Leases

12 Months Ended

Dec. 28, 2025

Leases [Abstract]

Leases

Leases

The Company currently leases from third parties the real property for company-owned and certain of its franchise operated restaurants and subleases to the franchisees for franchise operated restaurants. The Company also leases office space for its principal corporate office in Pasadena, California and a restaurant support center in Irving, Texas. The Company does not have a significant amount of non-real estate leases.

The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five to 20 years. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Leases also include variable rental payments based on a percentage of restaurant sales if restaurant sales threshold are met.

The Company's lease cost for the years ended December 28, 2025, December 29, 2024 and December 31, 2023 was as follows:

	2025		2024		2023
	(In millions)
Finance lease cost:
Amortization of right-of-use assets	$	2.7	$	2.6	$	2.5
Interest on lease liabilities	2.7		2.9		2.8
Operating lease cost	81.9		74.1		75.3
Variable lease cost	7.9		8.0		7.8
Short-term lease cost	—		—		—
Lease cost	$	95.2	$	87.6	$	88.4

Maturity analysis of the finance lease and operating lease liabilities as of December 28, 2025 were as follows:

	Finance Leases		Operating Leases
Fiscal Years	(In millions)
2026	$	7.6	$	91.7
2027	6.8		72.3
2028	5.3		56.1
2029	5.4		53.6
2030	4.9		48.5
Thereafter	19.0		156.4
Total minimum lease payments	49.0		478.6
Less: interest/imputed interest	(11.7)		(105.7)
Total obligations	37.3		372.9
Less: current portion	(5.1)		(67.6)
Long-term lease obligations	$	32.2	$	305.3

Other lease information is as follows:

	2025		2024		2023
	(In millions)
Assets obtained in exchange for operating lease obligations	$	72.3	$	109.4	$	47.9
Assets obtained in exchange for finance lease obligations	$	3.8	$	6.8	$	10.5

	2025		2024
	(In millions)
Weighted-average remaining lease term - operating leases	6.4 years		6.2 years
Weighted-average remaining lease term - finance leases	5.3 years		5.5 years
Weighted-average discount rate - operating leases	6.2	%	6.1	%
Weighted-average discount rate - finance leases	9.1	%	9.2	%

During the years ended December 28, 2025, December 29, 2024 and December 31, 2023, the Company made the following cash payments for leases:

	2025		2024		2023
	(In millions)
Cash paid on operating leases	$	89.0	$	83.8	$	75.2
Cash paid on finance leases	5.0		5.6		6.4

The Company's income from operating leases for the years ended December 28, 2025, December 29, 2024 and December 31, 2023 was as follows:

	2025		2024		2023
	(In millions)
Minimum lease payments	$	89.1	$	96.0	100.7
Variable lease income	17.1		17.4		17.5
Total operating lease income	$	106.2	$	113.4	$	118.2

The Company's income from real estate leases receivable at December 28, 2025, December 29, 2024 and December 31, 2023 was as follows:

	2025		2024		2023
	(In millions)
Selling profit	$	0.4	$	0.2	$	0.2
Interest income	1.2		1.2		1.1
Variable lease income	0.3		0.3		0.4
Total financing lease income	$	1.9	$	1.7	$	1.7

Future lease payments to be received as lessor under noncancellable real estate leases as of December 28, 2025 were as follows:

Fiscal Years	Sales-Type Leases		Operating Leases
	(in millions)
2026	$	2.7	$	88.8
2027	2.7		73.2
2028	2.7		58.9
2029	2.6		51.4
2030	2.5		47.2
Thereafter	11.5		158.5
Total minimum rents receivable	24.8		478.0
Less: unearned income	(6.6)
Total real estate leases receivable	18.2
Less: current portion	(1.6)
Long-term real estate leases receivable	$	16.6

Sale-Leaseback Transaction

In 2007, the Company entered into a Purchase and Sale Agreement relating to the sale and leaseback of 181 parcels of real property (the “Sale-Leaseback Transaction”), each of which is improved with a restaurant operating as an Applebee's Neighborhood Grill and Bar (the “Properties”). Under these agreements, the Company sold the Properties and then leased the Properties back through leaseback transactions.

