Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Mar. 26, 2023 | Jun. 02, 2023 | Sep. 23, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 26, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-35962 | ||
Entity Registrant Name | NATHAN’S FAMOUS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 11-3166443 | ||
Entity Address, Address Line One | One Jericho Plaza | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 176,541,000 | ||
Entity Common Stock, Shares Outstanding (in shares) | 4,079,720 | ||
Auditor Firm ID | 688 | ||
Auditor Name | Marcum LLP | ||
Auditor Location | New York, NY | ||
Entity Central Index Key | 0000069733 | ||
Current Fiscal Year End Date | --03-26 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 26, 2023 | Mar. 27, 2022 |
CURRENT ASSETS | ||
Cash | $ 29,861 | $ 50,063 |
Accounts and other receivables, net (Note D) | 15,066 | 13,374 |
Inventories | 539 | 522 |
Prepaid expenses and other current assets (Note E) | 1,895 | 1,441 |
Total current assets | 47,361 | 65,400 |
Property and equipment, net of accumulated depreciation of $10,871 and $10,344, respectively (Note F) | 3,321 | 3,785 |
Operating lease assets (Note K) | 6,421 | 7,416 |
Goodwill | 95 | 95 |
Intangible asset, net | 869 | 1,043 |
Deferred income taxes (Note H) | 375 | 582 |
Other assets | 168 | 195 |
Total assets | 58,610 | 78,516 |
CURRENT LIABILITIES | ||
Accounts payable | 6,461 | 6,381 |
Accrued expenses and other current liabilities (Note G) | 8,130 | 7,833 |
Current portion of operating lease liabilities (Note K) | 1,782 | 1,849 |
Deferred franchise fees | 336 | 349 |
Total current liabilities | 16,709 | 16,412 |
Long-term debt, net of unamortized debt issuance costs of $952 and $1,817, respectively (Note J) | 79,048 | 108,183 |
Operating lease liabilities (Note K) | 5,406 | 6,487 |
Other liabilities | 737 | 674 |
Deferred franchise fees | 1,272 | 1,748 |
Total liabilities | 103,172 | 133,504 |
Commitments and Contingencies | ||
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 March 26, 2023 and March 27, 2022, respectively | 94 | 94 |
Additional paid-in capital | 62,565 | 62,307 |
Accumulated deficit | (20,559) | (32,619) |
Stockholders’ equity before treasury stock | 42,100 | 29,782 |
Treasury stock, at cost, 5,289,515 and 5,254,081 shares at March 26, 2023 and March 27, 2022, respectively | (86,662) | (84,770) |
Total stockholders’ deficit | (44,562) | (54,988) |
Total liabilities and stockholders’ deficit | $ 58,610 | $ 78,516 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 26, 2023 | Mar. 27, 2022 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment, Ending Balance | $ 10,871 | $ 10,344 |
Unamortized Debt Issuance Expense | $ 952 | $ 1,817 |
Common Stock, Par or Stated Value Per Share (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, Ending Balance (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 - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
REVENUES | ||
Revenues | $ 130,785 | $ 114,882 |
COSTS AND EXPENSES | ||
Cost of sales | 75,172 | 65,164 |
Restaurant operating expenses | 3,984 | 3,659 |
Depreciation and amortization | 1,135 | 1,054 |
General and administrative expenses | 14,061 | 13,145 |
Advertising fund expense | 1,988 | 1,997 |
Total costs and expenses | 96,340 | 85,019 |
Income from operations | 34,445 | 29,863 |
Interest expense | (7,742) | (10,135) |
Loss on debt extinguishment (NOTE J) | (357) | (1,354) |
Interest income | 440 | 110 |
Other income, net | 18 | 52 |
Income before provision for income taxes | 26,804 | 18,536 |
Provision for income taxes | 7,181 | 4,940 |
Net income | $ 19,623 | $ 13,596 |
Weighted average shares used in computing income per share: | ||
Basic (in shares) | 4,089,000 | 4,115,000 |
Diluted (in shares) | 4,090,000 | 4,115,000 |
Income per share: | ||
Basic (in dollars per share) | $ 4.80 | $ 3.30 |
Diluted (in dollars per share) | 4.80 | 3.30 |
Dividends declared per share (in dollars per share) | $ 1.85 | $ 1.50 |
Product [Member] | ||
REVENUES | ||
Revenues | $ 91,045 | $ 77,227 |
License [Member] | ||
REVENUES | ||
Revenues | 33,455 | 31,824 |
Franchise Fees and Royalties [Member] | ||
REVENUES | ||
Revenues | 4,292 | 3,859 |
Advertising Fund Revenue [Member] | ||
REVENUES | ||
Revenues | $ 1,993 | $ 1,972 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock, Common [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) |
Shares issued in connection with share-based compensation plans (in shares) | 220 | ||||
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) |
Dividends on common stock | 0 | 0 | (6,173) | 0 | (6,173) |
Share-based compensation | 0 | 74 | 0 | 0 | 74 |
Net income | $ 0 | 0 | 13,596 | $ 0 | $ 13,596 |
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) |
Dividends on common stock | 0 | 0 | (7,563) | 0 | (7,563) |
Share-based compensation | 0 | 258 | 0 | 0 | 258 |
Net income | $ 0 | 0 | 19,623 | $ 0 | 19,623 |
Repurchase of common stock (in shares) | 0 | 35,434 | |||
Repurchase of common stock | $ 0 | 0 | 0 | $ (1,892) | $ (1,892) |
Balance (in shares) at Mar. 26, 2023 | 9,369,235 | 5,289,515 | 4,079,720 | ||
Balance at Mar. 26, 2023 | $ 94 | $ 62,565 | $ (20,559) | $ (86,662) | $ (44,562) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Cash flows from operating activities | ||
Net income | $ 19,623 | $ 13,596 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Loss on debt extinguishment | 357 | 1,354 |
Loss on disposal of property and equipment | 87 | 0 |
Depreciation and amortization | 1,135 | 1,054 |
Amortization of debt issuance costs | 508 | 660 |
Share-based compensation expense | 258 | 74 |
Provision for doubtful accounts | 457 | 186 |
Deferred income taxes | 207 | (444) |
Other non-cash items | (153) | (133) |
Changes in operating assets and liabilities: | ||
Accounts and other receivables, net | (2,149) | (1,908) |
Inventories | (17) | 102 |
Prepaid expenses and other current assets | (454) | (116) |
Other assets | 27 | 133 |
Accounts payable, accrued expenses and other current liabilities | 377 | 1,695 |
Deferred franchise fees | (489) | 324 |
Other liabilities | 63 | (100) |
Net cash provided by operating activities | 19,837 | 16,477 |
Cash flows from investing activities: | ||
Insurance proceeds for property and equipment | 42 | 0 |
Purchase of property and equipment | (626) | (636) |
Net cash used in investing activities | (584) | (636) |
Cash flows from financing activities: | ||
Cash payments for extinguishment of debt | (30,000) | (40,000) |
Premium paid for extinguishment of debt | 0 | (662) |
Dividends paid to stockholders | (7,563) | (6,173) |
Repurchase of treasury stock | (1,892) | 0 |
Payments of withholding tax on net share settlement of share-based compensation plans | 0 | (7) |
Net cash used in financing activities | (39,455) | (46,842) |
Net decrease in cash | (20,202) | (31,001) |
Cash, beginning of year | 50,063 | 81,064 |
Cash, end of year | 29,861 | 50,063 |
Cash paid during the year for: | ||
Interest | 8,061 | 10,563 |
Income taxes paid | $ 7,160 | $ 4,981 |
Non-cash financing activity: | ||
Dividends declared per share (in dollars per share) | $ 1.85 | $ 1.50 |
Note A - Description and Organi
Note A - Description and Organization of Business | 12 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE A - DESCRIPTION AND ORGANIZATION OF BUSINESS Nathan’s Famous, Inc. and subsidiaries (collectively the “Company” or “Nathan’s”) has historically operated or franchised a chain of retail fast food restaurants featuring the “Nathan’s World Famous Beef Hot Dog”, crinkle-cut French-fried potatoes and a variety of other menu offerings. Nathan’s has also established a Branded Product Program, which enables foodservice retailers to sell select Nathan’s proprietary products outside of the realm of a traditional franchise relationship. Nathan’s also licenses the manufacture and sale of “Nathan’s Famous” packaged hot dogs, crinkle-cut French fries and a number of other products to a variety of third parties for sale to supermarkets, club stores and grocery stores. The Company is also the owner of the Arthur Treacher’s brand. Arthur Treacher’s main product is its "Original Fish & Chips" product consisting of fish fillets coated with a special batter prepared under a proprietary formula, deep-fried golden brown, and served with English-style chips and corn meal "hush puppies." The Company considers itself to be a brand marketer of its products to the foodservice and retail industries, pursuant to its various business structures. Nathan’s has also pursued co-branding and co-hosting initiatives. At March 26, 2023, the Company’s restaurant system included four Company-owned units in the New York City metropolitan area and 232 franchised or licensed units, located in 17 states and 13 foreign countries. It also included 267 virtual kitchens (existing kitchens with no Nathan’s Famous branded storefront presence, used to fill online orders) located in 19 states and 4 foreign countries. COVID-19 and Macroeconomic Conditions The outbreak of the COVID-19 pandemic in March 2020 had a number of adverse effects on our business including a reduction in customer traffic at our Company-owned restaurants and our franchised locations, as well as difficulty in staffing these locations. Additionally, it hampered many of our Branded Product Program customers including professional sports venues, amusement parks, shopping malls and movie theaters. While the disruptions to our business from the COVID-19 pandemic have mostly subsided, the resurgence of COVID-19 or its variants, as well as an outbreak of other widespread health epidemics or pandemics, may disrupt our operations and have an adverse effect on our business, financial condition and results of operations. During fiscal 2023, the Company continued to experience rising labor costs, as well as higher commodity prices, packaging costs and fuel prices. We expect this trend to continue into fiscal 2024. Our average cost of hot dogs for the fiscal 2023 period was approximately 1.4% higher than during the fiscal 2022 period. In general, we have been able to offset increases resulting from inflation by increasing prices. We continue to monitor these inflationary pressures and will continue to implement mitigation plans as needed. Delays in implementing price increases, competitive pressures, consumer spending levels and other factors may limit our ability to implement further price increases in the future. The extent to which COVID-19 and inflation will impact the Company will depend on future developments, which cannot be predicted. Such impacts may include non-cash asset impairments and difficulty collecting trade receivables, among other things. |
Note B - Summary of Significant
Note B - Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following significant accounting policies have been applied in the preparation of the consolidated financial statements: 1. Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and all of its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. 2. Fiscal Year The Company’s fiscal year ends on the last Sunday in March, which results in a 52 or 53 week reporting period. The fiscal years ended March 26, 2023 and March 27, 2022 are on the basis of a 52 week reporting period. All references to years and quarters relate to fiscal periods rather than calendar periods. 3. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates due to risks and uncertainties, including uncertainty in the current economic environment due to the COVID-19 pandemic, inflation, and other factors. Significant estimates made by management in preparing the consolidated financial statements include revenue recognition, the allowance for doubtful accounts, accounting for income taxes, and the valuation of an intangible asset and other long-lived assets. 4. Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company did not have any cash equivalents at March 26, 2023 or March 27, 2022. The Company’s cash balances principally consist of cash in bank and money market accounts. At March 26, 2023 and March 27, 2022, substantially all of the Company’s cash balances are in excess of Federal government insurance limits. The Company has not experienced any losses in such accounts. 5. Inventories Inventories, which are stated at the lower of cost or net realizable value, consist primarily of food, beverages, and paper supplies. Cost is determined using the first-in, first-out method. 6. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Major improvements are capitalized, and minor replacements, maintenance and repairs are charged to expense as incurred. Depreciation and amortization are calculated on the straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the estimated useful life or the remaining lease term of the related asset. The estimated useful lives are as follows: Building and improvements (years) 5 – 25 Machinery, equipment, furniture and fixtures (years) 3 – 15 Leasehold improvements (years) 5 – 20 7. Goodwill and Intangible Asset Goodwill and intangible assets consist of (i) goodwill of $95 resulting from the acquisition of Nathan’s in 1987; and (ii) trademarks, and the trade name and other intellectual property of $869 in connection with Arthur Treacher’s. Goodwill is not amortized, but is tested for impairment annually during the fourth quarter, or more frequently if events or changes in circumstances indicate that the carrying amount may be impaired. As of March 26, 2023, and March 27, 2022 the Company performed its annual quantitative impairment test of goodwill and has determined no impairment is deemed to exist. Based upon the review of the current Arthur Treacher’s co-branding agreements, the Company determined that the remaining useful lives of these agreements is six years concluding in fiscal year 2028, and the intangible asset is subject to annual amortization. The Company has recorded amortization expense of $174 and $113 for each of the fiscal years ending March 26, 2023 and March 27, 2022, respectively. The Company’s definite-lived intangible asset is tested for impairment at least annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired. The Company tested for recoverability of its definite-lived intangible asset based on the projected undiscounted cash flows to be derived from such co-branding agreements. Based on the quantitative test performed, the Company determined that the definite-lived intangible asset was recoverable and no impairment charge was recorded for the fiscal years ended March 26, 2023 and March 27, 2022. Cash flow projections require significant estimates and assumptions by management. Should the estimates and assumptions prove to be incorrect, the Company may be required to record an impairment charge in future periods and such impairment could be material. Annual amortization of the intangible asset for the next five years will approximate the following: Estimate for fiscal year 2024 $ 174 2025 174 2026 174 2027 174 2028 173 Total $ 869 8. 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 be recoverable. 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 assets, 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 assets. 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 be required to record impairment charges in future periods and such impairments could be material. No long-lived assets were deemed impaired during the fiscal years ended March 26, 2023 and March 27, 2022. 9. Leases Determination of Whether a Contract Contains a Lease We determine if an arrangement is a lease at inception or modification of a contract and classify each lease as either an operating or finance lease at commencement. The Company only reassesses lease classifications subsequent to commencement upon a change to the expected lease term or the contract being modified. Operating leases represent the Company’s right to use an underlying asset as lessee for the lease term, and lease obligations represent the Company’s obligation to make lease payments arising from the lease. ROU Model and Determination of Lease Term The Company uses the right-of-use (“ROU”) model to account for leases where the Company is the lessee, which requires an entity to recognize a lease liability and ROU asset on the lease commencement date. A lease liability is measured equal to the present value of the remaining lease payments over the lease term and is discounted using the incremental borrowing rate, as the rate implicit in the Company’s leases is not readily determinable. