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LEASES
 12 Months Ended
Jun. 26, 2016
LEASES  
LEASES

NOTE F - LEASES:

 

Premises occupied by Company-owned restaurants are leased for initial terms of five to ten years, and each has multiple renewal terms.  Certain lease agreements contain either a provision requiring additional rent if sales exceed specified amounts or an escalation clause based upon a predetermined multiple.

 

In fiscal 2007, the Company sold its corporate office building and distribution facility located at 3551 Plano Parkway, The Colony, Texas, and entered into  a ten-year lease agreement for the corporate office building.  This lease expires December 19, 2016.  The Company is in discussion with the landlord to extend its lease, and is also evaluating alternative options.

 

Future minimum rental payments under non-cancelable leases, net of subleases, with initial or remaining terms of one year or more at June 26, 2016 were as follows (in thousands):

 

 

 

Operating

 

 

 

Leases

 

 

 

 

 

2017

 

$

3,346

 

2018

 

 

3,050

 

2019

 

 

2,951

 

2020

 

 

2,899

 

2021

 

 

2,892

 

Thereafter

 

 

10,296

 

 

 

$

25,434

 

Rental expense consisted of the following (in thousands):

 

 

Fiscal Year Ended

 

 

 

June 26,

 

 

June 28,

 

 

 

2016

 

 

2015

 

 

 

 

 

 

 

 

Minimum rentals

 

$

3,090

 

 

$

1,666

 

Sublease rentals

 

 

(257

)

 

 

(221

)

 

 

$

2,833

 

 

$

1,445