Operating (Gains), Losses and Other Charges, Net

6 Months Ended

Jun. 26, 2024

Other Income and Expenses [Abstract]

Operating (Gains), Losses and Other Charges, Net

Operating (gains), losses and other charges, net consisted of the following:


	Quarter Ended				Two Quarters Ended
	June 26, 2024		June 28, 2023		June 26, 2024		June 28, 2023
	(In thousands)
Losses (gains) on sales of assets and other, net	$	526	$	(522)	$	(94)	$	(2,044)
Impairment charges (1)	619		—		714		129
Restructuring charges and exit costs	420		1,698		618		1,762
Operating (gains), losses and other charges, net	$	1,565	$	1,176	$	1,238	$	(153)

(1) Impairment charges include impairments related to property, operating right-of-use assets, finance right-of-use assets, and reacquired franchise rights.

During the quarter and year-to-date period ended June 26, 2024, losses (gains) on sales of assets and other, net were primarily related to the sales of restaurants and real estate. During the quarter and year-to-date period ended June 28, 2023, losses (gains) on sales of assets and other, net were primarily related to the sales of real estate.

As of June 26, 2024, we had recorded assets held for sale at the lesser of the carrying value or fair value amount of $0.4 million (consisting of property) related to three Denny's restaurants. As of December 27, 2023, we had recorded assets held for sale at their carrying amount of $1.5 million (consisting of property of $0.9 million, goodwill of $0.5 million and other assets of $0.1 million) related to one parcel of real estate and three Keke's restaurants.

We recorded impairment charges of $0.6 million and $0.7 million for the quarter and year-to-date period ended June 26, 2024, respectively, primarily related to assets held for sale and resulting from our assessments of underperforming units and closed units. The $0.6 million included $0.5 million related to property and $0.1 million related to reacquired franchise rights. The $0.7 million included $0.6 million related to property and $0.1 million related to reacquired franchise rights.

Restructuring charges and exit costs consisted of the following:


	Quarter Ended				Two Quarters Ended
	June 26, 2024		June 28, 2023		June 26, 2024		June 28, 2023
	(In thousands)
Exit costs	$	49	$	52	$	91	$	52
Severance and other restructuring charges	371		1,646		527		1,710
Total restructuring charges and exit costs	$	420	$	1,698	$	618	$	1,762

Exit costs primarily consist of costs related to closed restaurants. Exit cost liabilities related to lease costs are included as a component of operating lease liabilities in our Consolidated Balance Sheets.

As of June 26, 2024 and December 27, 2023, we had accrued severance and other restructuring charges of $0.7 million and $1.4 million, respectively. The balance as of June 26, 2024 is expected to be paid during the next 12 months.