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. Lease payments include payments made before the commencement date and any residual value guarantees, if applicable. The initial ROU asset consists of the initial measurement of the lease liability, adjusted for any payments made before the commencement date, initial direct costs and lease incentives earned. When determining the lease term, as both lessee and lessor, the Company includes option periods when it is reasonably certain that those options will be exercised. Operating Leases For operating leases, minimum lease payments or receipts, including minimum scheduled rent increases, are recognized as rent expense where the Company is a lessee, or income where the Company is a lessor, as applicable, on a straight-line basis (“Straight-Line Rent”) over the applicable lease terms. There is a period under certain lease agreements referred to as a rent holiday (“Rent Holiday”) that generally begins on the possession date and ends on the rent commencement date. During a Rent Holiday, no cash rent payments are typically due under the terms of the lease; however, rent expense is recorded for that period on a straight-line basis. The excess of the Straight-Line Rent over the minimum rents paid is included in the ROU asset where the Company is a lessee. The excess of the Straight-Line Rent over the minimum rents received is recorded as a deferred lease asset and is included in “Other Assets” where the Company is a lessor. The Company recorded $29 and $35 in Other Assets at March 26, 2023 and March 27, 2022, respectively. Certain leases contain provisions, referred to as contingent rent (“Contingent Rent”), that require additional rental payments based upon restaurant sales volume. Contingent Rent is recognized each period as the liability is incurred or the asset is earned. Lease cost for operating leases is recognized on a straight-line basis and includes the amortization of the ROU asset and interest expense relating to the operating lease liability. Variable lease cost for operating leases include Contingent Rent and payments for executory costs such as real estate taxes, insurance and common area maintenance, which are excluded from the measurement of the lease liability. Short-term lease cost for operating leases includes rental expense for leases with a term of less than 12 months. Leases with an initial expected term of 12 months or less are not recorded in the Consolidated Balance Sheets and the related lease expense is recognized on a straight-line basis over the lease term. Lease costs are recorded in the Consolidated Statements of Earnings based on the nature of the underlying leases as follows: (1) rental expense related to leases for Company-owned restaurants is recorded to “Restaurant operating expenses,” (2) rental expense for leased properties that are subsequently subleased to franchisees is recorded to “Other Income, net” and (3) rental expense related to leases for corporate offices and equipment is recorded to “General and administrative expenses.” Rental income for operating leases on properties subleased to franchisees is recorded net of associated lease costs to “Other income, net.” At March 26, 2023, the Company leases one site which it in turn subleases to a franchisee, which expires in April 2027 exclusive of renewal options. The Company remains liable for all lease costs when property is subleased to a franchisee. Significant Assumptions and Judgement Management makes certain estimates and assumptions regarding each new lease and sublease agreement, renewal and amendment, including, but not limited to, property values, market rents, property lives, discount rates and probable term, all of which can impact (1) the classification and accounting for a lease or sublease as operating or finance, (2) the Rent Holiday and escalations in payment that are taken into consideration when calculating Straight-Line Rent, (3) the term over which leasehold improvements for each restaurant are amortized and (4) the values and lives of adjustments to the initial ROU asset where the Company is the lessee, or favorable and unfavorable leases where the Company is the lessor. The amount of depreciation and amortization, interest and rent expense and income would vary if different estimates and assumptions were used. 10. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The fair value hierarchy, as outlined in the applicable accounting guidance, is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels: ● Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market ● Level 2 - inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability The use of observable market inputs (quoted market prices) when measuring fair value and, specifically, the use of Level 1 quoted prices to measure fair value are required whenever possible. The determination of where an asset or liability falls in the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures quarterly and based on various factors, it is possible that an asset or liability may be classified differently from year to year. At March 26, 2023 and March 27, 2022, we did not have any assets or liabilities that were recorded at fair value. The Company’s long-term debt had a face value of $80,000 as of March 26, 2023 and a fair value of $80,080 as of March 26, 2023. 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, accounts receivable, and accounts payable approximate fair value due to the short-term nature of those items. The majority of the Company’s non-financial assets and liabilities are not required to be carried at fair value on a recurring basis. However, the Company is required on a non-recurring basis to use fair value measurements when analyzing asset impairment as it relates to goodwill and other definite- lived assets and long-lived assets. The Company utilized the income approach (Level 3 inputs) which utilized projected undiscounted cash flows in performing its annual impairment testing of the Company’s intangible asset and long-lived assets. 11. Start-up Costs Pre-opening and similar restaurant costs are expensed as incurred and are included in “Restaurant operating expenses” in the accompanying Consolidated Statement of Earnings. 12. Revenue Recognition - Branded Product Program The Company recognizes sales from the Branded Product Program and certain products sold from the Branded Menu Program upon delivery to Nathan’s customers via third party common carrier. Rebates provided to customers are classified as a reduction to sales. 13. Revenue Recognition - Company-owned Restaurants Sales by Company-owned restaurants, which are typically paid in cash or with credit card by the customer, are recognized at the point of sale. Sales are presented net of sales tax collected from customers and remitted to governmental taxing authorities. 14. Revenue Recognition - License Royalties The Company earns revenue from royalties on the licensing of the use of its intellectual property in connection with certain products produced and sold by outside vendors. The use of the Company’s intellectual property must be approved by the Company prior to each specific application to ensure proper quality and a consistent image. Revenue from license royalties is generally based on a percentage of sales, subject to certain annual minimum royalties, and is recognized on a monthly basis when it is earned and deemed collectible. 15. Revenue Recognition - Franchising Operations In connection with its franchising operations, the Company receives initial franchise fees, international development fees, royalties, and in certain cases, revenue from sub-leasing restaurant properties to franchisees. The following services are typically provided by the Company prior to the opening of a franchised restaurant: ● Approval of all site selections to be developed. ● Provision of architectural plans suitable for restaurants to be developed. ● Assistance in establishing building design specifications, reviewing construction compliance and equipping the restaurant. ● Provision of appropriate menus to coordinate with the restaurant design and locations to be developed. ● Provision of management training for the new franchisee and selected staff. ● Assistance with the initial operations of restaurants being developed. The services provided in exchange for these upfront restaurant franchise fees do not contain separate and distinct performance obligations from the franchising right and these initial franchise fees, renewal fees and transfer fees are deferred and recognized over the term of each respective agreement, or upon termination of the franchise agreement. The services provided in exchange for these international development fees do not contain separate and distinct performance obligations from the franchising right and these international development fees are deferred and recognized over the term of each respective agreement, or upon termination of the franchise agreement. Certain other costs, such as legal expenses, are expensed as incurred. The Company recognizes franchise royalties on a monthly basis, which are generally based upon a percentage of sales made by the Company’s franchisees, including virtual kitchens, when they are earned and deemed collectible. The Company recognizes royalty revenue from its Branded Menu Program directly from the sale of Nathan’s products by its distributors or directly from the manufacturers. Franchise fees and royalties that are subsequently deemed to be not collectible are recorded as bad debts until paid by the franchisee or until collectability is deemed to be reasonably assured. The following is a summary of franchise openings and closings (excluding virtual kitchens) for the Nathan’s franchise restaurant system for the fiscal years ended March 26, 2023 and March 27, 2022: March 26, March 27, 2023 2022 Franchised restaurants operating at the beginning of the period 239 213 New franchised restaurants opened during the period 11 54 Franchised restaurants closed during the period (18 ) (28 ) Franchised restaurants operating at the end of the period 232 239 Contract balances The following table provides information about contract liabilities from contracts with customers: March 26, 2023 March 27, 2022 Deferred franchise fees (a) $ 1,608 $ 2,097 Deferred revenues, which are included in “Accrued expenses and other current liabilities” (b) $ 1,406 $ 876 (a) Deferred franchise fees of $336 and $1,272 as of March 26, 2023 and $349 and $1,748 as of March 27, 2022 are included in Deferred franchise fees – current and long term, respectively. (b) Includes $906 of deferred license royalties and $500 of deferred advertising fund revenue as of March 26, 2023 and $876 of deferred license royalties as of March 27, 2022. Significant changes in deferred franchise fees for the fiscal years ended March 26, 2023 and March 27, 2022 are as follows: March 26, 2023 March 27, 2022 Deferred franchise fees at beginning of period $ 2,097 $ 1,773 New deferrals due to cash received and other 167 879 Revenue recognized during the period (656 ) (555 ) Deferred franchise fees at end of period $ 1,608 $ 2,097 Significant changes in deferred revenues for the fiscal years ended March 26, 2023 and March 27, 2022 are as follows: March 26, 2023 March 27, 2022 Deferred revenues at beginning of period $ 876 $ 841 New deferrals due to cash received and other 1,828 1,251 Revenue recognized during the period (1,298 ) (1,216 ) Deferred revenues at end of period $ 1,406 $ 876 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: Estimate for fiscal year 2024 1 $ 336 2025 1 320 2026 1 289 2027 1 172 2028 1 78 Thereafter 1 413 Total $ 1,608 We have applied the optional exemption, as provided for under ASC Topic 606, “ Revenues from Contracts with Customers, 16. Revenue Recognition National Advertising Fund The Company maintains a national advertising fund (the “Advertising Fund”) established to collect and administer funds contributed for use in advertising and promotional programs for Company-owned and franchised restaurants. The revenue, expenses and cash flows of the Advertising Fund are fully consolidated into the Company’s Consolidated Statements of Earnings and Statements of Cash Flows. While this treatment impacts the gross amount of reported advertising fund revenue and related expenses, the impact is expected to approximately offset the increase to both revenue and expense, with minimal impact to income from operations or net income because the Company attempts to manage the Advertising Fund to breakeven over the course of the fiscal year. However, any surplus or deficit in the Advertising Fund will impact income from operations and net income. 17. Business Concentrations and Geographical Information The Company’s accounts receivable consists principally of receivables from franchisees, including virtual kitchens, for royalties and advertising contributions, from sales under the Branded Product Program, and from royalties from retail licensees. At March 26, 2023, three Branded Product customers represented 23%, 13% and 12%, of accounts receivable. At March 27, 2022, three The Company’s primary supplier of hot dogs represented 95% and 94% of product purchases for each of the fiscal years ended March 26, 2023 and March 27, 2022, respectively. The Company’s primary distributor of products to its Company-owned restaurants represented 3% and 4% of product purchases for each of the fiscal years ended March 26, 2023 and March 27, 2022, respectively. If a disruption of service from a primary supplier or distributor was to occur, we could experience short-term increases in our costs while supply or distribution channels were adjusted. The Company’s revenues for the fiscal years ended March 26, 2023 and March 27, 2022 were derived from the following geographic areas: March 26, 2023 March 27, 2022 Domestic (United States) $ 124,887 $ 111,659 Non-domestic 5,898 3,223 $ 130,785 $ 114,882 The Company’s sales for the fiscal years ended March 26, 2023 and March 27, 2022 were derived from the following: March 26, 2023 March 27, 2022 Branded Products $ 78,884 $ 66,322 Company-owned restaurants 12,161 10,905 Total sales $ 91,045 $ 77,227 License royalties $ 33,455 $ 31,824 Royalties 3,636 3,304 Franchise fees 656 555 Total franchise fees and royalties $ 4,292 $ 3,859 Advertising fund revenue $ 1,993 $ 1,972 Total revenues $ 130,785 $ 114,882 18. Advertising The Company administers an Advertising Fund on behalf of its restaurant system to coordinate the marketing efforts of the Company. Under this arrangement, the Company collects and disburses fees paid by manufacturers, franchisees and Company-owned restaurants for national and regional advertising, promotional and public relations programs. Contributions to the Advertising Fund are based on specified percentages of net sales, generally ranging up to 2%. Company-owned restaurant advertising expense, which is expensed as incurred, was $126 19. Share-Based Compensation At March 26, 2023, the Company had one share-based compensation plan in effect which is more fully described in Note L.2. The cost of all share-based payments, including grants of restricted stock units and stock options, is recognized in the consolidated financial statements based on their fair values measured at the grant date, or the date of any later modification, over the requisite service period. The Company recognizes compensation cost for unvested stock awards on a straight-line basis over the requisite vesting period. 20. Classification of Operating Expenses Cost of sales consists of the following: ● The cost of food and other products sold by Company-owned restaurants, through the Branded Product Program and through other distribution channels. ● The cost of labor and associated costs of in-store restaurant management and crew. ● The cost of paper products used in Company-owned restaurants. ● Other direct costs such as fulfillment, commissions, freight and samples. Restaurant operating expenses consist of the following: ● Occupancy costs of Company-owned restaurants. ● Utility costs of Company-owned restaurants. ● Repair and maintenance expenses of Company-owned restaurants. ● Marketing and advertising expenses done locally and contributions to advertising funds for Company-owned restaurants. ● Insurance costs directly related to Company-owned restaurants. 21. Income Taxes The Company’s current provision for income taxes is based upon its estimated taxable income in each of the jurisdictions in which it operates, after considering the impact on taxable income of temporary differences resulting from different treatment of items for tax and financial reporting purposes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and any operating loss or tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those periods in which temporary differences become deductible. Should management determine that it is more likely than not that some portion of the deferred tax assets will not be realized, a valuation allowance against the deferred tax assets would be established in the period such determination was made. Uncertain Tax Positions The Company has recorded liabilities for underpayment of income taxes and related interest and penalties for uncertain tax positions based on the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. Nathan’s recognizes accrued interest and penalties associated with unrecognized tax benefits as part of the income tax provision. See Note H for a further discussion of our income taxes. 22. New Accounting Standard Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, The Company does not believe that any other recently issued, but not yet effective accounting standards, when adopted, will have a material effect on the accompanying consolidated financial statements. |
