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Leases

9 Months Ended

Jul. 01, 2025

Note 10.

Leases

The Company determines if a contract contains a lease at inception. The Company’s material long-term operating lease agreements are for the land and buildings for our restaurants as well as our corporate office. The initial lease terms range from 10 to 20 years, most of which include renewal options of 10 to 15 years.

Components of operating lease costs are as follows for the fiscal quarters ended July 1, 2025 and June 25, 2024:

Lease cost	Classification	July 1, 2025			June 25, 2024
Operating lease cost	Occupancy, Other restaurant operating costs and General and administrative expenses, net	$	1,832		$	1,876
Variable lease cost	Occupancy		11			19
Sublease income	Occupancy		(123	)		(132	)
		$	1,720		$	1,763

Weighted average lease term and discount rate are as follows:

	July 1, 2025			June 25, 2024
Weighted average remaining lease term (in years)		6.82			7.52

Weighted average discount rate		5.3	%		5.2	%

Supplemental cash flow disclosures:

	July 1, 2025		June 25, 2024
Cash paid for operating lease liabilities	$	6,053	$	5,817

Non-cash operating lease assets obtained in exchange for operating lease liabilities	$	1,086	$	933

Future minimum rent payments for our operating leases as of July 1, 2025 are as follows:

	Total
One Year	$	8,316
Two Years		8,112
Three Years		7,493
Four Years		6,218
Five Years		5,372
Thereafter		13,481
Total minimum lease payments		48,992
Less: imputed interest		(8,141	)
Present value of lease liabilities	$	40,851

The future minimum rental amounts above exclude the amortization of deferred lease incentives, renewal options that are not reasonably assured of renewal, and contingent rent. The Company generally has escalating rents over the term of the leases and records rent in accordance with GAAP which generally results in total base rent expense being recognized on a straight-line basis.