Leases (Tables)

9 Months Ended

Sep. 24, 2023

The following table includes a detail of lease assets and liabilities included on the Company’s Consolidated Balance Sheets as of the periods indicated:


(dollars in thousands)	CONSOLIDATED BALANCE SHEET CLASSIFICATION	SEPTEMBER 24, 2023		DECEMBER 25, 2022
Operating lease right-of-use assets	Operating lease right-of-use assets	$	1,109,295	$	1,103,083
Finance lease right-of-use assets (1)	Property, fixtures and equipment, net	9,538		4,679
Total lease assets, net		$	1,118,833	$	1,107,762

Current operating lease liabilities	Current operating lease liabilities	$	185,659	$	183,510
Current finance lease liabilities	Accrued and other current liabilities	2,373		1,636
Non-current operating lease liabilities (2)	Non-current operating lease liabilities	1,151,574		1,148,379
Non-current finance lease liabilities	Other long-term liabilities, net	7,750		3,149
Total lease liabilities		$	1,347,356	$	1,336,674

________________

(1)Net of accumulated amortization of $4.1 million and $3.6 million as of September 24, 2023 and December 25, 2022, respectively.

(2)Excludes immaterial COVID-19-related deferred rent accruals.

Lease, cost

Following is a summary of expenses and income related to leases recognized in the Company’s Consolidated Statements of Operations and Comprehensive Income for the periods indicated:


	CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME CLASSIFICATION	THIRTEEN WEEKS ENDED				THIRTY-NINE WEEKS ENDED
(dollars in thousands)		SEPTEMBER 24, 2023		SEPTEMBER 25, 2022		SEPTEMBER 24, 2023		SEPTEMBER 25, 2022
Operating lease cost (1)	Other restaurant operating	$	46,686	$	45,817	$	138,670	$	136,757
Variable lease cost	Other restaurant operating	2,081		1,519		5,434		5,021
Finance lease costs:
Amortization of leased assets	Depreciation and amortization	572		355		1,609		1,048
Interest on lease liabilities	Interest expense, net	191		44		501		120
Sublease revenue	Franchise and other revenues	(2,530)		(2,455)		(5,873)		(7,449)
Lease costs, net		$	47,000	$	45,280	$	140,341	$	135,497

________________

(1)Excludes rent expense for office facilities and Company-owned closed or subleased properties of $3.1 million for the thirteen weeks ended September 24, 2023 and September 25, 2022 and $9.1 million for the thirty-nine weeks ended September 24, 2023 and September 25, 2022, which is included in General and administrative expense.

Cash flow, operating activities

The following table is a summary of cash flow impacts to the Company’s Consolidated Financial Statements related to its leases for the periods indicated:


	THIRTY-NINE WEEKS ENDED
(dollars in thousands)	SEPTEMBER 24, 2023		SEPTEMBER 25, 2022

Cash flows from operating activities:
Cash paid for amounts included in the measurement of operating lease liabilities	$	147,051	$	145,797