Note C - Income Per Share
Note C - Income Per Share | 12 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE C - 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 fiscal years ended March 26, 2023 and March 27, 2022, respectively: Net Income Shares Net income per share 2023 2022 2023 2022 2023 2022 Basic EPS Basic calculation $ 19,623 $ 13,596 4,089,000 4,115,000 $ 4.80 $ 3.30 Effect of dilutive employee stock options - - 1,000 - - - Diluted EPS Diluted calculation $ 19,623 $ 13,596 4,090,000 4,115,000 $ 4.80 $ 3.30 Options to purchase 10,000 shares of common stock for the fiscal year ended March 26, 2023 were excluded in the computation of diluted earnings per share because the exercise price exceeded the average market price during the period. Options to purchase 20,000 shares of common stock for the fiscal year ended March 27, 2022 were excluded in the computation of diluted earnings per share because the exercise price exceeded the average market price of common shares during the period. |
Note D - Accounts and Other Rec
Note D - Accounts and Other Receivables, Net | 12 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE D - ACCOUNTS AND OTHER RECEIVABLES, NET Accounts and other receivables, net, consist of the following: March 26, March 27, 2023 2022 Branded product sales $ 11,106 $ 9,318 Franchise and license royalties 3,817 3,923 Other 623 391 15,546 13,632 Less: allowance for doubtful accounts 480 258 Accounts and other receivables, net $ 15,066 $ 13,374 Accounts receivable are 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 recognize franchise and license royalties that are not deemed to be realizable. 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 fiscal years ended March 26, 2023 and March 27, 2022 are as follows: March 26, 2023 March 27, 2022 Beginning balance $ 258 $ 345 Bad debt expense 457 186 Write offs and other (235 ) (273 ) Ending balance $ 480 $ 258 |
Note E - Prepaid Expenses and O
Note E - Prepaid Expenses and Other Current Assets | 12 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Other Current Assets [Text Block] | NOTE E - PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following: March 26, March 27, 2023 2022 Income taxes $ 146 $ - Real estate taxes 78 71 Insurance 389 327 Marketing 814 653 Other 468 390 Total prepaid expenses and other current assets $ 1,895 $ 1,441 |
Note F - Property and Equipment
Note F - Property and Equipment, Net | 12 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE F - PROPERTY AND EQUIPMENT, NET Property and equipment consist of the following: March 26, March 27, 2023 2022 Land $ 123 $ 123 Building and improvements 1,414 1,402 Machinery, equipment, furniture and fixtures 5,200 5,231 Leasehold improvements 7,392 7,261 Construction-in-progress 63 112 Total property and equipment 14,192 14,129 Less: accumulated depreciation and amortization 10,871 10,344 Property and equipment, net $ 3,321 $ 3,785 Depreciation and amortization expense related to property and equipment was $961 and $941 for the fiscal years ended March 26, 2023 and March 27, 2022, respectively. |
Note G - Accrued Expenses and O
Note G - Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | NOTE G ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following: March 26, March 27, 2023 2022 Payroll and other benefits $ 3,410 $ 3,109 Accrued rebates 698 166 Rent and occupancy costs 70 90 Deferred revenue 1,406 876 Construction costs - 58 Interest 2,143 2,968 Professional fees 99 129 Corporate income taxes - 103 Sales, use and other taxes 76 39 Other 228 295 Total accrued expenses and other current liabilities $ 8,130 $ 7,833 |
Note H - Income Taxes
Note H - Income Taxes | 12 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE H INCOME TAXES The income tax provision consists of the following for the fiscal years ended March 26, 2023 and March 27, 2022: March 26, 2023 March 27, 2022 Federal Current $ 5,293 $ 4,019 Deferred 137 (380 ) Total Federal income tax 5,430 3,639 State and local Current 1,681 1,365 Deferred 70 (64 ) Total State and local income tax 1,751 1,301 Total provision for income taxes $ 7,181 $ 4,940 The income tax provisions for the fiscal years ended March 26, 2023 and March 27, 2022 reflect effective tax rates of 26.8% and 26.7%, respectively. The total income tax provision for the fiscal years ended March 26, 2023 and March 27, 2022 differs from the amounts computed by applying the United States Federal income tax rate of 21% to income before income taxes as a result of the following: March 26, 2023 March 27, 2022 Income tax provision at the U.S. Federal statutory rate $ 5,629 $ 3,893 State and local income taxes, net of U.S. Federal income tax benefit 1,339 1,003 Change in uncertain tax positions, net 63 33 Nondeductible meals and entertainment and other (45 ) (77 ) Nondeductible executive compensation 195 88 Total provision for income taxes $ 7,181 $ 4,940 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: March 26, March 27, 2023 2022 Deferred tax assets Accrued expenses $ 348 $ 324 Allowance for doubtful accounts 120 61 Interest expense - 381 Deferred revenue 402 519 Deferred stock compensation 78 69 Operating lease liability 1,550 1,894 Other 135 123 Total deferred tax assets $ 2,633 $ 3,371 Deferred tax liabilities Deductible prepaid expense $ 147 $ 240 Operating lease right-of-use asset 1,390 1,692 Depreciation expense 549 637 Amortization 172 220 Total deferred tax liabilities 2,258 2,789 Net deferred tax asset $ 375 $ 582 A valuation allowance is provided when it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. We consider the level of historical taxable income, scheduled reversal of temporary differences, tax planning strategies and projected future taxable income in determining whether a valuation allowance is warranted. Based upon these considerations, management believes that it is more likely than not that the Company will realize the benefit of its deferred tax asset. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, for the fiscal years ended March 26, 2023 and March 27, 2022. March 26, 2023 March 27, 2022 Unrecognized tax benefits, beginning of year $ 403 $ 397 Decreases of tax positions taken in prior years (16 ) (19 ) Increases based on tax positions taken in current year 45 38 Settlements of tax positions taken in prior years - (13 ) Unrecognized tax benefits, end of year $ 432 $ 403 The amount of unrecognized tax benefits included in Other liabilities at March 26, 2023 and March 27, 2022 were $432 and $403, respectively, all of which would impact Nathan’s effective tax rate, if recognized. As of March 26, 2023 and March 27, 2022, the Company had $305 and $271, respectively, accrued for the payment of interest and penalties. For the fiscal years ended March 26, 2023 and March 27, 2022 Nathan’s recognized interest and penalties in the amounts of $33 During the fiscal year ending March 31, 2024, we believe it is reasonably possible the amount of unrecognized tax benefits, excluding the related accrued interest and penalties, could be reduced by up to $19, On August 16, 2022, the United States enacted the Inflation Reduction Act. Among other provisions, this new law imposes a 1% excise tax on stock buybacks made after December 31, 2022, with certain exceptions including stock repurchases of less than $1,000 within a tax year. We are not expecting this new law to have a material effect on our consolidated financial statements. The earliest tax years that are subject to examination by taxing authorities by major jurisdictions are as follows: Jurisdiction Fiscal Year Federal 2020 New York State 2020 New York City 2020 New Jersey 2019 California 2019 |
Note I - Segment Information
Note I - Segment Information | 12 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE I 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 party manufacturers pursuant to license agreements that sell our products to supermarkets, club stores and grocery stores nationwide. The Company’s Chief Executive Officer has been identified as the Chief Operating Decision Maker (“CODM”) who evaluates performance and allocates resources for the Branded Product Program, Product Licensing and Restaurant Operations segments based upon a number of factors, the primary profit measure being income from operations. Certain administrative expenses are not allocated to the segments and are reported within the Corporate segment. Branded Product Program Product licensing Restaurant operations Revenues from operating segments are from transactions with unaffiliated third parties and do not include any intersegment revenues. Income from operations attributable to Corporate consists principally of administrative expenses not allocated to the operating segments such as executive management, finance, information technology, legal, insurance, corporate office costs, corporate incentive compensation and compliance costs and expenses of the Advertising Fund. Interest expense, loss on debt extinguishment, interest income and other income, net, are managed centrally at the corporate level, and, accordingly, such items are not presented by segment since they are excluded from the measure of profitability reviewed by the CODM. Corporate assets consist primarily of cash and long-lived assets. Operating segment information for the fiscal years ended March 26, 2023 and March 27, 2022 is as follows: March 26, 2023 March 27, 2022 Revenues Branded Product Program $ 78,884 $ 66,322 Product licensing 33,455 31,824 Restaurant operations 16,453 14,764 Corporate (1) 1,993 1,972 Total revenues $ 130,785 $ 114,882 Income from operations Branded Product Program $ 8,976 $ 6,399 Product licensing 33,273 31,642 Restaurant operations 1,684 312 Corporate (9,488 ) (8,490 ) Income from operations $ 34,445 $ 29,863 Interest expense $ (7,742 ) $ (10,135 ) Loss on debt extinguishment (357 ) (1,354 ) Interest income 440 110 Other income, net 18 52 Income before provision for income taxes $ 26,804 $ 18,536 Total assets Branded Product Program $ 12,033 $ 9,966 Product licensing 3,376 3,179 Restaurant operations 9,296 11,195 Corporate 33,905 54,176 Total assets $ 58,610 $ 78,516 Depreciation & amortization expense Branded Product Program $ 132 $ 163 Restaurant operations 716 561 Corporate 287 330 Total depreciation & amortization expense $ 1,135 $ 1,054 (1) Represents advertising fund revenue. |
Note J - Long-term Debt
Note J - Long-term Debt | 12 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE J LONG-TERM DEBT Long-term debt consists of the following: March 26, March 27, 2023 2022 6.625 $ 80,000 $ 110,000 Less: unamortized debt issuance costs (952 ) (1,817 ) Long-term debt, net $ 79,048 $ 108,183 On November 1, 2017, the Company issued $150,000 of 6.625% Senior Secured Notes due 2025 (the "2025 Notes") in a private offering in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The 2025 Notes were issued pursuant to an indenture dated as of November 1, 2017 by and among the Company, certain of its wholly-owned subsidiaries and U.S. Bank Trust Company, National Association (formerly U.S. Bank National Association) (the “Indenture”). The Company used the net proceeds of the 2025 Notes offering to satisfy and discharge the Indenture relating to the $135,000 of 10.000% Senior Secured Notes due 2020 and redeemed such Notes (the "Redemption"), paid a portion of a special $5.00 per share cash dividend to Nathan's stockholders of record, and used the remaining net proceeds for general corporate purposes, including working capital. The Company also funded the majority of the special dividend of $5.00 per share through its existing cash. The Redemption occurred on November 16, 2017. The 2025 Notes bear interest at 6.625% per annum, payable semi-annually on May 1 st st The 2025 Notes have no scheduled principal amortization payments prior to its final maturity on November 1, 2025. Covenants and restrictions The terms and conditions of the 2025 Notes are as follows (terms not defined shall have the meanings set forth in the Indenture): There are no ongoing financial maintenance covenants associated with the 2025 Notes. As of March 26, 2023, Nathan’s was in compliance with all covenants associated with the 2025 Notes. The Indenture contains certain covenants and restrictions limiting the Company’s ability and the ability of its restricted subsidiaries (as defined in the Indenture) to, subject to certain exceptions and qualifications: (i) incur additional indebtedness; (ii) pay dividends or make other distributions on, redeem or repurchase, capital stock; (iii) make investments or other restricted payments; (iv) create or incur certain liens; (v) incur restrictions on the payment of dividends or other distributions from its restricted subsidiaries; (vi) enter into certain transactions with affiliates; (vii) sell assets; or (viii) effect a consolidation or merger. Certain Restricted Payments which may be made or indebtedness incurred by Nathan’s or its Restricted Subsidiaries may require compliance with the following financial ratios: Fixed Charge Coverage Ratio Priority Secured Leverage Ratio Secured Leverage Ratio The Indenture also contains customary events of default, including, among other things, failure to pay interest, failure to comply with agreements related to the Indenture, failure to pay at maturity or acceleration of other indebtedness, failure to pay certain judgments, and certain events of insolvency or bankruptcy. Generally, if any event of default occurs, the Trustee or the holders of at least 25% in principal amount of the 2025 Notes may declare the 2025 Notes due and payable by providing notice to the Company. In case of default arising from certain events of bankruptcy or insolvency, the 2025 Notes, will become immediately due and payable. Guarantees The 2025 Notes are general senior secured obligations, are fully and unconditionally guaranteed by substantially all of the Company’s wholly-owned subsidiaries and rank pari passu Pursuant to the terms of a collateral trust agreement, the liens securing the 2025 Notes and the guarantees will be contractually subordinated to the liens securing any future credit facility. Redemption The Company may redeem some or all of the 2025 Notes at a decreasing premium over time, plus accrued and unpaid interest as follows: YEAR PERCENTAGE On or after November 1, 2021 and prior to November 1, 2022 101.656 % On or after November 1, 2022 100.000 % On February 14, 2023, the Company announced its intent to complete the partial redemption, in the principal amount of $30,000, of the 2025 Notes in accordance with the terms and conditions of the Indenture. The redemption price of the redeemed notes was 100% of the principal amount, plus accrued and unpaid interest from, and including November 1, 2022 to, but excluding the redemption date of March 21, 2023. On March 21, 2023, the Company completed the partial redemption by paying cash of $30,773, inclusive of accrued interest of $773, and recognized a loss on early extinguishment of $357 that reflected the write-off of a portion of previously recorded debt issuance costs. On December 15, 2021, the Company announced its intent to complete the partial redemption, in the principal amount of $40,000, of the 2025 Notes, in accordance with the terms and conditions of the Indenture. The redemption price of the redeemed notes was 101.656% of the principal amount, plus accrued and unpaid interest from, and including November 1, 2021 to, but excluding, the redemption date of January 26, 2022. On January 26, 2022, the Company completed the partial redemption by paying cash of $41,288, inclusive of the redemption premium of $662 and accrued interest of $626, and recognized a loss on early extinguishment of $1,354 that reflected the redemption premium of $662 and the write-off of a portion of previously recorded debt issuance costs of $692. Change of Control In certain circumstances involving a change of control, the Company will be required to make an offer to repurchase all or, at the holder’s option, any part, of each holder’s 2025 Notes pursuant to the offer described below (the “Change of Control Offer”). In the Change of Control Offer, the Company will be required to offer payment in cash equal to 101% of the aggregate principal amount of 2025 Notes repurchased plus accrued and unpaid interest, to the date of purchase. Asset Sale Offer If the Company sells certain collateralized assets and does not use the net proceeds as required, the Company will be required to use such net proceeds to repurchase the 2025 Notes at 100% of the principal amount thereof, plus accrued and unpaid interest and additional interest penalty, if any, to the date of repurchase. The 2025 Notes may be traded between qualified institutional buyers pursuant to Rule 144A of the Securities Act. We have recorded the 2025 Notes at cost. |
