UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 25, 2019

OR

☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from           to

Commission File Number 000-50972

Texas Roadhouse, Inc.

(Exact name of registrant specified in its charter)

Delaware	20-1083890
(State or other jurisdiction of	(IRS Employer
incorporation or organization)	Identification Number)

6040 Dutchmans Lane, Suite 200

Louisville, Kentucky 40205

(Address of principal executive offices) (Zip Code)

(502) 426-9984

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	TXRH	NASDAQ Global Select Market

Indicate by check mark whether registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes   ☒  No  ☐.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulations S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes   ☒  No  ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer  ☒	Accelerated Filer  ☐	Non-accelerated Filer  ☐	Smaller Reporting Company  ☐
			Emerging Growth Company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes  ☐  No  ☒.

The number of shares of common stock outstanding were 69,573,832 on July 24, 2019.

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
Item 1 — Financial Statements (Unaudited) — Texas Roadhouse, Inc. and Subsidiaries	3
Condensed Consolidated Balance Sheets — June 25, 2019 and December 25, 2018	3
Condensed Consolidated Statements of Income and Comprehensive Income — For the 13 and 26 Weeks Ended June 25, 2019 and June 26, 2018	4
Condensed Consolidated Statement of Stockholders’ Equity — For the 13 and 26 Weeks Ended June 25, 2019 and June 26, 2018	5
Condensed Consolidated Statements of Cash Flows — For the 26 Weeks Ended June 25, 2019 and June 26, 2018	7
Notes to Condensed Consolidated Financial Statements	8
Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3 — Quantitative and Qualitative Disclosures About Market Risk	30
Item 4 — Controls and Procedures	31
PART II. OTHER INFORMATION
Item 1 — Legal Proceedings	32
Item 1A — Risk Factors	32
Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 3 — Defaults Upon Senior Securities	32
Item 4 — Mine Safety Disclosures	32
Item 5 — Other Information	33
Item 6 — Exhibits	33
Signatures	34

2

PART I — FINANCIAL INFORMATION

ITEM 1 — FINANCIAL STATEMENTS

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

(unaudited)

	June 25, 2019		December 25, 2018
Assets
Current assets:
Cash and cash equivalents	$	144,839	$	210,125
Receivables, net of allowance for doubtful accounts of $15 at June 25, 2019 and $34 at December 25, 2018		39,409		92,114
Inventories, net		17,907		18,827
Prepaid income taxes		104		7,569
Prepaid expenses		15,169		16,384
Total current assets		217,428		345,019
Property and equipment, net of accumulated depreciation of $642,555 at June 25, 2019 and $602,451 at December 25, 2018		991,339		956,676
Operating lease right-of-use asset		485,818		—
Goodwill		123,220		123,220
Intangible assets, net of accumulated amortization of $13,862 at June 25, 2019 and $13,416 at December 25, 2018		1,513		1,959
Other assets		49,533		42,402
Total assets	$	1,868,851	$	1,469,276
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of operating lease liabilities	$	16,472	$	—
Accounts payable		65,799		62,060
Deferred revenue-gift cards		119,557		192,242
Accrued wages		35,892		34,159
Income taxes payable		4,687		—
Accrued taxes and licenses		24,250		24,631
Dividends payable		21,224		17,904
Other accrued liabilities		71,184		54,146
Total current liabilities		359,065		385,142
Operating lease liabilities, net of current portion		521,820		—
Restricted stock and other deposits		8,652		7,703
Deferred rent		—		48,079
Deferred tax liabilities, net		13,630		17,268
Other liabilities		60,066		50,376
Total liabilities		963,233		508,568
Texas Roadhouse, Inc. and subsidiaries stockholders’ equity:
Preferred stock ($0.001 par value, 1,000,000 shares authorized; no shares issued or outstanding)		—		—
Common stock ($0.001 par value, 100,000,000 shares authorized, 69,801,550 and 71,617,510 shares issued and outstanding at June 25, 2019 and December 25, 2018, respectively)		70		72
Additional paid-in-capital		152,872		257,388
Retained earnings		738,123		688,337
Accumulated other comprehensive loss		(213)		(228)
Total Texas Roadhouse, Inc. and subsidiaries stockholders’ equity		890,852		945,569
Noncontrolling interests		14,766		15,139
Total equity		905,618		960,708
Total liabilities and equity	$	1,868,851	$	1,469,276

See accompanying notes to condensed consolidated financial statements.

