LEASES

3 Months Ended

Mar. 30, 2025

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 weeks ended March 30, 2025 and March 31, 2024 were as follows:


		Thirteen weeks ended
(dollar amounts in thousands)	Classification	March 30, 2025		March 31, 2024
Operating lease cost	Occupancy and related expense General and administrative expense Pre-opening costs	$	13,724	$	12,382
Variable lease cost	Occupancy and related expense General and administrative expense	3,138		2,947
Short term lease cost	Occupancy and related expense General and administrative expense	79		114

Total lease cost		$	16,941	$	15,443

As of March 30, 2025, future minimum lease payments for operating leases consisted of the following:


(dollar amounts in thousands)
2025	$	40,614
2026	63,345
2027	60,136
2028	54,256
2029	52,347
Thereafter	157,421
Total	$	428,119
Less: imputed interest	98,721
Total lease liabilities	$	329,398

As of March 30, 2025 and December 29, 2024 the Company had additional operating lease commitments of $22.1 million and $27.5 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 March 30, 2025 and December 29, 2024 is as follows:


	March 30, 2025		December 29, 2024
Weighted average remaining lease term (years):
Operating Leases	7.28		7.32
Weighted average discount rate:
Operating Leases	6.79	%	6.75	%

Supplemental cash flow information related to leases for the thirteen weeks ended March 30, 2025 and March 31, 2024:


	March 30, 2025		March 31, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net of lease incentives	$	19,994	$	10,610
Right of use assets obtained in exchange for lease obligations:
Operating leases	$	13,448	$	7,357