Note K - Leases
Note K - Leases | 12 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Leases, Disclosure [Text Block] | NOTE K 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 fiscal years ended March 26, 2023 and March 27, 2022 were as follows: March 26, 2023 March 27, 2022 Operating lease cost $ 1,548 $ 1,553 Variable lease cost 1,614 1,356 Less: Sublease income, net (85 ) (88 ) Total net lease cost $ 3,077 $ 2,821 The components of the net lease cost on the Consolidated Statement of Earnings for the fiscal years ended March 26, 2023 and March 27, 2022 were as follows: March 26, 2023 March 27, 2022 Restaurant operating expenses $ 2,416 $ 2,199 General and administrative expenses 746 710 Less: Other income, net (85 ) (88 ) Total net lease cost $ 3,077 $ 2,821 Cash paid for amounts included in the measurement of lease liabilities for the fiscal years ended March 26, 2023 and March 27, 2022 were as follows: March 26, 2023 March 27, 2022 Operating cash flows from operating leases $ 1,171 $ 1,058 The weighted average remaining lease term and weighted average discount rate for operating leases for the fiscal years ended March 26, 2023 and March 27, 2022 were as follows: March 26, 2023 March 27, 2022 Weighted average remaining lease term (years): 5.3 6.3 Weighted average discount rate: 8.859 % 8.867 % Future lease commitments to be paid and received by the Company as of March 26, 2023 were as follows: Payments Receipts Operating Leases Subleases Net Leases Fiscal year: 2024 $ 1,782 $ 271 $ 1,511 2025 1,687 274 1,413 2026 1,717 278 1,439 2027 1,726 281 1,445 2028 1,573 129 1,444 Thereafter 462 495 (33 ) Total lease commitments $ 8,947 $ 1,728 $ 7,219 Less: Amount representing interest 1,759 Present value of lease liabilities (a) $ 7,188 (a) The present value of minimum operating lease payments of $1,782 and $5,406 Company as lessor The components of lease income for the fiscal years ended March 26, 2023 and March 27, 2022 were as follows: March 26, 2023 March 27, 2022 Operating lease income, net $85 $88 |
Note L - Stockholders' Equity,
Note L - Stockholders' Equity, Stock Plans and Other Employee Benefit Plans | 12 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Equity [Text Block] | NOTE L STOCKHOLDERS EQUITY, STOCK PLANS AND OTHER EMPLOYEE BENEFIT PLANS 1. Dividends On June 24, 2022, September 2, 2022 and December 2, 2022, the Company paid quarterly dividends of $0.45 per share. On February 2, 2023, the Company’s Board of Directors (the “Board”)authorized the increase of its quarterly dividend from from $0.45 to $0.50 per share. On March 3, 2023, the Company paid quarterly cash dividends of $0.50 per share. Through March 26, 2023, the Company paid quarterly dividends aggregating $7,563. On June 25, 2021, September 3, 2021 and December 3, 2021, the Company paid quarterly dividends of $0.35 per share. On February 4, 2022, the Board authorized the increase of its quarterly dividend from $0.35 per share to $0.45 per share. On March 4, 2022, the Company paid quarterly cash dividends of $0.45 per share. Through March 27, 2022, the Company paid quarterly cash dividends aggregating $ 6,173. Effective June 8, Our ability to pay future dividends is limited by the terms of the Indenture with U.S. Bank Trust Company, National Association (formerly 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 are subject to final determination of the Board and will be dependent upon our earnings and financial requirements. 2. Stock Incentive Plan On September 18, 2019, the Company’s shareholders approved the Nathan’s Famous, Inc. 2019 Stock Incentive Plan (the “2019 Plan”). The 2019 Plan became effective as of July 1, 2020 (the "Effective Date"). Following the Effective Date, (i) no additional stock awards were granted under the 2010 Plan and (ii) all outstanding stock awards previously granted under the 2010 Plan remained subject to the terms of the 2010 Plan. All awards granted on or after the Effective Date are subject to the terms of the 2019 Plan. As of the Effective Date, we were able to issue up to: (a) 369,584 shares of common stock under the 2019 Plan which includes: (i) shares that have been authorized but not issued pursuant to the 2010 Plan as of the Effective Date up to a maximum of an additional 208,584 shares and (ii) any shares subject to any outstanding options or restricted stock grants under any plan of the Company that were outstanding as of the Effective Date and that subsequently expire unexercised, or were otherwise forfeited, up to a maximum of an additional 11,000 shares. As of March 26, 2023, there were up to 131,683 shares available to be issued for future option grants or up to 148,584 shares of restricted stock to be granted under the 2019 Plan. In general, options granted under the Company’s stock incentive plans have terms of five ten three five During the fiscal year ended March 26, 2023, the Company granted 50,000 restricted stock units at a fair value of $67.59 per unit representing the closing price on the date of grant, which will be fully vested five five During the fiscal year ended March 27, 2022, the Company granted options to purchase 10,000 shares at an exercise price of $68.50 per share, all of which expire five four The weighted average option fair values, as determined using the Black-Scholes option valuation model, and the assumptions used to estimate these values for stock options granted during the fiscal year ended March 27, 2022 were as follows: Weighted-average option fair values $13.04 Expected life (years) 4.4 Interest rate 0.82% Volatility 27.69% Dividend yield 2.04% The expected dividend yield is based on historical and projected dividend yields. The Company estimates volatility based primarily on historical monthly price changes of the Company’s stock equal to the expected life of the option. The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of grant. The expected option term is the number of years the Company estimates the options will be outstanding prior to exercise based on expected historical exercise patterns and employment termination behavior. 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 for the fiscal years ended March 26, 2023 and March 27, 2022 is as follows: March 26, 2023 March 27, 2022 Stock options $ 33 $ 60 Restricted stock units 225 14 $ 258 $ 74 The tax benefit on share-based compensation expense was $0 fifty-two A summary of the status of the Company’s stock options at March 26, 2023 and March 27, 2022 and changes during the fiscal years then ended is presented in the tables below: Weighted Weighted Average March 26, 2023 Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Life Value Options outstanding – beginning of year 20,000 $ 79.20 2.92 Granted - - Expired - - Exercised - - Options outstanding - end of year 20,000 $ 79.20 1.92 $ 40 Options exercisable - end of year 12,500 $ 85.62 1.05 $ 10 Weighted Weighted Average March 27, 2022 Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Life Value Options outstanding – beginning of year 10,000 $ 89.90 2.46 Granted 10,000 $ 68.50 4.37 Expired - - Exercised - - Options outstanding - end of year 20,000 $ 79.20 2.92 $ - Options exercisable - end of year 10,000 $ 89.90 1.46 $ - Restricted stock units Transactions with respect to restricted stock units for the fiscal year ended March 26, 2023 are as follows: Weighted Average Grant-date Fair value Shares Per share Unvested restricted stock units at March 27, 2022 - $ - Granted 50,000 $ 67.59 Vested - $ - Unvested restricted stock units at March 26, 2023 50,000 $ 67.59 3. Stock Repurchase Programs On June 14, 2022, the Board approved a 10b5-1 Plan (the “10b5-1 Plan”) which expired on September 13, 2022. During the fiscal year ended March 26, 2023, the Company repurchased in open market transactions 35,434 shares of the Company’s common stock at an average share price of $53.39 for a total cost of $1,892 under the 10b5-1 Plan. In 2016, the Board authorized increases to the sixth stock repurchase plan for the purchase of up to 1,200,000 shares of its common stock on behalf of the Company. As of March 26, 2023, Nathan’s had repurchased 1,101,884 shares at a cost of $39,000 under the sixth stock repurchase plan. At March 26, 2023, there were 98,116 shares remaining to be repurchased pursuant to the sixth stock repurchase plan. The plan does not have a set expiration date. Purchases under the Company’s stock repurchase program may be made from time to time, depending on market conditions, in open market or privately negotiated transactions, at prices deemed appropriate by management. There is no set time limit on the repurchases. 4. Employment Agreements Effective January 1, 2007, Howard M. Lorber, previously Chairman of the Board and Chief Executive Officer, assumed the newly created position of Executive Chairman of the Board of Nathan’s and Eric Gatoff, previously Vice President and Corporate Counsel, became Chief Executive Officer of Nathan’s. In connection with the foregoing, the Company entered into an employment agreement with each of Messrs. Lorber (as amended, the “Lorber Employment Agreement”) and Gatoff (as amended, the “Gatoff Employment Agreement”). On December 8, 2022, the Company entered into Amendment No. 3 to the Lorber Employment Agreement. Under the amendment, the term of the employment agreement was extended from December 31, 2022 to December 31, 2027. In addition, Mr. Lorber received a grant of 50,000 restricted stock units under the Company’s 2019 Stock Incentive Plan which vest in equal installments over five years. The Lorber Employment Agreement provides for a three The Lorber Employment Agreement provides Mr. Lorber with the right to participate in employment benefits offered to other Nathan’s executives. During and after the contract term, Mr. Lorber is subject to certain confidentiality, non-solicitation and non-competition provisions in favor of the Company. In the event that Mr. Lorber’s employment is terminated without cause, he is entitled to receive his salary and bonus for the remainder of the contract term. The Lorber Employment Agreement further provides that in the event there is a change in control, as defined in the agreement, Mr. Lorber has the option, exercisable within one year after such event, to terminate the agreement. Upon such termination, he has the right to receive a lump sum cash payment equal to the greater of (A) his salary and annual bonuses for the remainder of the employment term (including a prorated bonus for any partial fiscal year), which bonus shall be equal to the average of the annual bonuses awarded to him during the three fiscal years preceding the fiscal year of termination; or (B) 2.99 times his salary and annual bonus for the fiscal year immediately preceding the fiscal year of termination, in each case together with a lump sum cash payment equal to the difference between the exercise price of any exercisable options having an exercise price of less than the then current market price of the Company’s common stock and such then current market price. In addition, Nathan’s will provide Mr. Lorber with a tax gross-up payment to cover any excise tax due. In the event of termination due to Mr. Lorber’s death or disability, he is entitled to receive an amount equal to his salary and annual bonuses for a three-year period, which bonus shall be equal to the average of the annual bonuses awarded to him during the three fiscal years preceding the fiscal year of termination. Under the terms of the Gatoff Employment Agreement, Mr. Gatoff initially served as Chief Executive Officer from January 1, 2007 until December 31, 2008, which period automatically extends for additional one-year periods unless either party delivers notice of non-renewal no less than 180 days prior to the end of the term then in effect. Consequently, the Gatoff Employment Agreement is expected to be extended through December 31, 2024, based on the original terms, and no non-renewal notice has been given. Pursuant to the agreement, Mr. Gatoff receives a base salary, currently $625 effective June 1, 2022, and an annual bonus based on his performance measured against the Company’s financial, strategic and operating objectives as determined by the Compensation Committee. The Gatoff Employment Agreement provides for an automobile allowance and the right of Mr. Gatoff to participate in employment benefits offered to other Nathan’s executives. The employment agreement automatically extends for successive one-year periods unless notice of non-renewal is provided in accordance with the agreement. During and after the contract term, Mr. Gatoff is subject to certain confidentiality, non-solicitation and non-competition provisions in favor of the Company. Each employment agreement terminates upon death or voluntary termination by the respective employee or may be terminated by the Company on up to 30-days’ prior written notice by the Company in the event of disability or “cause,” as defined in each agreement. 5. Defined Contribution and Union Pension Plans The Company has a defined contribution retirement plan under Section 401(k) of the Internal Revenue Code covering all nonunion employees over age 21, who have been employed by the Company for at least one year. Employees may contribute to the plan, on a tax-deferred basis, up to 20% of their total annual salary. Historically, the Company has matched contributions at a rate of $ .25 The Company participates in a noncontributory, multi-employer, defined benefit pension plan (the “Union Plan”) covering substantially all of the Company’s union-represented employees. The risks of participating in the Union Plan are different from a single-employer plan in the following aspects: (a) assets contributed to the Union Plan by one employer may be used to provide benefits to employees of other participating employers; (b) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and (c) if the Company chooses to stop participating in the Union Plan, the Company may be required to pay the Union Plan an amount based on the underfunded status of the Union Plan, referred to as a withdrawal liability. The most recent estimate of our potential withdrawal liability is $402 as of December 31, 2022. The Company has no plans or intentions to stop participating in the plan as of March 26, 2023 and does not believe that there is a reasonable possibility that a withdrawal liability will be incurred. Any adjustment for withdrawal liability will be recorded only when it is probable that a liability exists and can be reasonably estimated, in accordance with U.S. GAAP. Contributions to the Union Plan were $9 and $6 for the fiscal years ended March 26, 2023 and March 27, 2022, respectively. 6. Other Benefits The Company provides, on a contributory basis, medical benefits to active employees. The Company does not provide medical benefits to retirees. |
Note M - Contingencies
Note M - Contingencies | 12 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE M CONTINGENCIES Legal Proceedings 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 have a material adverse effect on the Company’s financial position, cash flows or results of operations. Nevertheless, litigation is subject to inherent uncertainties and unfavorable rulings could occur. An unfavorable ruling could include money damages and, in such event, could result in a material adverse impact on the Company’s results of operations for the period in which the ruling occurs. |