3

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Statements of Income and Comprehensive Income

(in thousands, except per share data)

(unaudited)

	13 Weeks Ended				26 Weeks Ended
	June 25, 2019		June 26, 2018		June 25, 2019		June 26, 2018
Revenue:
Restaurant and other sales	$	684,373	$	624,073	$	1,369,490	$	1,246,475
Franchise royalties and fees		5,455		5,164		10,946		10,467
Total revenue		689,828		629,237		1,380,436		1,256,942
Costs and expenses:
Restaurant operating costs (excluding depreciation and amortization shown separately below):
Cost of sales		221,266		204,048		444,978		406,834
Labor		225,490		199,647		449,370		395,677
Rent		13,051		12,119		26,179		23,970
Other operating		103,811		94,858		205,613		187,236
Pre-opening		4,197		4,107		8,065		9,151
Depreciation and amortization		28,454		25,165		56,227		49,649
Impairment and closure		316		22		333		108
General and administrative		39,960		35,004		75,943		65,179
Total costs and expenses		636,545		574,970		1,266,708		1,137,804
Income from operations		53,283		54,267		113,728		119,138
Interest income (expense), net		691		(283)		1,445		(642)
Equity income from investments in unconsolidated affiliates		141		445		254		769
Income before taxes	$	54,115	$	54,429	$	115,427	$	119,265
Provision for income taxes		7,427		8,466		16,546		16,923
Net income including noncontrolling interests		46,688		45,963	$	98,881	$	102,342
Less: Net income attributable to noncontrolling interests		1,843		1,736		3,646		3,574
Net income attributable to Texas Roadhouse, Inc. and subsidiaries	$	44,845	$	44,227	$	95,235	$	98,768
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment, net of tax of $28, $40, ($5) and ($9), respectively		(82)		(118)		15		(8)
Total other comprehensive (loss) income, net of tax		(82)		(118)		15		(8)
Total comprehensive income	$	44,763	$	44,109	$	95,250	$	98,760
Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries:
Basic	$	0.63	$	0.62	$	1.33	$	1.38
Diluted	$	0.63	$	0.62	$	1.32	$	1.37
Weighted average shares outstanding:
Basic		71,362		71,445		71,558		71,389
Diluted		71,733		71,897		71,961		71,853
Cash dividends declared per share	$	0.30	$	0.25	$	0.60	$	0.50

See accompanying notes to condensed consolidated financial statements.

4

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Statement of Stockholders' Equity

(in thousands, except share and per share data)

(unaudited)

	For the 13 Weeks Ended June 25, 2019
								Accumulated		Total Texas
				Additional				Other		Roadhouse, Inc.
		Par		Paid-in-		Retained		Comprehensive		and		Noncontrolling
	Shares	Value		Capital		Earnings		Loss		Subsidiaries		Interests		Total
Balance, March 26, 2019	71,827,836	$	72	$	259,050	$	714,502	$	(131)	$	973,493	$	14,654	$	988,147
Net income	—		—		—		44,845		—		44,845		1,843		46,688
Other comprehensive loss, net of tax	—		—		—		—		(82)		(82)		—		(82)
Distributions to noncontrolling interest holders	—		—		—		—		—		—		(1,731)		(1,731)
Dividends declared ($0.30 per share)	—		—		—		(21,224)		—		(21,224)		—		(21,224)
Shares issued under share-based compensation plans including tax effects	103,289		—		—		—		—		—		—		—
Indirect repurchase of shares for minimum tax withholdings	(32,898)		—		(1,869)		—		—		(1,869)		—		(1,869)
Repurchase of shares of common stock	(2,096,677)		(2)		(112,050)		—		—		(112,052)		—		(112,052)
Share-based compensation	—		—		7,741		—		—		7,741		—		7,741
Balance, June 25, 2019	69,801,550	$	70	$	152,872	$	738,123	$	(213)	$	890,852	$	14,766	$	905,618
	For the 13 Weeks Ended June 26, 2018
								Accumulated		Total Texas
				Additional				Other		Roadhouse, Inc.
		Par		Paid-in-		Retained		Comprehensive		and		Noncontrolling
	Shares	Value		Capital		Earnings		Income (Loss)		Subsidiaries		Interests		Total
Balance, March 27, 2018	71,414,201	$	71	$	235,771	$	638,309	$	71	$	874,222	$	12,643	$	886,865
Net income	—		—		—		44,227		—		44,227		1,736		45,963
Other comprehensive loss, net of tax	—		—		—		—		(118)		(118)		—		(118)
Noncontrolling interest contribution	—		—		—		—		—		—		865		865
Contribution from executive officer	—		—		1,000		—		—		1,000		—		1,000
Distributions to noncontrolling interest holders	—		—		—		—		—		—		(1,695)		(1,695)
Dividends declared ($0.25 per share)	—		—		—		(17,868)		—		(17,868)		—		(17,868)
Shares issued under share-based compensation plans including tax effects	88,062		—		—		—		—		—		—		—
Indirect repurchase of shares for minimum tax withholdings	(28,054)		—		(1,795)		—		—		(1,795)		—		(1,795)
Share-based compensation	—		—		8,381		—		—		8,381		—		8,381
Balance, June 26, 2018	71,474,209	$	71	$	243,357	$	664,668	$	(47)	$	908,049	$	13,549	$	921,598

