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Leases | 12 Months Ended
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Dec. 31, 2023
Leases [Abstract] |
Leases | Leases 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 |  | DECEMBER 31, 2023 |  | DECEMBER 25, 2022 |  |
Operating lease right-of-use assets | Operating lease right-of-use assets |  | $ | 1,084,951 |  |  | $ | 1,103,083 |  |  |
Finance lease right-of-use assets (1) | Property, fixtures and equipment, net |  | 9,941 |  |  | 4,679 |  |  |
Total lease assets, net |  |  | $ | 1,094,892 |  |  | $ | 1,107,762 |  |  |
Current operating lease liabilities | Current operating lease liabilities |  | $ | 175,442 |  |  | $ | 183,510 |  |  |
Current finance lease liabilities | Accrued and other current liabilities |  | 3,197 |  |  | 1,636 |  |  |
Non-current operating lease liabilities (2) | Non-current operating lease liabilities |  | 1,131,639 |  |  | 1,148,379 |  |  |
Non-current finance lease liabilities | Other long-term liabilities, net |  | 7,414 |  |  | 3,149 |  |  |
Total lease liabilities |  |  | $ | 1,317,692 |  |  | $ | 1,336,674 |  |  |
________________ (1)Net of accumulated amortization of $4.7 million and $3.6 million as December 31, 2023 and December 25, 2022, respectively. (2)For 2022, excludes immaterial COVID-19-related deferred rent accruals. 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 |  |  |  |  |  | FISCAL YEAR
(dollars in thousands) |  |  |  |  |  | 2023 |  | 2022 |  | 2021 |  |
Operating lease cost (1) | Other restaurant operating |  |  |  |  |  | $ | 182,361 |  |  | $ | 182,091 |  |  | $ | 178,733 |  |  |
Variable lease cost (2) | Other restaurant operating |  |  |  |  |  | 7,467 |  |  | 6,508 |  |  | 4,350 |  |  |
Finance lease costs: |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of leased assets | Depreciation and amortization |  |  |  |  |  | 2,252 |  |  | 1,420 |  |  | 1,079 |  |  |
Interest on lease liabilities | Interest expense, net |  |  |  |  |  | 694 |  |  | 172 |  |  | 129 |  |  |
Sublease revenue | Franchise and other revenues |  |  |  |  |  | (7,665) |  |  | (9,016) |  |  | (9,396) |  |  |
Lease costs, net |  |  |  |  |  |  | $ | 185,109 |  |  | $ | 181,175 |  |  | $ | 174,895 |  |  |
________________ (1)Excludes rent expense for office facilities and Company-owned closed or subleased properties of $12.3 million, $12.2 million and $12.9 million for 2023, 2022 and 2021, respectively, which is included in General and administrative expense. Also excludes certain immaterial supply chain related rent expense included in Food and beverage costs for 2021. (2)Includes COVID-19-related rent abatements in 2021. As of December 31, 2023, future minimum lease payments and sublease revenues under non-cancelable leases are as follows:
(dollars in thousands) | OPERATING LEASES |  | FINANCE LEASES |  | SUBLEASE REVENUES
2024 (1) | $ | 182,732 |  |  | $ | 3,311 |  |  | $ | (5,893) |
2025 | 185,309 |  |  | 1,859 |  |  | (5,421) |
2026 | 183,345 |  |  | 1,392 |  |  | (5,356) |
2027 | 174,157 |  |  | 1,275 |  |  | (5,362) |
2028 | 166,173 |  |  | 697 |  |  | (5,416) |
Thereafter | 1,397,122 |  |  | 7,393 |  |  | (33,888) |
Total minimum lease payments (receipts) (2) | 2,288,838 |  |  | 15,927 |  |  | $ | (61,336) |
Less: Interest | (981,757) |  |  | (5,316) |  |  |
Present value of future lease payments | $ | 1,307,081 |  |  | $ | 10,611 |  |  |
____________________ (1)Net of operating lease prepaid rent of $15.2 million. (2)Includes $945.4 million related to operating lease renewal options that are reasonably certain of exercise and excludes $216.7 million of signed operating leases that have not yet commenced. The following table is a summary of the weighted average remaining lease terms and weighted average discount rates of the Company’s leases as of the periods indicated:
| DECEMBER 31, 2023 |  | DECEMBER 25, 2022 |  |
Weighted average remaining lease term (1): |  |  |  |  |
Operating leases | 13.1 years |  | 13.2 years |  |
Finance leases | 9.5 years |  | 5.4 years |  |
Weighted average discount rate (2): |  |  |  |  |
Operating leases | 8.50 | % |  | 8.44 | % |  |
Finance leases | 8.11 | % |  | 6.63 | % |  |
____________________ (1)Includes lease renewal options that are reasonably certain of exercise. (2)Based on the Company’s incremental borrowing rate at lease commencement or lease remeasurement. 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:
| FISCAL YEAR
(dollars in thousands) | 2023 |  | 2022 |  | 2021 |  |
Cash flows from operating activities: |  |  |  |  |  |  |
