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Leases | 12 Months Ended
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Dec. 29, 2024
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 29, 2024 |  | DECEMBER 31, 2023 |  |
Operating lease right-of-use assets | Operating lease right-of-use assets |  | $ | 1,012,857 |  |  | $ | 1,031,271 |  |  |
Finance lease right-of-use assets (1) | Property, fixtures and equipment, net |  | 10,058 |  |  | 8,858 |  |  |
Total lease assets, net |  |  | $ | 1,022,915 |  |  | $ | 1,040,129 |  |  |
Current operating lease liabilities | Current operating lease liabilities |  | $ | 158,806 |  |  | $ | 163,724 |  |  |
Current finance lease liabilities | Accrued and other current liabilities |  | 2,618 |  |  | 2,171 |  |  |
Non-current operating lease liabilities | Non-current operating lease liabilities |  | 1,088,518 |  |  | 1,087,353 |  |  |
Non-current finance lease liabilities | Other long-term liabilities, net |  | 8,359 |  |  | 7,347 |  |  |
Total lease liabilities |  |  | $ | 1,258,301 |  |  | $ | 1,260,595 |  |  |
________________ (1)Net of accumulated amortization of $4.0 million and $3.5 million as December 29, 2024 and December 31, 2023, respectively. Following is a summary of expenses and income related to leases recognized in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income for the periods indicated:
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME CLASSIFICATION |  |  |  |  |  | FISCAL YEAR
(dollars in thousands) |  |  |  |  |  | 2024 |  | 2023 |  | 2022 |  |
Operating lease cost (1) | Other restaurant operating |  |  |  |  |  | $ | 169,661 |  |  | $ | 171,248 |  |  | $ | 172,874 |  |  |
Variable lease cost | Other restaurant operating |  |  |  |  |  | 3,878 |  |  | 2,930 |  |  | 53 |  |  |
Finance lease costs: |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of leased assets | Depreciation and amortization |  |  |  |  |  | 2,032 |  |  | 1,975 |  |  | 1,279 |  |  |
Interest on lease liabilities | Interest expense, net |  |  |  |  |  | 710 |  |  | 667 |  |  | 156 |  |  |
Sublease revenue | Franchise and other revenues |  |  |  |  |  | (7,060) |  |  | (7,614) |  |  | (8,978) |  |  |
Lease costs, net |  |  |  |  |  |  | $ | 169,221 |  |  | $ | 169,206 |  |  | $ | 165,384 |  |  |
________________ (1)Excludes rent expense for office facilities and Company-owned closed or subleased properties of $14.3 million, $12.1 million and $11.9 million for 2024, 2023 and 2022, respectively, which is included in General and administrative expense. As of December 29, 2024, future minimum lease payments and sublease revenues under non-cancelable leases are as follows:
(dollars in thousands) | OPERATING LEASES |  | FINANCE LEASES |  | SUBLEASE REVENUES
2025 (1) | $ | 165,372 |  |  | $ | 2,699 |  |  | $ | (5,559) |
2026 | 182,009 |  |  | 2,281 |  |  | (5,511) |
2027 | 173,983 |  |  | 1,970 |  |  | (5,638) |
2028 | 165,855 |  |  | 1,181 |  |  | (5,557) |
2029 | 161,723 |  |  | 1,125 |  |  | (5,363) |
Thereafter | 1,327,887 |  |  | 6,712 |  |  | (28,065) |
Total minimum lease payments (receipts) (2) | 2,176,829 |  |  | 15,968 |  |  | $ | (55,693) |
Less: Interest | (929,505) |  |  | (4,991) |  |  |
Present value of future lease payments | $ | 1,247,324 |  |  | $ | 10,977 |  |  |
____________________ (1)Net of operating lease prepaid rent of $15.3 million. (2)Includes $988.4 million related to operating lease renewal options that are reasonably certain of exercise and excludes $172.4 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:
| FINANCE LEASES |  | OPERATING LEASES |  |
| DECEMBER 29, 2024 |  | DECEMBER 31, 2023 |  | DECEMBER 29, 2024 |  | DECEMBER 31, 2023 |  |
Weighted average remaining lease term (1): | 9.1 years |  | 10.5 years |  | 13.4 years |  | 13.3 years |  |
Weighted average discount rate (2): | 7.70 | % |  | 7.80 | % |  | 8.22 | % |  | 8.33 | % |  |
____________________ (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 from the Company’s Consolidated Financial Statements related to its leases for the periods indicated:
| FISCAL YEAR
(dollars in thousands) | 2024 |  | 2023 |  | 2022 |  |
Cash flows from operating activities: |  |  |  |  |  |  |
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 184,969 |  |  | $ | 185,861 |  |  | $ | 183,817 |  |  |
