LEASES

6 Months Ended

Jun. 29, 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 and twenty-six weeks ended June 29, 2025 and June 30, 2024 were as follows:


		Thirteen weeks ended				Twenty-six weeks ended
(dollar amounts in thousands)	Classification	June 29, 2025		June 30, 2024		June 29, 2025		June 30, 2024
Operating lease cost	Occupancy and related expense General and administrative expense Pre-opening costs	$	14,306	$	12,766	$	28,030	$	25,148
Variable lease cost	Occupancy and related expense General and administrative expense	3,615		3,329		6,753		6,276
Short term lease cost	Occupancy and related expense General and administrative expense	135		116		214		230

Total lease cost		$	18,056	$	16,211	$	34,997	$	31,654

As of June 29, 2025, future minimum lease payments for operating leases consisted of the following:


(dollar amounts in thousands)
2025	$	26,027
2026	65,827
2027	62,791
2028	56,963
2029	55,141
Thereafter	173,502
Total	$	440,251
Less: imputed interest	101,519
Total lease liabilities	$	338,732

As of June 29, 2025 and December 29, 2024 the Company had additional operating lease commitments of $35.4 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 June 29, 2025 and December 29, 2024 is as follows:


	June 29, 2025		December 29, 2024
Weighted average remaining lease term (years):
Operating Leases	7.26		7.32
Weighted average discount rate:
Operating Leases	6.82	%	6.75	%

During the thirteen and twenty-six weeks ended June 29, 2025, the Company recorded a non-cash impairment charge related to operating lease assets of $1.6 million, which is recorded in impairment and closure costs within the condensed consolidated financial statements.

Supplemental cash flow information related to leases for the twenty-six weeks ended June 29, 2025 and June 30, 2024:


	June 29, 2025		June 30, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net of lease incentives	$	33,319	$	22,958
Right of use assets obtained in exchange for lease obligations:
Operating leases	$	30,396	$	20,950
Derecognition of operating lease assets due to termination or impairment	$	1,594	$	—