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Leases | 9 Months Ended
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Sep. 28, 2025
Leases [Abstract] |
Leases, Company as Lessee | Leases Nature of Leases The Company operates restaurants that are located on sites owned by us and sites leased by us from third parties. In addition, the Company owns sites and leases sites from third parties, which it leases and/or subleases to franchisees. The Company also leases restaurant, office and transportation equipment. As of September 28, 2025, the nature of restaurants operated by the Company and its franchisees was as follows:
| September 28, 2025
Company-operated restaurants: |
Owned land and building | 155
Owned building and held long-term land leases | 141
Leased land and building | 139
Total Company-operated restaurants | 435
Franchisee-operated restaurants: |
Company-owned properties leased to franchisees | 490
Company-leased properties subleased to franchisees | 1,149
Other franchisee-operated restaurants | 5,289
Total franchisee-operated restaurants | 6,928
Total Company-operated and franchisee-operated restaurants | 7,363
Company as Lessee The components of lease cost are as follows:
| Three Months Ended |  | Nine Months Ended
| September 28, 2025 |  | September 29, 2024 |  | September 28, 2025 |  | September 29, 2024
Finance lease cost: |  |  |  |  |  |  |
Amortization of finance lease assets | $ | 5,070 |  |  | $ | 4,779 |  |  | $ | 15,100 |  |  | $ | 13,448 |
Interest on finance lease liabilities | 11,142 |  |  | 10,921 |  |  | 32,884 |  |  | 32,278 |
| 16,212 |  |  | 15,700 |  |  | 47,984 |  |  | 45,726 |
Operating lease cost | 19,704 |  |  | 21,496 |  |  | 61,543 |  |  | 64,721 |
Variable lease cost (a) | 17,190 |  |  | 17,087 |  |  | 50,672 |  |  | 50,940 |
Short-term lease cost | 1,284 |  |  | 1,478 |  |  | 3,854 |  |  | 4,098 |
Total operating lease cost (b) | 38,178 |  |  | 40,061 |  |  | 116,069 |  |  | 119,759 |
Total lease cost | $ | 54,390 |  |  | $ | 55,761 |  |  | $ | 164,053 |  |  | $ | 165,485 |
_______________ (a)Includes expenses for executory costs of $10,367 and $10,108 for the three months ended September 28, 2025 and September 29, 2024, respectively, and $31,339 and $30,362 for the nine months ended September 28, 2025 and September 29, 2024, respectively, for which the Company is reimbursed by sublessees. (b)Includes $30,899 and $32,197 for the three months ended September 28, 2025 and September 29, 2024, respectively, and $94,120 and $96,270 for the nine months ended September 28, 2025 and September 29, 2024, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $6,886 and $7,299 for the three months ended September 28, 2025 and September 29, 2024, respectively, and $20,773 and $22,089 for the nine months ended September 28, 2025 and September 29, 2024, respectively, recorded to “Cost of sales” for leases for Company-operated restaurants.
Leases, Company as Lessor | Company as Lessor The components of lease income are as follows:
| Three Months Ended |  | Nine Months Ended
| September 28, 2025 |  | September 29, 2024 |  | September 28, 2025 |  | September 29, 2024
Sales-type and direct-financing leases: |  |  |  |  |  |  |
Selling profit | $ | 95 |  |  | $ | 67 |  |  | $ | 118 |  |  | $ | 139 |
Interest income (a) | 6,845 |  |  | 7,110 |  |  | 20,703 |  |  | 22,007 |
Operating lease income | 39,511 |  |  | 41,882 |  |  | 124,399 |  |  | 126,329 |
Variable lease income | 17,828 |  |  | 17,432 |  |  | 51,805 |  |  | 51,609 |
Franchise rental income (b) | $ | 57,339 |  |  | $ | 59,314 |  |  | $ | 176,204 |  |  | $ | 177,938 |
_______________ (a)Included in “Interest expense, net.” (b)Includes sublease income of $41,548 and $43,698 recognized during the three months ended September 28, 2025 and September 29, 2024, respectively, and $128,999 and $131,530 for the nine months ended September 28, 2025 and September 29, 2024, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $10,439 and $10,112 for the three months ended September 28, 2025 and September 29, 2024, respectively, and $31,148 and $30,356 for the nine months ended September 28, 2025 and September 29, 2024, respectively.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-30/tableOfContent + Details
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