Note N - Related Party Transact
Note N - Related Party Transactions | 12 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | NOTE N - RELATED PARTY TRANSACTIONS A firm to which the Company’s Executive Chairman of the Board is as an investor, and the firm’s affiliates, received ordinary and customary insurance commissions aggregating approximately $18 |
Note O - Subsequent Events
Note O - Subsequent Events | 12 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE O - SUBSEQUENT EVENTS The Company evaluated subsequent events through the date the consolidated financial statements were issued and filed with the U.S. Securities and Exchange Commission. There were no subsequent events that required recognition or disclosure. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 26, 2023 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | 1. Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and all of its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. |
Fiscal Period, Policy [Policy Text Block] | 2. Fiscal Year The Company’s fiscal year ends on the last Sunday in March, which results in a 52 or 53 week reporting period. The fiscal years ended March 26, 2023 and March 27, 2022 are on the basis of a 52 week reporting period. All references to years and quarters relate to fiscal periods rather than calendar periods. |
Use of Estimates, Policy [Policy Text Block] | 3. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates due to risks and uncertainties, including uncertainty in the current economic environment due to the COVID-19 pandemic, inflation, and other factors. Significant estimates made by management in preparing the consolidated financial statements include revenue recognition, the allowance for doubtful accounts, accounting for income taxes, and the valuation of an intangible asset and other long-lived assets. |
Cash and Cash Equivalents, Policy [Policy Text Block] | 4. Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company did not have any cash equivalents at March 26, 2023 or March 27, 2022. The Company’s cash balances principally consist of cash in bank and money market accounts. At March 26, 2023 and March 27, 2022, substantially all of the Company’s cash balances are in excess of Federal government insurance limits. The Company has not experienced any losses in such accounts. |
Inventory, Policy [Policy Text Block] | 5. Inventories Inventories, which are stated at the lower of cost or net realizable value, consist primarily of food, beverages, and paper supplies. Cost is determined using the first-in, first-out method. |
Property, Plant and Equipment, Policy [Policy Text Block] | 6. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Major improvements are capitalized, and minor replacements, maintenance and repairs are charged to expense as incurred. Depreciation and amortization are calculated on the straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the estimated useful life or the remaining lease term of the related asset. The estimated useful lives are as follows: Building and improvements (years) 5 – 25 Machinery, equipment, furniture and fixtures (years) 3 – 15 Leasehold improvements (years) 5 – 20 |
Goodwill and Intangible Assets, Policy [Policy Text Block] | 7. Goodwill and Intangible Asset Goodwill and intangible assets consist of (i) goodwill of $95 resulting from the acquisition of Nathan’s in 1987; and (ii) trademarks, and the trade name and other intellectual property of $869 in connection with Arthur Treacher’s. Goodwill is not amortized, but is tested for impairment annually during the fourth quarter, or more frequently if events or changes in circumstances indicate that the carrying amount may be impaired. As of March 26, 2023, and March 27, 2022 the Company performed its annual quantitative impairment test of goodwill and has determined no impairment is deemed to exist. Based upon the review of the current Arthur Treacher’s co-branding agreements, the Company determined that the remaining useful lives of these agreements is six years concluding in fiscal year 2028, and the intangible asset is subject to annual amortization. The Company has recorded amortization expense of $174 and $113 for each of the fiscal years ending March 26, 2023 and March 27, 2022, respectively. The Company’s definite-lived intangible asset is tested for impairment at least annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired. The Company tested for recoverability of its definite-lived intangible asset based on the projected undiscounted cash flows to be derived from such co-branding agreements. Based on the quantitative test performed, the Company determined that the definite-lived intangible asset was recoverable and no impairment charge was recorded for the fiscal years ended March 26, 2023 and March 27, 2022. Cash flow projections require significant estimates and assumptions by management. Should the estimates and assumptions prove to be incorrect, the Company may be required to record an impairment charge in future periods and such impairment could be material. Annual amortization of the intangible asset for the next five years will approximate the following: Estimate for fiscal year 2024 $ 174 2025 174 2026 174 2027 174 2028 173 Total $ 869 |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | 8. 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 be recoverable. 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 assets, 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 assets. 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 be required to record impairment charges in future periods and such impairments could be material. No long-lived assets were deemed impaired during the fiscal years ended March 26, 2023 and March 27, 2022. |
Lessee, Leases [Policy Text Block] | 9. Leases Determination of Whether a Contract Contains a Lease We determine if an arrangement is a lease at inception or modification of a contract and classify each lease as either an operating or finance lease at commencement. The Company only reassesses lease classifications subsequent to commencement upon a change to the expected lease term or the contract being modified. Operating leases represent the Company’s right to use an underlying asset as lessee for the lease term, and lease obligations represent the Company’s obligation to make lease payments arising from the lease. ROU Model and Determination of Lease Term The Company uses the right-of-use (“ROU”) model to account for leases where the Company is the lessee, which requires an entity to recognize a lease liability and ROU asset on the lease commencement date. A lease liability is measured equal to the present value of the remaining lease payments over the lease term and is discounted using the incremental borrowing rate, as the rate implicit in the Company’s leases is not readily determinable. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. Lease payments include payments made before the commencement date and any residual value guarantees, if applicable. The initial ROU asset consists of the initial measurement of the lease liability, adjusted for any payments made before the commencement date, initial direct costs and lease incentives earned. When determining the lease term, as both lessee and lessor, the Company includes option periods when it is reasonably certain that those options will be exercised. Operating Leases For operating leases, minimum lease payments or receipts, including minimum scheduled rent increases, are recognized as rent expense where the Company is a lessee, or income where the Company is a lessor, as applicable, on a straight-line basis (“Straight-Line Rent”) over the applicable lease terms. There is a period under certain lease agreements referred to as a rent holiday (“Rent Holiday”) that generally begins on the possession date and ends on the rent commencement date. During a Rent Holiday, no cash rent payments are typically due under the terms of the lease; however, rent expense is recorded for that period on a straight-line basis. The excess of the Straight-Line Rent over the minimum rents paid is included in the ROU asset where the Company is a lessee. The excess of the Straight-Line Rent over the minimum rents received is recorded as a deferred lease asset and is included in “Other Assets” where the Company is a lessor. The Company recorded $29 and $35 in Other Assets at March 26, 2023 and March 27, 2022, respectively. Certain leases contain provisions, referred to as contingent rent (“Contingent Rent”), that require additional rental payments based upon restaurant sales volume. Contingent Rent is recognized each period as the liability is incurred or the asset is earned. Lease cost for operating leases is recognized on a straight-line basis and includes the amortization of the ROU asset and interest expense relating to the operating lease liability. Variable lease cost for operating leases include Contingent Rent and payments for executory costs such as real estate taxes, insurance and common area maintenance, which are excluded from the measurement of the lease liability. Short-term lease cost for operating leases includes rental expense for leases with a term of less than 12 months. Leases with an initial expected term of 12 months or less are not recorded in the Consolidated Balance Sheets and the related lease expense is recognized on a straight-line basis over the lease term. Lease costs are recorded in the Consolidated Statements of Earnings based on the nature of the underlying leases as follows: (1) rental expense related to leases for Company-owned restaurants is recorded to “Restaurant operating expenses,” (2) rental expense for leased properties that are subsequently subleased to franchisees is recorded to “Other Income, net” and (3) rental expense related to leases for corporate offices and equipment is recorded to “General and administrative expenses.” Rental income for operating leases on properties subleased to franchisees is recorded net of associated lease costs to “Other income, net.” At March 26, 2023, the Company leases one site which it in turn subleases to a franchisee, which expires in April 2027 exclusive of renewal options. The Company remains liable for all lease costs when property is subleased to a franchisee. Significant Assumptions and Judgement Management makes certain estimates and assumptions regarding each new lease and sublease agreement, renewal and amendment, including, but not limited to, property values, market rents, property lives, discount rates and probable term, all of which can impact (1) the classification and accounting for a lease or sublease as operating or finance, (2) the Rent Holiday and escalations in payment that are taken into consideration when calculating Straight-Line Rent, (3) the term over which leasehold improvements for each restaurant are amortized and (4) the values and lives of adjustments to the initial ROU asset where the Company is the lessee, or favorable and unfavorable leases where the Company is the lessor. The amount of depreciation and amortization, interest and rent expense and income would vary if different estimates and assumptions were used. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | 10. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The fair value hierarchy, as outlined in the applicable accounting guidance, is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels: ● Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market ● Level 2 - inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability The use of observable market inputs (quoted market prices) when measuring fair value and, specifically, the use of Level 1 quoted prices to measure fair value are required whenever possible. The determination of where an asset or liability falls in the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures quarterly and based on various factors, it is possible that an asset or liability may be classified differently from year to year. At March 26, 2023 and March 27, 2022, we did not have any assets or liabilities that were recorded at fair value. The Company’s long-term debt had a face value of $80,000 as of March 26, 2023 and a fair value of $80,080 as of March 26, 2023. 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, accounts receivable, and accounts payable approximate fair value due to the short-term nature of those items. The majority of the Company’s non-financial assets and liabilities are not required to be carried at fair value on a recurring basis. However, the Company is required on a non-recurring basis to use fair value measurements when analyzing asset impairment as it relates to goodwill and other definite- lived assets and long-lived assets. The Company utilized the income approach (Level 3 inputs) which utilized projected undiscounted cash flows in performing its annual impairment testing of the Company’s intangible asset and long-lived assets. |
Start-up Activities, Cost Policy [Policy Text Block] | 11. Start-up Costs Pre-opening and similar restaurant costs are expensed as incurred and are included in “Restaurant operating expenses” in the accompanying Consolidated Statement of Earnings. |
Revenue from Contract with Customer [Policy Text Block] | 12. Revenue Recognition - Branded Product Program The Company recognizes sales from the Branded Product Program and certain products sold from the Branded Menu Program upon delivery to Nathan’s customers via third party common carrier. Rebates provided to customers are classified as a reduction to sales. 13. Revenue Recognition - Company-owned Restaurants Sales by Company-owned restaurants, which are typically paid in cash or with credit card by the customer, are recognized at the point of sale. Sales are presented net of sales tax collected from customers and remitted to governmental taxing authorities. 14. Revenue Recognition - License Royalties The Company earns revenue from royalties on the licensing of the use of its intellectual property in connection with certain products produced and sold by outside vendors. The use of the Company’s intellectual property must be approved by the Company prior to each specific application to ensure proper quality and a consistent image. Revenue from license royalties is generally based on a percentage of sales, subject to certain annual minimum royalties, and is recognized on a monthly basis when it is earned and deemed collectible. 