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 197,394 |  |  | $ | 193,822 |  |  | $ | 205,253 |  |  |
Leases | Leases 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 |  | DECEMBER 31, 2023 |  | DECEMBER 25, 2022 |  |
Operating lease right-of-use assets | Operating lease right-of-use assets |  | $ | 1,084,951 |  |  | $ | 1,103,083 |  |  |
Finance lease right-of-use assets (1) | Property, fixtures and equipment, net |  | 9,941 |  |  | 4,679 |  |  |
Total lease assets, net |  |  | $ | 1,094,892 |  |  | $ | 1,107,762 |  |  |
Current operating lease liabilities | Current operating lease liabilities |  | $ | 175,442 |  |  | $ | 183,510 |  |  |
Current finance lease liabilities | Accrued and other current liabilities |  | 3,197 |  |  | 1,636 |  |  |
Non-current operating lease liabilities (2) | Non-current operating lease liabilities |  | 1,131,639 |  |  | 1,148,379 |  |  |
Non-current finance lease liabilities | Other long-term liabilities, net |  | 7,414 |  |  | 3,149 |  |  |
Total lease liabilities |  |  | $ | 1,317,692 |  |  | $ | 1,336,674 |  |  |
________________ (1)Net of accumulated amortization of $4.7 million and $3.6 million as December 31, 2023 and December 25, 2022, respectively. (2)For 2022, excludes immaterial COVID-19-related deferred rent accruals. 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 |  |  |  |  |  | FISCAL YEAR
(dollars in thousands) |  |  |  |  |  | 2023 |  | 2022 |  | 2021 |  |
Operating lease cost (1) | Other restaurant operating |  |  |  |  |  | $ | 182,361 |  |  | $ | 182,091 |  |  | $ | 178,733 |  |  |
Variable lease cost (2) | Other restaurant operating |  |  |  |  |  | 7,467 |  |  | 6,508 |  |  | 4,350 |  |  |
Finance lease costs: |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of leased assets | Depreciation and amortization |  |  |  |  |  | 2,252 |  |  | 1,420 |  |  | 1,079 |  |  |
Interest on lease liabilities | Interest expense, net |  |  |  |  |  | 694 |  |  | 172 |  |  | 129 |  |  |
Sublease revenue | Franchise and other revenues |  |  |  |  |  | (7,665) |  |  | (9,016) |  |  | (9,396) |  |  |
Lease costs, net |  |  |  |  |  |  | $ | 185,109 |  |  | $ | 181,175 |  |  | $ | 174,895 |  |  |
________________ (1)Excludes rent expense for office facilities and Company-owned closed or subleased properties of $12.3 million, $12.2 million and $12.9 million for 2023, 2022 and 2021, respectively, which is included in General and administrative expense. Also excludes certain immaterial supply chain related rent expense included in Food and beverage costs for 2021. (2)Includes COVID-19-related rent abatements in 2021. As of December 31, 2023, future minimum lease payments and sublease revenues under non-cancelable leases are as follows:
(dollars in thousands) | OPERATING LEASES |  | FINANCE LEASES |  | SUBLEASE REVENUES
2024 (1) | $ | 182,732 |  |  | $ | 3,311 |  |  | $ | (5,893) |
2025 | 185,309 |  |  | 1,859 |  |  | (5,421) |
2026 | 183,345 |  |  | 1,392 |  |  | (5,356) |
2027 | 174,157 |  |  | 1,275 |  |  | (5,362) |
2028 | 166,173 |  |  | 697 |  |  | (5,416) |
Thereafter | 1,397,122 |  |  | 7,393 |  |  | (33,888) |
Total minimum lease payments (receipts) (2) | 2,288,838 |  |  | 15,927 |  |  | $ | (61,336) |
Less: Interest | (981,757) |  |  | (5,316) |  |  |
Present value of future lease payments | $ | 1,307,081 |  |  | $ | 10,611 |  |  |
____________________ (1)Net of operating lease prepaid rent of $15.2 million. (2)Includes $945.4 million related to operating lease renewal options that are reasonably certain of exercise and excludes $216.7 million of signed operating leases that have not yet commenced. The following table is a summary of the weighted average remaining lease terms and weighted average discount rates of the Company’s leases as of the periods indicated:
| DECEMBER 31, 2023 |  | DECEMBER 25, 2022 |  |
Weighted average remaining lease term (1): |  |  |  |  |
Operating leases | 13.1 years |  | 13.2 years |  |
Finance leases | 9.5 years |  | 5.4 years |  |
Weighted average discount rate (2): |  |  |  |  |
Operating leases | 8.50 | % |  | 8.44 | % |  |
Finance leases | 8.11 | % |  | 6.63 | % |  |
____________________ (1)Includes lease renewal options that are reasonably certain of exercise. (2)Based on the Company’s incremental borrowing rate at lease commencement or lease remeasurement. 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:
| FISCAL YEAR
(dollars in thousands) | 2023 |  | 2022 |  | 2021 |  |
Cash flows from operating activities: |  |  |  |  |  |  |
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 197,394 |  |  | $ | 193,822 |  |  | $ | 205,253 |  |  |

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