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Leases
 9 Months Ended
Sep. 28, 2025
Leases [Abstract]  
Leases Leases
The Company included the following amounts related to operating and finance lease assets and liabilities within the Condensed Consolidated Balance Sheets:
As of
  September 28, 2025December 29, 2024
AssetsClassification  
Operating leaseOperating lease right of use asset, net$410,106 $409,869 
Finance leaseProperty and equipment, net57,108 72,221 
Total lease assets$467,214 $482,090 
Liabilities 
Current 
Operating leaseCurrent operating lease liabilities$47,744 $46,620 
Finance leaseCurrent portion of long-term debt20,929 16,356 
Noncurrent 
Operating leaseNoncurrent operating lease liabilities410,526 405,366 
Finance leaseLong-term debt, less current portion68,009 63,369 
Total lease liabilities$547,208 $531,711 
Lease costs were as follows:
Quarter Ended Three Quarters Ended
  September 28, 2025September 29, 2024September 28, 2025September 29, 2024
Lease costClassification  
Operating lease costSelling, general and administrative expense$581 $838 $2,118 $2,652 
Operating lease costOperating expenses22,557 22,227 67,658 70,615 
Short-term lease costOperating expenses818 1,478 3,563 3,828 
Variable lease costsOperating expenses7,069 6,553 22,144 21,384 
Sublease incomeRoyalties and other revenues(103)(85)(279)(155)
Finance lease cost:
 
 
Amortization of right of use assetsDepreciation and amortization expense$4,067 $3,051 $15,109 $8,839 
Interest on lease liabilitiesInterest expense, net1,433 873 4,421 2,615 
Supplemental disclosures of cash flow information related to leases were as follows:
Three Quarters Ended
September 28, 2025September 29, 2024
Other information
Cash paid for leases:
Operating cash flows for operating leases (1)
$90,079 $83,956 
Operating cash flows for finance leases
4,413 2,607 
Financing cash flows for finance leases
14,819 8,442 
Right of use assets obtained in exchange for new lease liabilities:
Operating leases
$38,207 $40,182 
Finance leases
24,774 15,019 
(1)Operating cash flows for operating leases include variable rent payments, which are not included in the measurement of lease liabilities. Variable rent payments were $22.1 million for the three quarters ended September 28, 2025 and $21.4 million for the three quarters ended September 29, 2024.
In the three quarters ended September 28, 2025, the Company completed two sale-leaseback transactions whereby it disposed of real estate at two properties for cumulative proceeds of $10.9 million. The Company subsequently leased back the properties, which are accounted for as operating leases. The Company recognized net gains on sale of $6.7 million, which are included in Other income, net on the Condensed Consolidated Statement of Operations. There were no sale-leaseback transactions completed in the three quarters ended September 29, 2024.
In the three quarters ended September 28, 2025, the Company recorded lease impairment and termination costs of $29.2 million. Refer to Note 1, Description of Business and Summary of Significant Accounting Policies for more information.
Leases Leases
The Company included the following amounts related to operating and finance lease assets and liabilities within the Condensed Consolidated Balance Sheets:
As of
  September 28, 2025December 29, 2024
AssetsClassification  
Operating leaseOperating lease right of use asset, net$410,106 $409,869 
Finance leaseProperty and equipment, net57,108 72,221 
Total lease assets$467,214 $482,090 
Liabilities 
Current 
Operating leaseCurrent operating lease liabilities$47,744 $46,620 
Finance leaseCurrent portion of long-term debt20,929 16,356 
Noncurrent 
Operating leaseNoncurrent operating lease liabilities410,526 405,366 
Finance leaseLong-term debt, less current portion68,009 63,369 
Total lease liabilities$547,208 $531,711 
Lease costs were as follows:
Quarter Ended Three Quarters Ended
  September 28, 2025September 29, 2024September 28, 2025September 29, 2024
Lease costClassification  
Operating lease costSelling, general and administrative expense$581 $838 $2,118 $2,652 
Operating lease costOperating expenses22,557 22,227 67,658 70,615 
Short-term lease costOperating expenses818 1,478 3,563 3,828 
Variable lease costsOperating expenses7,069 6,553 22,144 21,384 
Sublease incomeRoyalties and other revenues(103)(85)(279)(155)
Finance lease cost:
 
 
Amortization of right of use assetsDepreciation and amortization expense$4,067 $3,051 $15,109 $8,839 
Interest on lease liabilitiesInterest expense, net1,433 873 4,421 2,615 
Supplemental disclosures of cash flow information related to leases were as follows:
Three Quarters Ended
September 28, 2025September 29, 2024
Other information
Cash paid for leases:
Operating cash flows for operating leases (1)
$90,079 $83,956 
Operating cash flows for finance leases
4,413 2,607 
Financing cash flows for finance leases
14,819 8,442 
Right of use assets obtained in exchange for new lease liabilities:
Operating leases
$38,207 $40,182 
Finance leases
24,774 15,019 
(1)Operating cash flows for operating leases include variable rent payments, which are not included in the measurement of lease liabilities. Variable rent payments were $22.1 million for the three quarters ended September 28, 2025 and $21.4 million for the three quarters ended September 29, 2024.
In the three quarters ended September 28, 2025, the Company completed two sale-leaseback transactions whereby it disposed of real estate at two properties for cumulative proceeds of $10.9 million. The Company subsequently leased back the properties, which are accounted for as operating leases. The Company recognized net gains on sale of $6.7 million, which are included in Other income, net on the Condensed Consolidated Statement of Operations. There were no sale-leaseback transactions completed in the three quarters ended September 29, 2024.
In the three quarters ended September 28, 2025, the Company recorded lease impairment and termination costs of $29.2 million. Refer to Note 1, Description of Business and Summary of Significant Accounting Policies for more information.