Operating (Gains), Losses and Other Charges, Net

9 Months Ended

Sep. 25, 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				Three Quarters Ended
	September 25, 2024		September 27, 2023		September 25, 2024		September 27, 2023
	(In thousands)
Losses (gains) on sales of assets and other, net	$	6	$	(88)	$	(88)	$	(2,132)
Impairment charges (1)	78		1,711		792		1,840
Restructuring charges and exit costs	662		997		1,280		2,759
Operating (gains), losses and other charges, net	$	746	$	2,620	$	1,984	$	2,467

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

During the quarter and year-to-date period ended September 25, 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 September 27, 2023, losses (gains) on sales of assets and other, net were primarily related to the sales of real estate.

As of September 25, 2024, we had no recorded assets held for sale. 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 $0.1 million and $0.8 million for the quarter and year-to-date period ended September 25, 2024, respectively, primarily related to assets held for sale and resulting from our assessments of underperforming units and closed units. The $0.1 million for the quarter was related to a franchise agreement. The $0.8 million for the year-to-date period included $0.6 million related to property, $0.1 million related to reacquired franchise rights, and $0.1 million related to a franchise agreement.

Restructuring charges and exit costs consisted of the following:


	Quarter Ended				Three Quarters Ended
	September 25, 2024		September 27, 2023		September 25, 2024		September 27, 2023
	(In thousands)
Exit costs	$	231	$	12	$	322	$	64
Severance and other restructuring charges	431		985		958		2,695
Total restructuring charges and exit costs	$	662	$	997	$	1,280	$	2,759

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 September 25, 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 September 25, 2024 is expected to be paid during the next 12 months.