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Lease Assets and Obligations | 6 Months Ended
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Jun. 30, 2025
Leases [Abstract] |
Lease Assets and Obligations | Lease Assets and Obligations Lease obligations include the following.
Current portion of lease obligations | June 30, 2025 |  | December 31, 2024
Finance lease liabilities | $ | 1,333 |  |  | $ | 1,250 |
Finance obligations | 4,709 |  |  | 4,664 |
Operating lease liabilities | 9,012 |  |  | 8,535 |
Total current portion of lease obligations | $ | 15,054 |  |  | $ | 14,449 |
Long-term lease obligations |  |  |
Finance lease liabilities | $ | 3,873 |  |  | $ | 2,747 |
Finance obligations | 58,991 |  |  | 60,386 |
Operating lease liabilities | 28,520 |  |  | 27,606 |
Total long-term lease obligations | $ | 91,384 |  |  | $ | 90,739 |
Nature of Leases Steak n Shake and Western Sizzlin operate restaurants that are located on sites owned by us or leased from third parties. In addition, they own sites and lease sites from third parties that are leased and/or subleased to franchisees. Lease Costs A significant portion of our operating and finance lease portfolio includes restaurant locations. We recognize fixed lease expense for operating leases on a straight-line basis over the lease term. For finance leases, we recognize amortization expense on the right-of-use asset and interest expense on the lease liability over the lease term. Total lease cost consists of the following.
| Second Quarter |  | First Six Months |  |
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |  |  |
Finance lease costs: |  |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets | $ | 226 |  |  | $ | 221 |  |  | $ | 439 |  |  | $ | 447 |  |  |  |  |
Interest on lease liabilities | 87 |  |  | 83 |  |  | 161 |  |  | 167 |  |  |  |  |
Operating and variable lease costs | 2,862 |  |  | 2,948 |  |  | 5,798 |  |  | 5,777 |  |  |  |  |
Sublease income | (2,512) |  |  | (2,986) |  |  | (5,120) |  |  | (5,975) |  |  |  |  |
Total lease costs | $ | 663 |  |  | $ | 266 |  |  | $ | 1,278 |  |  | $ | 416 |  |  |  |  |
Supplemental cash flow information related to leases is as follows.
| First Six Months
| 2025 |  | 2024
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Financing cash flows from finance leases | $ | 625 |  |  | $ | 621 |
Operating cash flows from finance leases | $ | 161 |  |  | $ | 167 |
Operating cash flows from operating leases | $ | 5,410 |  |  | $ | 5,409 |
Supplemental balance sheet information related to leases is as follows.
| June 30, 2025 |  | December 31, 2024
Finance leases: |  |  |
Property and equipment, net | $ | 4,334 |  |  | $ | 2,980 |
Weighted-average lease terms and discount rates are as follows.
| June 30, 2025
Weighted-average remaining lease terms: |
Finance leases | 5.97 years
Operating leases | 6.44 years
Weighted-average discount rates: |
Finance leases | 7.0 | %
Operating leases | 7.0 | %
Maturities of lease liabilities as of June 30, 2025 are as follows.
Year |  | Operating Leases |  | Finance Leases
Remainder of 2025 |  | $ | 5,490 |  |  | $ | 754 |
2026 |  | 9,437 |  |  | 1,486 |
2027 |  | 7,079 |  |  | 1,152 |
2028 |  | 6,130 |  |  | 764 |
2029 |  | 5,061 |  |  | 532 |
After 2029 |  | 13,101 |  |  | 1,717 |
Total lease payments |  | 46,298 |  |  | 6,405 |
Less interest |  | 8,766 |  |  | 1,199 |
Total lease liabilities |  | $ | 37,532 |  |  | $ | 5,206 |
Lease Income The components of lease income recorded in restaurant operations are as follows.
| Second Quarter |  | First Six Months |  |
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |  |  |
Operating lease income | $ | 3,914 |  |  | $ | 4,236 |  |  | $ | 7,846 |  |  | $ | 8,417 |  |  |  |  |
Variable lease income | 2,288 |  |  | 1,824 |  |  | 4,188 |  |  | 3,623 |  |  |  |  |
Total lease income | $ | 6,202 |  |  | $ | 6,060 |  |  | $ | 12,034 |  |  | $ | 12,040 |  |  |  |  |
The following table displays the Company’s future minimum rental receipts for non-cancelable leases and subleases as of June 30, 2025. Franchise partner leases and subleases are short-term leases and have been excluded from the table.
|  | Operating Leases
Year |  | Subleases |  | Owned Properties
Remainder of 2025 |  | $ | 386 |  |  | $ | 323 |
2026 |  | 528 |  |  | 639 |
2027 |  | 431 |  |  | 651 |
2028 |  | 311 |  |  | 662 |
2029 |  | 225 |  |  | 678 |
After 2029 |  | 225 |  |  | 3,499 |
Total future minimum receipts |  | $ | 2,106 |  |  | $ | 6,452 |
Lease Assets and Obligations | Lease Assets and Obligations Lease obligations include the following.