See accompanying notes to condensed consolidated financial statements.

5

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Statement of Stockholders' Equity

(in thousands, except share and per share data)

(unaudited)

	For the 26 Weeks Ended June 25, 2019
								Accumulated		Total Texas
				Additional				Other		Roadhouse, Inc.
		Par		Paid-in-		Retained		Comprehensive		and		Noncontrolling
	Shares	Value		Capital		Earnings		Loss		Subsidiaries		Interests		Total
Balance, December 25, 2018	71,617,510	$	72	$	257,388	$	688,337	$	(228)	$	945,569	$	15,139	$	960,708
Net income	—		—		—		95,235		—		95,235		3,646		98,881
Other comprehensive income, net of tax	—		—		—		—		15		15		—		15
Distributions to noncontrolling interest holders	—		—		—		—		—		—		(3,346)		(3,346)
Acquisition of noncontrolling interest and other	—		—		(70)		—		—		(70)		(673)		(743)
Dividends declared ($0.60 per share)	—		—		—		(42,771)		—		(42,771)		—		(42,771)
Shares issued under share-based compensation plans including tax effects	433,917		—		—		—		—		—		—		—
Indirect repurchase of shares for minimum tax withholdings	(153,200)		—		(9,269)		—		—		(9,269)		—		(9,269)
Repurchase of shares of common stock	(2,096,677)		(2)		(112,050)		—		—		(112,052)		—		(112,052)
Cumulative effect of adoption of ASC 842, Leases, net of tax	—		—		—		(2,678)		—		(2,678)		—		(2,678)
Share-based compensation	—		—		16,873		—		—		16,873		—		16,873
Balance, June 25, 2019	69,801,550	$	70	$	152,872	$	738,123	$	(213)	$	890,852	$	14,766	$	905,618
	For the 26 Weeks Ended June 26, 2018
								Accumulated		Total Texas
				Additional				Other		Roadhouse, Inc.
		Par		Paid-in-		Retained		Comprehensive		and		Noncontrolling
	Shares	Value		Capital		Earnings		Loss		Subsidiaries		Interests		Total
Balance, December 26, 2017	71,168,897	$	71	$	236,548	$	602,499	$	(39)	$	839,079	$	12,312	$	851,391
Net income	—		—		—		98,768		—		98,768		3,574		102,342
Other comprehensive loss, net of tax	—		—		—		—		(8)		(8)		—		(8)
Noncontrolling interest contribution	—		—		—		—		—		—		865		865
Contribution from executive officer	—		—		1,000		—		—		1,000		—		1,000
Distributions to noncontrolling interest holders	—		—		—		—		—		—		(3,202)		(3,202)
Dividends declared ($0.50 per share)	—		—		—		(35,721)		—		(35,721)		—		(35,721)
Shares issued under share-based compensation plans including tax effects	478,690		—		—		—		—		—		—		—
Indirect repurchase of shares for minimum tax withholdings	(173,378)		—		(10,047)		—		—		(10,047)		—		(10,047)
Cumulative effect of adoption of ASC 606, Revenue from Contracts with Customers, net of tax	—		—		—		(878)		—		(878)		—		(878)
Share-based compensation	—		—		15,856		—		—		15,856		—		15,856
Balance, June 26, 2018	71,474,209	$	71	$	243,357	$	664,668	$	(47)	$	908,049	$	13,549	$	921,598

See accompanying notes to condensed consolidated financial statements.

