XML 55 R39.htm IDEA: XBRL DOCUMENT v3.25.3
Leases (Tables)
 12 Months Ended
Sep. 28, 2025
Leases [Abstract]  
Lessee, Supplemental Balance Sheet Information Leased assets and liabilities consisted of the following as of September 28, 2025 and September 29, 2024 (in thousands):
September 28,
2025		September 29,
2024
Assets:
Operating lease ROU assets$1,371,454 $1,410,083 
Finance lease ROU assets (1)126 416 
Total ROU assets$1,371,580 $1,410,499 
Liabilities:
Current operating lease liabilities $159,267 $162,017 
Current finance lease liabilities (2)208 602 
Long-term operating lease liabilities1,259,577 1,286,415 
Long-term finance lease liabilities (2)— — 
Total lease liabilities$1,419,052 $1,449,034 
________________________
(1)Included in “Property and equipment, net” on our consolidated balance sheets.
(2)Included in “Current maturities of long-term debt” and “Long-term debt, net of current maturities” on our consolidated balance sheets.
Lease Costs, Lessee
The following table presents the components of our lease costs in fiscal 2025, 2024, and 2023 (in thousands):
202520242023
Lease costs:
Finance lease cost:
Amortization of ROU assets (1)$453 $492 $691 
Interest on lease liabilities (2)22 68 55 
Operating lease cost (3)244,644 243,488 240,153 
Short-term lease cost (3)529 195 730 
Variable lease cost (3)(4)55,751 51,374 50,448 
$301,399 $295,617 $292,077 
________________________
(1)Included in “Depreciation and amortization” in our consolidated statements of earnings.
(2)Included in “Interest expense, net” in our consolidated statements of earnings.
(3)Operating lease, short-term and variable lease costs associated with franchisees and company-operated restaurants are included in “Franchise occupancy expenses” and “Occupancy and other,” respectively, in our consolidated statements of earnings. For our closed restaurants, these costs are included in “Other operating expense, net” and all other costs are included in “Selling, general and administrative expenses.”
(4)Includes $44.2 million, $41.0 million, and $39.9 million in 2025, 2024, and 2023, respectively, of property taxes and common area maintenance costs which are reimbursed by sub-lessees.
The following table presents supplemental information related to leases:
September 28,
2025		September 29,
2024
Weighted-average remaining lease term (in years):
Finance leases0.20.8
Operating leases11.211.1
Weighted-average discount rate:
Finance leases5.7 %7.0 %
Operating leases6.1 %5.9 %
The following table includes supplemental cash flow and non-cash information related to our lessee leases (in thousands):
20252024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$240,732 $218,916 
Operating cash flows from financing leases$22 $68 
Financing cash flows from financing leases$583 $617 
Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets:
Right-of-use assets obtained in exchange for new operating lease obligations$143,795 $191,923 
Right-of-use assets obtained in exchange for new financing lease obligations$— $— 
Operating Lease, Future Minimum Lease Payments
The following table presents as of September 28, 2025, the annual maturities of our lease liabilities (in thousands):
Finance LeasesOperating Leases
Fiscal year:
2026
$214 $238,490 
2027— 239,965 
2028— 197,994 
2029— 160,333 
2030— 151,714 
Thereafter— 1,027,497 
Total future lease payments (1)$214 $2,015,993 
Less: imputed interest(6)(597,149)
Present value of lease liabilities$208 $1,418,844 
Less current portion(208)(159,267)
Long-term lease obligations$— $1,259,577 
________________________
(1)Total future lease payments include non-cancellable commitments of $0.2 million for finance leases and $1,303.7 million for operating leases.
Finance Lease, Future Minimum Lease Payments
The following table presents as of September 28, 2025, the annual maturities of our lease liabilities (in thousands):
Finance LeasesOperating Leases
Fiscal year:
2026
$214 $238,490 
2027— 239,965 
2028— 197,994 
2029— 160,333 
2030— 151,714 
Thereafter— 1,027,497 
Total future lease payments (1)$214 $2,015,993 
Less: imputed interest(6)(597,149)
Present value of lease liabilities$208 $1,418,844 
Less current portion(208)(159,267)
Long-term lease obligations$— $1,259,577 
________________________
(1)Total future lease payments include non-cancellable commitments of $0.2 million for finance leases and $1,303.7 million for operating leases.
Assets Recorded Under Finance Leases
Assets recorded under finance leases are included in property and equipment, and consisted of the following at each fiscal year-end (in thousands):
20252024
Buildings$— $— 
Equipment5,549 6,003 
Less accumulated amortization(5,423)(5,587)
$126 $416 
Rental Income The following table presents rental income (in thousands):
20252024
Owned PropertiesLeased PropertiesTotalOwned PropertiesLeased PropertiesTotal
Operating lease income - franchise$16,859 $245,062 $261,921 $18,301 $242,111 $260,412 
Variable lease income - franchise12,467 92,888 105,355 12,522 100,903 113,425 
Amortization of sublease assets and liabilities, net— 1,367 1,367 — 1,591 1,591 
Franchise rental revenues$29,326 $339,317 $368,643 $30,823 $344,605 $375,428 
Operating lease income - closed restaurants and other (1)$223 $8,147 $8,370 $31 $7,662 $7,693 
________________________
(1)Primarily relates to closed restaurant properties included in “Other operating expense, net” in our consolidated statements of earnings.
Future Minimum Rental Receipts
The following table presents as of September 28, 2025, future minimum rental receipts for non-cancellable leases and subleases (in thousands):
September 28,
2025
Fiscal year:
2026
$260,867 
2027261,171 
2028216,010 
2029171,837 
2030165,455 
Thereafter1,128,479 
Total minimum rental receipts$2,203,819 
Assets Held for Lease
Assets held for lease and included in property and equipment consisted of the following at each fiscal year-end (in thousands):
September 28,
2025		September 29,
2024
Land$66,796 $71,130 
Buildings789,797 763,697 
Equipment1,727 716 
858,320 835,543 
Less accumulated depreciation(704,564)(669,459)
$153,756 $166,084