LEASES (Tables)

3 Months Ended

Mar. 27, 2024

LEASES

Schedule of lease cost

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

	Thirteen Weeks Ended
	March 27, 2024						March 29, 2023
	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		11		4		15		10		1		11
Operating lease cost:
Fixed rent cost		7,028		103		7,131		6,832		202		7,034
Short-term lease cost		—		1		1		—		3		3
Variable lease cost		133		347		480		142		233		375
Sublease income		(1,779)		—		(1,779)		(1,247)		—		(1,247)
Total lease cost	$	5,411	$	456	$	5,867	$	5,755	$	440	$	6,195

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

	March 27, 2024		March 29, 2023
Lease cost – Occupancy and other operating expenses	$	5,715	$	6,009
Lease cost – General & administrative		118		136
Lease cost – Depreciation and amortization		19		19
Lease cost – Interest expense		15		11
Lease cost – Closed-store reserve		—		20
Total lease cost	$	5,867	$	6,195

During the thirteen weeks ended March 27, 2024 and March 29, 2023, the Company had the following cash and non-cash activities associated with its leases (dollars in thousands):

	March 27, 2024								March 29, 2023
	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	$	7,000		$	20		$	7,020	$	6,907		$	188		$	7,095
Financing cash flows used for finance leases	$	23		$	25		$	48	$	24		$	14		$	38
Non-cash investing and financing activities:
Operating lease ROU assets obtained in exchange for lease liabilities:
Operating lease ROU assets	$	5,860		$	488		$	6,348	$	10,097		$	—		$	10,097
Finance lease ROU assets obtained in exchange for lease liabilities:
Finance lease ROU assets	$	—		$	148		$	148	$	—		$	28		$	28
Derecognition of ROU assets due to terminations, impairment or modifications	$	—		$	—		$	—	$	(40)		$	—		$	(40)
Other Information
Weighted-average remaining years in lease term—finance leases		16.63			3.08					17.62			2.95
Weighted-average remaining years in lease term—operating leases		10.39			4.18					10.78			2.33
Weighted-average discount rate—finance leases		2.57	%		6.25	%				2.57	%		1.53	%
Weighted-average discount rate—operating leases		5.11	%		6.37	%				2.55	%		3.71	%

Schedule of Financing Leases

Information regarding the Company’s minimum future lease obligations as of March 27, 2024 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	$	260	$	21,848	$	4,406
December 31, 2025		343		28,435		5,518
December 30, 2026		310		26,390		5,034
December 29, 2027		300		25,005		4,858
December 27, 2028		233		22,794		4,484
Thereafter		1,376		125,417		27,838
Total	$	2,822	$	249,889	$	52,138
Less: imputed interest (2.57% - 6.37%)		(951)		(60,632)
Present value of lease obligations		1,871		189,257
Less: current maturities		(168)		(19,640)
Noncurrent portion	$	1,703	$	169,617

Schedule of Operating Leases

Information regarding the Company’s minimum future lease obligations as of March 27, 2024 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	$	260	$	21,848	$	4,406
December 31, 2025		343		28,435		5,518
December 30, 2026		310		26,390		5,034
December 29, 2027		300		25,005		4,858
December 27, 2028		233		22,794		4,484
Thereafter		1,376		125,417		27,838
Total	$	2,822	$	249,889	$	52,138
Less: imputed interest (2.57% - 6.37%)		(951)		(60,632)
Present value of lease obligations		1,871		189,257
Less: current maturities		(168)		(19,640)
Noncurrent portion	$	1,703	$	169,617