Leases (Tables)

3 Months Ended

Mar. 29, 2026

As of March 29, 2026, the nature of restaurants operated by the Company and its franchisees was as follows:


			March 29, 2026
Company-operated restaurants:
Owned land and building			153
Owned building and held long-term land leases			142
Leased land and building			136
Total Company-operated restaurants			431

Franchisee-operated restaurants:
Company-owned properties leased to franchisees			454
Company-leased properties subleased to franchisees			1,122
Other franchisee-operated restaurants			5,244
Total franchisee-operated restaurants			6,820
Total Company-operated and franchisee-operated restaurants			7,251

Lease, Cost

The components of lease cost are as follows:


	Three Months Ended
	March 29, 2026		March 30, 2025
Finance lease cost:
Amortization of finance lease assets	$	5,768	$	5,145
Interest on finance lease liabilities	11,642		10,877
	17,410		16,022
Operating lease cost	20,010		20,517
Variable lease cost (a)	15,909		16,213
Short-term lease cost	1,376		1,266
Total operating lease cost (b)	37,295		37,996
Total lease cost	$	54,705	$	54,018

_______________

(a)Includes expenses for executory costs of $10,539 and $10,394 for the three months ended March 29, 2026 and March 30, 2025, respectively, for which the Company is reimbursed by sublessees.

(b)Includes $30,040 and $30,652 for the three months ended March 29, 2026 and March 30, 2025, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $6,887 and $6,941 for the three months ended March 29, 2026 and March 30, 2025, 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 29, 2026		March 30, 2025
Sales-type and direct-financing leases:
Selling profit	$	1,853	$	(11)
Interest income (a)	6,700		6,915

Operating lease income	42,651		42,421
Variable lease income	16,253		16,033
Franchise rental income (b)	$	58,904	$	58,454

_______________

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

(b)Includes sublease income of $42,200 and $42,784 recognized during the three months ended March 29, 2026 and March 30, 2025, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $10,411 and $10,197 for the three months ended March 29, 2026 and March 30, 2025, respectively.