LEASES

9 Months Ended

Sep. 29, 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 thirty-nine weeks ended September 29, 2024 and September 24, 2023 were as follows:


		Thirteen weeks ended				Thirty-nine weeks ended
(dollar amounts in thousands)	Classification	September 29, 2024		September 24, 2023		September 29, 2024		September 24, 2023
Operating lease cost	Occupancy and related expense General and administrative expense Pre-opening costs	$	13,092	$	12,061	$	38,240	$	35,931
Variable lease cost	Occupancy and related expense General and administrative expense	3,204		2,904		9,480		8,237
Short term lease cost	Occupancy and related expense General and administrative expense	232		98		462		318
Sublease income	General and administrative expense	—		—		—		(356)
Total lease cost		$	16,528	$	15,063	$	48,182	$	44,130

As of September 29, 2024, future minimum lease payments for operating leases consisted of the following:


(dollar amounts in thousands)
2024	$	8,663
2025	60,301
2026	59,457
2027	55,261
2028	49,285
Thereafter	174,121
Total	$	407,088
Less: imputed interest	92,623
Total lease liabilities	$	314,465

As of September 29, 2024 and December 31, 2023 the Company had additional operating lease commitments of $31.2 million and $25.9 million, respectively, for non-cancelable leases without a possession date, which the Company anticipates will commence in the near future. 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 September 29, 2024 and December 31, 2023 is as follows:


	September 29, 2024		December 31, 2023
Weighted average remaining lease term (years):
Operating Leases	7.27		7.41
Weighted average discount rate:
Operating Leases	6.72	%	6.51	%

Supplemental cash flow information related to leases for the thirty-nine weeks ended September 29, 2024 and September 24, 2023:


	September 29, 2024		September 24, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net of lease incentives	$	32,138	$	31,189
Right of use assets obtained in exchange for lease obligations:
Operating leases	$	28,455	$	18,631