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 29, 2024 |  | DECEMBER 31, 2023 |  |
Operating lease right-of-use assets | Operating lease right-of-use assets |  | $ | 1,012,857 |  |  | $ | 1,031,271 |  |  |
Finance lease right-of-use assets (1) | Property, fixtures and equipment, net |  | 10,058 |  |  | 8,858 |  |  |
Total lease assets, net |  |  | $ | 1,022,915 |  |  | $ | 1,040,129 |  |  |
Current operating lease liabilities | Current operating lease liabilities |  | $ | 158,806 |  |  | $ | 163,724 |  |  |
Current finance lease liabilities | Accrued and other current liabilities |  | 2,618 |  |  | 2,171 |  |  |
Non-current operating lease liabilities | Non-current operating lease liabilities |  | 1,088,518 |  |  | 1,087,353 |  |  |
Non-current finance lease liabilities | Other long-term liabilities, net |  | 8,359 |  |  | 7,347 |  |  |
Total lease liabilities |  |  | $ | 1,258,301 |  |  | $ | 1,260,595 |  |  |
________________ (1)Net of accumulated amortization of $4.0 million and $3.5 million as December 29, 2024 and December 31, 2023, respectively. Following is a summary of expenses and income related to leases recognized in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income for the periods indicated:
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME CLASSIFICATION |  |  |  |  |  | FISCAL YEAR
(dollars in thousands) |  |  |  |  |  | 2024 |  | 2023 |  | 2022 |  |
Operating lease cost (1) | Other restaurant operating |  |  |  |  |  | $ | 169,661 |  |  | $ | 171,248 |  |  | $ | 172,874 |  |  |
Variable lease cost | Other restaurant operating |  |  |  |  |  | 3,878 |  |  | 2,930 |  |  | 53 |  |  |
Finance lease costs: |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of leased assets | Depreciation and amortization |  |  |  |  |  | 2,032 |  |  | 1,975 |  |  | 1,279 |  |  |
Interest on lease liabilities | Interest expense, net |  |  |  |  |  | 710 |  |  | 667 |  |  | 156 |  |  |
Sublease revenue | Franchise and other revenues |  |  |  |  |  | (7,060) |  |  | (7,614) |  |  | (8,978) |  |  |
Lease costs, net |  |  |  |  |  |  | $ | 169,221 |  |  | $ | 169,206 |  |  | $ | 165,384 |  |  |
________________ (1)Excludes rent expense for office facilities and Company-owned closed or subleased properties of $14.3 million, $12.1 million and $11.9 million for 2024, 2023 and 2022, respectively, which is included in General and administrative expense. As of December 29, 2024, future minimum lease payments and sublease revenues under non-cancelable leases are as follows:
(dollars in thousands) | OPERATING LEASES |  | FINANCE LEASES |  | SUBLEASE REVENUES
2025 (1) | $ | 165,372 |  |  | $ | 2,699 |  |  | $ | (5,559) |
2026 | 182,009 |  |  | 2,281 |  |  | (5,511) |
2027 | 173,983 |  |  | 1,970 |  |  | (5,638) |
2028 | 165,855 |  |  | 1,181 |  |  | (5,557) |
2029 | 161,723 |  |  | 1,125 |  |  | (5,363) |
Thereafter | 1,327,887 |  |  | 6,712 |  |  | (28,065) |
Total minimum lease payments (receipts) (2) | 2,176,829 |  |  | 15,968 |  |  | $ | (55,693) |
Less: Interest | (929,505) |  |  | (4,991) |  |  |
Present value of future lease payments | $ | 1,247,324 |  |  | $ | 10,977 |  |  |
____________________ (1)Net of operating lease prepaid rent of $15.3 million. (2)Includes $988.4 million related to operating lease renewal options that are reasonably certain of exercise and excludes $172.4 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:
| FINANCE LEASES |  | OPERATING LEASES |  |
| DECEMBER 29, 2024 |  | DECEMBER 31, 2023 |  | DECEMBER 29, 2024 |  | DECEMBER 31, 2023 |  |
Weighted average remaining lease term (1): | 9.1 years |  | 10.5 years |  | 13.4 years |  | 13.3 years |  |
Weighted average discount rate (2): | 7.70 | % |  | 7.80 | % |  | 8.22 | % |  | 8.33 | % |  |
____________________ (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 from the Company’s Consolidated Financial Statements related to its leases for the periods indicated:
| FISCAL YEAR
(dollars in thousands) | 2024 |  | 2023 |  | 2022 |  |
Cash flows from operating activities: |  |  |  |  |  |  |
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 184,969 |  |  | $ | 185,861 |  |  | $ | 183,817 |  |  |

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