LEASES

12 Months Ended

Dec. 29, 2024

The components of lease cost were as follows:


(dollar amounts in thousands)	Classification	December 29, 2024		December 31, 2023		December 25, 2022
Operating lease cost	Occupancy and related expense General and administrative expense Pre-opening costs	51,576		48,168		43,722
Variable lease cost	Occupancy and related expense General and administrative expense	12,219		11,055		7,958
Short term lease cost	Occupancy and related expense General and administrative expense	612		422		145
Sublease income	General and administrative expense	—		(356)		(711)
Total lease cost		$	64,407	$	59,289	$	51,114

During the fiscal year ended December 29, 2024, the Company recorded a non-cash impairment charge related to operating lease assets of $0.4 million, which is recorded within impairment and closure costs in the consolidated financial statements. During the fiscal year ended December 31, 2023, the Company recorded non-cash impairment charges related to operating lease assets of $4.3 million, all of which is recorded within restructuring charges in the consolidated statement of operations. During fiscal year December 25, 2022, the Company recorded non-cash impairment charges related to operating lease assets of $6.2 million, of which $5.8 million is recorded within restructuring charges and $0.4 million is recorded within impairment and closure costs in the consolidated financial statements. See Note 1.

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


(dollar amounts in thousands)
2025			61,431
2026			61,647
2027			58,124
2028			52,188
2029			50,261
Thereafter			144,004
Total			427,655
Less: imputed interest			96,941
Total lease liabilities			330,714

As of December 29, 2024 the Company had additional operating lease commitments of $27.5 million for non-cancelable leases without a possession date, which the Company anticipates will commence in fiscal year 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 December 29, 2024 and December 31, 2023 is as follows:


	December 29, 2024		December 31, 2023
Weighted average remaining lease term (years):
Operating Leases	7.32		7.41
Weighted average discount rate:
Operating Leases	6.75	%	6.51	%

Supplemental cash flow information related to leases as of December 29, 2024, December 31, 2023 and December 25, 2022 as follows:


	December 29, 2024		December 31, 2023		December 25, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net of lease incentives	$	39,965	$	42,425	$	29,230
Right of use assets obtained in exchange for lease obligations:
Operating leases	$	46,167	$	24,416	$	57.396
Derecognition of operating lease assets due to termination or impairment	$	389	$	4,291	$	6,228