Leases (Tables)

3 Months Ended

Mar. 30, 2025

As of March 30, 2025, the nature of restaurants operated by the Company and its franchisees was as follows:


			March 30, 2025
Company-operated restaurants:
Owned land and building			155
Owned building and held long-term land leases			138
Leased land and building			107
Total Company-operated restaurants			400

Franchisee-operated restaurants:
Company-owned properties leased to franchisees			489
Company-leased properties subleased to franchisees			1,156
Other franchisee-operated restaurants			5,263
Total franchisee-operated restaurants			6,908
Total Company-operated and franchisee-operated restaurants			7,308

Lease, Cost

The components of lease cost are as follows:


	Three Months Ended
	March 30, 2025		March 31, 2024
Finance lease cost:
Amortization of finance lease assets	$	5,145	$	4,297
Interest on finance lease liabilities	10,877		10,658
	16,022		14,955
Operating lease cost	20,517		21,701
Variable lease cost (a)	16,213		16,488
Short-term lease cost	1,266		1,394
Total operating lease cost (b)	37,996		39,583
Total lease cost	$	54,018	$	54,538

_______________

(a)Includes expenses for executory costs of $10,394 and $10,221 for the three months ended March 30, 2025 and March 31, 2024, respectively, for which the Company is reimbursed by sublessees.

(b)Includes $30,652 and $31,718 for the three months ended March 30, 2025 and March 31, 2024, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $6,941 and $7,388 for the three months ended March 30, 2025 and March 31, 2024, respectively, recorded to “Cost of sales” for leases for Company-operated restaurants.

Lease, Income

The components of lease income are as follows:


	Three Months Ended
	March 30, 2025		March 31, 2024
Sales-type and direct-financing leases:
Selling loss	$	(11)	$	(16)
Interest income (a)	6,915		7,719

Operating lease income	42,421		41,497
Variable lease income	16,033		16,489
Franchise rental income (b)	$	58,454	$	57,986

_______________

(a)Included in “Interest expense, net.”

(b)Includes sublease income of $42,784 and $42,783 recognized during the three months ended March 30, 2025 and March 31, 2024, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $10,197 and $10,089 for the three months ended March 30, 2025 and March 31, 2024, respectively.