Based on certain criteria and in accordance with GAAP under ASC 842, Leases, these transactions were accounted for as failed sale-leasebacks. As a result, the assets of the Properties remain on the Consolidated Balance Sheet at their historical net book value and are depreciated over the remaining term of the applicable master lease. Financing liabilities were recognized in the amount of the proceeds received. The Company does not recognize rent expense related to the leased assets. Instead, monthly rent payments under the applicable master lease agreement are recorded as interest expense and a reduction of the outstanding liability.

As of December 28, 2025 the long-term outstanding liability of $19.3 million was recorded in Other non-current liabilities and the current outstanding liability of $1.5 million was recorded in Current portion of finance leases on the Consolidated Balance Sheets related to the financing liability.

As of December 28, 2025, future minimum lease payments under financing obligations during the initial terms of the leases related to the sale-leaseback transactions are as follows:

Fiscal Years	(In millions)
2026	$	4.0
2027	3.7
2028	18.4
2029	—
2030	—
Thereafter	—
Total minimum lease payments	26.1
Less: interest	(5.4)
Total financing obligations	20.7
Less: current portion	(1.5)
Long-term financing obligations	$	19.3

Leases

Leases

The Company currently leases from third parties the real property for company-owned and certain of its franchise operated restaurants and subleases to the franchisees for franchise operated restaurants. The Company also leases office space for its principal corporate office in Pasadena, California and a restaurant support center in Irving, Texas. The Company does not have a significant amount of non-real estate leases.

The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five to 20 years. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Leases also include variable rental payments based on a percentage of restaurant sales if restaurant sales threshold are met.

The Company's lease cost for the years ended December 28, 2025, December 29, 2024 and December 31, 2023 was as follows:

	2025		2024		2023
	(In millions)
Finance lease cost:
Amortization of right-of-use assets	$	2.7	$	2.6	$	2.5
Interest on lease liabilities	2.7		2.9		2.8
Operating lease cost	81.9		74.1		75.3
Variable lease cost	7.9		8.0		7.8
Short-term lease cost	—		—		—
Lease cost	$	95.2	$	87.6	$	88.4

Maturity analysis of the finance lease and operating lease liabilities as of December 28, 2025 were as follows:

	Finance Leases		Operating Leases
Fiscal Years	(In millions)
2026	$	7.6	$	91.7
2027	6.8		72.3
2028	5.3		56.1
2029	5.4		53.6
2030	4.9		48.5
Thereafter	19.0		156.4
Total minimum lease payments	49.0		478.6
Less: interest/imputed interest	(11.7)		(105.7)
Total obligations	37.3		372.9
Less: current portion	(5.1)		(67.6)
Long-term lease obligations	$	32.2	$	305.3

Other lease information is as follows:

	2025		2024		2023
	(In millions)
Assets obtained in exchange for operating lease obligations	$	72.3	$	109.4	$	47.9
Assets obtained in exchange for finance lease obligations	$	3.8	$	6.8	$	10.5

	2025		2024
	(In millions)
Weighted-average remaining lease term - operating leases	6.4 years		6.2 years
Weighted-average remaining lease term - finance leases	5.3 years		5.5 years
Weighted-average discount rate - operating leases	6.2	%	6.1	%
Weighted-average discount rate - finance leases	9.1	%	9.2	%

During the years ended December 28, 2025, December 29, 2024 and December 31, 2023, the Company made the following cash payments for leases:

	2025		2024		2023
	(In millions)
Cash paid on operating leases	$	89.0	$	83.8	$	75.2
Cash paid on finance leases	5.0		5.6		6.4

The Company's income from operating leases for the years ended December 28, 2025, December 29, 2024 and December 31, 2023 was as follows:

	2025		2024		2023
	(In millions)
Minimum lease payments	$	89.1	$	96.0	100.7
Variable lease income	17.1		17.4		17.5
Total operating lease income	$	106.2	$	113.4	$	118.2

The Company's income from real estate leases receivable at December 28, 2025, December 29, 2024 and December 31, 2023 was as follows:

	2025		2024		2023
	(In millions)
Selling profit	$	0.4	$	0.2	$	0.2
Interest income	1.2		1.2		1.1
Variable lease income	0.3		0.3		0.4
Total financing lease income	$	1.9	$	1.7	$	1.7