6

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

	26 Weeks Ended
	June 25, 2019		June 26, 2018
Cash flows from operating activities:
Net income including noncontrolling interests	$	98,881	$	102,342
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		56,227		49,649
Deferred income taxes		(2,734)		3,609
Loss on disposition of assets		2,322		2,852
Impairment and closure costs		312		—
Contribution from executive officer		—		1,000
Equity income from investments in unconsolidated affiliates		(254)		(769)
Distributions of income received from investments in unconsolidated affiliates		346		367
Provision for doubtful accounts		(19)		17
Share-based compensation expense		16,873		15,856
Changes in operating working capital:
Receivables		53,894		44,328
Inventories		920		(719)
Prepaid expenses		1,215		870
Other assets		(7,653)		(4,600)
Accounts payable		(299)		(61)
Deferred revenue—gift cards		(72,685)		(59,082)
Accrued wages		1,733		3,066
Prepaid income taxes and income taxes payable		12,152		(980)
Accrued taxes and licenses		(381)		(765)
Other accrued liabilities		13,749		2,247
Operating lease right-of-use assets and lease liabilities		2,799		—
Deferred rent		—		2,382
Other liabilities		9,618		3,498
Net cash provided by operating activities		187,016		165,107
Cash flows from investing activities:
Capital expenditures—property and equipment		(87,782)		(66,718)
Net cash used in investing activities		(87,782)		(66,718)
Cash flows from financing activities:
Proceeds from noncontrolling interest contribution		—		865
Distributions to noncontrolling interest holders		(3,346)		(3,202)
Acquisition of noncontrolling interest		(743)		—
Proceeds from restricted stock and other deposits, net		340		232
Indirect repurchase of shares for minimum tax withholdings		(9,269)		(10,047)
Principal payments on long-term debt and finance lease obligation		—		(50,004)
Repurchase of shares of common stock		(112,050)		—
Dividends paid to shareholders		(39,452)		(32,798)
Net cash used in financing activities		(164,520)		(94,954)
Net (decrease) increase in cash and cash equivalents		(65,286)		3,435
Cash and cash equivalents—beginning of period		210,125		150,918
Cash and cash equivalents—end of period	$	144,839	$	154,353
Supplemental disclosures of cash flow information:
Interest paid, net of amounts capitalized	$	367	$	485
Income taxes paid	$	7,128	$	14,295
Capital expenditures included in current liabilities	$	15,267	$	14,268

See accompanying notes to condensed consolidated financial statements.

7

Texas Roadhouse, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(tabular amounts in thousands, except share and per share data)

(unaudited)

(1)  Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Texas Roadhouse, Inc. ("TRI"), our wholly-owned subsidiaries and subsidiaries in which we have a controlling interest (collectively the "Company," "we," "our" and/or "us") as of June 25, 2019 and December 25, 2018 and for the 13 and 26 weeks ended June 25, 2019 and June 26, 2018.

As of June 25, 2019, we owned and operated 498 restaurants and franchised an additional 93 restaurants in 49 states and ten foreign countries. Of the 498 company restaurants that were operating at June 25, 2019, 478 were wholly-owned and 20 were majority-owned. Of the 93 franchise restaurants, 70 were domestic restaurants and 23 were international restaurants.

As of June 26, 2018, we owned and operated 476 restaurants and franchised an additional 90 restaurants in 49 states and eight foreign countries. Of the 476 company restaurants that were operating at June 26, 2018, 458 were wholly-owned and 18 were majority-owned. Of the 90 franchise restaurants, 70 were domestic restaurants and 20 were international restaurants.

As of June 25, 2019 and June 26, 2018, we owned a 5.0% to 10.0% equity interest in 24 domestic franchise restaurants. Additionally, as of June 25, 2019 and June 26, 2018, we owned a 40% equity interest in four non-Texas Roadhouse restaurants as part of a joint venture agreement with a casual dining restaurant operator in China. The unconsolidated restaurants are accounted for using the equity method. Our investments in these unconsolidated affiliates are included in other assets in our unaudited condensed consolidated balance sheets, and we record our percentage share of net income earned by these unconsolidated affiliates in our unaudited condensed consolidated statements of income and comprehensive income under equity income from investments in unconsolidated affiliates. All significant intercompany balances and transactions for these unconsolidated restaurants as well as the entities whose accounts have been consolidated have been eliminated.

