GOODWILL, TRADEMARKS AND INTANGIBLE ASSETS

12 Months Ended

Sep. 27, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL, TRADEMARKS AND INTANGIBLE ASSETS

GOODWILL, TRADEMARKS AND INTANGIBLE ASSETS

Goodwill and Trademarks

The changes in the carrying amount of goodwill and trademarks for the years ended September 27, 2025 and September 28, 2024 are as follows:

	Goodwill		Trademarks
	(in thousands)
Balance as of September 30, 2023	$	7,440	$	4,220
Acquired during the year	—		—
Impairment charge (1)	(4,000)		—
Balance as of September 28, 2024	3,440		4,220
Acquired during the year	—		—
Impairment charge (1)	(3,440)		—
Balance as of September 27, 2025	$	—	$	4,220

(1) Accumulated impairment losses as of September 27, 2025 and September 28, 2024 were $17,440,000 and $14,000,000, respectively.

In accordance with ASU 350-20, Intangibles—Goodwill and Other, the Company identified a triggering event during the three months ended March 29, 2025 primarily related to a decline in the Company's stock price during the second quarter of fiscal 2025 and the continued uncertainty related to the expiration of the Bryant Park Grill & Café and The Porch at Bryant Park leases (see Note 10 - Commitments and Contingencies). As a result, the Company performed an interim quantitative impairment test and based on the results of the assessment, the fair value of our equity was determined to be less than its carrying amount. Accordingly, the Company recognized a non-cash impairment charge of the remaining balance of its goodwill in the amount of $3,440,000 in our consolidated statement of operations for the year ended September 27, 2025.

As of September 28, 2024, the Company performed a qualitative assessment of its goodwill whereby the fair value of the equity was determined using the income approach. Given the relatively low volume of shares traded as of September 28, 2024, the Company determined the income approach provided the best approximation of fair value. In the income approach, we utilized a discounted cash flow analysis, which involved estimating the expected future after-tax cash flows generated and then discounting those cash flows to present value, reflecting the relevant risks associated with the achievement of projected cash flows, the possibility that the Bryant Park Grill & Café and The Porch at Bryant Park leases may not be renewed beyond their expirations on April 30, 2025, and the time value of money. This approach required the use of significant estimates and assumptions, including forecasted revenue growth rates, forecasted cash flows from operations, and discount rates that reflect the risk inherent in the future cash flows. Based on the impairment analysis, the carrying amount of our equity exceeded its estimated fair value, which indicated an impairment of the carrying value of our goodwill at September 28, 2024. Accordingly, during the fourth quarter of fiscal 2024, the Company recorded a goodwill impairment charge of $4,000,000, of which $4,000,000 was deductible for tax purposes and resulted in a deferred income tax benefit of $1,074,000. Such impairment was attributed to factors such as, but not limited to, a decrease in the market price of the Company's common stock and lower than expected profitability.

Intangibles

Intangible assets consist of the following:

	September 27, 2025		September 28, 2024
	(in thousands)
Purchased leasehold rights (a) - fully amortized	$	1,995	$	1,995
Noncompete agreements and other - 5-10 years	633		633
	2,628		2,628
Less accumulated amortization	2,615		2,530
Intangible Assets - Net	$	13	$	98

(a)Purchased leasehold rights arose from acquiring leases and subleases of various restaurants.

Amortization expense related to intangible assets for the years ended September 27, 2025 and September 28, 2024 was $85,000 and $89,000, respectively. Amortization expense is expected to be $13,000 for fiscal 2026.