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Restaurant Impairments, Closure Costs and Asset Disposals | 9 Months Ended
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Sep. 30, 2025
Discontinued Operations and Disposal Groups [Abstract] |
Restaurant Impairments, Closure Costs and Asset Disposals | Restaurant Impairments, Closure Costs and Asset Disposals The following table presents restaurant impairments, closure costs and asset disposals (in thousands):
| Fiscal Quarter Ended |  | Three Fiscal Quarters Ended
| September 30, 2025 |  | October 1, 2024 |  | September 30, 2025 |  | October 1, 2024
Restaurant impairments (1) | $ | 5,326 |  |  | $ | 160 |  |  | $ | 17,813 |  |  | $ | 11,264 |
Closure costs (1) | (658) |  |  | 995 |  |  | (712) |  |  | 1,257 |
Loss on disposal of assets and other | 1,013 |  |  | 1,047 |  |  | 3,524 |  |  | 2,967 |
| $ | 5,681 |  |  | $ | 2,202 |  |  | $ | 20,625 |  |  | $ | 15,488 |
_____________________________ (1)Restaurant impairments and closure costs in all periods presented above include amounts related to restaurants previously impaired or closed. Closure costs in the first three quarters of 2024 include the impact of lease remeasurements related to the six Oregon restaurants sold to a franchisee in April of 2024. Impairment is based on management’s current assessment of the expected future cash flows of a restaurant based on recent results and other specific market factors. Impairment expense is a Level 3 fair value measure and is determined by comparing the carrying value of restaurant assets to the estimated fair value of the rest aurant assets at resale value, if any, and the right-of-use asset based on a discounted cash flow analysis utilizing market lease rates. The Company has continued to review underperforming restaurants and, in the third quarter of 2025, identified a group of restaurants that the Company will seek to close on or before their next lease renewal dates, and are unlikely to recover the net book value of their assets. In the third quarter and the first three quarters of 2025, the Company recorded fixed asset impairment charges on nine and 24 restaurants, respectively, and wrote down lease related assets on nine and 20 restaurants, respectively. In the third quarter of 2024, the Company did not have any fixed asset impairment charges. In the first three quarters of 2024, the Company recorded fixed asset impairment charges on 12 restaurants. In the first quarter and first three quarters of 2024, the Company wrote down lease related assets for one and five restaurants, respectively. All periods include ongoing equipment costs for restaurants previously impaired. The Company closed 15 restaurants during the third quarter of 2025 and closed 24 restaurants in the first three quarters of 2025. The Company closed five restaurants in the third quarter of 2024 and had seven restaurant closures during the first three quarters of 2024. Both periods included ongoing expenses from restaurant closures during the period and in prior years. These closure costs were offset by $0.6 million and $0.5 million in net gains from lease asset remeasurements in the first three quarters of 2025 and 2024, respectively. Additionally, the Company had a net gain of $1.8 million and a net loss of $0.8 million from early lease termination settlements during the first three quarters of 2025 and 2024, respectively. In the first three quarters of 2024, loss on disposal of assets and other includes a gain from the sale of six company-owned restaurants to a franchisee in April 2024 (the “DND Sale”). Based on the sales price, there was no write down of assets related to this transaction and a gain on sale of $0.5 million was recorded in the second quarter of 2024. Both periods include assets disposed in the normal course of business and sublease expense related to leases for which the Company remains obligated in connection with the divestiture of company-owned restaurants in previous years.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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