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Leases (Tables)
9 Months Ended
Sep. 30, 2025
Leases [Abstract]  
Schedule of Balance Sheet Information Related to Leases

Balance sheet information related to leases consisted of the following for the periods presented:

 

 

 

 

As of

 

 

Classification

 

September 30, 2025

 

 

December 31, 2024

 

Assets

 

 

 

 

 

 

 

 

Operating

 

Operating right of use assets, net

 

$

901,631

 

 

$

924,896

 

Finance

 

Property and equipment, net

 

 

11,566

 

 

 

12,344

 

Total lease assets

 

 

 

$

913,197

 

 

$

937,240

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

 

Operating

 

Current maturities of operating lease liability

 

$

52,330

 

 

$

48,986

 

Finance

 

Current maturities of finance lease liability

 

 

857

 

 

 

804

 

Long-term

 

 

 

 

 

 

 

 

Operating

 

Operating lease liability

 

 

871,296

 

 

 

890,613

 

Finance

 

Financing lease liability

 

 

12,575

 

 

 

13,262

 

Total lease liabilities

 

 

 

$

937,058

 

 

$

953,665

 

Summary of Components of Total Lease Cost

Components of total lease cost, net, consisted of the following for the periods presented:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Operating lease expense(a)

 

$

30,886

 

 

$

28,126

 

 

$

92,373

 

 

$

82,997

 

Finance lease expense

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of lease assets

 

 

242

 

 

 

254

 

 

 

729

 

 

 

756

 

Interest on lease liabilities

 

 

242

 

 

 

258

 

 

 

737

 

 

 

782

 

Short-term lease expense

 

 

22

 

 

 

52

 

 

 

61

 

 

 

155

 

Variable lease expense(b)

 

 

2,999

 

 

 

3,548

 

 

 

13,908

 

 

 

13,568

 

Total lease expense

 

$

34,391

 

 

$

32,238

 

 

$

107,808

 

 

$

98,258

 

 

a)
Operating lease expense includes an immaterial amount of sublease income and is included in other store operating expenses and general and administrative expenses in the accompanying consolidated statements of operations and comprehensive income.
b)
Variable lease costs consist of property taxes, property insurance, and common area or other maintenance costs for our leases of land and buildings and is included in other store operating expenses in the accompanying consolidated statements of operations and comprehensive income.
Summary of Supplemental Information of Leases

The following includes supplemental information for the periods presented:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Operating cash flows from operating leases

 

$

29,901

 

 

$

27,091

 

 

$

89,330

 

 

$

80,451

 

Operating cash flows from finance leases

 

$

242

 

 

$

258

 

 

$

737

 

 

$

782

 

Financing cash flows from finance leases

 

$

198

 

 

$

190

 

 

$

585

 

 

$

552

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating lease ROU assets obtained in exchange for lease liabilities

 

$

10,364

 

 

$

25,821

 

 

$

17,959

 

 

$

60,768

 

Finance lease ROU assets obtained in exchange for lease liabilities

 

$

 

 

$

57

 

 

$

 

 

$

57

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average remaining operating lease term

 

 

13.40

 

 

 

13.63

 

 

 

13.40

 

 

 

13.63

 

Weighted-average remaining finance lease term

 

 

14.28

 

 

 

14.96

 

 

 

14.28

 

 

 

14.96

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average operating lease discount rate

 

 

8.15

%

 

 

8.09

%

 

 

8.15

%

 

 

8.09

%

Weighted-average finance lease discount rate

 

 

7.34

%

 

 

7.33

%

 

 

7.34

%

 

 

7.33

%

Schedule of Lease Obligation Maturities

As of September 30, 2025, lease obligation maturities were as follows:

Fiscal Year Ending:

 

Operating Leases

 

 

Finance Leases

 

2025 (remaining three months)

 

$

30,294

 

 

$

446

 

2026

 

 

121,778

 

 

 

1,792

 

2027

 

 

118,479

 

 

 

1,819

 

2028

 

 

112,277

 

 

 

1,846

 

2029

 

 

111,540

 

 

 

1,575

 

Thereafter

 

 

1,074,049

 

 

 

16,852

 

Total future minimum obligations

 

$

1,568,417

 

 

$

24,330

 

Present value discount

 

 

(644,791

)

 

 

(10,898

)

Present value of net future minimum lease obligations

 

$

923,626

 

 

$

13,432

 

Current portion

 

 

(52,330

)

 

 

(857

)

Long-term obligations

 

$

871,296

 

 

$

12,575