The Company operates and reports financial information on a 52- or 53-week year with the fiscal year ending on the last Saturday in December and fiscal quarters ending on the 13th Saturday of each quarter (or 14th Saturday when applicable with respect to the fourth fiscal quarter). The three and nine months ended September 24, 2022 and September 25, 2021, each consist of 13 weeks and 39 weeks, respectively. The Car Wash segment is currently consolidated based on a calendar month end.

The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited interim financial data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results of operations, balance sheet, cash flows and shareholders’ equity for the interim periods presented. The adjustments include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

These interim consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended December 25, 2021. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The results of operations for the three and nine months ended September 24, 2022 may not be indicative of the results to be expected for any other interim period or the year ending December 31, 2022.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the related notes to the consolidated financial statements. Estimates are based upon historical factors, current circumstances and the experience and judgment of the Company’s management. Management evaluates its estimates and assumptions on an ongoing basis and may employ outside experts to assist in its evaluations. Changes in such estimates, based on more accurate future information, or different assumptions or conditions, may affect amounts reported in future periods.

Costs incurred that are directly related to the IPO, such as legal and accounting fees, registration fees, printing expenses, and other similar fees and expenses, totaling $9 million were capitalized and included within prepaid and other assets as of December 26, 2020. Upon completion of the IPO, the Company reclassified these costs, as well as an additional $6 million of IPO costs incurred during the nine months ended September 25, 2021 to Additional paid-in capital within the statement of Shareholders’/members’ equity.

Financial assets and liabilities are categorized, based on the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to the quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. Observable market data, when available, is required to be used in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement.

•Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date;

•Level 2: Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; or

•Level 3: Inputs are unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.


Items Measured at Fair Value at September 24, 2022
(in thousands)	Level 1		Level 2		Total
Mutual fund investments held in rabbi trust	$	711	$	—	$	711
Interest rate derivative assets designated as hedging instruments	$	—	$	11,540	$	11,540
Foreign currency derivative assets designated as hedging instruments	$	—	$	2,282	$	2,282

Foreign currency derivative liabilities designated as hedging instruments	$	—	$	161	$	161
Foreign currency derivative liabilities not designated as hedging instruments	$	—	$	2,622	$	2,622


Items Measured at Fair Value at December 25, 2021
(in thousands)	Level 1		Level 2		Total
Mutual fund investments held in rabbi trust	$	976	$	—	$	976




Foreign currency derivative liabilities designated as hedging instruments	$	—	$	536	$	536

The fair value of the Company’s foreign currency derivative instruments are derived from valuation models, which use Level 2 observable inputs such as quoted market prices, interest rates and forward yield curves. Derivative assets are included in Prepaid and other assets or Notes receivable, net in the consolidated balance sheet depending on the remaining period to maturity. Derivative liabilities not designated as a hedging instrument are included in Accrued expenses and other liabilities in the consolidated balance Sheet. Derivative liabilities designated as a hedging instrument are included in long-term accrued expenses and other liabilities in the consolidated balance sheet.

The carrying values of cash, restricted cash, and receivables included in the consolidated balance sheet approximate their fair value. The fair value of long-term debt is estimated based on Level 2 inputs using discounted cash flows and market-based expectations for interest rates, credit risk and contractual terms of the debt agreements.


	September 24, 2022				December 25, 2021
(in thousands)	Carrying value		Estimated fair value		Carrying value		Estimated fair value
Long-term debt	$	2,680,356	$	2,494,221	$	2,382,364	$	2,411,987


	Three months ended September 24, 2022
(in thousands)	Foreign currency translation adjustment		Cash flow hedges		Defined benefit pension plan		Accumulated other comprehensive income (loss)
Balance as of June 25, 2022	$	(51,865)	$	(851)	$	(80)	$	(52,796)
Net change	(71,048)		8,606		5		(62,437)
Balance as of September 24, 2022	$	(122,913)	$	7,755	$	(75)	$	(115,233)


	Three months ended September 25, 2021
(in thousands)	Foreign currency translation adjustment		Cash flow hedges		Defined benefit pension plan		Accumulated other comprehensive income (loss)
Balance at June 26, 2021	$	19,002	$	(57)	$	(91)	$	18,854
Net change	(30,903)		(1)		3		(30,901)
Balance as of September 25, 2021	$	(11,901)	$	(58)	$	(88)	$	(12,047)














	Nine months ended September 24, 2022
(in thousands)	Foreign currency translation adjustment		Cash flow hedges		Defined benefit pension plan		Accumulated other comprehensive income (loss)
Balance as of December 25, 2021	$	(4,183)	$	(758)	$	(87)	$	(5,028)
Net change	(118,730)		8,513		12		(110,205)
Balance as of September 24, 2022	$	(122,913)	$	7,755	$	(75)	$	(115,233)


	Nine months ended September 25, 2021
(in thousands)	Foreign currency translation adjustment		Cash flow hedges		Defined benefit pension plan		Accumulated other comprehensive income (loss)
Balance as of December 26, 2020	$	16,834	$	(87)	$	(219)	$	16,528
Net change	(28,735)		29		131		(28,575)
Balance as of September 25, 2021	$	(11,901)	$	(58)	$	(88)	$	(12,047)