LEASES (Tables)

9 Months Ended

Sep. 27, 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
	September 27, 2023						September 28, 2022
	Property		Equipment				Property		Equipment
	Leases		Leases		Total		Leases		Leases		Total
Finance lease cost:
Amortization of right-of-use assets	$	18	$	1	$	19	$	18	$	1	$	19
Interest on lease liabilities		9		1		10		10		1		11
Operating lease cost		6,903		43		6,946		6,646		256		6,902
Short-term lease cost		—		2		2		—		4		4
Variable lease cost		150		332		482		151		196		347
Sublease income		(1,280)		—		(1,280)		(1,130)		—		(1,130)
Total lease cost	$	5,800	$	379	$	6,179	$	5,695	$	458	$	6,153

	Thirty-Nine Weeks Ended
	September 27, 2023						September 28, 2022
	Property		Equipment				Property		Equipment
	Leases		Leases		Total		Leases		Leases		Total
Finance lease cost:
Amortization of right-of-use assets	$	55	$	2	$	57	$	55	$	2	$	57
Interest on lease liabilities		29		2		31		32		2		34
Operating lease cost		20,589		342		20,931		19,795		776		20,571
Short-term lease cost		—		6		6		—		11		11
Variable lease cost		422		909		1,331		458		463		921
Sublease income		(3,773)		—		(3,773)		(3,387)		—		(3,387)
Total lease cost	$	17,322	$	1,261	$	18,583	$	16,953	$	1,254	$	18,207

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

	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	September 27, 2023		September 28, 2022		September 27, 2023		September 28, 2022
Lease cost – Occupancy and other operating expenses	$	6,043	$	5,969	$	18,101	$	17,709
Lease cost – General & administrative		107		133		375		343
Lease cost – Depreciation and amortization		19		18		57		55
Lease cost – Interest expense		10		11		31		35
Lease cost – Closed-store reserve		—		22		19		65
Total lease cost	$	6,179	$	6,153	$	18,583	$	18,207

During the thirty-nine weeks ended September 27, 2023 and September 28, 2022, the Company had the following cash and non-cash activities associated with its leases (dollars in thousands):

	Thirty-Nine Weeks Ended September 27, 2023								Thirty-Nine Weeks Ended September 28, 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	$	20,797		$	297		$	21,094	$	20,364		$	737		$	21,101
Financing cash flows used for finance leases	$	70		$	43		$	113	$	82		$	42		$	124
Non-cash investing and financing activities:
Operating lease ROU assets obtained in exchange for lease liabilities:
Operating lease ROU assets	$	15,445		$	54		$	15,499	$	10,486		$	86		$	10,572
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)		$	(4)		$	(44)	$	(39)		$	(24)		$	(63)
Other Information
Weighted-average remaining years in lease term—finance leases		17.12			2.46					18.12			3.44
Weighted-average remaining years in lease term—operating leases		10.56			3.42					10.91			1.57
Weighted-average discount rate—finance leases		2.57	%		1.53	%				2.57	%		1.53	%
Weighted-average discount rate—operating leases		4.85	%		4.45	%				4.49	%		3.82	%

Schedule of Financing Leases

Information regarding the Company’s minimum future lease obligations as of September 27, 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	$	38	$	7,050	$	1,021
December 25, 2024		151		27,867		4,041
December 31, 2025		147		26,149		3,653
December 30, 2026		114		23,778		3,289
December 29, 2027		104		22,314		3,239
Thereafter		1,479		134,298		21,645
Total	$	2,033	$	241,456	$	36,888
Less: imputed interest (1.53% - 4.85%)		(380)		(55,167)
Present value of lease obligations		1,653		186,289
Less: current maturities		(111)		(19,425)
Noncurrent portion	$	1,542	$	166,864

Schedule of Operating Leases

Information regarding the Company’s minimum future lease obligations as of September 27, 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	$	38	$	7,050	$	1,021
December 25, 2024		151		27,867		4,041
December 31, 2025		147		26,149		3,653
December 30, 2026		114		23,778		3,289
December 29, 2027		104		22,314		3,239
Thereafter		1,479		134,298		21,645
Total	$	2,033	$	241,456	$	36,888
Less: imputed interest (1.53% - 4.85%)		(380)		(55,167)
Present value of lease obligations		1,653		186,289
Less: current maturities		(111)		(19,425)
Noncurrent portion	$	1,542	$	166,864