Leases

3 Months Ended

Mar. 28, 2021

Leases [Abstract]

Leases

NOTE 10. LEASES

As of March 28, 2021, the Company has thirteen operating leases for corporate offices and for certain restaurant properties that are in the process of being refranchised. The leases have remaining terms ranging from 2.6 to 17.8 years. The Company recognized lease expense of $810,000 and $347,000 for the thirteen months ended March 28, 2021 and March 29, 2020, respectively. The weighted average remaining lease term of the operating leases as of March 28, 2021 was 7.4 years.

Operating lease right of use assets and operating lease liabilities relating to the operating leases are as follows (in thousands):

	March 28, 2021		December 27, 2020
Right of use assets	$	13,340	$	13,948
Lease liabilities	$	14,297	$	14,651

The weighted average discount rate used to calculate the carrying value of the right of use assets and lease liabilities was 9.4% which is based on the Company’s incremental borrowing rate at the time the lease is acquired.

The contractual future maturities of the Company’s operating lease liabilities as of March 28, 2021, including anticipated lease extensions, are as follows (in thousands):

Fiscal year:
2021	$	2,321
2022		3,182
2023		3,275
2024		3,137
2025		2,791
Thereafter		4,855
Total lease payments		19,561
Less imputed interest		5,264
Total	$	14,297

Supplemental cash flow information for the thirteen weeks ended March 28, 2021 related to leases is as follows (in thousands):

Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows from operating leases	$	810