Current portion of lease obligations | June 30, 2025 |  | December 31, 2024
Finance lease liabilities | $ | 1,333 |  |  | $ | 1,250 |
Finance obligations | 4,709 |  |  | 4,664 |
Operating lease liabilities | 9,012 |  |  | 8,535 |
Total current portion of lease obligations | $ | 15,054 |  |  | $ | 14,449 |
Long-term lease obligations |  |  |
Finance lease liabilities | $ | 3,873 |  |  | $ | 2,747 |
Finance obligations | 58,991 |  |  | 60,386 |
Operating lease liabilities | 28,520 |  |  | 27,606 |
Total long-term lease obligations | $ | 91,384 |  |  | $ | 90,739 |
Nature of Leases Steak n Shake and Western Sizzlin operate restaurants that are located on sites owned by us or leased from third parties. In addition, they own sites and lease sites from third parties that are leased and/or subleased to franchisees. Lease Costs A significant portion of our operating and finance lease portfolio includes restaurant locations. We recognize fixed lease expense for operating leases on a straight-line basis over the lease term. For finance leases, we recognize amortization expense on the right-of-use asset and interest expense on the lease liability over the lease term. Total lease cost consists of the following.
| Second Quarter |  | First Six Months |  |
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |  |  |
Finance lease costs: |  |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets | $ | 226 |  |  | $ | 221 |  |  | $ | 439 |  |  | $ | 447 |  |  |  |  |
Interest on lease liabilities | 87 |  |  | 83 |  |  | 161 |  |  | 167 |  |  |  |  |
Operating and variable lease costs | 2,862 |  |  | 2,948 |  |  | 5,798 |  |  | 5,777 |  |  |  |  |
Sublease income | (2,512) |  |  | (2,986) |  |  | (5,120) |  |  | (5,975) |  |  |  |  |
Total lease costs | $ | 663 |  |  | $ | 266 |  |  | $ | 1,278 |  |  | $ | 416 |  |  |  |  |
Supplemental cash flow information related to leases is as follows.
| First Six Months
| 2025 |  | 2024
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Financing cash flows from finance leases | $ | 625 |  |  | $ | 621 |
Operating cash flows from finance leases | $ | 161 |  |  | $ | 167 |
Operating cash flows from operating leases | $ | 5,410 |  |  | $ | 5,409 |
Supplemental balance sheet information related to leases is as follows.
| June 30, 2025 |  | December 31, 2024
Finance leases: |  |  |
Property and equipment, net | $ | 4,334 |  |  | $ | 2,980 |
Weighted-average lease terms and discount rates are as follows.
| June 30, 2025
Weighted-average remaining lease terms: |
Finance leases | 5.97 years
Operating leases | 6.44 years
Weighted-average discount rates: |
Finance leases | 7.0 | %
Operating leases | 7.0 | %
Maturities of lease liabilities as of June 30, 2025 are as follows.
Year |  | Operating Leases |  | Finance Leases
Remainder of 2025 |  | $ | 5,490 |  |  | $ | 754 |
2026 |  | 9,437 |  |  | 1,486 |
2027 |  | 7,079 |  |  | 1,152 |
2028 |  | 6,130 |  |  | 764 |
2029 |  | 5,061 |  |  | 532 |
After 2029 |  | 13,101 |  |  | 1,717 |
Total lease payments |  | 46,298 |  |  | 6,405 |
Less interest |  | 8,766 |  |  | 1,199 |
Total lease liabilities |  | $ | 37,532 |  |  | $ | 5,206 |
Lease Income The components of lease income recorded in restaurant operations are as follows.
| Second Quarter |  | First Six Months |  |
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |  |  |
Operating lease income | $ | 3,914 |  |  | $ | 4,236 |  |  | $ | 7,846 |  |  | $ | 8,417 |  |  |  |  |
Variable lease income | 2,288 |  |  | 1,824 |  |  | 4,188 |  |  | 3,623 |  |  |  |  |
Total lease income | $ | 6,202 |  |  | $ | 6,060 |  |  | $ | 12,034 |  |  | $ | 12,040 |  |  |  |  |
The following table displays the Company’s future minimum rental receipts for non-cancelable leases and subleases as of June 30, 2025. Franchise partner leases and subleases are short-term leases and have been excluded from the table.
|  | Operating Leases
Year |  | Subleases |  | Owned Properties
Remainder of 2025 |  | $ | 386 |  |  | $ | 323 |
2026 |  | 528 |  |  | 639 |
2027 |  | 431 |  |  | 651 |
2028 |  | 311 |  |  | 662 |
2029 |  | 225 |  |  | 678 |
After 2029 |  | 225 |  |  | 3,499 |
Total future minimum receipts |  | $ | 2,106 |  |  | $ | 6,452 |

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