XML 35 R19.htm IDEA: XBRL DOCUMENT
v3.25.3

Income Taxes | 12 Months Ended
--- | ---
Sep. 28, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES Income taxes consist of the following in each fiscal year (in thousands):
|  | 2025 |  | 2024 |  | 2023
Current: |  |  |  |  |  |
Federal |  | $ | 25,760 |  |  | $ | 32,251 |  |  | $ | 53,229 |
State |  | 9,839 |  |  | 10,933 |  |  | 17,274 |
|  | 35,599 |  |  | 43,184 |  |  | 70,503 |
Deferred: |  |  |  |  |  |
Federal |  | (42,744) |  |  | (2,696) |  |  | (10,642) |
State |  | (14,961) |  |  | (8,116) |  |  | (1,347) |
|  | (57,705) |  |  | (10,812) |  |  | (11,989) |
Income tax (benefit) expense from continuing operations |  | $ | (22,106) |  |  | $ | 32,372 |  |  | $ | 58,514 |
The expense (benefit) for income taxes differs from the amount computed by applying the U.S. federal statutory rate to pre-tax income (loss). The sources and tax effects of the differences are as follows (in thousands):
|  | 2025 |  | 2024 |  | 2023
Pre-tax (loss) income |  | $ | (102,825) |  |  |  | $ | (4,323) |  |  |  | $ | 189,340 |  |
Income tax at federal statutory rate |  | (21,593) |  | 21.0 | % |  | (908) |  | 21.0 | % |  | 39,821 |  | 21.0 | %
State income taxes, net of federal benefit |  | (5,450) |  | 5.3 | % |  | (233) |  | 5.4 | % |  | 10,587 |  | 5.6 | %
Stock-based compensation expense |  | 1,568 |  | (1.5) | % |  | 51 |  | (1.2) | % |  | 71 |  | — | %
Tax credits, net of valuation allowance |  | (334) |  | 0.3 | % |  | (340) |  | 7.9 | % |  | (818) |  | (0.4) | %
Nondeductible goodwill related to impairment |  | 6,602 |  | (6.4) | % |  | 35,075 |  | (811.5) | % |  | — |  | — | %
Nondeductible goodwill related to the sale of company-operated restaurants |  | 120 |  | (0.1) | % |  | 1,787 |  | (41.3) | % |  | 9,280 |  | 4.9 | %
State audit accrual |  | (747) |  | 0.7 | % |  | — |  | — | % |  | — |  | — | %
Benefit related to COLIs |  | (2,271) |  | 2.2 | % |  | (4,703) |  | 108.8 | % |  | (1,947) |  | (1.0) | %
Officers’ compensation limitation |  | (333) |  | 0.3 | % |  | 1,306 |  | (30.2) | % |  | 1,188 |  | 0.6 | %
Other, net |  | 332 |  | (0.3) | % |  | 337 |  | (7.8) | % |  | 332 |  | 0.2 | %
Effective tax rate |  | $ | (22,106) |  | 21.5 | % |  | 32,372 |  | (748.9) | % |  | 58,514 |  | 30.9 | %
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at each fiscal year-end are presented below (in thousands):
| 2025 |  | 2024
Deferred tax assets: |  |  |
Operating and finance lease liabilities | $ | 372,538 |  |  | $ | 381,522 |
Deferred income | 22,974 |  |  | 15,465 |
Accrued defined benefit pension and postretirement benefits | 19,096 |  |  | 22,074 |
Accrued insurance | 7,145 |  |  | 7,135 |
Share-based compensation | 5,869 |  |  | 6,814 |
Deferred interest deduction | 5,606 |  |  | 1,664 |
Accrued legal settlements | 5,377 |  |  | 4,764 |
Property and equipment, net of impairment | 4,107 |  |  | 5,847 |
Accrued incentive compensation | 1,921 |  |  | 2,692 |
Other reserves and allowances | 1,778 |  |  | 1,241 |
Accrued compensation expense | 1,325 |  |  | 1,254 |
Capitalized research costs | 1,152 |  |  | 1,443 |
Tax loss and tax credit carryforwards | 398 |  |  | 387 |
Other, net | 2,509 |  |  | 2,537 |
Total gross deferred tax assets | 451,795 |  |  | 454,839 |
Valuation allowance | — |  |  | — |
Total net deferred tax assets | 451,795 |  |  | 454,839 |
Deferred tax liabilities: |  |  |
Operating and finance lease ROU assets | (367,274) |  |  | (378,531) |
Intangible assets | (41,128) |  |  | (88,378) |
Other | (2,125) |  |  | (1,542) |
Total gross deferred tax liabilities | (410,527) |  |  | (468,451) |
Net deferred tax assets (liabilities) | $ | 41,268 |  |  | $ | (13,612) |
Deferred tax assets as of September 28, 2025 include state gross net operating loss carryforwards of approximately $10.6 million, of which $8.6 million has an indefinite carryforward. The remainder will expire at various times between 2026 and 2042. The Company believes it is more likely than not that all deferred tax assets will be realized through future taxable income or alternative tax strategies. The major jurisdictions in which the Company files income tax returns includes the United States and states in which we operate that impose an income tax. The federal statutes of limitations have not expired for fiscal year 2022 and forward. The statutes of limitations for California, which constitutes the Company's major state tax jurisdiction, have not expired for fiscal years 2021 and forward.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477617/942-740-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478822/944-740-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration