LEASES (Tables)

12 Months Ended

Oct. 03, 2025

Schedule of Other Information Related to the Operating Leases

The following table summarizes the location of the operating and finance leases in the Company’s Consolidated Balance Sheets (in thousands), as well as the weighted average remaining lease term and weighted average discount rate:


Leases	Balance Sheet Location	October 3, 2025			September 27, 2024
Assets:
Operating	Operating Lease Right-of-use Assets	$	85,108		$	73,530
Finance	Property and Equipment, net	144,288			131,041
Total lease assets		$	229,396		$	204,571
Liabilities:
Current
Operating	Current operating lease liabilities	$	20,189		$	19,886
Finance	Current maturities of financing lease obligations	35,234			31,347
Noncurrent
Operating	Noncurrent Operating Lease Liabilities	77,032			66,111
Finance	Noncurrent Financing Lease Obligations	131,071			115,325
Total lease liabilities		$	263,526		$	232,669

Weighted average remaining lease term (in years)
Operating leases		5.8			6.1
Finance leases		5.8			5.7
Weighted average discount rate
Operating leases		6.9		%	6.1		%
Finance leases		4.7		%	4.6		%

Schedule of Location of Lease Related Costs

The following table summarizes the location of lease related costs in the Consolidated and Combined Statements of Income (in thousands):


		Fiscal Year Ended
Lease Cost	Income Statement Location	October 3, 2025		September 27, 2024		September 29, 2023
Operating lease cost:
Fixed lease costs	Cost of services provided (exclusive of depreciation and amortization) / Selling, general and administrative expenses	$	24,847	$	23,359	$	23,119
Variable lease costs	Cost of services provided (exclusive of depreciation and amortization) / Selling, general and administrative expenses	12,974		10,447		9,888
Short-term lease costs	Cost of services provided (exclusive of depreciation and amortization) / Selling, general and administrative expenses	7,171		8,698		8,175
Finance lease cost(1):
Amortization of right-of-use-assets	Depreciation and amortization	33,747		31,647		30,360
Interest on lease liabilities	Interest Expense, net	7,107		5,784		4,174
Net lease cost		$	85,846	$	79,935	$	75,716

__________________

(1)Excludes variable lease costs, which are immaterial.

Supplemental cash flow information related to leases for the periods reported is as follows (in thousands):


	Fiscal Year Ended
	October 3, 2025		September 27, 2024		September 29, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases(1)	$	25,224	$	19,871	$	24,208
Operating cash flows from finance leases	7,107		5,784		4,174
Financing cash flows from finance leases	34,496		30,608		27,601
Lease assets obtained in exchange for lease obligations:
Operating leases	30,441		35,997		12,640
Finance leases	55,625		44,916		42,581

__________________

(1)For fiscal 2025, excludes cash paid for variable and short-term lease costs of $13.0 million and $7.2 million, respectively, that are not included within the measurement of lease liabilities. For fiscal 2024, excludes cash paid for variable and short-term lease costs of $10.4 million and $8.7 million, respectively, that are not included within the measurement of lease liabilities. For fiscal 2023, excludes cash paid for variable and short-term lease costs of $9.9 million and $8.2 million, respectively, that are not included within the measurement of lease liabilities. Additionally, for fiscal 2025 and 2024, includes $0.1 million and $4.5 million, respectively, of cash received for reimbursements of tenant improvement allowances.

Schedule of Minimum Operating Lease Payments

Future minimum lease payments under non-cancelable leases as of October 3, 2025 are as follows (in thousands):


	Operating leases		Finance leases		Total
2026	$	27,921	$	42,293	$	70,214
2027	24,505		38,710		63,215
2028	20,733		33,196		53,929
2029	16,118		27,875		43,993
2030	11,266		43,643		54,909
Thereafter	25,719		6,159		31,878
Total future minimum lease payments	$	126,262	$	191,876	$	318,138
Less: Interest	(29,041)		(25,571)		(54,612)
Present value of lease liabilities	$	97,221	$	166,305	$	263,526

Schedule of Minimum Finance Lease Payments

Future minimum lease payments under non-cancelable leases as of October 3, 2025 are as follows (in thousands):


	Operating leases		Finance leases		Total
2026	$	27,921	$	42,293	$	70,214
2027	24,505		38,710		63,215
2028	20,733		33,196		53,929
2029	16,118		27,875		43,993
2030	11,266		43,643		54,909
Thereafter	25,719		6,159		31,878
Total future minimum lease payments	$	126,262	$	191,876	$	318,138
Less: Interest	(29,041)		(25,571)		(54,612)
Present value of lease liabilities	$	97,221	$	166,305	$	263,526