FIXED ASSETS

12 Months Ended

Sep. 28, 2024

Property, Plant and Equipment [Abstract]

Fixed assets consist of the following:


	September 28, 2024		September 30, 2023
	(in thousands)
Land and building	$	18,393	$	18,393
Building and leasehold improvements	44,371		44,308
Furniture, fixtures and equipment	39,123		39,025
Construction in progress	1,107		127
	102,994		101,853
Less: accumulated depreciation and amortization	71,425		67,539
Fixed Assets - Net	$	31,569	$	34,314

Depreciation and amortization expense related to fixed assets for the years ended September 28, 2024 and September 30, 2023 was $4,001,000 and $4,225,000, respectively.

Management continually evaluates unfavorable cash flows, if any, related to underperforming restaurants. Periodically it is concluded that certain properties have become impaired based on their existing and anticipated future economic outlook in their respective markets. In such instances, we may impair assets to reduce their carrying values to fair values. Estimated fair values of impaired properties are based on comparable valuations, cash flows and/or management judgment.

During the year ended September 28, 2024, impairment indicators were identified at our Sequoia property located in Washington, D.C. due to lower-than-expected operating results. Accordingly, the Company tested the recoverability of Sequoia's ROU and long-lived assets and concluded they were not recoverable. Based on a discounted cash flow analysis, the Company recognized impairment charges of $1,561,000 and $939,000 related to Sequoia's ROU assets and long-lived assets, respectively. No impairment charges were recognized related to long-lived assets or ROU assets during the year ended September 30, 2023. Given the inherent uncertainty in projecting results of restaurants, the Company will continue to monitor the recoverability of the carrying value of the assets of Sequoia and several other restaurants on an ongoing basis. If expected performance is not realized, further impairment charges may be recognized in future periods, and such charges could be material.