15. Revenue Recognition - Franchising Operations In connection with its franchising operations, the Company receives initial franchise fees, international development fees, royalties, and in certain cases, revenue from sub-leasing restaurant properties to franchisees. The following services are typically provided by the Company prior to the opening of a franchised restaurant: ● Approval of all site selections to be developed. ● Provision of architectural plans suitable for restaurants to be developed. ● Assistance in establishing building design specifications, reviewing construction compliance and equipping the restaurant. ● Provision of appropriate menus to coordinate with the restaurant design and locations to be developed. ● Provision of management training for the new franchisee and selected staff. ● Assistance with the initial operations of restaurants being developed. The services provided in exchange for these upfront restaurant franchise fees do not contain separate and distinct performance obligations from the franchising right and these initial franchise fees, renewal fees and transfer fees are deferred and recognized over the term of each respective agreement, or upon termination of the franchise agreement. The services provided in exchange for these international development fees do not contain separate and distinct performance obligations from the franchising right and these international development fees are deferred and recognized over the term of each respective agreement, or upon termination of the franchise agreement. Certain other costs, such as legal expenses, are expensed as incurred. The Company recognizes franchise royalties on a monthly basis, which are generally based upon a percentage of sales made by the Company’s franchisees, including virtual kitchens, when they are earned and deemed collectible. The Company recognizes royalty revenue from its Branded Menu Program directly from the sale of Nathan’s products by its distributors or directly from the manufacturers. Franchise fees and royalties that are subsequently deemed to be not collectible are recorded as bad debts until paid by the franchisee or until collectability is deemed to be reasonably assured. The following is a summary of franchise openings and closings (excluding virtual kitchens) for the Nathan’s franchise restaurant system for the fiscal years ended March 26, 2023 and March 27, 2022: March 26, March 27, 2023 2022 Franchised restaurants operating at the beginning of the period 239 213 New franchised restaurants opened during the period 11 54 Franchised restaurants closed during the period (18 ) (28 ) Franchised restaurants operating at the end of the period 232 239 Contract balances The following table provides information about contract liabilities from contracts with customers: March 26, 2023 March 27, 2022 Deferred franchise fees (a) $ 1,608 $ 2,097 Deferred revenues, which are included in “Accrued expenses and other current liabilities” (b) $ 1,406 $ 876 (a) Deferred franchise fees of $336 and $1,272 as of March 26, 2023 and $349 and $1,748 as of March 27, 2022 are included in Deferred franchise fees – current and long term, respectively. (b) Includes $906 of deferred license royalties and $500 of deferred advertising fund revenue as of March 26, 2023 and $876 of deferred license royalties as of March 27, 2022. Significant changes in deferred franchise fees for the fiscal years ended March 26, 2023 and March 27, 2022 are as follows: March 26, 2023 March 27, 2022 Deferred franchise fees at beginning of period $ 2,097 $ 1,773 New deferrals due to cash received and other 167 879 Revenue recognized during the period (656 ) (555 ) Deferred franchise fees at end of period $ 1,608 $ 2,097 Significant changes in deferred revenues for the fiscal years ended March 26, 2023 and March 27, 2022 are as follows: March 26, 2023 March 27, 2022 Deferred revenues at beginning of period $ 876 $ 841 New deferrals due to cash received and other 1,828 1,251 Revenue recognized during the period (1,298 ) (1,216 ) Deferred revenues at end of period $ 1,406 $ 876 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: Estimate for fiscal year 2024 1 $ 336 2025 1 320 2026 1 289 2027 1 172 2028 1 78 Thereafter 1 413 Total $ 1,608 We have applied the optional exemption, as provided for under ASC Topic 606, “ Revenues from Contracts with Customers, 16. Revenue Recognition National Advertising Fund The Company maintains a national advertising fund (the “Advertising Fund”) established to collect and administer funds contributed for use in advertising and promotional programs for Company-owned and franchised restaurants. The revenue, expenses and cash flows of the Advertising Fund are fully consolidated into the Company’s Consolidated Statements of Earnings and Statements of Cash Flows. While this treatment impacts the gross amount of reported advertising fund revenue and related expenses, the impact is expected to approximately offset the increase to both revenue and expense, with minimal impact to income from operations or net income because the Company attempts to manage the Advertising Fund to breakeven over the course of the fiscal year. However, any surplus or deficit in the Advertising Fund will impact income from operations and net income. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | 17. Business Concentrations and Geographical Information The Company’s accounts receivable consists principally of receivables from franchisees, including virtual kitchens, for royalties and advertising contributions, from sales under the Branded Product Program, and from royalties from retail licensees. At March 26, 2023, three Branded Product customers represented 23%, 13% and 12%, of accounts receivable. At March 27, 2022, three The Company’s primary supplier of hot dogs represented 95% and 94% of product purchases for each of the fiscal years ended March 26, 2023 and March 27, 2022, respectively. The Company’s primary distributor of products to its Company-owned restaurants represented 3% and 4% of product purchases for each of the fiscal years ended March 26, 2023 and March 27, 2022, respectively. If a disruption of service from a primary supplier or distributor was to occur, we could experience short-term increases in our costs while supply or distribution channels were adjusted. The Company’s revenues for the fiscal years ended March 26, 2023 and March 27, 2022 were derived from the following geographic areas: March 26, 2023 March 27, 2022 Domestic (United States) $ 124,887 $ 111,659 Non-domestic 5,898 3,223 $ 130,785 $ 114,882 The Company’s sales for the fiscal years ended March 26, 2023 and March 27, 2022 were derived from the following: March 26, 2023 March 27, 2022 Branded Products $ 78,884 $ 66,322 Company-owned restaurants 12,161 10,905 Total sales $ 91,045 $ 77,227 License royalties $ 33,455 $ 31,824 Royalties 3,636 3,304 Franchise fees 656 555 Total franchise fees and royalties $ 4,292 $ 3,859 Advertising fund revenue $ 1,993 $ 1,972 Total revenues $ 130,785 $ 114,882 |
Advertising Cost [Policy Text Block] | 18. Advertising The Company administers an Advertising Fund on behalf of its restaurant system to coordinate the marketing efforts of the Company. Under this arrangement, the Company collects and disburses fees paid by manufacturers, franchisees and Company-owned restaurants for national and regional advertising, promotional and public relations programs. Contributions to the Advertising Fund are based on specified percentages of net sales, generally ranging up to 2%. Company-owned restaurant advertising expense, which is expensed as incurred, was $126 |
Share-Based Payment Arrangement [Policy Text Block] | 19. Share-Based Compensation At March 26, 2023, the Company had one share-based compensation plan in effect which is more fully described in Note L.2. The cost of all share-based payments, including grants of restricted stock units and stock options, is recognized in the consolidated financial statements based on their fair values measured at the grant date, or the date of any later modification, over the requisite service period. The Company recognizes compensation cost for unvested stock awards on a straight-line basis over the requisite vesting period. |
Cost of Goods and Service [Policy Text Block] | 20. Classification of Operating Expenses Cost of sales consists of the following: ● The cost of food and other products sold by Company-owned restaurants, through the Branded Product Program and through other distribution channels. ● The cost of labor and associated costs of in-store restaurant management and crew. ● The cost of paper products used in Company-owned restaurants. ● Other direct costs such as fulfillment, commissions, freight and samples. Restaurant operating expenses consist of the following: ● Occupancy costs of Company-owned restaurants. ● Utility costs of Company-owned restaurants. ● Repair and maintenance expenses of Company-owned restaurants. ● Marketing and advertising expenses done locally and contributions to advertising funds for Company-owned restaurants. ● Insurance costs directly related to Company-owned restaurants. |
Income Tax, Policy [Policy Text Block] | 21. Income Taxes The Company’s current provision for income taxes is based upon its estimated taxable income in each of the jurisdictions in which it operates, after considering the impact on taxable income of temporary differences resulting from different treatment of items for tax and financial reporting purposes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and any operating loss or tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those periods in which temporary differences become deductible. Should management determine that it is more likely than not that some portion of the deferred tax assets will not be realized, a valuation allowance against the deferred tax assets would be established in the period such determination was made. Uncertain Tax Positions The Company has recorded liabilities for underpayment of income taxes and related interest and penalties for uncertain tax positions based on the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. Nathan’s recognizes accrued interest and penalties associated with unrecognized tax benefits as part of the income tax provision. See Note H for a further discussion of our income taxes. |
New Accounting Pronouncements, Policy [Policy Text Block] | 22. New Accounting Standard Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, The Company does not believe that any other recently issued, but not yet effective accounting standards, when adopted, will have a material effect on the accompanying consolidated financial statements. |
Note B - Summary of Significa_2
Note B - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 26, 2023 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Building and improvements (years) 5 – 25 Machinery, equipment, furniture and fixtures (years) 3 – 15 Leasehold improvements (years) 5 – 20 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimate for fiscal year 2024 $ 174 2025 174 2026 174 2027 174 2028 173 Total $ 869 |
Schedule of Franchisor Disclosure [Table Text Block] | March 26, March 27, 2023 2022 Franchised restaurants operating at the beginning of the period 239 213 New franchised restaurants opened during the period 11 54 Franchised restaurants closed during the period (18 ) (28 ) Franchised restaurants operating at the end of the period 232 239 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Contract balances The following table provides information about contract liabilities from contracts with customers: March 26, 2023 March 27, 2022 Deferred franchise fees (a) $ 1,608 $ 2,097 Deferred revenues, which are included in “Accrued expenses and other current liabilities” (b) $ 1,406 $ 876 (a) Deferred franchise fees of $336 and $1,272 as of March 26, 2023 and $349 and $1,748 as of March 27, 2022 are included in Deferred franchise fees – current and long term, respectively. (b) Includes $906 of deferred license royalties and $500 of deferred advertising fund revenue as of March 26, 2023 and $876 of deferred license royalties as of March 27, 2022. Significant changes in deferred franchise fees for the fiscal years ended March 26, 2023 and March 27, 2022 are as follows: March 26, 2023 March 27, 2022 Deferred franchise fees at beginning of period $ 2,097 $ 1,773 New deferrals due to cash received and other 167 879 Revenue recognized during the period (656 ) (555 ) Deferred franchise fees at end of period $ 1,608 $ 2,097 Significant changes in deferred revenues for the fiscal years ended March 26, 2023 and March 27, 2022 are as follows: March 26, 2023 March 27, 2022 Deferred revenues at beginning of period $ 876 $ 841 New deferrals due to cash received and other 1,828 1,251 Revenue recognized during the period (1,298 ) (1,216 ) Deferred revenues at end of period $ 1,406 $ 876 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: Estimate for fiscal year 2024 1 $ 336 2025 1 320 2026 1 289 2027 1 172 2028 1 78 Thereafter 1 413 Total $ 1,608 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | March 26, 2023 March 27, 2022 Domestic (United States) $ 124,887 $ 111,659 Non-domestic 5,898 3,223 $ 130,785 $ 114,882 March 26, 2023 March 27, 2022 Branded Products $ 78,884 $ 66,322 Company-owned restaurants 12,161 10,905 Total sales $ 91,045 $ 77,227 License royalties $ 33,455 $ 31,824 Royalties 3,636 3,304 Franchise fees 656 555 Total franchise fees and royalties $ 4,292 $ 3,859 Advertising fund revenue $ 1,993 $ 1,972 Total revenues $ 130,785 $ 114,882 |
Note C - Income Per Share (Tabl
Note C - Income Per Share (Tables) | 12 Months Ended |
Mar. 26, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Net Income Shares Net income per share 2023 2022 2023 2022 2023 2022 Basic EPS Basic calculation $ 19,623 $ 13,596 4,089,000 4,115,000 $ 4.80 $ 3.30 Effect of dilutive employee stock options - - 1,000 - - - Diluted EPS Diluted calculation $ 19,623 $ 13,596 4,090,000 4,115,000 $ 4.80 $ 3.30 |
Note D - Accounts and Other R_2
Note D - Accounts and Other Receivables, Net (Tables) | 12 Months Ended |
Mar. 26, 2023 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | March 26, March 27, 2023 2022 Branded product sales $ 11,106 $ 9,318 Franchise and license royalties 3,817 3,923 Other 623 391 15,546 13,632 Less: allowance for doubtful accounts 480 258 Accounts and other receivables, net $ 15,066 $ 13,374 |
Financing Receivable, Current, Allowance for Credit Loss [Table Text Block] | March 26, 2023 March 27, 2022 Beginning balance $ 258 $ 345 Bad debt expense 457 186 Write offs and other (235 ) (273 ) Ending balance $ 480 $ 258 |
Note E - Prepaid Expenses and_2
Note E - Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Mar. 26, 2023 | |
Notes Tables | |
Schedule of Other Current Assets [Table Text Block] | March 26, March 27, 2023 2022 Income taxes $ 146 $ - Real estate taxes 78 71 Insurance 389 327 Marketing 814 653 Other 468 390 Total prepaid expenses and other current assets $ 1,895 $ 1,441 |
Note F - Property and Equipme_2
Note F - Property and Equipment, Net (Tables) | 12 Months Ended |
Mar. 26, 2023 | |
Notes Tables | |
Schedule of Property, Plant, and Equipment, Carrying Value [Table Text Block] | March 26, March 27, 2023 2022 Land $ 123 $ 123 Building and improvements 1,414 1,402 Machinery, equipment, furniture and fixtures 5,200 5,231 Leasehold improvements 7,392 7,261 Construction-in-progress 63 112 Total property and equipment 14,192 14,129 Less: accumulated depreciation and amortization 10,871 10,344 Property and equipment, net $ 3,321 $ 3,785 |
Note G - Accrued Expenses and_2
Note G - Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Mar. 26, 2023 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | March 26, March 27, 2023 2022 Payroll and other benefits $ 3,410 $ 3,109 Accrued rebates 698 166 Rent and occupancy costs 70 90 Deferred revenue 1,406 876 Construction costs - 58 Interest 2,143 2,968 Professional fees 99 129 Corporate income taxes - 103 Sales, use and other taxes 76 39 Other 228 295 Total accrued expenses and other current liabilities $ 8,130 $ 7,833 |
Note H - Income Taxes (Tables)
Note H - Income Taxes (Tables) | 12 Months Ended |
Mar. 26, 2023 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | March 26, 2023 March 27, 2022 Federal Current $ 5,293 $ 4,019 Deferred 137 (380 ) Total Federal income tax 5,430 3,639 State and local Current 1,681 1,365 Deferred 70 (64 ) Total State and local income tax 1,751 1,301 Total provision for income taxes $ 7,181 $ 4,940 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | March 26, 2023 March 27, 2022 Income tax provision at the U.S. Federal statutory rate $ 5,629 $ 3,893 State and local income taxes, net of U.S. Federal income tax benefit 1,339 1,003 Change in uncertain tax positions, net 63 33 Nondeductible meals and entertainment and other (45 ) (77 ) Nondeductible executive compensation 195 88 Total provision for income taxes $ 7,181 $ 4,940 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | March 26, March 27, 2023 2022 Deferred tax assets Accrued expenses $ 348 $ 324 Allowance for doubtful accounts 120 61 Interest expense - 381 Deferred revenue 402 519 Deferred stock compensation 78 69 Operating lease liability 1,550 1,894 Other 135 123 Total deferred tax assets $ 2,633 $ 3,371 Deferred tax liabilities Deductible prepaid expense $ 147 $ 240 Operating lease right-of-use asset 1,390 1,692 Depreciation expense 549 637 Amortization 172 220 Total deferred tax liabilities 2,258 2,789 Net deferred tax asset $ 375 $ 582 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | March 26, 2023 March 27, 2022 Unrecognized tax benefits, beginning of year $ 403 $ 397 Decreases of tax positions taken in prior years (16 ) (19 ) Increases based on tax positions taken in current year 45 38 Settlements of tax positions taken in prior years - (13 ) Unrecognized tax benefits, end of year $ 432 $ 403 |
Summary of Income Tax Contingencies [Table Text Block] | Jurisdiction Fiscal Year Federal 2020 New York State 2020 New York City 2020 New Jersey 2019 California 2019 |
Note I - Segment Information (T
Note I - Segment Information (Tables) | 12 Months Ended |