Future lease payments to be received as lessor under noncancellable real estate leases as of December 28, 2025 were as follows:

Fiscal Years	Sales-Type Leases		Operating Leases
	(in millions)
2026	$	2.7	$	88.8
2027	2.7		73.2
2028	2.7		58.9
2029	2.6		51.4
2030	2.5		47.2
Thereafter	11.5		158.5
Total minimum rents receivable	24.8		478.0
Less: unearned income	(6.6)
Total real estate leases receivable	18.2
Less: current portion	(1.6)
Long-term real estate leases receivable	$	16.6

Sale-Leaseback Transaction

In 2007, the Company entered into a Purchase and Sale Agreement relating to the sale and leaseback of 181 parcels of real property (the “Sale-Leaseback Transaction”), each of which is improved with a restaurant operating as an Applebee's Neighborhood Grill and Bar (the “Properties”). Under these agreements, the Company sold the Properties and then leased the Properties back through leaseback transactions.

Based on certain criteria and in accordance with GAAP under ASC 842, Leases, these transactions were accounted for as failed sale-leasebacks. As a result, the assets of the Properties remain on the Consolidated Balance Sheet at their historical net book value and are depreciated over the remaining term of the applicable master lease. Financing liabilities were recognized in the amount of the proceeds received. The Company does not recognize rent expense related to the leased assets. Instead, monthly rent payments under the applicable master lease agreement are recorded as interest expense and a reduction of the outstanding liability.

As of December 28, 2025 the long-term outstanding liability of $19.3 million was recorded in Other non-current liabilities and the current outstanding liability of $1.5 million was recorded in Current portion of finance leases on the Consolidated Balance Sheets related to the financing liability.

As of December 28, 2025, future minimum lease payments under financing obligations during the initial terms of the leases related to the sale-leaseback transactions are as follows:

Fiscal Years	(In millions)
2026	$	4.0
2027	3.7
2028	18.4
2029	—
2030	—
Thereafter	—
Total minimum lease payments	26.1
Less: interest	(5.4)
Total financing obligations	20.7
Less: current portion	(1.5)
Long-term financing obligations	$	19.3

Leases

Leases

The Company currently leases from third parties the real property for company-owned and certain of its franchise operated restaurants and subleases to the franchisees for franchise operated restaurants. The Company also leases office space for its principal corporate office in Pasadena, California and a restaurant support center in Irving, Texas. The Company does not have a significant amount of non-real estate leases.

The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five to 20 years. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Leases also include variable rental payments based on a percentage of restaurant sales if restaurant sales threshold are met.

The Company's lease cost for the years ended December 28, 2025, December 29, 2024 and December 31, 2023 was as follows:

	2025		2024		2023
	(In millions)
Finance lease cost:
Amortization of right-of-use assets	$	2.7	$	2.6	$	2.5
Interest on lease liabilities	2.7		2.9		2.8
Operating lease cost	81.9		74.1		75.3
Variable lease cost	7.9		8.0		7.8
Short-term lease cost	—		—		—
Lease cost	$	95.2	$	87.6	$	88.4

Maturity analysis of the finance lease and operating lease liabilities as of December 28, 2025 were as follows:

	Finance Leases		Operating Leases
Fiscal Years	(In millions)
2026	$	7.6	$	91.7
2027	6.8		72.3
2028	5.3		56.1
2029	5.4		53.6
2030	4.9		48.5
Thereafter	19.0		156.4
Total minimum lease payments	49.0		478.6
Less: interest/imputed interest	(11.7)		(105.7)
Total obligations	37.3		372.9
Less: current portion	(5.1)		(67.6)
Long-term lease obligations	$	32.2	$	305.3

Other lease information is as follows:

	2025		2024		2023
	(In millions)
Assets obtained in exchange for operating lease obligations	$	72.3	$	109.4	$	47.9
Assets obtained in exchange for finance lease obligations	$	3.8	$	6.8	$	10.5

	2025		2024
	(In millions)
Weighted-average remaining lease term - operating leases	6.4 years		6.2 years
Weighted-average remaining lease term - finance leases	5.3 years		5.5 years
Weighted-average discount rate - operating leases	6.2	%	6.1	%
Weighted-average discount rate - finance leases	9.1	%	9.2	%

