LEASES

9 Months Ended

Sep. 28, 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 thirty-nine weeks ended September 28, 2025 and September 29, 2024 were as follows:


		Thirteen weeks ended				Thirty-nine weeks ended
(dollar amounts in thousands)	Classification	September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024
Operating lease cost	Occupancy and related expense General and administrative expense Pre-opening costs	$	14,840	$	13,092	$	42,870	$	38,240
Variable lease cost	Occupancy and related expense General and administrative expense	3,454		3,204		10,207		9,480
Short term lease cost	Occupancy and related expense General and administrative expense	148		232		362		462

Total lease cost		$	18,442	$	16,528	$	53,439	$	48,182

As of September 28, 2025, future minimum lease payments for operating leases consisted of the following:


(dollar amounts in thousands)
2025	$	9,840
2026	69,138
2027	67,237
2028	61,483
2029	59,752
Thereafter	197,188
Total	$	464,638
Less: imputed interest	108,230
Total lease liabilities	$	356,408

As of September 28, 2025 and December 29, 2024 the Company had additional operating lease commitments of $13.9 million and $27.5 million, respectively, for non-cancelable leases that have not yet commenced, 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 28, 2025 and December 29, 2024 is as follows:


	September 28, 2025		December 29, 2024
Weighted average remaining lease term (years):
Operating Leases	7.29		7.32
Weighted average discount rate:
Operating Leases	6.86	%	6.75	%

During the thirty-nine weeks ended September 28, 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 thirty-nine weeks ended September 28, 2025 and September 29, 2024:


	September 28, 2025		September 29, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net of lease incentives	$	48,735	$	32,138
Right of use assets obtained in exchange for lease obligations:
Operating leases	$	57,869	$	28,455
Derecognition of operating lease assets due to termination or impairment	$	1,594	$	—