Mar. 26, 2023 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | March 26, 2023 March 27, 2022 Revenues Branded Product Program $ 78,884 $ 66,322 Product licensing 33,455 31,824 Restaurant operations 16,453 14,764 Corporate (1) 1,993 1,972 Total revenues $ 130,785 $ 114,882 Income from operations Branded Product Program $ 8,976 $ 6,399 Product licensing 33,273 31,642 Restaurant operations 1,684 312 Corporate (9,488 ) (8,490 ) Income from operations $ 34,445 $ 29,863 Interest expense $ (7,742 ) $ (10,135 ) Loss on debt extinguishment (357 ) (1,354 ) Interest income 440 110 Other income, net 18 52 Income before provision for income taxes $ 26,804 $ 18,536 Total assets Branded Product Program $ 12,033 $ 9,966 Product licensing 3,376 3,179 Restaurant operations 9,296 11,195 Corporate 33,905 54,176 Total assets $ 58,610 $ 78,516 Depreciation & amortization expense Branded Product Program $ 132 $ 163 Restaurant operations 716 561 Corporate 287 330 Total depreciation & amortization expense $ 1,135 $ 1,054 |
Note J - Long-term Debt (Tables
Note J - Long-term Debt (Tables) | 12 Months Ended |
Mar. 26, 2023 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | March 26, March 27, 2023 2022 6.625 $ 80,000 $ 110,000 Less: unamortized debt issuance costs (952 ) (1,817 ) Long-term debt, net $ 79,048 $ 108,183 |
Debt Instrument Redemption [Table Text Block] | YEAR PERCENTAGE On or after November 1, 2021 and prior to November 1, 2022 101.656 % On or after November 1, 2022 100.000 % |
Note K - Leases (Tables)
Note K - Leases (Tables) | 12 Months Ended |
Mar. 26, 2023 | |
Notes Tables | |
Lease, Cost [Table Text Block] | March 26, 2023 March 27, 2022 Operating lease cost $ 1,548 $ 1,553 Variable lease cost 1,614 1,356 Less: Sublease income, net (85 ) (88 ) Total net lease cost $ 3,077 $ 2,821 March 26, 2023 March 27, 2022 Restaurant operating expenses $ 2,416 $ 2,199 General and administrative expenses 746 710 Less: Other income, net (85 ) (88 ) Total net lease cost $ 3,077 $ 2,821 |
Leases, Cash Flows [Table Text Block] | March 26, 2023 March 27, 2022 Operating cash flows from operating leases $ 1,171 $ 1,058 |
Lessee, Operating Leases, Weighted Average Remaining Lease Term and Discount Rate [Table Text Block] | March 26, 2023 March 27, 2022 Weighted average remaining lease term (years): 5.3 6.3 Weighted average discount rate: 8.859 % 8.867 % |
Operating Lease, Maturity [Table Text Block] | Payments Receipts Operating Leases Subleases Net Leases Fiscal year: 2024 $ 1,782 $ 271 $ 1,511 2025 1,687 274 1,413 2026 1,717 278 1,439 2027 1,726 281 1,445 2028 1,573 129 1,444 Thereafter 462 495 (33 ) Total lease commitments $ 8,947 $ 1,728 $ 7,219 Less: Amount representing interest 1,759 Present value of lease liabilities (a) $ 7,188 |
Operating Lease, Lease Income [Table Text Block] | March 26, 2023 March 27, 2022 Operating lease income, net $85 $88 |
Note L - Stockholders' Equity_2
Note L - Stockholders' Equity, Stock Plans and Other Employee Benefit Plans (Tables) | 12 Months Ended |
Mar. 26, 2023 | |
Notes Tables | |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Weighted-average option fair values $13.04 Expected life (years) 4.4 Interest rate 0.82% Volatility 27.69% Dividend yield 2.04% |
Share-Based Payment Arrangement, Cost by Plan [Table Text Block] | March 26, 2023 March 27, 2022 Stock options $ 33 $ 60 Restricted stock units 225 14 $ 258 $ 74 |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Weighted Weighted Average March 26, 2023 Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Life Value Options outstanding – beginning of year 20,000 $ 79.20 2.92 Granted - - Expired - - Exercised - - Options outstanding - end of year 20,000 $ 79.20 1.92 $ 40 Options exercisable - end of year 12,500 $ 85.62 1.05 $ 10 Weighted Weighted Average March 27, 2022 Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Life Value Options outstanding – beginning of year 10,000 $ 89.90 2.46 Granted 10,000 $ 68.50 4.37 Expired - - Exercised - - Options outstanding - end of year 20,000 $ 79.20 2.92 $ - Options exercisable - end of year 10,000 $ 89.90 1.46 $ - |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Weighted Average Grant-date Fair value Shares Per share Unvested restricted stock units at March 27, 2022 - $ - Granted 50,000 $ 67.59 Vested - $ - Unvested restricted stock units at March 26, 2023 50,000 $ 67.59 |
Note A - Description and Orga_2
Note A - Description and Organization of Business (Details Textual) | 12 Months Ended | ||
Mar. 26, 2023 | Mar. 27, 2022 | Mar. 28, 2021 | |
Number of Restaurants | 232 | 239 | |
Franchised Units [Member] | |||
Number of Restaurants | 232 | 239 | 213 |
Number of States in which Entity Operates | 17 | ||
Number of Countries in which Entity Operates | 13 | ||
Virtual Kitchens [Member] | |||
Number of States in which Entity Operates | 19 | ||
Number of Countries in which Entity Operates | 4 | ||
Cost of Product, Increase, Percent | 1.40% |
Note B - Summary of Significa_3
Note B - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Goodwill | $ 95 | $ 95 |
Amortization of Intangible Assets | 174 | 113 |
Long-Term Debt | 80,000 | |
Long-Term Debt, Fair Value | $ 80,080 | |
Maximum Contributions to Advertising Fund Percentage of Net Sales | 2% | |
Advertising Expense | $ 1,988 | 1,997 |
Entity Operated Units [Member] | ||
Advertising Expense | $ 126 | $ 67 |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Branded Product Customer A [Member] | ||
Concentration Risk, Percentage | 23% | 19% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Branded Product Customer B [Member] | ||
Concentration Risk, Percentage | 13% | 14% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Branded Product Customer C [Member] | ||
Concentration Risk, Percentage | 12% | 13% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Branded Product Customer A [Member] | ||
Concentration Risk, Percentage | 18% | 16% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Retail Licensee [Member] | ||
Concentration Risk, Percentage | 24% | 26% |
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Primary Supplier of Hot Dogs [Member] | ||
Concentration Risk, Percentage | 95% | 94% |
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Distributor of Product to Company-owned Restaurants [Member] | ||
Concentration Risk, Percentage | 3% | 4% |
Other Assets [Member] | ||
Deferred Rent Receivables, Net, Noncurrent | $ 29 | $ 35 |
Arthur Treacher’s [Member] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 869 |
Note B - Summary of Significa_4
Note B - Summary of Significant Accounting Policies - Property and Equipment (Details) | Mar. 26, 2023 |
Building and Building Improvements [Member] | Minimum [Member] | |
Property and equipment useful life (Year) | 5 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property and equipment useful life (Year) | 25 years |
Machinery, Equipment, Furniture, and Fixtures [Member] | Minimum [Member] | |
Property and equipment useful life (Year) | 3 years |
Machinery, Equipment, Furniture, and Fixtures [Member] | Maximum [Member] | |
Property and equipment useful life (Year) | 15 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property and equipment useful life (Year) | 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property and equipment useful life (Year) | 20 years |
Note B - Summary of Significa_5
Note B - Summary of Significant Accounting Policies - Annual Amortization of the Intangible Asset (Details) $ in Thousands | Mar. 26, 2023 USD ($) |
Finite-Lived Intangible Asset, Expected Amortization, Year One | $ 174 |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 174 |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 174 |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 174 |
Finite-Lived Intangible Asset, Expected Amortization, Year Five | 173 |
Total | $ 869 |
Note B - Summary of Significa_6
Note B - Summary of Significant Accounting Policies - Summary of Franchise Openings and Closings for the Nathan's Franchise Restaurant System (Details) | 12 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Franchised restaurants operating at the beginning of the period | 239 | |
New franchised restaurants opened during the period | 11 | |
Franchised restaurants closed during the period | (18) | |
Franchised restaurants operating at the end of the period | 232 | 239 |
Franchised Units [Member] | ||
Franchised restaurants operating at the beginning of the period | 239 | 213 |
New franchised restaurants opened during the period | 54 | |
Franchised restaurants closed during the period | (28) | |
Franchised restaurants operating at the end of the period | 232 | 239 |
Note B - Summary of Significa_7
Note B - Summary of Significant Accounting Policies - Remaining Performance Obligations (Details) $ in Thousands | Mar. 26, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Amount | $ 1,608 |
Note B - Summary of Significa_8
Note B - Summary of Significant Accounting Policies - Remaining Performance Obligations 2 (Details) $ in Thousands | Mar. 26, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Amount | $ 1,608 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-03-27 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 336 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 320 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-03-31 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 289 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-03-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 172 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-03-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 78 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-03-27 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 413 |
Note B - Summary of Significa_9
Note B - Summary of Significant Accounting Policies - The Company's Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Revenues | $ 130,785 | $ 114,882 |
Branded Products [Member] | ||
Revenues | 78,884 | 66,322 |
Company-operated Restaurants [Member] | ||
Revenues | 12,161 | 10,905 |
Product [Member] | ||
Revenues | 91,045 | 77,227 |
License [Member] | ||
Revenues | 33,455 | 31,824 |
Royalty [Member] | ||
Revenues | 3,636 | 3,304 |
Franchise [Member] | ||
Revenues | 656 | 555 |
Franchise Fees and Royalties [Member] | ||
Revenues | 4,292 | 3,859 |
Advertising Fund Revenue [Member] | ||
Revenues | 1,993 | 1,972 |
UNITED STATES | ||
Revenues | 124,887 | 111,659 |
Non-US [Member] | ||
Revenues | $ 5,898 | $ 3,223 |
Note C - Income Per Share (Deta
Note C - Income Per Share (Details Textual) - shares | 12 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 10,000 | 20,000 |
Note C - Income Per Share - Ear
Note C - Income Per Share - Earnings Per Share Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Net income, Basic calculation | $ 19,623 | $ 13,596 |
Shares, Basic calculation (in shares) | 4,089,000 | 4,115,000 |
Net income per share, Basic calculation (in dollars per share) | $ 4.80 | $ 3.30 |
Shares, Effect of dilutive employee stock options (in shares) | 1,000 | 0 |
Net income per share, Effect of dilutive employee stock options (in dollars per share) | $ 0 | $ 0 |
Net income, Diluted calculation | $ 19,623 | $ 13,596 |
Shares, Diluted calculation (in shares) | 4,090,000 | 4,115,000 |
Net income per share, Diluted calculation (in dollars per share) | $ 4.80 | $ 3.30 |
Note D - Accounts and Other R_3
Note D - Accounts and Other Receivables, Net (Details Textual) | 12 Months Ended |
Mar. 26, 2023 | |
Accounts Receivable Payment Terms | 30 days |
Note D - Accounts and Other R_4
Note D - Accounts and Other Receivables, Net - Summary of Accounts and Other Receivables (Details) - USD ($) $ in Thousands | Mar. 26, 2023 | Mar. 27, 2022 | Mar. 28, 2021 |
Accounts receivable, gross, current | $ 15,546 | $ 13,632 | |
Less: allowance for doubtful accounts | 480 | 258 | $ 345 |
Accounts and other receivables, net | 15,066 | 13,374 | |
Branded Product Sales [Member] | |||
Accounts receivable, gross, current | 11,106 | 9,318 | |
Franchise and License Royalties [Member] | |||
Accounts receivable, gross, current | 3,817 | 3,923 | |
Other Receivables [Member] | |||
Accounts receivable, gross, current | $ 623 | $ 391 |
Note D - Accounts and Other R_5
Note D - Accounts and Other Receivables, Net - Changes in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Beginning balance | $ 258 | $ 345 |
Bad debt expense | 457 | 186 |
Write offs and other | (235) | (273) |
Ending balance | $ 480 | $ 258 |
Note E - Prepaid Expenses and_3
Note E - Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 26, 2023 | Mar. 27, 2022 |
Income taxes | $ 146 | $ 0 |
Real estate taxes | 78 | 71 |
Insurance | 389 | 327 |
Marketing | 814 | 653 |
Other | 468 | 390 |
Total prepaid expenses and other current assets | $ 1,895 | $ 1,441 |
Note F - Property and Equipme_3
Note F - Property and Equipment, Net (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Property Depreciation and Amortization | $ 961 | $ 941 |
Note F - Property and Equipme_4
Note F - Property and Equipment, Net - Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 26, 2023 | Mar. 27, 2022 |
Land | $ 123 | $ 123 |
Building and improvements | 1,414 | 1,402 |
Machinery, equipment, furniture and fixtures | 5,200 | 5,231 |
Leasehold improvements | 7,392 | 7,261 |
Construction-in-progress | 63 | 112 |
Total property and equipment | 14,192 | 14,129 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment, Ending Balance | 10,871 | 10,344 |
Property and equipment, net | $ 3,321 | $ 3,785 |
Note G - Accrued Expenses and_3
Note G - Accrued Expenses and Other Current Liabilities - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 26, 2023 | Mar. 27, 2022 |
Payroll and other benefits | $ 3,410 | $ 3,109 |
Accrued rebates | 698 | 166 |
Rent and occupancy costs | 70 | 90 |
Construction costs | 0 | 58 |
Interest | 2,143 | 2,968 |
Professional fees | 99 | 129 |
Corporate income taxes | 0 | 103 |
Sales, use and other taxes | 76 | 39 |
Other | 228 | 295 |
Total accrued expenses and other current liabilities | 8,130 | 7,833 |
Deferred Franchise Fees And Other Deferred Revenue [Member] | ||
Deferred revenue | $ 1,406 | $ 876 |
Note H - Income Taxes (Details
Note H - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Effective Income Tax Rate Reconciliation, Percent | 26.80% | 26.70% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 432 | $ 403 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 305 | 271 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 33 | $ 15 |
Note H - Income Taxes - Income
Note H - Income Taxes - Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Federal | ||
Current | $ 5,293 | $ 4,019 |
Deferred | 137 | (380) |
Total Federal income tax | 5,430 | 3,639 |
State and local | ||
Current | 1,681 | 1,365 |
Deferred | 70 | (64) |
Total State and local income tax | 1,751 | 1,301 |
Total provision for income taxes | $ 7,181 | $ 4,940 |
Note H - Income Taxes - Effecti
Note H - Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Income tax provision at the U.S. Federal statutory rate | $ 5,629 | $ 3,893 |
State and local income taxes, net of U.S. Federal income tax benefit | 1,339 | 1,003 |
Change in uncertain tax positions, net | 63 | 33 |
Nondeductible meals and entertainment and other | (45) | (77) |
Nondeductible executive compensation | 195 | 88 |
Total provision for income taxes | $ 7,181 | $ 4,940 |
Note H - Income Taxes - Deferre
Note H - Income Taxes - Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Mar. 26, 2023 | Mar. 27, 2022 |
Deferred tax assets | ||
Accrued expenses | $ 348 | $ 324 |
Allowance for doubtful accounts | 120 | 61 |
Interest expense | 0 | 381 |
Deferred revenue | 402 | 519 |
Deferred stock compensation | 78 | 69 |
Operating lease liability | 1,550 | 1,894 |
Other | 135 | 123 |
Total deferred tax assets | 2,633 | 3,371 |
Deferred tax liabilities | ||
Deductible prepaid expense | 147 | 240 |
Operating lease right-of-use asset | 1,390 | 1,692 |
Depreciation expense | 549 | 637 |
Amortization | 172 | 220 |
Total deferred tax liabilities | 2,258 | 2,789 |
Net deferred tax asset | $ 375 | $ 582 |
Note H - Income Taxes - Reconci
Note H - Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Unrecognized tax benefits, beginning of year | $ 403 | $ 397 |
Decreases of tax positions taken in prior years | (16) | (19) |
Increases based on tax positions taken in current year | 45 | 38 |
Settlements of tax positions taken in prior years | 0 | (13) |
Unrecognized tax benefits, end of year | $ 432 | $ 403 |
Note H - Income Taxes - Summary
Note H - Income Taxes - Summary of Income Tax Examinations (Details) - Earliest Tax Year [Member] | 12 Months Ended |
Mar. 26, 2023 | |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | |
Open tax year | 2020 |
State and Local Jurisdiction [Member] | New York State Division of Taxation and Finance [Member] | |
