XML 39 R25.htm IDEA: XBRL DOCUMENT v3.25.4

Income Taxes

12 Months Ended

Dec. 30, 2025

Income Taxes

Income Taxes

17.   Income Taxes

In fiscal 2025, we adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, on a prospective basis. Certain disclosures for fiscal 2025 reflect the new requirements. Prior year disclosures are presented under previous guidance.

The components of income before income taxes and provision for income taxes pursuant to the disclosure requirements of ASU 2023-09 for year ended December 30, 2025 consisted of the following (in thousands):

​	​	​	​
​	​ ​ ​	2025
​	​	​	​
United States	​	$	141,641
Foreign	​		21,254
Income before income taxes	​	$	162,895
​	​	​	​
Income tax provision/(benefit):	​		​
Current:	​		​
Federal	​	$	10,083
State	​		8,955
Foreign	​		2,135
Total current	​		21,173
Deferred:	​		​
Federal	​		(6,917)
State	​		212
Total deferred	​		(6,705)
Total provision:	​	​	​
Federal	​	​	3,166
State	​	​	9,167
Foreign	​	​	2,135
Total provision	​	$	14,468

​

The provision for income taxes for fiscal 2024 and 2023 consisted of the following (in thousands):

​

​	​	​	​	​	​	​
​	​ ​ ​	2024		​ ​ ​	2023
​	​	​	​	​	​	​
Income before income taxes	​	$	171,047	​	$	100,014
Income tax provision/(benefit):	​	​	​	​	​	​
Current:	​	​	​	​	​	​
Federal	​	$	10,638	​	$	7,183
State	​		9,688	​		7,195
Total current	​		20,326	​		14,378
Deferred:	​	​	​	​	​	​
Federal	​		(7,542)	​		(15,329)
State	​		1,480	​		(386)
Total deferred	​		(6,062)	​		(15,715)
Total provision/(benefit)	​	$	14,264	​	$	(1,337)

​

The following reconciles the U.S. federal statutory rate to the effective tax rate for fiscal 2025 pursuant to the disclosure requirement of ASU 2023-09 for year ended December 30, 2025 (in thousands, except percentages):

​	​	​	​	​	​	​
​	​ ​ ​	Amount		​ ​ ​	Percent
​	​	​	​	​	​	​
U.S. federal statutory rate	​	$	34,207		21.0	%
Domestic federal	​		​		​	​
Tax Credits	​		​		​	​
Credit for FICA taxes paid on tips	​		(35,550)		(21.8)	​
Foreign tax credit	​		(1,835)		(1.1)	​
Other	​		(1,809)		(1.1)	​
Nontaxable or nondeductible items	​		​		​	​
FICA taxes paid on tips subject to tax credit	​		7,466		4.6	​
Non-deductible executive compensation	​		3,214		2.0	​
Gain on investments used to fund deferred compensation	​		(2,957)		(1.8)	​
Loss on debt extinguishment	​		2,681		1.7	​
Other	​		718		0.4	​
Other	​		​		​	​
Equity compensation	​		(1,759)		(1.1)	​
Other	​		(964)		(0.6)	​
Domestic state and local income taxes, net of federal benefit (1)	​		7,242		4.4	​
Foreign tax effects	​		2,135		1.3	​
Changes in unrecognized tax benefits	​		1,679		1.0	​
Effective tax rate	​	$	14,468		8.9	%

(1) State taxes in California, Arizona and New Jersey made up the majority (greater than 50%) of the tax effect in this category.

The following reconciles the U.S. federal statutory rate to the effective tax rate for fiscal 2024 and 2023:

​

​	​	​	​	​	​
​	​ ​ ​	Fiscal Year
​	​ ​ ​	2024	​ ​ ​	2023
​	​	​	​	​	​
U.S. federal statutory rate		21.0	%	21.0	%
State and district income taxes, net of federal benefit		5.0	​	5.4	​
Credit for FICA taxes paid on tips		(16.3)	​	(24.9)	​
Other credits and incentives		(1.0)	​	(2.2)	​
Deferred compensation		(1.6)	​	(2.4)	​
Equity compensation	​	1.2	​	1.5	​
Uncertain tax positions	​	(0.9)	​	(0.7)	​
Non-deductible executive compensation	​	1.0	​	0.8	​
Other		(0.1)	​	0.2	​
Effective tax rate		8.3	%	(1.3)	%

