Leases (Tables)

6 Months Ended

Jun. 29, 2025

Leases [Abstract]

Schedule of Real Estate Properties

As of June 29, 2025, the nature of restaurants operated by the Company and its franchisees was as follows:

	June 29, 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	5,289
Total franchisee-operated restaurants	6,934
Total Company-operated and franchisee-operated restaurants	7,334

Lease, Cost

The components of lease cost are as follows:

	Three Months Ended				Six Months Ended
	June 29, 2025		June 30, 2024		June 29, 2025		June 30, 2024
Finance lease cost:
Amortization of finance lease assets	$	4,885	$	4,372	$	10,030	$	8,669
Interest on finance lease liabilities	10,865		10,699		21,742		21,357
	15,750		15,071		31,772		30,026
Operating lease cost	21,322		21,524		41,839		43,225
Variable lease cost (a)	17,269		17,365		33,482		33,853
Short-term lease cost	1,304		1,226		2,570		2,620
Total operating lease cost (b)	39,895		40,115		77,891		79,698
Total lease cost	$	55,645	$	55,186	$	109,663	$	109,724

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(a)Includes expenses for executory costs of $10,578 and $10,033 for the three months ended June 29, 2025 and June 30, 2024, respectively, and $20,972 and $20,254 for the six months ended June 29, 2025 and June 30, 2024, respectively, for which the Company is reimbursed by sublessees.

(b)Includes $32,569 and $32,355 for the three months ended June 29, 2025 and June 30, 2024, respectively, and $63,221 and $64,073 for the six months ended June 29, 2025 and June 30, 2024, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $6,946 and $7,402 for the three months ended June 29, 2025 and June 30, 2024, respectively, and $13,887 and $14,790 for the six months ended June 29, 2025 and June 30, 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				Six Months Ended
	June 29, 2025		June 30, 2024		June 29, 2025		June 30, 2024
Sales-type and direct-financing leases:
Selling profit	$	34	$	88	$	23	$	72
Interest income (a)	6,943		7,178		13,858		14,897
Operating lease income	42,467		42,950		84,888		84,447
Variable lease income	17,944		17,688		33,977		34,177
Franchise rental income (b)	$	60,411	$	60,638	$	118,865	$	118,624

_______________

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

(b)Includes sublease income of $44,667 and $45,049 recognized during the three months ended June 29, 2025 and June 30, 2024, respectively, and $87,451 and $87,832 for the six months ended June 29, 2025 and June 30, 2024, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $10,512 and $10,155 for the three months ended June 29, 2025 and June 30, 2024, respectively, and $20,709 and $20,244 for the six months ended June 29, 2025 and June 30, 2024, respectively.