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Leases (Tables) | 12 Months Ended
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Dec. 27, 2023
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 27, 2023 |  | December 28, 2022
|  |  | (In thousands)
Lease costs |  |  |  |  |
Finance lease costs: |  |  |  |  |
Amortization of right-of-use assets | Depreciation and amortization |  | $ | 1,451 |  |  | $ | 1,704 |
Interest on lease liabilities | Interest expense, net |  | 2,139 |  |  | 2,350 |
Operating lease costs: |  |  |  |  |
Operating lease costs - company | Occupancy |  | 8,841 |  |  | 7,624 |
Operating lease costs - franchise | Costs of franchise and license revenue |  | 14,022 |  |  | 15,541 |
Operating lease costs - general and administrative | General and administrative expenses |  | 629 |  |  | 564 |
Operating lease costs - closed stores | Restructuring charges and exit costs |  | 175 |  |  | 201 |
Variable lease costs: |  |  |  |  |
Variable lease costs - company | Occupancy |  | 4,803 |  |  | 3,988 |
Variable lease costs - franchise | Costs of franchise and license revenue |  | 6,232 |  |  | 6,596 |
Variable lease costs - general and administrative | General and administrative expenses |  | 271 |  |  | 255 |
Variable lease costs - closed stores | Restructuring charges and exit costs |  | 46 |  |  | 34 |
Sublease income: |  |  |  |  |
Sublease income - franchise | Franchise and license revenue |  | (24,966) |  |  | (27,445) |
Sublease income - closed stores | Restructuring charges and exit costs |  | (166) |  |  | (229) |
Total lease costs |  |  | $ | 13,477 |  |  | $ | 11,183 |
Lease terms and discount rates were as follows:
| December 27, 2023 |  | December 28, 2022
Weighted-average remaining lease term (in years): |  |  |
Finance leases | 8.0 |  | 8.4
Operating leases | 8.8 |  | 9.4
Weighted-average discount rate: |  |  |
Finance leases | 23.1 | % |  | 23.5 | %
Operating leases | 6.0 | % |  | 5.8 | %
Cash and supplemental noncash amounts were as follows:
|  | Fiscal Year Ended
|  | December 27, 2023 |  | December 28, 2022
|  | (In thousands)
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from finance leases |  | $ | 2,139 |  |  | $ | 2,350 |
Operating cash flows from operating leases |  | $ | 24,310 |  |  | $ | 24,626 |
Financing cash flows from finance leases |  | $ | 1,786 |  |  | $ | 2,020 |
Right-of-use assets obtained in exchange for new finance lease liabilities |  | $ | 1,071 |  |  | $ | 537 |
Right-of-use assets obtained in exchange for new operating lease liabilities (1) |  | $ | 7,047 |  |  | $ | 16,040 |
(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 27, 2023 |  | December 28, 2022
|  |  | (In thousands)
Lease income |  |  |  |  |
Operating lease income - franchise | Franchise and license revenue |  | $ | 26,353 |  |  | $ | 28,473 |
Operating lease income - closed stores | Restructuring charges and exit costs |  | 119 |  |  | 183 |
Operating lease income - general and administrative | General and administrative expenses |  | 118 |  |  | 140 |
Variable lease income - franchise | Franchise and license revenue |  | 9,530 |  |  | 10,124 |
Variable lease income - closed stores | Restructuring charges and exit costs |  | 47 |  |  | 46 |
Total lease income |  |  | $ | 36,167 |  |  | $ | 38,966 |
Schedule of Finance Lease Liability Maturity | Maturities of lease liabilities and receipts as of December 27, 2023 were as follows:
| Lease Liabilities |  | Lease Receipts
| Finance |  | Operating |  | Operating
| (In thousands)
2024 | $ | 3,312 |  |  | $ | 21,977 |  |  | $ | 23,950 |
2025 | 3,171 |  |  | 21,022 |  |  | 23,943 |
2026 | 2,820 |  |  | 20,402 |  |  | 23,567 |
2027 | 2,408 |  |  | 18,539 |  |  | 22,133 |
2028 | 1,728 |  |  | 16,558 |  |  | 20,317 |
Thereafter | 9,929 |  |  | 69,289 |  |  | 117,351 |
Total undiscounted cash flows | 23,368 |  |  | 167,787 |  |  | $ | 231,261 |
Less: interest | 12,835 |  |  | 38,557 |  |  |
Present value of lease liabilities | 10,533 |  |  | 129,230 |  |  |
Less: current lease liabilities | 1,383 |  |  | 14,779 |  |  |
Long-term lease liabilities | $ | 9,150 |  |  | $ | 114,451 |  |  |
Schedule of Lessee Lease Liability Maturity | Maturities of lease liabilities and receipts as of December 27, 2023 were as follows:
| Lease Liabilities |  | Lease Receipts
| Finance |  | Operating |  | Operating
| (In thousands)
2024 | $ | 3,312 |  |  | $ | 21,977 |  |  | $ | 23,950 |
2025 | 3,171 |  |  | 21,022 |  |  | 23,943 |
2026 | 2,820 |  |  | 20,402 |  |  | 23,567 |
2027 | 2,408 |  |  | 18,539 |  |  | 22,133 |
2028 | 1,728 |  |  | 16,558 |  |  | 20,317 |
Thereafter | 9,929 |  |  | 69,289 |  |  | 117,351 |
Total undiscounted cash flows | 23,368 |  |  | 167,787 |  |  | $ | 231,261 |
Less: interest | 12,835 |  |  | 38,557 |  |  |
Present value of lease liabilities | 10,533 |  |  | 129,230 |  |  |
Less: current lease liabilities | 1,383 |  |  | 14,779 |  |  |
Long-term lease liabilities | $ | 9,150 |  |  | $ | 114,451 |  |  |
Schedule of Lessor Operating Lease Payments to be Received Maturity | Maturities of lease liabilities and receipts as of December 27, 2023 were as follows:
| Lease Liabilities |  | Lease Receipts
| Finance |  | Operating |  | Operating
| (In thousands)
2024 | $ | 3,312 |  |  | $ | 21,977 |  |  | $ | 23,950 |
2025 | 3,171 |  |  | 21,022 |  |  | 23,943 |
2026 | 2,820 |  |  | 20,402 |  |  | 23,567 |
2027 | 2,408 |  |  | 18,539 |  |  | 22,133 |
2028 | 1,728 |  |  | 16,558 |  |  | 20,317 |
Thereafter | 9,929 |  |  | 69,289 |  |  | 117,351 |
Total undiscounted cash flows | 23,368 |  |  | 167,787 |  |  | $ | 231,261 |
Less: interest | 12,835 |  |  | 38,557 |  |  |
Present value of lease liabilities | 10,533 |  |  | 129,230 |  |  |
Less: current lease liabilities | 1,383 |  |  | 14,779 |  |  |
Long-term lease liabilities | $ | 9,150 |  |  | $ | 114,451 |  |  |

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