Operating (Gains), Losses and Other Charges, Net

3 Months Ended

Mar. 26, 2025

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
		March 26, 2025		March 27, 2024
		(In thousands)
Gains on sales of assets and other, net		$	(1,742)	$	(620)
Impairment charges		3,216		95
Restructuring charges and exit costs		2,437		198
Operating (gains), losses and other charges, net		$	3,911	$	(327)

During the quarters ended March 26, 2025 and March 27, 2024, gains on sales of assets and other, net were primarily related to the sales of real estate.

As of March 26, 2025, we had recorded assets held for sale at their carrying amount of $0.2 million (consisting of property) related to one parcel of real estate. As of December 25, 2024, we had recorded assets held for sale at their carrying amount of $0.4 million (consisting of property) related to two parcels of real estate.

We recorded impairment charges of $3.2 million for the quarter ended March 26, 2025, primarily related to closed franchise restaurants and the relocation of certain support functions. The $3.2 million for the quarter included $2.0 million related to franchise agreements, $0.4 million related to property, and $0.8 million related to operating lease right-of-use assets.

Restructuring charges and exit costs consisted of the following:


	Quarter Ended
		March 26, 2025		March 27, 2024
		(In thousands)
Exit costs		$	40	$	42
Severance and other restructuring charges		2,397		156
Total restructuring charges and exit costs		$	2,437	$	198

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.

Severance and other restructuring charges for the quarter ended March 26, 2025 primarily consisted of severance costs resulting from the elimination of approximately 40 positions as part of a cost savings initiative. As of March 26, 2025 and December 25, 2024, we had accrued severance and other restructuring charges of $1.6 million and $0.3 million, respectively. The balance as of March 26, 2025 is expected to be paid during the next 12 months.