XML 33 R19.htm IDEA: XBRL DOCUMENT v3.25.2

Income Taxes

12 Months Ended

Aug. 01, 2025

Income Taxes

Income Taxes

​

​

12. Income Taxes

The components of the provision for income taxes (income tax benefit) for each of the three years were as follows:

​

​	​	​	​	​	​	​	​	​	​
​		2025			2024			2023
Current:		​			​			​
Federal	​	$	3,655	​	$	(10,448)	​	$	6,925
State	​		2,727	​		247	​		3,573
Deferred:	​			​			​
Federal	​		(14,275)	​		(3,526)	​		(4,902)
State	​		(760)	​		(3,017)	​		(1,035)
Total provision for income taxes (income tax benefit)	​	$	(8,653)	​	$	(16,744)	​	$	4,561

​

A reconciliation of the Company’s provision for income taxes (income tax benefit) and income taxes based on the statutory U.S. federal rate of 21.0% in 2025, 2024 and 2023 was as follows:

​

​	​	​	​	​	​	​	​	​	​
​		2025			2024			2023
Provision computed at federal statutory income tax rate	​	$	7,922	​	$	5,079	​	$	21,758
State and local income taxes, net of federal benefit	​		2,148	​		874	​		2,069
Employer tax credits for FICA taxes paid on employee tip income	​		(17,769)	​		(16,926)	​		(16,772)
Other employer tax credits	​		(3,002)	​		(3,476)	​		(3,673)
Tax audit settlement	​		(299)	​		(2,718)	​		—
Carryback of federal tax credits	​	​	(1,040)	​	​	(1,545)	​	​	—
Non-deductible executive compensation	​	​	1,879	​	​	1,254	​	​	936
Share-based compensation	​	​	599	​	​	548	​	​	338
Other-net	​		909	​		166	​		(95)
Total provision for income taxes (income tax benefit)	​	$	(8,653)	​	$	(16,744)	​	$	4,561

​

The Company’s income tax benefit decreased in 2025 primarily due to the increase in income before income taxes and fewer favorable audit settlements as compared to 2024. The decrease in the Company’s provision for income taxes (income tax benefit) in 2024 as compared to 2023 is primarily due to the decrease in income before income taxes and favorable audit settlements in 2024.

H.R.1., also known as the One Big Beautiful Bill Act (OBBBA), was enacted on July 4, 2025. The OBBBA includes significant tax law changes with effective dates in 2025 and continuing through 2027. The provisions effective during 2025 did not have a material impact on the Company’s 2025 financial statements.

​

Significant components of the Company’s net deferred tax liability consisted of the following at:

​

​	​	​	​	​	​	​
​		August 01, 2025			August 02, 2024
Deferred tax assets:		​			​
Compensation and employee benefits	​	$	7,054	​	$	5,677
Accrued liabilities	​		12,728	​		14,202
Operating lease liabilities	​		173,396	​		181,094
Insurance reserves	​		9,304	​		8,760
Inventory	​		3,816	​		3,515
Deferred tax credits and carryforwards	​		52,035	​		33,979
Other	​		5,064	​		7,132
Deferred tax assets	​	$	263,397	​	$	254,359
​	​	​	​	​	​	​
Deferred tax liabilities:	​			​
Property and equipment	​	$	95,793	​	$	97,014
Inventory	​		6,502	​		6,217
Operating lease right-of-use asset	​		201,118	​		211,826
Other	​		8,575	​		7,014
Deferred tax liabilities	​		311,988	​		322,071
Net deferred tax liability	​	$	48,591	​	$	67,712

​

The Company has a deferred tax asset of $28,556 reflecting federal income tax credit carryforwards that expire in 2044. The Company has state income tax net operating loss carryforwards (“NOL”) of $110,534 and has recorded a deferred tax asset of $5,737 reflecting this benefit. These state NOLs generally expire in years beginning 2037 and after.

The Company believes that adequate amounts of tax, interest and penalties have been provided for potential tax uncertainties; these amounts are included in other long-term liabilities in the Consolidated Balance Sheets. As of August 01, 2025 and August 02, 2024, the Company’s gross liability for uncertain tax positions, exclusive of interest and penalties, was $6,703 and $7,404, respectively.

Summarized below is a tabular reconciliation of the beginning and ending balance of the Company’s total gross liability for uncertain tax positions exclusive of interest and penalties:

​

​	​	​	​	​	​	​	​	​	​
​		August 01, 2025			August 02, 2024			July 28, 2023
Balance at beginning of year	​	$	7,404	​	$	9,675	​	$	10,858
Tax positions related to the current year:	​		​	​	​	​	​	​	​
Additions	​	​	470	​		276	​		710
Reductions	​		—	​		—	​		—
Tax positions related to the prior year:	​		​	​	​	​	​	​	​
Additions	​	​	19	​		43	​		52
Reductions	​		(40)	​		(674)	​		(298)
Settlements	​		(580)	​		(1,433)	​		—
Expiration of statute of limitations	​		(570)	​		(483)	​		(1,647)
Balance at end of year	​	$	6,703	​	$	7,404	​	$	9,675

​

If the Company were to prevail on all uncertain tax positions, the reversal of this accrual would be a tax benefit to the Company and impact the effective tax rate. The following table highlights the amount of uncertain tax positions, exclusive of interest and penalties, which, if recognized, would affect the effective tax rate for each of the three years:

​

​	​	​	​	​	​	​	​	​	​
​		2025			2024			2023
Uncertain tax positions	​	$	5,296	​	$	5,849	​	$	7,644

​

The Company had $8,672, $7,913, and $7,896 in interest and penalties accrued as of August 01, 2025, August 02, 2024, and July 28, 2023, respectively.

The Company recognized accrued interest and penalties related to unrecognized tax benefits of $760, $17 and $764 in its provision for income taxes (income tax benefit) on August 01, 2025, August 02, 2024 and July 28, 2023, respectively.

In many cases, the Company’s uncertain tax positions are related to tax years that remain subject to examination by the relevant taxing authorities. Based on the outcome of these examinations or as a result of the expiration of the statutes of limitations for specific taxing jurisdictions, it is reasonably possible that the related uncertain tax positions taken regarding previously filed tax returns could decrease from those recorded as liabilities for uncertain tax positions in the Company’s financial statements at August 01, 2025 by approximately $300 to $1,200 within the next twelve months. At August 01, 2025, the Company was subject to income tax examinations for its U.S. federal income taxes after 2018 and for state and local income taxes generally after 2019.

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