Leases

3 Months Ended

Mar. 29, 2026

Leases [Abstract]

Leases, Company as Lessee

Leases

Nature of Leases

The Company operates restaurants that are located on sites owned by us and sites leased by us from third parties. In addition, the Company owns sites and leases sites from third parties, which it leases and/or subleases to franchisees. The Company also leases restaurant, office and transportation equipment. 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

Company as Lessee

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

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(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.

Leases, Company as Lessor

Company as Lessor

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.