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LEASES
 12 Months Ended
Jun. 25, 2025
Leases [Abstract]  
LEASES
As of June 25, 2025, 1,108 of our 1,162 Company-owned restaurant facilities were leased. We typically lease our restaurant facilities through ground leases (where we lease land only, but construct the building and leasehold improvements) or retail leases (where we lease the land/retail space and building, but construct the leasehold improvements). As of June 25, 2025, the restaurant leases have cumulative renewal clauses of 3 to 40 years at our option. Our leased restaurants typically have an initial lease term of 10 to 20 years, with one or more renewal terms ranging from 3 to 10 years. The leases typically provide for a fixed rental or a fixed rental plus percentage rentals based on sales volume. In addition to our restaurant facilities, we also lease our corporate headquarters location and certain equipment. Our lease agreements do not contain any material residual value guarantees or material covenant restrictions.
Consolidated Balance Sheet Disclosure of Lease Amounts
The following table includes a detail of lease assets and liabilities included in the Consolidated Balance Sheets:
June 25, 2025
Finance
Leases(1)
Operating
Leases(2)
Total Leases
Lease assets$85.8 $1,149.1 $1,234.9 
Current lease liabilities17.6 114.6 132.2 
Long-term lease liabilities80.0 1,135.3 1,215.3 
Total lease liabilities$97.6 $1,249.9 $1,347.5 
June 26, 2024
Finance
Leases(1)
Operating
Leases(2)
Total Leases
Lease assets$93.4 $1,095.2 $1,188.6 
Current lease liabilities14.1 114.1 128.2 
Long-term lease liabilities91.3 1,084.5 1,175.8 
Total lease liabilities$105.4 $1,198.6 $1,304.0 
(1)Finance lease assets are recorded in Property and equipment, at cost, and the related current and long-term lease liabilities are recorded within Other accrued liabilities and Long-term debt and finance leases, less current installments, respectively.
(2)Operating lease assets are recorded in Operating lease assets and the related current and long-term lease liabilities are recorded within Operating lease liabilities and Long-term operating lease liabilities, less current portion, respectively.
Consolidated Statement of Comprehensive Income Disclosure of Lease Amounts
The components of lease expenses, including variable lease costs primarily consisting of rent based on a percentage of sales, common area maintenance and real estate tax charges, and short-term lease expenses for leases with lease terms less than twelve months are included in the Consolidated Statements of Comprehensive Income as follows:
Fiscal Years Ended
June 25, 2025June 26, 2024June 28, 2023
Operating lease cost$183.9 $182.5 $181.0 
Finance lease amortization25.6 14.0 19.7 
Finance lease interest6.2 4.2 4.1 
Short-term lease cost0.9 0.3 0.3 
Variable lease cost70.7 63.4 63.5 
Sublease income(1.5)(1.2)(2.8)
Total lease costs, net$285.8 $263.2 $265.8 
Consolidated Statement of Cash Flows Disclosure of Lease Amounts
Supplemental cash flow information related to leases recorded in the Consolidated Statements of Cash Flows is as follows:
Fiscal Years Ended
June 25, 2025June 26, 2024June 28, 2023
Cash flows from operating activities
Cash paid related to lease liabilities
Operating leases
$189.4 $186.3 $184.3 
Finance leases6.2 4.2 4.1 
Cash flows from financing activities
Cash paid related to lease liabilities
Finance leases25.6 20.1 22.1 
Non-cash lease assets obtained in exchange for lease liabilities
Operating leases
167.5 82.6 101.7 
Finance leases17.9 53.7 0.3 
Weighted Average Lease Term and Discount Rate
Other information related to leases is as follows:
Fiscal Years Ended
June 25, 2025June 26, 2024
Finance LeasesOperating LeasesFinance LeasesOperating Leases
Weighted average remaining lease term6.3 years11.3 years7.4 years11.6 years
Weighted average discount rate5.9 %6.1 %5.9 %6.0 %
Lease Maturity Analysis
Finance leases and Operating leases total future lease payments represent the contractual obligations due under the lease agreements, including cancellable option periods where we are reasonably assured to exercise the options. As of June 25, 2025, the future minimum lease payments on finance and operating leases, as well as sublease income were as follows:
June 25, 2025
Fiscal YearFinance LeasesOperating LeasesSublease Income
2026$22.7 $186.1 $0.9 
202728.5 175.7 0.7 
202824.0 158.4 0.5 
20298.9 150.4 0.4 
20305.6 145.9 0.2 
Thereafter27.9 952.4 0.7 
Total future lease payments117.6 1,768.9 $3.4 
Less: Imputed interest20.0 519.0 
Present value of lease liability$97.6 $1,249.9 
Pre-Commencement Leases
In fiscal 2025, we executed 3 real estate leases for new or relocated Chili’s and Maggiano’s locations with undiscounted fixed payments over the initial term of $30.5 million. These leases will commence when the landlords make the property available to us for new restaurant construction. We will assess the reasonably certain lease term at the lease commencement date.