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Leases | 6 Months Ended
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Jun. 15, 2025
Leases [Abstract] |
Leases | 8. Leases The Company leases certain retail store and supply chain center locations, vehicles, equipment and its corporate headquarters with expiration dates through 2045. Rent expense totaled $22.3 million and $44.1 million in the second quarter and two fiscal quarters of 2025, respectively. Rent expense totaled $21.0 million and $42.2 million in the second quarter and two fiscal quarters of 2024, respectively. Rent expense includes operating lease cost, as well as expense for non-lease components including common area maintenance, real estate taxes and insurance for the Company’s real estate leases. Rent expense also includes the variable rate per mile driven and fixed maintenance charges for the Company’s supply chain center tractors and trailers and expense for short-term rentals. Rent expense for certain short-term supply chain center tractor and trailer rentals was $1.6 million and $3.6 million in the second quarter and two fiscal quarters of 2025, respectively. Rent expense for certain short-term supply chain center tractor and trailer rentals was $1.9 million and $3.9 million in the second quarter and two fiscal quarters of 2024, respectively. Variable rent expense and rent expense for other short-term leases were immaterial in both the second quarter and two fiscal quarters of 2025 and 2024. The components of operating and finance lease cost for the second quarters and two fiscal quarters of 2025 and 2024 were as follows:
|  | Fiscal Quarter Ended |  |  | Two Fiscal Quarters Ended |
|  | June 15, |  |  | June 16, |  |  | June 15, |  |  | June 16, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Operating lease cost |  | $ | 12,110 |  |  | $ | 11,462 |  |  | $ | 24,222 |  |  | $ | 22,715 |
Finance lease cost: |  |  |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  | 1,240 |  |  |  | 1,322 |  |  |  | 2,498 |  |  |  | 2,646 |
Interest on lease liabilities |  |  | 856 |  |  |  | 973 |  |  |  | 1,727 |  |  |  | 1,957 |
Total finance lease cost |  | $ | 2,096 |  |  | $ | 2,295 |  |  | $ | 4,225 |  |  | $ | 4,603 |
Supplemental cash flow information related to leases for the two fiscal quarters of 2025 and 2024 were as follows:
|  | Two Fiscal Quarters Ended |
|  | June 15, |  |  | June 16, |
|  | 2025 |  |  | 2024 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 22,476 |  |  | $ | 21,736 |
Operating cash flows from finance leases |  |  | 1,727 |  |  |  | 1,957 |
Financing cash flows from finance leases |  |  | 1,822 |  |  |  | 1,853 |
Cash paid for amounts included in the measurement of financing obligation from sale leaseback: |  |  |  |  |  |
Operating cash flows from sale leaseback |  |  | 495 |  |  |  | 598 |
Financing cash flows from sale leaseback |  |  | 39 |  |  |  | 36 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |
Operating leases |  |  | 35,668 |  |  |  | 26,469 |
Finance leases |  |  | — |  |  |  | 1,296 |
As of June 15, 2025, the Company had additional leases for certain supply chain real estate and certain supply chain vehicles that had not yet commenced with estimated future minimum rental commitments of $155.7 million. These leases are expected to commence in 2025 and 2026 with lease terms of up to 20 years. These undiscounted amounts will be included in the Company’s condensed consolidated balance sheet at the respective commencement dates. The Company has guaranteed lease payments related to certain franchisees’ lease arrangements. The maximum amount of potential future payments under these guarantees was $15.7 million and $12.8 million as of June 15, 2025 and December 29, 2024, respectively. The Company does not believe these arrangements have had or are likely to have a material effect on its results of operations, financial condition, revenues, expenses or liquidity.

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