During the years ended December 28, 2025, December 29, 2024 and December 31, 2023, the Company made the following cash payments for leases:

	2025		2024		2023
	(In millions)
Cash paid on operating leases	$	89.0	$	83.8	$	75.2
Cash paid on finance leases	5.0		5.6		6.4

The Company's income from operating leases for the years ended December 28, 2025, December 29, 2024 and December 31, 2023 was as follows:

	2025		2024		2023
	(In millions)
Minimum lease payments	$	89.1	$	96.0	100.7
Variable lease income	17.1		17.4		17.5
Total operating lease income	$	106.2	$	113.4	$	118.2

The Company's income from real estate leases receivable at December 28, 2025, December 29, 2024 and December 31, 2023 was as follows:

	2025		2024		2023
	(In millions)
Selling profit	$	0.4	$	0.2	$	0.2
Interest income	1.2		1.2		1.1
Variable lease income	0.3		0.3		0.4
Total financing lease income	$	1.9	$	1.7	$	1.7

Future lease payments to be received as lessor under noncancellable real estate leases as of December 28, 2025 were as follows:

Fiscal Years	Sales-Type Leases		Operating Leases
	(in millions)
2026	$	2.7	$	88.8
2027	2.7		73.2
2028	2.7		58.9
2029	2.6		51.4
2030	2.5		47.2
Thereafter	11.5		158.5
Total minimum rents receivable	24.8		478.0
Less: unearned income	(6.6)
Total real estate leases receivable	18.2
Less: current portion	(1.6)
Long-term real estate leases receivable	$	16.6

Sale-Leaseback Transaction

In 2007, the Company entered into a Purchase and Sale Agreement relating to the sale and leaseback of 181 parcels of real property (the “Sale-Leaseback Transaction”), each of which is improved with a restaurant operating as an Applebee's Neighborhood Grill and Bar (the “Properties”). Under these agreements, the Company sold the Properties and then leased the Properties back through leaseback transactions.

Based on certain criteria and in accordance with GAAP under ASC 842, Leases, these transactions were accounted for as failed sale-leasebacks. As a result, the assets of the Properties remain on the Consolidated Balance Sheet at their historical net book value and are depreciated over the remaining term of the applicable master lease. Financing liabilities were recognized in the amount of the proceeds received. The Company does not recognize rent expense related to the leased assets. Instead, monthly rent payments under the applicable master lease agreement are recorded as interest expense and a reduction of the outstanding liability.

As of December 28, 2025 the long-term outstanding liability of $19.3 million was recorded in Other non-current liabilities and the current outstanding liability of $1.5 million was recorded in Current portion of finance leases on the Consolidated Balance Sheets related to the financing liability.

As of December 28, 2025, future minimum lease payments under financing obligations during the initial terms of the leases related to the sale-leaseback transactions are as follows:

Fiscal Years	(In millions)
2026	$	4.0
2027	3.7
2028	18.4
2029	—
2030	—
Thereafter	—
Total minimum lease payments	26.1
Less: interest	(5.4)
Total financing obligations	20.7
Less: current portion	(1.5)
Long-term financing obligations	$	19.3

Leases

Leases

The Company currently leases from third parties the real property for company-owned and certain of its franchise operated restaurants and subleases to the franchisees for franchise operated restaurants. The Company also leases office space for its principal corporate office in Pasadena, California and a restaurant support center in Irving, Texas. The Company does not have a significant amount of non-real estate leases.

The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five to 20 years. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Leases also include variable rental payments based on a percentage of restaurant sales if restaurant sales threshold are met.

