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v3.22.4

Leases (Tables) | 12 Months Ended
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Dec. 28, 2022
Leases [Abstract] |
Schedule of Components of Lease Costs and Lease Terms and Discount Rates | The components of lease costs were as follows:
|  |  | Fiscal Year Ended
| Classification |  | December 28, 2022 |  | December 29, 2021
|  |  | (In thousands)
Lease costs |  |  |  |  |
Finance lease costs: |  |  |  |  |
Amortization of right-of-use assets | Depreciation and amortization |  | $ | 1,704 |  |  | $ | 1,895 |
Interest on lease liabilities | Interest expense, net |  | 2,350 |  |  | 2,960 |
Operating lease costs: |  |  |  |  |
Operating lease costs - company | Occupancy |  | 7,624 |  |  | 6,394 |
Operating lease costs - franchise | Costs of franchise and license revenue |  | 15,541 |  |  | 17,106 |
Operating lease costs - general and administrative | General and administrative expenses |  | 564 |  |  | 432 |
Operating lease costs - closed stores | Restructuring charges and exit costs |  | 201 |  |  | 356 |
Variable lease costs: |  |  |  |  |
Variable lease costs - company | Occupancy |  | 3,988 |  |  | 3,275 |
Variable lease costs - franchise | Costs of franchise and license revenue |  | 6,596 |  |  | 7,172 |
Variable lease costs - general and administrative | General and administrative expenses |  | 255 |  |  | 218 |
Variable lease costs - closed stores | Restructuring charges and exit costs |  | 34 |  |  | 48 |
Sublease income: |  |  |  |  |
Sublease income - franchise | Franchise and license revenue |  | (27,445) |  |  | (30,607) |
Sublease income - closed stores | Restructuring charges and exit costs |  | (229) |  |  | (160) |
Total lease costs |  |  | $ | 11,183 |  |  | $ | 9,089 |
Lease terms and discount rates were as follows:
| December 28, 2022 |  | December 29, 2021
Weighted-average remaining lease term (in years): |  |  |
Finance leases | 8.4 |  | 8.5
Operating leases | 9.4 |  | 10.0
Weighted-average discount rate: |  |  |
Finance leases | 23.5 | % |  | 23.4 | %
Operating leases | 5.8 | % |  | 5.7 | %
Cash and supplemental noncash amounts were as follows:
|  | Fiscal Year Ended
|  | December 28, 2022 |  | December 29, 2021
|  | (In thousands)
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from finance leases |  | $ | 2,350 |  |  | $ | 2,960 |
Operating cash flows from operating leases |  | $ | 24,626 |  |  | $ | 25,578 |
Financing cash flows from finance leases |  | $ | 2,020 |  |  | $ | 2,118 |
Right-of-use assets obtained in exchange for new finance lease liabilities |  | $ | 537 |  |  | $ | 998 |
Right-of-use assets obtained in exchange for new operating lease liabilities (1) |  | $ | 16,040 |  |  | $ | 8,513 |
(1) Right-of-use assets obtained in 2022 includes $7.9 million from the acquisition of Keke’s. See Note 3.
Schedule of Components of Lease Income | The components of lease income were as follows:
|  |  | Fiscal Year Ended
| Classification |  | December 28, 2022 |  | December 29, 2021
|  |  | (In thousands)
Lease income |  |  |  |  |
Operating lease income - franchise | Franchise and license revenue |  | $ | 28,473 |  |  | $ | 30,767 |
Operating lease income - closed stores | Restructuring charges and exit costs |  | 183 |  |  | 109 |
Operating lease income - general and administrative | General and administrative expenses |  | 140 |  |  | 65 |
Variable lease income - franchise | Franchise and license revenue |  | 10,124 |  |  | 10,999 |
Variable lease income - closed stores | Restructuring charges and exit costs |  | 46 |  |  | 51 |
Total lease income |  |  | $ | 38,966 |  |  | $ | 41,991 |
Schedule of Finance Lease Liability Maturity | Maturities of lease liabilities and receipts as of December 28, 2022 were as follows:
| Lease Liabilities |  | Lease Receipts
| Finance |  | Operating |  | Operating
| (In thousands)
2023 | $ | 3,768 |  |  | $ | 23,031 |  |  | $ | 25,816 |
2024 | 3,047 |  |  | 21,538 |  |  | 24,454 |
2025 | 2,911 |  |  | 20,267 |  |  | 24,220 |
2026 | 2,576 |  |  | 19,427 |  |  | 23,768 |
2027 | 2,197 |  |  | 17,525 |  |  | 22,195 |
Thereafter | 11,514 |  |  | 80,781 |  |  | 138,095 |
Total undiscounted cash flows | 26,013 |  |  | 182,569 |  |  | $ | 258,548 |
Less: interest | 14,775 |  |  | 43,855 |  |  |
Present value of lease liabilities | 11,238 |  |  | 138,714 |  |  |
Less: current lease liabilities | 1,683 |  |  | 15,310 |  |  |
Long-term lease liabilities | $ | 9,555 |  |  | $ | 123,404 |  |  |
Schedule of Lessee Lease Liability Maturity | Maturities of lease liabilities and receipts as of December 28, 2022 were as follows:
| Lease Liabilities |  | Lease Receipts
| Finance |  | Operating |  | Operating
| (In thousands)
2023 | $ | 3,768 |  |  | $ | 23,031 |  |  | $ | 25,816 |
2024 | 3,047 |  |  | 21,538 |  |  | 24,454 |
2025 | 2,911 |  |  | 20,267 |  |  | 24,220 |
2026 | 2,576 |  |  | 19,427 |  |  | 23,768 |
2027 | 2,197 |  |  | 17,525 |  |  | 22,195 |
Thereafter | 11,514 |  |  | 80,781 |  |  | 138,095 |
Total undiscounted cash flows | 26,013 |  |  | 182,569 |  |  | $ | 258,548 |
Less: interest | 14,775 |  |  | 43,855 |  |  |
Present value of lease liabilities | 11,238 |  |  | 138,714 |  |  |
Less: current lease liabilities | 1,683 |  |  | 15,310 |  |  |
Long-term lease liabilities | $ | 9,555 |  |  | $ | 123,404 |  |  |
Schedule of Lessor Operating Lease Payments to be Received Maturity | Maturities of lease liabilities and receipts as of December 28, 2022 were as follows:
| Lease Liabilities |  | Lease Receipts
| Finance |  | Operating |  | Operating
| (In thousands)
2023 | $ | 3,768 |  |  | $ | 23,031 |  |  | $ | 25,816 |
2024 | 3,047 |  |  | 21,538 |  |  | 24,454 |
2025 | 2,911 |  |  | 20,267 |  |  | 24,220 |
2026 | 2,576 |  |  | 19,427 |  |  | 23,768 |
2027 | 2,197 |  |  | 17,525 |  |  | 22,195 |
Thereafter | 11,514 |  |  | 80,781 |  |  | 138,095 |
Total undiscounted cash flows | 26,013 |  |  | 182,569 |  |  | $ | 258,548 |
Less: interest | 14,775 |  |  | 43,855 |  |  |
Present value of lease liabilities | 11,238 |  |  | 138,714 |  |  |
Less: current lease liabilities | 1,683 |  |  | 15,310 |  |  |
Long-term lease liabilities | $ | 9,555 |  |  | $ | 123,404 |  |  |

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