LEASES (Tables)

6 Months Ended

Jun. 28, 2023

LEASES [Abstract]

Schedule of lease cost

The following table presents the Company’s total lease cost, disaggregated by underlying asset (in thousands):

	Thirteen Weeks Ended
	June 28, 2023						June 29, 2022
	Property		Equipment				Property		Equipment
	Leases		Leases		Total		Leases		Leases		Total
Finance lease cost:
Amortization of right-of-use assets	$	19	$	—	$	19	$	18	$	1	$	19
Interest on lease liabilities		10		—		10		10		1		11
Operating lease cost		6,873		238		7,111		6,585		258		6,843
Short-term lease cost		—		1		1		—		4		4
Variable lease cost		130		203		333		171		149		320
Sublease income		(1,246)		—		(1,246)		(1,129)		—		(1,129)
Total lease cost	$	5,786	$	442	$	6,228	$	5,655	$	413	$	6,068

	Twenty-Six Weeks Ended
	June 28, 2023						June 29, 2022
	Property		Equipment				Property		Equipment
	Leases		Leases		Total		Leases		Leases		Total
Finance lease cost:
Amortization of right-of-use assets	$	37	$	1	$	38	$	37	$	1	$	38
Interest on lease liabilities		20		1		21		22		2		24
Operating lease cost		13,705		440		14,145		13,149		521		13,670
Short-term lease cost		—		4		4		—		8		8
Variable lease cost		272		436		708		307		267		574
Sublease income		(2,493)		—		(2,493)		(2,257)		—		(2,257)
Total lease cost	$	11,541	$	882	$	12,423	$	11,258	$	799	$	12,057

The following table presents the Company’s total lease cost on the condensed consolidated statements of income (in thousands):

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 28, 2023		June 29, 2022		June 28, 2023		June 29, 2022
Lease cost – Occupancy and other operating expenses	$	6,048	$	5,912	$	12,057	$	11,742
Lease cost – General & administrative		133		105		269		210
Lease cost – Depreciation and amortization		19		18		38		37
Lease cost – Interest expense		10		11		21		24
Lease cost – Closed-store reserve		18		22		38		44
Total lease cost	$	6,228	$	6,068	$	12,423	$	12,057

During the twenty-six weeks ended June 28, 2023 and June 29, 2022, the Company had the following cash and non-cash activities associated with its leases (dollars in thousands):

	Twenty-Six Weeks Ended June 28, 2023								Twenty-Six Weeks Ended June 29, 2022
	Property			Equipment					Property			Equipment
	Leases			Leases			Total		Leases			Leases			Total
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	13,814		$	269		$	14,083	$	13,543		$	495		$	14,038
Financing cash flows used for finance leases	$	47		$	29		$	76	$	58		$	28		$	86
Non-cash investing and financing activities:
Operating lease ROU assets obtained in exchange for lease liabilities:
Operating lease ROU assets	$	13,607		$	27		$	13,634	$	8,485		$	—		$	8,485
Finance lease ROU assets obtained in exchange for lease liabilities:
Finance lease ROU assets	$	—		$	—		$	—	$	—		$	28		$	28
Derecognition of ROU assets due to terminations, impairment or modifications	$	(40)		$	—		$	(40)	$	—		$	(24)		$	(24)
Other Information
Weighted-average remaining years in lease term—finance leases		17.37			2.71					18.37			3.68
Weighted-average remaining years in lease term—operating leases		10.74			3.13					11.01			1.19
Weighted-average discount rate—finance leases		2.57	%		1.53	%				2.57	%		1.53	%
Weighted-average discount rate—operating leases		4.81	%		4.05	%				4.47	%		3.82	%

Schedule of Financing Leases

Information regarding the Company’s minimum future lease obligations as of June 28, 2023 is as follows (in thousands):

	Finance Leases		Operating Leases
	Minimum		Minimum		Minimum
	Lease		Lease		Sublease
For the Years Ending	Payments		Payments		Income
December 27, 2023	$	76	$	14,077	$	2,032
December 25, 2024		151		27,598		3,942
December 31, 2025		147		25,676		3,461
December 30, 2026		114		23,302		3,097
December 29, 2027		104		21,838		3,053
Thereafter		1,479		133,575		21,368
Total	$	2,071	$	246,066	$	36,953
Less: imputed interest (1.53% - 4.81%)		(390)		(56,860)
Present value of lease obligations		1,681		189,206
Less: current maturities		(111)		(19,464)
Noncurrent portion	$	1,570	$	169,742

Schedule of Operating Leases

Information regarding the Company’s minimum future lease obligations as of June 28, 2023 is as follows (in thousands):

	Finance Leases		Operating Leases
	Minimum		Minimum		Minimum
	Lease		Lease		Sublease
For the Years Ending	Payments		Payments		Income
December 27, 2023	$	76	$	14,077	$	2,032
December 25, 2024		151		27,598		3,942
December 31, 2025		147		25,676		3,461
December 30, 2026		114		23,302		3,097
December 29, 2027		104		21,838		3,053
Thereafter		1,479		133,575		21,368
Total	$	2,071	$	246,066	$	36,953
Less: imputed interest (1.53% - 4.81%)		(390)		(56,860)
Present value of lease obligations		1,681		189,206
Less: current maturities		(111)		(19,464)
Noncurrent portion	$	1,570	$	169,742