The Company's lease cost for the years ended December 28, 2025, December 29, 2024 and December 31, 2023 was as follows:

	2025		2024		2023
	(In millions)
Finance lease cost:
Amortization of right-of-use assets	$	2.7	$	2.6	$	2.5
Interest on lease liabilities	2.7		2.9		2.8
Operating lease cost	81.9		74.1		75.3
Variable lease cost	7.9		8.0		7.8
Short-term lease cost	—		—		—
Lease cost	$	95.2	$	87.6	$	88.4

Maturity analysis of the finance lease and operating lease liabilities as of December 28, 2025 were as follows:

	Finance Leases		Operating Leases
Fiscal Years	(In millions)
2026	$	7.6	$	91.7
2027	6.8		72.3
2028	5.3		56.1
2029	5.4		53.6
2030	4.9		48.5
Thereafter	19.0		156.4
Total minimum lease payments	49.0		478.6
Less: interest/imputed interest	(11.7)		(105.7)
Total obligations	37.3		372.9
Less: current portion	(5.1)		(67.6)
Long-term lease obligations	$	32.2	$	305.3

Other lease information is as follows:

	2025		2024		2023
	(In millions)
Assets obtained in exchange for operating lease obligations	$	72.3	$	109.4	$	47.9
Assets obtained in exchange for finance lease obligations	$	3.8	$	6.8	$	10.5

	2025		2024
	(In millions)
Weighted-average remaining lease term - operating leases	6.4 years		6.2 years
Weighted-average remaining lease term - finance leases	5.3 years		5.5 years
Weighted-average discount rate - operating leases	6.2	%	6.1	%
Weighted-average discount rate - finance leases	9.1	%	9.2	%

During the years ended December 28, 2025, December 29, 2024 and December 31, 2023, the Company made the following cash payments for leases:

	2025		2024		2023
	(In millions)
Cash paid on operating leases	$	89.0	$	83.8	$	75.2
Cash paid on finance leases	5.0		5.6		6.4

The Company's income from operating leases for the years ended December 28, 2025, December 29, 2024 and December 31, 2023 was as follows:

	2025		2024		2023
	(In millions)
Minimum lease payments	$	89.1	$	96.0	100.7
Variable lease income	17.1		17.4		17.5
Total operating lease income	$	106.2	$	113.4	$	118.2

The Company's income from real estate leases receivable at December 28, 2025, December 29, 2024 and December 31, 2023 was as follows:

	2025		2024		2023
	(In millions)
Selling profit	$	0.4	$	0.2	$	0.2
Interest income	1.2		1.2		1.1
Variable lease income	0.3		0.3		0.4
Total financing lease income	$	1.9	$	1.7	$	1.7

Future lease payments to be received as lessor under noncancellable real estate leases as of December 28, 2025 were as follows:

Fiscal Years	Sales-Type Leases		Operating Leases
	(in millions)
2026	$	2.7	$	88.8
2027	2.7		73.2
2028	2.7		58.9
2029	2.6		51.4
2030	2.5		47.2
Thereafter	11.5		158.5
Total minimum rents receivable	24.8		478.0
Less: unearned income	(6.6)
Total real estate leases receivable	18.2
Less: current portion	(1.6)
Long-term real estate leases receivable	$	16.6

Sale-Leaseback Transaction

In 2007, the Company entered into a Purchase and Sale Agreement relating to the sale and leaseback of 181 parcels of real property (the “Sale-Leaseback Transaction”), each of which is improved with a restaurant operating as an Applebee's Neighborhood Grill and Bar (the “Properties”). Under these agreements, the Company sold the Properties and then leased the Properties back through leaseback transactions.

Based on certain criteria and in accordance with GAAP under ASC 842, Leases, these transactions were accounted for as failed sale-leasebacks. As a result, the assets of the Properties remain on the Consolidated Balance Sheet at their historical net book value and are depreciated over the remaining term of the applicable master lease. Financing liabilities were recognized in the amount of the proceeds received. The Company does not recognize rent expense related to the leased assets. Instead, monthly rent payments under the applicable master lease agreement are recorded as interest expense and a reduction of the outstanding liability.

As of December 28, 2025 the long-term outstanding liability of $19.3 million was recorded in Other non-current liabilities and the current outstanding liability of $1.5 million was recorded in Current portion of finance leases on the Consolidated Balance Sheets related to the financing liability.

As of December 28, 2025, future minimum lease payments under financing obligations during the initial terms of the leases related to the sale-leaseback transactions are as follows:

Fiscal Years	(In millions)
2026	$	4.0
2027	3.7
2028	18.4
2029	—
2030	—
Thereafter	—
Total minimum lease payments	26.1
Less: interest	(5.4)
Total financing obligations	20.7
Less: current portion	(1.5)
Long-term financing obligations	$	19.3