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Leases

12 Months Ended

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

X

- References

No definition available.

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- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/842-20/tableOfContent

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X

- Definition

The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/842-20/tableOfContent

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