LEASES

3 Months Ended

Apr. 04, 2021

Lessee Operating And Finance Leases [Text Block]

(7) Leases

The Company leases the property for its corporate headquarters, most of its Company-owned stores, and certain office and restaurant equipment. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of use (“ROU”) assets, current portion of operating lease liabilities, and operating lease liabilities in its consolidated balance sheets.

Lease expense for lease payments is recognized on a straight-line basis over the lease term and is included in operating expenses and general and administrative expenses on the statement of operations. The components of lease expense for the period presented is as follows:


	Three Months Ended		Three Months Ended
(in thousands)	April 4, 2021		March 29, 2020
Operating lease cost	$	2,442	$	1,596
Short-term lease cost		96		31
Variable lease cost		368		-
Sublease income		(44)		-
Total lease cost	$	2,862	$	1,627

Supplemental cash flow information related to leases for the period presented is as follows:


	Three Months Ended			Three Months Ended
(in thousands)	April 4, 2021			March 29, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,155		$	1,791
Right-of-use assets obtained in exchange for new operating lease liabilities		-			51,682
Weighted-average remaining lease term of operating leases (in years)		10.1			11.0
Weighted-average discount rate of operating leases		5.27	%		5.26	%