LEASES (Tables)

6 Months Ended

Jul. 01, 2026

LEASES

Schedule of lease cost

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

	Thirteen Weeks Ended
	July 1, 2026						June 25, 2025
	Property		Equipment				Property		Equipment
	Leases		Leases		Total		Leases		Leases		Total
Finance lease cost:
Amortization of right-of-use assets	$	19	$	92	$	111	$	19	$	29	$	48
Interest on lease liabilities		9		2		11		10		4		14
Operating lease cost:
Fixed rent cost		7,326		—		7,326		7,213		105		7,318
Short-term lease cost		—		1		1		—		7		7
Variable lease cost		221		257		478		163		336		499
Sublease income		(1,725)		—		(1,725)		(1,748)		—		(1,748)
Total lease cost	$	5,850	$	352	$	6,202	$	5,657	$	481	$	6,138

	Twenty-Six Weeks Ended
	July 1, 2026						June 25, 2025
	Property		Equipment				Property		Equipment
	Leases		Leases		Total		Leases		Leases		Total
Finance lease cost:
Amortization of right-of-use assets	$	36	$	113	$	149	$	38	$	59	$	97
Interest on lease liabilities		18		5		23		19		9		28
Operating lease cost:
Fixed rent cost		14,659		75		14,734		14,397		208		14,605
Short-term lease cost		—		4		4		—		35		35
Variable lease cost		324		694		1,018		302		670		972
Sublease income		(3,412)		—		(3,412)		(3,463)		—		(3,463)
Total lease cost	$	11,625	$	891	$	12,516	$	11,293	$	981	$	12,274

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
	July 1, 2026		June 25, 2025		July 1, 2026		June 25, 2025
Lease cost – Occupancy and other operating expenses	$	6,011	$	5,970	$	12,065	$	11,935
Lease cost – General & administrative		149		106		359		214
Lease cost – Depreciation and amortization		31		48		69		97
Lease cost – Interest expense		11		14		23		28
Total lease cost	$	6,202	$	6,138	$	12,516	$	12,274

During the twenty-six weeks ended July 1, 2026 and June 25, 2025, the Company had the following cash and non-cash activities associated with its leases (dollars in thousands):

	Twenty-Six Weeks Ended July 1, 2026						Twenty-Six Weeks Ended June 25, 2025
	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	$	14,549	$	219	$	14,768	$	14,504	$	186	$	14,690
Financing cash flows used for finance leases	$	50	$	43	$	93	$	47	$	67	$	114
Non-cash investing and financing activities:
Operating lease ROU assets obtained in exchange for lease liabilities:
Operating lease ROU assets	$	9,194	$	(61)	$	9,133	$	7,070	$	15	$	7,085
Finance lease ROU assets obtained in exchange for lease liabilities:
Finance lease ROU assets	$	—	$	—	$	—	$	—	$	—	$	—

Derecognition of ROU assets due to terminations, impairment or modifications	$	179		$	—		$	179	$	—		$	—		$	—
Other Information
Weighted-average remaining years in lease term—finance leases		14.36			1.96					15.38			2.95
Weighted-average remaining years in lease term—operating leases		9.42			2.34					9.81			3.29
Weighted-average discount rate—finance leases		2.57	%		8.04	%				2.57	%		6.87	%
Weighted-average discount rate—operating leases		5.55	%		6.85	%				5.36	%		6.72	%

Schedule of Operating Leases

	Twenty-Six Weeks Ended July 1, 2026						Twenty-Six Weeks Ended June 25, 2025
	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	$	14,549	$	219	$	14,768	$	14,504	$	186	$	14,690
Financing cash flows used for finance leases	$	50	$	43	$	93	$	47	$	67	$	114
Non-cash investing and financing activities:
Operating lease ROU assets obtained in exchange for lease liabilities:
Operating lease ROU assets	$	9,194	$	(61)	$	9,133	$	7,070	$	15	$	7,085
Finance lease ROU assets obtained in exchange for lease liabilities:
Finance lease ROU assets	$	—	$	—	$	—	$	—	$	—	$	—

Derecognition of ROU assets due to terminations, impairment or modifications	$	179		$	—		$	179	$	—		$	—		$	—
Other Information
Weighted-average remaining years in lease term—finance leases		14.36			1.96					15.38			2.95
Weighted-average remaining years in lease term—operating leases		9.42			2.34					9.81			3.29
Weighted-average discount rate—finance leases		2.57	%		8.04	%				2.57	%		6.87	%
Weighted-average discount rate—operating leases		5.55	%		6.85	%				5.36	%		6.72	%

Schedule of Financing Leases

	Twenty-Six Weeks Ended July 1, 2026						Twenty-Six Weeks Ended June 25, 2025
	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	$	14,549	$	219	$	14,768	$	14,504	$	186	$	14,690
Financing cash flows used for finance leases	$	50	$	43	$	93	$	47	$	67	$	114
Non-cash investing and financing activities:
Operating lease ROU assets obtained in exchange for lease liabilities:
Operating lease ROU assets	$	9,194	$	(61)	$	9,133	$	7,070	$	15	$	7,085
Finance lease ROU assets obtained in exchange for lease liabilities:
Finance lease ROU assets	$	—	$	—	$	—	$	—	$	—	$	—

Derecognition of ROU assets due to terminations, impairment or modifications	$	179		$	—		$	179	$	—		$	—		$	—
Other Information
Weighted-average remaining years in lease term—finance leases		14.36			1.96					15.38			2.95
Weighted-average remaining years in lease term—operating leases		9.42			2.34					9.81			3.29
Weighted-average discount rate—finance leases		2.57	%		8.04	%				2.57	%		6.87	%
Weighted-average discount rate—operating leases		5.55	%		6.85	%				5.36	%		6.72	%