (in shares) | 35,434 | ||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 1,892 | ||||||||
Treasury Stock Acquired, Average Cost Per Share (in dollars per share) | $ 53.39 | ||||||||
Subsequent Event [Member] | |||||||||
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.45 |
Note P - Long-term Debt - Summa
Note P - Long-term Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Sep. 25, 2022 | Mar. 27, 2022 |
Long-term debt, face value | $ 110,000 | $ 110,000 |
Less: unamortized debt issuance costs | (1,563) | (1,817) |
Long-term debt, net | 108,437 | 108,183 |
Senior Secured 2025 Notes [Member] | Senior Notes [Member] | ||
Long-term debt, face value | $ 110,000 | $ 110,000 |
Note P - Long-term Debt - Sum_2
Note P - Long-term Debt - Summary of Debt (Details) (Parentheticals) | Sep. 25, 2022 | Mar. 27, 2022 |
Senior Secured 2025 Notes [Member] | Senior Notes [Member] | ||
Interest Rate | 6.625% | 6.625% |
Note Q - Leases (Details Textua
Note Q - Leases (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 25, 2022 | Mar. 27, 2022 | |
Operating Lease Payments, Net Sublease Income | $ 884 | |
Operating Lease, Liability, Current | 1,849 | $ 1,849 |
Operating Lease, Liability, Noncurrent | $ 5,752 | $ 6,487 |
Note Q - Leases - Components of
Note Q - Leases - Components of Net Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 25, 2022 | Sep. 26, 2021 | |
Operating lease cost | $ 408 | $ 413 | $ 836 | $ 845 |
Variable lease cost | 482 | 524 | 850 | 966 |
Less: Sublease income, net | (20) | (5) | (42) | (21) |
Total net lease cost | 870 | 932 | 1,644 | 1,790 |
Restaurant Operating Expense [Member] | ||||
Total net lease cost | 712 | 770 | 1,319 | 1,470 |
General and Administrative Expense [Member] | ||||
Total net lease cost | 178 | 167 | 367 | 341 |
Other Income [Member] | ||||
Less: Sublease income, net | $ (20) | $ (5) | $ (42) | $ (21) |
Note Q - Leases - Cash Paid for
Note Q - Leases - Cash Paid for Amounts Included in the Measurement of Lease Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 25, 2022 | Sep. 26, 2021 | |
Operating cash flows from operating leases | $ 370 | $ 183 | $ 734 | $ 357 |
Note Q - Leases - Weighted Aver
Note Q - Leases - Weighted Average Remaining Lease Term and Weighted-average Discount Rate (Details) | Sep. 25, 2022 |
Weighted average remaining lease term (years): (Year) | 5 years 9 months 18 days |
Weighted average discount rate: | 8.881% |
Note Q - Leases - Future Lease
Note Q - Leases - Future Lease Commitments to Be Paid and Received (Details) $ in Thousands | Sep. 25, 2022 USD ($) | |
2023, payments operating leases | $ 762 | [1] |
2023, receipts subleases | 84 | [1] |
2023, net leases | 678 | [1] |
2024, payments operating leases | 1,774 | |
2024, receipts subleases | 271 | |
2024, net leases | 1,503 | |
2025, payments operating leases | 1,678 | |
2025, receipts subleases | 274 | |
2025, net leases | 1,404 | |
2026, payments operating leases | 1,712 | |
2026, receipts subleases | 278 | |
2026, net leases | 1,434 | |
2027, payments operating leases | 1,726 | |
2027, receipts subleases | 281 | |
2027, net leases | 1,445 | |
Thereafter, payments operating leases | 2,036 | |
Thereafter, receipts subleases | 624 | |
Thereafter, net leases | 1,412 | |
Total lease commitments, payments operating leases | 9,688 | |
Total lease commitments, receipts subleases | 1,812 | |
Total lease commitments, net leases | 7,876 | |
Less: Amount representing interest, payments operating leases | 2,087 | |
Present value of lease liabilities, payments operating leases | $ 7,601 | [2] |
[1]Represents future lease commitments to be paid and received by the Company for the remainder of the 2023 fiscal year. Amount does not include $884 of lease commitments paid and received by the Company for the twenty-six week period ended September 25, 2022.[2]The present value of minimum operating lease payments of $1,849 and $5,752 are included in “Current portion of operating lease liabilities” and “Long-term operating lease liabilities,” respectively on the Consolidated Balance Sheet. |
Note Q - Leases - Components _2
Note Q - Leases - Components of Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 25, 2022 | Sep. 26, 2021 | |
Operating lease income, net | $ 20 | $ 5 | $ 42 | $ 21 |