We have made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reporting of revenue and expenses during the periods to prepare these unaudited condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP"). Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, goodwill, obligations related to insurance reserves, leases and leasehold improvements, legal reserves, gift card breakage and third party fees and income taxes. Actual results could differ from those estimates.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our consolidated financial position, results of operations and cash flows for the periods presented. The unaudited condensed consolidated financial statements have been prepared in accordance with GAAP, except that certain information and footnotes have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission ("SEC"). Operating results for the 13 and 26 weeks ended June 25, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 25, 2018.

Our significant interim accounting policies include the recognition of income taxes using an estimated annual effective tax rate.

8

(2) Recent Accounting Pronouncements

Leases

(Accounting Standards Codification 842, "ASC 842")

On December 26, 2018, we adopted ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases.  As further described in note 3, we lease land and/or buildings for the majority of our restaurants under non-cancelable lease agreements. We adopted ASC 842 using a modified retrospective approach. As a result, the comparative financial information has not been updated and the required disclosures prior to the date of adoption have not been updated and continue to be reported under the accounting standards in effect for those periods.

ASC 842 also permitted the election of certain practical expedients upon adoption. We elected the transition package of practical expedients which allowed us to carryforward the historical lease classification. We also elected the practical expedient to not separate lease and non-lease components for all leases entered into after the date of adoption. Finally, we elected the hindsight practical expedient which required us to assess the lease term for all existing leases. This resulted in extending the terms for certain existing leases in which renewal options had already been exercised or were reasonably certain of being exercised and shortening the terms for certain existing leases in which renewal options were not reasonably certain of being exercised. As a result of the hindsight election, we recorded a $2.7 million reduction, net of tax, to retained earnings as of the first day of fiscal 2019 to reflect the change in lease terms.

The adoption of this standard had a significant impact on our consolidated balance sheet. There was no significant impact to our results of operations or cash flows. This standard did not have a significant impact on our liquidity or on our compliance with our financial covenants associated with our credit facility.

Financial Instruments

(Accounting Standards Update 2016-13, "ASU 2016-13")

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires measurement and recognition of expected versus incurred losses for financial assets held.  ASU 2016-13 is effective for annual periods beginning after December 15, 2019 (our 2020 fiscal year), with early adoption permitted for annual periods beginning after December 15, 2018.  We are currently assessing the impact of this new standard on our consolidated financial statements.

Goodwill

(Accounting Standards Update 2017-04, "ASU 2017-04")

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairment and is expected to reduce the cost and complexity of accounting for goodwill.  ASU 2017-04 removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation.  Instead, goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of the goodwill.  ASU 2017-04 is effective for fiscal years beginning after December 15, 2019 (our 2020 fiscal year) and will be applied on a prospective basis.  Early adoption is permitted for interim and annual goodwill impairment tests performed on testing dates after January 1, 2017.  We are currently assessing the impact of this new standard on our consolidated financial statements.

Fair Value Measurement

(Accounting Standards Update 2018-13, "ASU 2018-13")

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, modifies and adds disclosure requirements for fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019 (our 2020 fiscal year) and for interim periods within those years, with early adoption permitted. We are currently assessing the impact of this new standard on our consolidated financial statements.

9

(3) Leases

We recognize right-of-use assets and lease liabilities for both real estate and equipment leases that have a term in excess of one year. As of June 25, 2019, these amounts were as follows (in thousands):

	Leases
	Real estate		Equipment		Total
Operating lease right-of-use assets	$	482,086	$	3,732	$	485,818
Current portion of operating lease liabilities		15,230		1,242		16,472
Operating lease liabilities, net of current portion		519,330		2,490		521,820
Total operating lease liabilities	$	534,560	$	3,732	$	538,292

Information related to our real estate leases as of and for the 13 and 26 week periods ended June 25, 2019 was as follows (in thousands):

		13 Weeks Ended		26 Weeks Ended
Real estate costs		June 25, 2019		June 25, 2019
Operating lease	$	13,486	$	26,913
Variable lease		403		851
Short-term lease		30		60
Total lease costs	$	13,919	$	27,824