Open tax year | 2020 |
State and Local Jurisdiction [Member] | New York City Tax Commission [Member] | |
Open tax year | 2020 |
State and Local Jurisdiction [Member] | New Jersey Division of Taxation [Member] | |
Open tax year | 2019 |
State and Local Jurisdiction [Member] | California Franchise Tax Board [Member] | |
Open tax year | 2019 |
Note I - Segment Information -
Note I - Segment Information - Operating Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 26, 2023 | Mar. 27, 2022 | ||
Revenues | $ 130,785 | $ 114,882 | |
Income from operations | 34,445 | 29,863 | |
Interest expense | (7,742) | (10,135) | |
Loss on debt extinguishment | (357) | (1,354) | |
Interest income | 440 | 110 | |
Other income, net | 18 | 52 | |
Income before provision for income taxes | 26,804 | 18,536 | |
Assets | 58,610 | 78,516 | |
Depreciation and amortization | 1,135 | 1,054 | |
Corporate, Non-Segment [Member] | |||
Revenues | [1] | 1,993 | 1,972 |
Income from operations | (9,488) | (8,490) | |
Assets | 33,905 | 54,176 | |
Depreciation and amortization | 287 | 330 | |
Branded Product Program [Member] | Operating Segments [Member] | |||
Revenues | 78,884 | 66,322 | |
Income from operations | 8,976 | 6,399 | |
Assets | 12,033 | 9,966 | |
Depreciation and amortization | 132 | 163 | |
Product Licensing [Member] | Operating Segments [Member] | |||
Revenues | 33,455 | 31,824 | |
Income from operations | 33,273 | 31,642 | |
Assets | 3,376 | 3,179 | |
Restaurant Operations [Member] | Operating Segments [Member] | |||
Revenues | 16,453 | 14,764 | |
Income from operations | 1,684 | 312 | |
Assets | 9,296 | 11,195 | |
Depreciation and amortization | $ 716 | $ 561 | |
[1]Represents advertising fund revenue. |
Note J - Long-term Debt (Detail
Note J - Long-term Debt (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Mar. 21, 2023 | Feb. 14, 2023 | Jan. 26, 2022 | Dec. 15, 2021 | Nov. 01, 2017 | Mar. 26, 2023 | Mar. 27, 2022 | |
Dividends Payable, Amount Per Share | $ 5 | ||||||
Debt Instrument, Fixed Charge Coverage Ratio | 2 | ||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 0 | $ 662 | |||||
Gain (Loss) on Extinguishment of Debt | $ (357) | $ (1,354) | |||||
Senior Notes [Member] | |||||||
Debt Instrument, Priority Secured Leverage Ratio | 0.40 | ||||||
Debt Instrument Secured Leverage Ratio | 3.75 | ||||||
Debt Instrument, Event of Default, Percentage Ownership Enabling the Declaration of Due and Payable | 25% | ||||||
Senior Notes [Member] | In the Event of Chang of Control Offer [Member] | |||||||
Debt Instrument, Redemption Price, Percentage | 101% | ||||||
Senior Notes [Member] | In the Event the Company Sells Certain Assets and Fails to Use the Proceeds as Required [Member] | |||||||
Debt Instrument, Redemption Price, Percentage | 100% | ||||||
Senior Notes [Member] | Senior Secured 2025 Notes [Member] | |||||||
Proceeds from Issuance of Long-Term Debt | $ 150,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | 6.625% | 6.625% | ||||
Long-Term Debt, Gross | $ 30,000 | $ 40,000 | $ 80,000 | $ 110,000 | |||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100% | 101.656% | |||||
Repayments of Long-Term Debt | $ 30,773 | $ 41,288 | |||||
Payment for Debt Extinguishment or Debt Prepayment Cost | 773 | 662 | |||||
Gain (Loss) on Extinguishment of Debt | $ 357 | 1,354 | |||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 626 | ||||||
Deferred Debt Issuance Cost, Writeoff | $ 692 | ||||||
Senior Notes [Member] | Senior Secured 2020 Notes [Member] | |||||||
Proceeds from Issuance of Long-Term Debt | $ 135,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 10% |
Note J - Long-term Debt - Summa
Note J - Long-term Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Mar. 26, 2023 | Feb. 14, 2023 | Mar. 27, 2022 | Dec. 15, 2021 |
Less: unamortized debt issuance costs | $ (952) | $ (1,817) | ||
Long-term debt, net | 79,048 | 108,183 | ||
Senior Secured 2025 Notes [Member] | Senior Notes [Member] | ||||
6.625% Senior Secured Notes due 2025 | $ 80,000 | $ 30,000 | $ 110,000 | $ 40,000 |
Note J - Long-term Debt - Sum_2
Note J - Long-term Debt - Summary of Debt (Details) (Parentheticals) | Mar. 26, 2023 | Mar. 27, 2022 | Nov. 01, 2017 |
Senior Secured 2025 Notes [Member] | Senior Notes [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | 6.625% | 6.625% |
Note J - Long-term Debt - Sum_3
Note J - Long-term Debt - Summary of Redemption Features (Details) | 12 Months Ended |
Mar. 26, 2023 | |
Debt Instrument, Redemption, Period Two [Member] | |
Debt instrument, redemption price, percentage | 101.656% |
Debt Instrument, Redemption, Period Three [Member] | |
Debt instrument, redemption price, percentage | 100% |
Note K - Leases (Details Textua
Note K - Leases (Details Textual) - USD ($) $ in Thousands | Mar. 26, 2023 | Mar. 27, 2022 |
Operating Lease, Liability, Current | $ 1,782 | $ 1,849 |
Operating Lease, Liability, Noncurrent | $ 5,406 | $ 6,487 |
Note K - Leases - Components of
Note K - Leases - Components of Net Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Operating lease cost | $ 1,548 | $ 1,553 |
Total net lease cost | 3,077 | 2,821 |
Variable lease cost | 1,614 | 1,356 |
Less: Sublease income, net | (85) | (88) |
Total net lease cost | 3,077 | 2,821 |
Restaurant Operating Expense [Member] | ||
Total net lease cost | 2,416 | 2,199 |
Total net lease cost | 2,416 | 2,199 |
General and Administrative Expense [Member] | ||
Total net lease cost | 746 | 710 |
Total net lease cost | 746 | 710 |
Other Income [Member] | ||
Less: Sublease income, net | $ (85) | $ (88) |
Note K - Leases - Cash Paid for
Note K - Leases - Cash Paid for Amounts Included in the Measurement of Lease Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Operating cash flows from operating leases | $ 1,171 | $ 1,058 |
Note K - Leases - Weighted Aver
Note K - Leases - Weighted Average Remaining Lease Term and Weighted-average Discount Rate (Details) | Mar. 26, 2023 | Mar. 27, 2022 |
Weighted average remaining lease term (years): (Year) | 5 years 3 months 18 days | 6 years 3 months 18 days |
Weighted average discount rate: | 8.859% | 8.867% |
Note K - Leases - Future Lease
Note K - Leases - Future Lease Commitments to Be Paid and Received (Details) $ in Thousands | Mar. 26, 2023 USD ($) | |
2024, payments operating leases | $ 1,782 | |
2024, receipts subleases | 271 | |
2024, net leases | 1,511 | |
2025, payments operating leases | 1,687 | |
2025, receipts subleases | 274 | |
2025, net leases | 1,413 | |
2026, payments operating leases | 1,717 | |
2026, receipts subleases | 278 | |
2026, net leases | 1,439 | |
2027, payments operating leases | 1,726 | |
2027, receipts subleases | 281 | |
2027, net leases | 1,445 | |
2028, payments operating leases | 1,573 | |
2028, receipts subleases | 129 | |
2028, net leases | 1,444 | |
Thereafter, payments operating leases | 462 | |
Thereafter, receipts subleases | 495 | |
Thereafter, net leases | (33) | |
Total lease commitments, payments operating leases | 8,947 | |
Total lease commitments, receipts subleases | 1,728 | |
Total lease commitments, net leases | 7,219 | |
Less: Amount representing interest | 1,759 | |
Present value of lease liabilities (b) | $ 7,188 | [1] |
[1]The present value of minimum operating lease payments |
Note K - Leases - Components _2
Note K - Leases - Components of Lease Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Operating lease income, net | $ 85 | $ 88 |
Note L - Stockholders' Equity_3
Note L - Stockholders' Equity, Stock Plans and Other Employee Benefit Plans (Details Textual) | 12 Months Ended | |||||||||||||||||
Jun. 08, 2023 $ / shares | Mar. 03, 2023 $ / shares | Dec. 02, 2022 $ / shares | Sep. 02, 2022 $ / shares | Jun. 24, 2022 $ / shares | Jun. 01, 2022 USD ($) | Mar. 04, 2022 $ / shares | Dec. 03, 2021 $ / shares | Sep. 03, 2021 $ / shares | Jun. 25, 2021 $ / shares | Nov. 01, 2012 USD ($) shares | Mar. 26, 2023 USD ($) $ / shares shares | Mar. 27, 2022 USD ($) $ / shares shares | Mar. 29, 2020 | Dec. 31, 2017 | Dec. 31, 2021 USD ($) | Sep. 18, 2019 shares | Mar. 11, 2016 shares | |
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.50 | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.35 | $ 0.35 | $ 0.35 | $ 1.85 | $ 1.50 | ||||||||
Payments of Ordinary Dividends, Common Stock | $ | $ 7,563,000 | $ 6,173,000 | ||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 50,000 | |||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 67.59 | |||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 0 | 10,000 | ||||||||||||||||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | $ 0 | $ 68.50 | ||||||||||||||||
Share-Based Payment Arrangement, Expense, Tax Benefit | $ | $ 0 | $ 5,000 | ||||||||||||||||
Share Based Compensation Total Unamortized Compensation Expense | $ | $ 3,232,000 | |||||||||||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 52 months | |||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ | $ 1,892,000 | |||||||||||||||||
Number of Times of Salary and Bonus Lump Sum Cash Payment | 2.99 | |||||||||||||||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ | $ 35,000 | 35,000 | ||||||||||||||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 20% | |||||||||||||||||
Defined Contribution Plan, Employer Matching Contribution Rate Per Dollar | $ / shares | $ 0.25 | |||||||||||||||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3% | |||||||||||||||||
Multiemployer Plans, Withdrawal Obligation | $ | $ 402,000 | |||||||||||||||||
Multiemployer Plan, Employer Contribution, Cost | $ | $ 9,000 | 6,000 | ||||||||||||||||
Executive Chairman of the Board [Member] | ||||||||||||||||||
Term of Consulting Period Pursuant to the Lorber Employment [Agreement] | 3 years | |||||||||||||||||
Executive Chairman of the Board [Member] | Consulting Fee [Member] | ||||||||||||||||||
Contractual Obligation | $ | $ 200,000 | |||||||||||||||||
Chief Executive Officer [Member] | Base Salary [Member] | ||||||||||||||||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ | $ 625,000 | |||||||||||||||||
Repurchase Program [Member] | ||||||||||||||||||
Treasury Stock, Shares, Acquired | 35,434 | |||||||||||||||||
Shares Acquired, Average Cost Per Share | $ / shares | $ 53.39 | |||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ | $ 1,892 | |||||||||||||||||
Sixth Stock Repurchase Plan [Member] | ||||||||||||||||||
Treasury Stock, Shares, Acquired | 1,101,884 | |||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ | $ 39,000 | |||||||||||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 1,200,000 | |||||||||||||||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 98,116 | |||||||||||||||||
Share-Based Payment Arrangement, Option [Member] | ||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 5 years | |||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 4 years | |||||||||||||||||
Share-Based Payment Arrangement, Option [Member] | Minimum [Member] | ||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 5 years | |||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 3 years | |||||||||||||||||
Share-Based Payment Arrangement, Option [Member] | Maximum [Member] | ||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 10 years | |||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 5 years | |||||||||||||||||
Restricted Stock [Member] | Executive Chairman of the Board [Member] | ||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 50,000 | |||||||||||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 5 years | |||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 5 years | |||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 50,000 | |||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 67.59 | |||||||||||||||||
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 10,000 | |||||||||||||||||
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 10,000 | |||||||||||||||||
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Tranche Three [Member] | ||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 10,000 | |||||||||||||||||
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Tranche Four [Member] | ||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 10,000 | |||||||||||||||||
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Tranche Five [Member] | ||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 10,000 | |||||||||||||||||
The 2019 Stock Incentive Plan [Member] | ||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized | 369,584 | |||||||||||||||||
The 2019 Stock Incentive Plan [Member] | Shares Expired or Forfeited up to 100000 Shares [Member] | ||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant | 11,000 | |||||||||||||||||
The 2019 Stock Incentive Plan [Member] | Share-Based Payment Arrangement, Option [Member] | ||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant | 131,683 | |||||||||||||||||
The 2019 Stock Incentive Plan [Member] | Restricted Stock [Member] | ||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant | 148,584 | |||||||||||||||||
The 2010 Stock Incentive Plan [Member] | ||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant | 208,584 | |||||||||||||||||
Forecast [Member] | ||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.50 |
Note L - Stockholders' Equity_4
Note L - Stockholders' Equity, Stock Plans and Other Employee Benefit Plans - Stock Option Valuation Assumptions (Details) - Share-Based Payment Arrangement, Option [Member] | 12 Months Ended |
Mar. 26, 2023 $ / shares | |
Weighted-average option fair values (in dollars per share) | $ 13.04 |
Expected life (years) (Year) | 4 years 4 months 24 days |
Interest rate | 0.82% |
Volatility | 27.69% |
Dividend yield | 2.04% |
Note L - Stockholders' Equity_5
Note L - Stockholders' Equity, Stock Plans and Other Employee Benefit Plans - Compensation Cost Charged to Expense Under All Stock-based Incentive Awards (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Share-Based Payment Arrangement, Expense | $ 258 | $ 74 |
Share-Based Payment Arrangement, Option [Member] | ||
Share-Based Payment Arrangement, Expense | 33 | 60 |
Restricted Stock Units (RSUs) [Member] | ||
Share-Based Payment Arrangement, Expense | $ 225 | $ 14 |
Note L - Stockholders' Equity_6
Note L - Stockholders' Equity, Stock Plans and Other Employee Benefit Plans - A Summary of the Status of the Company's Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 26, 2023 | Mar. 27, 2022 | Mar. 28, 2021 | |
Options, shares (in shares) | 20,000 | 10,000 | |
Options, weighted average exercise price (in dollars per share) | $ 79.20 | $ 89.90 | |
Options outstanding – beginning of year, weighted average remaining contractual life (Year) | 1 year 11 months 1 day | 2 years 11 months 1 day | 2 years 5 months 15 days |
Granted, shares (in shares) | 0 | 10,000 | |
Granted, weighted average exercise price (in dollars per share) | $ 0 | $ 68.50 | |
Expired, shares (in shares) | 0 | 0 | |
Granted, weighted average remaining contractual life (Year) | 4 years 4 months 13 days | ||
Expired, weighted average exercise price (in dollars per share) | $ 0 | $ 0 | |
Exercised, shares (in shares) | 0 | 0 | |
Exercised, weighted average exercise price (in dollars per share) | $ 0 | $ 0 | |
Options, shares (in shares) | 20,000 | 20,000 | 10,000 |
Options, weighted average exercise price (in dollars per share) | $ 79.20 | $ 79.20 | $ 89.90 |
Options outstanding - aggregate intrinsic value | $ 40 | $ 0 | |
Options exercisable, shares (in shares) | 12,500 | 10,000 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 85.62 | $ 89.90 | |
Options exercisable - weighted average remaining contractual life (Year) | 1 year 18 days | 1 year 5 months 15 days | |
Options exercisable - aggregate intrinsic value | $ 10 | $ 0 |
Note L - Stockholders' Equity_7
Note L - Stockholders' Equity, Stock Plans and Other Employee Benefit Plans - Transactions With Respect to Restricted Stock (Details) | 12 Months Ended |
Mar. 26, 2023 $ / shares shares | |
Unvested, shares (in shares) | shares | 0 |
Unvested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 0 |
Granted, Units (in shares) | shares | 50,000 |
Granted, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 67.59 |
Vested, shares (in shares) | shares | 0 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 0 |
Unvested, shares (in shares) | shares | 50,000 |
unvested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 67.59 |
Note N - Related Party Transa_2
Note N - Related Party Transactions (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Firm where Lorber Serves as Consultant [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 18 | $ 27 |