LEASES

6 Months Ended

Jun. 30, 2024

The Company leases restaurants and corporate office space under various non-cancelable lease agreements that expire on various dates through 2038. Lease terms for restaurants generally include a base term of 10 years, with options to extend these leases for additional periods of 5 to 15 years.

The components of lease cost for the thirteen and twenty-six weeks ended June 30, 2024 and June 25, 2023 were as follows:


		Thirteen weeks ended				Twenty-six weeks ended
(dollar amounts in thousands)	Classification	June 30, 2024		June 25, 2023		June 30, 2024		June 25, 2023
Operating lease cost	Occupancy and related expense General and administrative expense Pre-opening costs	$	12,766	$	12,586	$	25,148	$	24,415
Variable lease cost	Occupancy and related expense General and administrative expense	3,329		2,178		6,276		4,790
Short term lease cost	Occupancy and related expense General and administrative expense	116		74		230		219
Sublease income	General and administrative expense	—		(178)		—		(356)
Total lease cost		$	16,211	$	14,660	$	31,654	$	29,068

As of June 30, 2024, future minimum lease payments for operating leases consisted of the following:


(dollar amounts in thousands)
2024	$	22,749
2025	59,014
2026	58,015
2027	53,810
2028	47,819
Thereafter	162,459
Total	$	403,866
Less: imputed interest	92,953
Total lease liabilities	$	310,913

As of June 30, 2024 and December 31, 2023 the Company had additional operating lease commitments of $29.4 million and $25.9 million, respectively, for non-cancelable leases without a possession date, which the Company anticipates will commence in fiscal year 2024 or early 2025. The nature of such lease commitments is consistent with the nature of the leases that the Company has executed thus far.

A summary of lease terms and discount rates for operating leases as of June 30, 2024 and December 31, 2023 is as follows:


	June 30, 2024		December 31, 2023
Weighted average remaining lease term (years):
Operating Leases	7.32		7.41
Weighted average discount rate:
Operating Leases	6.68	%	6.51	%

Supplemental cash flow information related to leases for the twenty-six weeks ended June 30, 2024 and June 25, 2023:


	June 30, 2024		June 25, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net of lease incentives	$	22,958	$	21,870
Right of use assets obtained in exchange for lease obligations:
Operating leases	$	20,950	$	14,125