LEASES (Tables)

6 Months Ended

Jun. 26, 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
	June 26, 2024						June 28, 2023
	Property		Equipment				Property		Equipment
	Leases		Leases		Total		Leases		Leases		Total
Finance lease cost:
Amortization of right-of-use assets	$	20	$	47	$	67	$	19	$	—	$	19
Interest on lease liabilities		8		4		12		10		—		10
Operating lease cost:
Fixed rent cost:		7,180		49		7,229		6,873		238		7,111
Short-term lease cost		—		—		—		—		1		1
Variable lease cost		151		346		497		130		203		333
Sublease income		(1,758)		—		(1,758)		(1,246)		—		(1,246)
Total lease cost	$	5,601	$	446	$	6,047	$	5,786	$	442	$	6,228

	Twenty-Six Weeks Ended
	June 26, 2024						June 28, 2023
	Property		Equipment				Property		Equipment
	Leases		Leases		Total		Leases		Leases		Total
Finance lease cost:
Amortization of right-of-use assets	$	38	$	48	$	86	$	37	$	1	$	38
Interest on lease liabilities		19		8		27		20		1		21
Operating lease cost:
Fixed rent cost		14,208		152		14,360		13,705		440		14,145
Short-term lease cost		—		1		1		—		4		4
Variable lease cost		284		693		977		272		436		708
Sublease income		(3,537)		—		(3,537)		(2,493)		—		(2,493)
Total lease cost	$	11,012	$	902	$	11,914	$	11,541	$	882	$	12,423

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 26, 2024		June 28, 2023		June 26, 2024		June 28, 2023
Lease cost – Occupancy and other operating expenses	$	5,851	$	6,048	$	11,566	$	12,057
Lease cost – General & administrative		117		133		235		269
Lease cost – Depreciation and amortization		67		19		86		38
Lease cost – Interest expense		12		10		27		21
Lease cost – Closed-store reserve		—		18		—		38
Total lease cost	$	6,047	$	6,228	$	11,914	$	12,423

During the twenty-six weeks ended June 26, 2024 and June 28, 2023, the Company had the following cash and non-cash activities associated with its leases (dollars in thousands):

	Twenty-Six Weeks Ended June 26, 2024								Twenty-Six Weeks Ended June 28, 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	$	14,076		$	108		$	14,184	$	13,814		$	269		$	14,083
Financing cash flows used for finance leases	$	47		$	54		$	101	$	47		$	29		$	76
Non-cash investing and financing activities:
Operating lease ROU assets obtained in exchange for lease liabilities:
Operating lease ROU assets	$	6,866		$	1,233		$	8,099	$	13,607		$	27		$	13,634
Finance lease ROU assets obtained in exchange for lease liabilities:
Finance lease ROU assets	$	—		$	69		$	69	$	—		$	—		$	—
Derecognition of ROU assets due to terminations, impairment or modifications	$	—		$	—		$	—	$	(40)		$	—		$	(40)
Other Information
Weighted-average remaining years in lease term—finance leases		16.38			3.11					17.37			2.71
Weighted-average remaining years in lease term—operating leases		10.26			4.22					10.74			3.13
Weighted-average discount rate—finance leases		2.57	%		6.21	%				2.57	%		1.53	%
Weighted-average discount rate—operating leases		5.12	%		6.67	%				4.81	%		4.05	%

Schedule of Financing Leases

Information regarding the Company’s minimum future lease obligations as of June 26, 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	$	104	$	14,485	$	2,944
December 31, 2025		204		28,353		5,518
December 30, 2026		171		26,316		5,034
December 29, 2027		161		24,913		4,858
December 27, 2028		117		22,754		4,484
Thereafter		1,376		126,041		27,838
Total	$	2,133	$	242,862	$	50,676
Less: imputed interest (2.57% - 6.67%)		(380)		(56,551)
Present value of lease obligations		1,753		186,311
Less: current maturities		(156)		(19,903)
Noncurrent portion	$	1,597	$	166,408

Schedule of Operating Leases

Information regarding the Company’s minimum future lease obligations as of June 26, 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	$	104	$	14,485	$	2,944
December 31, 2025		204		28,353		5,518
December 30, 2026		171		26,316		5,034
December 29, 2027		161		24,913		4,858
December 27, 2028		117		22,754		4,484
Thereafter		1,376		126,041		27,838
Total	$	2,133	$	242,862	$	50,676
Less: imputed interest (2.57% - 6.67%)		(380)		(56,551)
Present value of lease obligations		1,753		186,311
Less: current maturities		(156)		(19,903)
Noncurrent portion	$	1,597	$	166,408