​

Following are the temporary differences that created our deferred tax assets and liabilities (in thousands):

​

​	​	​	​	​	​	​
​	​ ​ ​	December 30, 2025		​ ​ ​	December 31, 2024
Deferred tax assets:	​	​	​	​	​	​
Staff member benefits	​	$	44,656	​	$	40,500
Insurance reserves	​		15,949	​		15,244
Operating lease liability	​	​	344,123	​	​	335,034
Deferred income	​		36,874	​		39,248
Tax credit carryforwards	​		92,195	​		79,933
Goodwill	​		23,074	​		21,393
Stock-based compensation	​	​	9,304	​	​	10,788
State and foreign net operating loss carryforwards	​	​	1,215	​	​	1,331
Other	​	​	922	​	​	867
Subtotal	​		568,312	​		544,338
Less: Valuation allowance	​		(477)	​		(601)
Total	​	$	567,835	​	$	543,737
​	​	​	​	​	​	​
Deferred tax liabilities:	​	​	​	​	​	​
Property and equipment	​	$	(139,097)	​	$	(129,504)
Prepaid expenses	​		(8,499)	​		(8,435)
Inventory	​		(10,055)	​		(9,194)
Accrued rent	​	​	(5,865)	​	​	(5,867)
Operating lease asset	​	​	(298,662)	​	​	(291,991)
Other	​	​	(1,058)	​	​	(896)
Total	​	$	(463,236)	​	$	(445,887)
​	​	​	​	​	​	​
Net deferred tax asset	​	$	104,599	​	$	97,850

​

Following is a summary of income taxes paid, net of refunds by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 30, 2025 (in thousands):

​	​	​	​
​	​ ​ ​	Fiscal Year 2025
​	​	​	​
U.S. federal	​	$	10,333
U.S. state and local	​		​
California	​	​	3,138
Other	​		7,068
Total U.S. state and local	​		10,206
Foreign	​		2,240
Total income tax paid, net of refunds	​	$	22,779

​

At December 30, 2025 and December 31, 2024, we had $92.1 million and $79.8 million, respectively of U.S. federal credit carryforwards which begin to expire in 2043 and $0.1 million and $0.2 million, respectively, of state hiring and investment credits which begin to expire in 2028. At December 30, 2025 and December 31, 2024, we had $1.5 million and $1.9 million, respectively of foreign net operating loss carryforwards which begin to expire in 2037 and $23.9 million and $23.7 million, respectively, of state net operating loss carryforwards with statutory carryforward periods ranging from 5 years to no expiration period. The earliest year that a material state net operating loss will expire is 2032.

We assess the available evidence to estimate if these carryforwards and our other deferred tax assets will be realized. We concluded that a substantial portion of our deferred tax assets are more likely than not to be realized by reversals of existing taxable temporary differences and that forecasted future taxable income, exclusive of reversing temporary differences, will result in realization of a substantial portion of the remainder. We did not need to consider tax planning strategies in this analysis. Based on this evaluation, at December 30, 2025 and December 31, 2024 we carried a valuation allowance of $0.5 million and $0.6 million, respectively, to reflect the amount that we will likely not realize. This assessment could change if estimates of future taxable income during the carryforward period are revised. The earliest tax year still subject to examination by a significant taxing jurisdiction is 2015.

​

At December 30, 2025, we had a reserve of $5.0 million for uncertain tax positions, all of which would favorably impact our effective income tax rate if resolved in our favor. A reconciliation of the beginning and ending amount of our uncertain tax positions is as follows (in thousands):

​

​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	Fiscal Year
​	​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023
​	​	​	​	​	​	​	​	​	​
Balance at beginning of year	​	$	3,396	​	$	3,847	​	$	3,787
Additions/(reductions) related to prior year tax positions	​	​	1,497	​	​	(419)	​	​	181
Additions/(reductions) related to current period tax positions	​		68	​		(32)	​		(121)
Additions/(reductions) related to settlements with taxing authorities	​		—	​		—	​		—
Balance at end of year	​	$	4,961	​	$	3,396	​	$	3,847

​

At December 30, 2025 and December 31, 2024, we had $0.3 million and $0.1 million, respectively, of accrued interest and penalties related to uncertain tax positions.

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 740
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477617/942-740-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 740
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478822/944-740-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477891/740-270-50-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-13

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/740/tableOfContent

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-14

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-21

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-17

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

Name:	us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration