XML 38 R23.htm IDEA: XBRL DOCUMENT v3.25.4
Restaurant Transactions
 12 Months Ended
Dec. 27, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Restaurant Transactions
(16)Restaurant Transactions
The Company acquired five restaurants from franchisees during the fiscal year ended December 27, 2025, four restaurants from franchisees during the fiscal year ended December 28, 2024, and three restaurants from franchisees during the fiscal year ended December 30, 2023. The total purchase prices are reflected in the table below and were all funded by cash flows from operations.
The following table summarizes the allocations of the purchase prices to the estimated fair values of assets acquired and liabilities assumed as a result of these acquisitions (in thousands):
Fiscal Year
December 27, 2025December 28, 2024December 30, 2023
Working capital$82 $44 $— 
Property and equipment193 253 217 
Reacquired franchise rights9,100 6,710 5,330 
Goodwill9,157 7,041 5,285 
Total purchase price$18,532 $14,048 $10,832 
The results of operations of these restaurants are included in the Consolidated Statements of Comprehensive Income since the date of acquisition. The acquisitions were accounted for as business combinations.
The excess of the purchase price over the aggregate fair value of assets acquired was allocated to goodwill and is attributable to the benefits expected as a result of the acquisition, including sales and growth opportunities. All of the goodwill from the acquisitions is expected to be deductible for federal income tax purposes.
Pro-forma financial information of the combined entities is not presented due to the immaterial impact of the financial results of the acquired restaurants on our consolidated financial statements.
The fair value measurement of tangible and intangible assets and liabilities as of the acquisition date is based on significant inputs not observed in the market and thus represents a Level 3 fair value measurement. Fair value measurements for reacquired franchise rights were determined using the income approach. Fair value measurements for property and equipment were determined using the cost approach.
During fiscal year 2024, the Company completed the sale of seven company-owned restaurants in the New York market to a
franchisee for aggregate proceeds of $4.0 million. In connection with the sale of the restaurants, the Company recorded a
$1.0 million pre-tax gain on the sale of the related assets and liabilities, which was net of a $31,000 reduction in goodwill. The
net gain on these restaurant sales was recorded in (Gain) loss on disposal of assets in the Consolidated
Statements of Comprehensive Income.