LEASES (Tables)

9 Months Ended

Sep. 25, 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
	September 25, 2024						September 27, 2023
	Property		Equipment				Property		Equipment
	Leases		Leases		Total		Leases		Leases		Total
Finance lease cost:
Amortization of right-of-use assets	$	18	$	25	$	43	$	18	$	1	$	19
Interest on lease liabilities		8		6		14		9		1		10
Operating lease cost:
Fixed rent cost		7,012		70		7,082		6,903		43		6,946
Short-term lease cost		—		1		1		—		2		2
Variable lease cost		164		308		472		150		332		482
Sublease income		(1,817)		—		(1,817)		(1,280)		—		(1,280)
Total lease cost	$	5,385	$	410	$	5,795	$	5,800	$	379	$	6,179

	Thirty-Nine Weeks Ended
	September 25, 2024						September 27, 2023
	Property		Equipment				Property		Equipment
	Leases		Leases		Total		Leases		Leases		Total
Finance lease cost:
Amortization of right-of-use assets	$	56	$	73	$	129	$	55	$	2	$	57
Interest on lease liabilities		27		14		41		29		2		31
Operating lease cost:
Fixed rent cost		21,220		222		21,442		20,589		342		20,931
Short-term lease cost		—		2		2		—		6		6
Variable lease cost		448		1,001		1,449		422		909		1,331
Sublease income		(5,354)		—		(5,354)		(3,773)		—		(3,773)
Total lease cost	$	16,397	$	1,312	$	17,709	$	17,322	$	1,261	$	18,583

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 25, 2024		September 27, 2023		September 25, 2024		September 27, 2023
Lease cost – Occupancy and other operating expenses	$	5,662	$	6,043	$	17,228	$	18,101
Lease cost – General & administrative		76		107		311		375
Lease cost – Depreciation and amortization		43		19		129		57
Lease cost – Interest expense		14		10		41		31
Lease cost – Closed-store reserve		—		—		—		19
Total lease cost	$	5,795	$	6,179	$	17,709	$	18,583

During the thirty-nine weeks ended September 25, 2024 and September 27, 2023, the Company had the following cash and non-cash activities associated with its leases (dollars in thousands):

	Thirty-Nine Weeks Ended September 25, 2024								Thirty-Nine Weeks Ended September 27, 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	$	21,202		$	210		$	21,412	$	20,797		$	297		$	21,094
Financing cash flows used for finance leases	$	70		$	83		$	153	$	70		$	43		$	113
Non-cash investing and financing activities:
Operating lease ROU assets obtained in exchange for lease liabilities:
Operating lease ROU assets	$	11,457		$	1,286		$	12,743	$	15,445		$	54		$	15,499
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)		$	(4)		$	(44)
Other Information
Weighted-average remaining years in lease term—finance leases		16.13			2.92					17.12			2.46
Weighted-average remaining years in lease term—operating leases		10.12			4.00					10.56			3.42
Weighted-average discount rate—finance leases		2.57	%		6.37	%				2.57	%		1.53	%
Weighted-average discount rate—operating leases		5.21	%		6.71	%				4.85	%		4.45	%

Schedule of Financing Leases

Information regarding the Company’s minimum future lease obligations as of September 25, 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	$	52	$	7,270	$	1,320
December 31, 2025		204		28,832		4,946
December 30, 2026		171		27,165		4,614
December 29, 2027		161		25,763		4,562
December 27, 2028		117		23,604		4,273
Thereafter		1,376		129,896		26,024
Total	$	2,081	$	242,530	$	45,739
Less: imputed interest (2.57% - 6.71%)		(367)		(56,425)
Present value of lease obligations		1,714		186,105
Less: current maturities		(155)		(19,869)
Noncurrent portion	$	1,559	$	166,236

Schedule of Operating Leases

Information regarding the Company’s minimum future lease obligations as of September 25, 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	$	52	$	7,270	$	1,320
December 31, 2025		204		28,832		4,946
December 30, 2026		171		27,165		4,614
December 29, 2027		161		25,763		4,562
December 27, 2028		117		23,604		4,273
Thereafter		1,376		129,896		26,024
Total	$	2,081	$	242,530	$	45,739
Less: imputed interest (2.57% - 6.71%)		(367)		(56,425)
Present value of lease obligations		1,714		186,105
Less: current maturities		(155)		(19,869)
Noncurrent portion	$	1,559	$	166,236