LEASES (Tables)

12 Months Ended

Dec. 27, 2023

LEASES

Schedule of lease cost

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

	December 27, 2023						December 28, 2022						December 29, 2021
	Property		Equipment				Property		Equipment				Property		Equipment
	Leases		Leases		Total		Leases		Leases		Total		Leases		Leases		Total
Finance lease cost:
Amortization of right-of-use assets	$	73	$	2	$	75	$	73	$	2	$	75	$	78	$	2	$	80
Interest on lease liabilities		40		5		45		42		3		45		58		1		59
Operating lease cost:
Fixed rent cost		27,597		387		27,984		26,537		1,005		27,542		26,501		1,122		27,623
Short-term lease cost		—		8		8		—		18		18		—		21		21
Variable lease cost		546		1,279		1,825		597		677		1,274		539		354		893
Sublease income		(5,570)		—		(5,570)		(4,555)		—		(4,555)		(3,823)		—		(3,823)
Total lease cost	$	22,686	$	1,681	$	24,367	$	22,694	$	1,705	$	24,399	$	23,353	$	1,500	$	24,853

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

	December 27, 2023		December 28, 2022		December 29, 2021
Lease cost – Occupancy and other operating expenses	$	23,736	$	23,730	$	24,020
Lease cost – General & administrative		492		465		413
Lease cost – Depreciation and amortization		75		73		78
Lease cost – Interest expense		45		45		59
Lease cost – Closed-store reserve		19		86		283
Total lease cost	$	24,367	$	24,399	$	24,853

The Company had the following cash and non-cash activities associated with its leases (dollar amounts in thousands):

	December 27, 2023								December 28, 2022								December 29, 2021
	Property			Equipment					Property			Equipment					Property			Equipment
	Leases			Leases			Total		Leases			Leases			Total		Leases			Leases			Total
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	27,835		$	321		$	28,156	$	27,221		$	953		$	28,174	$	26,414		$	1,084		$	27,498
Financing cash flows used for finance leases	$	93		$	65		$	158	$	106		$	56		$	162	$	102		$	46		$	148
Non-cash investing and financing activities:
Operating lease ROU assets obtained in exchange for lease liabilities:
Operating lease ROU assets	$	21,448		$	54		$	21,502	$	12,978		$	92		$	13,070	$	17,763		$	—		$	17,763
Finance lease ROU assets obtained in exchange for lease liabilities:
Finance lease ROU assets	$	—		$	135		$	135	$	—		$	28		$	28	$	—		$	196		$	196
Derecognition of ROU assets due to terminations, impairment or modifications	$	(40)		$	(4)		$	(44)	$	(39)		$	(35)		$	(74)	$	(4,513)		$	(99)		$	(4,612)
Other Information
Weighted-average remaining years in lease term—finance leases		16.87			3.15					17.87			3.19					18.42			4.02
Weighted-average remaining years in lease term—operating leases		10.42			3.33					10.73			1.73					11.27			1.44
Weighted-average discount rate—finance leases		2.57	%		5.68	%				2.57	%		1.53	%				2.78	%		1.54	%
Weighted-average discount rate—operating leases		5.00	%		4.52	%				4.54	%		3.80	%				4.45	%		3.89	%

Schedule of Financing Leases

Information regarding the Company’s minimum future lease obligations at December 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 25, 2024	$	191	$	28,328	$	5,886
December 31, 2025		187		27,126		5,518
December 30, 2026		154		25,043		5,034
December 29, 2027		144		23,581		4,858
December 27, 2028		103		21,384		4,484
Thereafter		1,376		118,426		27,854
Total	$	2,155	$	243,888	$	53,634
Less: imputed interest (2.57% - 5.68%)		(398)		(56,314)
Present value of lease obligations		1,757		187,574
Less: current maturities		(140)		(19,490)
Noncurrent portion	$	1,617	$	168,084

Schedule of Operating Leases

Information regarding the Company’s minimum future lease obligations at December 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 25, 2024	$	191	$	28,328	$	5,886
December 31, 2025		187		27,126		5,518
December 30, 2026		154		25,043		5,034
December 29, 2027		144		23,581		4,858
December 27, 2028		103		21,384		4,484
Thereafter		1,376		118,426		27,854
Total	$	2,155	$	243,888	$	53,634
Less: imputed interest (2.57% - 5.68%)		(398)		(56,314)
Present value of lease obligations		1,757		187,574
Less: current maturities		(140)		(19,490)
Noncurrent portion	$	1,617	$	168,084