Leases (Tables)

6 Months Ended

Jun. 25, 2022

Leases

Schedule of components of lease expenses

The components of lease expense were as follows:

		13 Weeks Ended				26 Weeks Ended
(In thousands)	Statement of Operations Caption	June 25, 2022		June 26, 2021		June 25, 2022		June 26, 2021
Operating lease cost:
Lease cost	Cost of sales and Selling, general and administrative	$	839	$	808	$	1,679	$	1,585
Variable lease cost (1)	Cost of sales and Selling, general and administrative		357		317		720		656
Total operating lease cost			1,196		1,125		2,399		2,241
Short term lease cost	Cost of sales and Selling, general and administrative		50		31		96		111
Finance lease cost:
Amortization of right-of-use assets	Cost of sales and Selling, general and administrative		65		65		130		130
Interest on lease liabilities	Interest expense		132		133		265		266
Total finance lease cost			197		198		395		396
Total lease cost		$	1,443	$	1,354	$	2,890	$	2,748

(1) Variable lease cost primarily consists of common area maintenance, utilities, taxes and insurance.

The gross amount of assets and liabilities related to both operating and finance leases were as follows:

(In thousands)	Balance Sheet Caption	June 25, 2022		December 25, 2021
Assets
Operating lease right-of-use assets	Operating lease right-of-use assets	$	14,497	$	15,672
Finance lease right-of-use assets	Property and equipment, net		6,168		6,299
Total lease assets		$	20,665	$	21,971
Liabilities
Current:
Operating lease liabilities	Current portion of long-term operating lease liabilities	$	3,208	$	3,216
Finance lease liabilities	Current portion of long-term debt		90		98
Long-term:
Operating lease liabilities	Long-term operating lease liabilities		15,721		17,302
Finance lease liabilities	Long-term debt, net of debt issuance costs		6,958		6,997
Total lease liabilities		$	25,977	$	27,613

The weighted-average remaining lease term and weighted-average discount rate for operating and finance leases were as follows:

	June 25, 2022		December 25, 2021
Weighted-average remaining lease term (in years):
Operating leases	6.7		7.1
Finance leases	34.5		34.8
Weighted-average discount rate
Operating leases	4.9	%	4.9	%
Finance leases	7.8	%	7.8	%

Supplemental cash flow and other information related to leases were as follows:

	26 Weeks Ended
(In thousands)	June 25, 2022		June 26, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	2,030	$	1,891
Operating cash flows from finance leases		265		266
Financing cash flows from finance leases		47	$	33
Right-of-use assets obtained in exchange for new lease liabilities
Finance leases		—		—
Operating leases		41		—

Schedule of Future minimum lease payments of operating leases

Future maturities of lease liabilities as of June 25, 2022, were as follows:

(In thousands)	Operating Leases		Finance Leases
Fiscal year ending:
Remainder of 2022	$	2,022	$	295
2023		4,051		609
2024		3,483		557
2025		2,972		549
2026		2,999		520
Thereafter		6,920		18,970
Total lease payments		22,447		21,500
Less: Interest		(3,518)		(14,452)
Present value of lease liabilities	$	18,929	$	7,048

Schedule of Future minimum lease payments of finance leases

(In thousands)	Operating Leases		Finance Leases
Fiscal year ending:
Remainder of 2022	$	2,022	$	295
2023		4,051		609
2024		3,483		557
2025		2,972		549
2026		2,999		520
Thereafter		6,920		18,970
Total lease payments		22,447		21,500
Less: Interest		(3,518)		(14,452)
Present value of lease liabilities	$	18,929	$	7,048