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Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases Leases
During the years ended December 31, 2023, January 1, 2023 and January 2, 2022, the Company sold four, two and 13 restaurant properties, respectively, in sale-leaseback transactions for net proceeds of $5.2 million, $4.1 million and $22.3 million, respectively. These leases have been classified as operating leases and generally contain a twenty-year initial term plus renewal options.
Rent commitments under finance and non-cancelable operating leases at December 31, 2023 were as follows:
Fiscal year ending:Operating LeasesFinance Leases
December 29, 2024$104,289 $3,460 
December 28, 2025102,813 3,338 
December 27, 2026101,195 3,249 
January 2, 202898,895 768 
December 31, 202895,947 5 
Thereafter732,541 — 
Total lease payments1,235,680 10,820 
Less: imputed interest(428,141)(1,068)
Present value of lease liabilities807,539 9,752 
Less: current portion(49,424)(2,909)
Total long-term lease liabilities$758,115 $6,843 
Lease Cost
    The components and classification of lease expense for the years ended December 31, 2023, January 1, 2023 and January 2, 2022 are as follows:
Year ended
Lease costClassificationDecember 31, 2023January 1, 2023January 2, 2022
Operating lease cost (1)
Restaurant rent expense$105,467 $105,285 $103,733 
Operating lease cost (2)
General and administrative1,305 853 946 
Variable lease cost - variable rentRestaurant rent expense23,337 20,196 18,929 
Variable lease cost - common area maintenance Other restaurant operating expenses675 578 585 
Finance lease cost:
Amortization of right-of-use assetsDepreciation and amortization3,290 2,798 755 
Interest on lease liabilitiesInterest expense754 723 133 
Total lease cost$134,828 $130,433 $125,081 
(1)Includes short-term leases which are not material.
(2)Represents operating lease costs for property and equipment not directly related to restaurant operations.
Lease Position
    Supplemental balance sheet information related to leases was as follows as of December 31, 2023 and January 1, 2023:
LeasesClassificationDecember 31, 2023January 1, 2023
Assets
Operating leasesOperating right-of-use assets, net$743,250 $763,935 
Finance leasesProperty and equipment, net9,158 12,429 
Total leased assets$752,408 $776,364 
Liabilities
Current
Operating leasesCurrent portion of operating lease liabilities$49,424 $47,408 
Finance leasesCurrent portion of long-term debt and finance lease liabilities2,909 3,091 
Long-term
Operating leasesOperating lease liabilities758,115 776,465 
Finance leasesLong-term debt and finance lease liabilities6,843 9,735 
Total lease liabilities$817,291 $836,699 
Weighted Average Remaining Lease Term
Operating leases12.3 years12.9 years
Finance leases3.2 years4.1 years
Weighted Average Discount Rate
Operating leases7.1 %7.0 %
Finance leases6.8 %6.7 %
Leases Leases
During the years ended December 31, 2023, January 1, 2023 and January 2, 2022, the Company sold four, two and 13 restaurant properties, respectively, in sale-leaseback transactions for net proceeds of $5.2 million, $4.1 million and $22.3 million, respectively. These leases have been classified as operating leases and generally contain a twenty-year initial term plus renewal options.
Rent commitments under finance and non-cancelable operating leases at December 31, 2023 were as follows:
Fiscal year ending:Operating LeasesFinance Leases
December 29, 2024$104,289 $3,460 
December 28, 2025102,813 3,338 
December 27, 2026101,195 3,249 
January 2, 202898,895 768 
December 31, 202895,947 5 
Thereafter732,541 — 
Total lease payments1,235,680 10,820 
Less: imputed interest(428,141)(1,068)
Present value of lease liabilities807,539 9,752 
Less: current portion(49,424)(2,909)
Total long-term lease liabilities$758,115 $6,843 
Lease Cost
    The components and classification of lease expense for the years ended December 31, 2023, January 1, 2023 and January 2, 2022 are as follows:
Year ended
Lease costClassificationDecember 31, 2023January 1, 2023January 2, 2022
Operating lease cost (1)
Restaurant rent expense$105,467 $105,285 $103,733 
Operating lease cost (2)
General and administrative1,305 853 946 
Variable lease cost - variable rentRestaurant rent expense23,337 20,196 18,929 
Variable lease cost - common area maintenance Other restaurant operating expenses675 578 585 
Finance lease cost:
Amortization of right-of-use assetsDepreciation and amortization3,290 2,798 755 
Interest on lease liabilitiesInterest expense754 723 133 
Total lease cost$134,828 $130,433 $125,081 
(1)Includes short-term leases which are not material.
(2)Represents operating lease costs for property and equipment not directly related to restaurant operations.
Lease Position
    Supplemental balance sheet information related to leases was as follows as of December 31, 2023 and January 1, 2023:
LeasesClassificationDecember 31, 2023January 1, 2023
Assets
Operating leasesOperating right-of-use assets, net$743,250 $763,935 
Finance leasesProperty and equipment, net9,158 12,429 
Total leased assets$752,408 $776,364 
Liabilities
Current
Operating leasesCurrent portion of operating lease liabilities$49,424 $47,408 
Finance leasesCurrent portion of long-term debt and finance lease liabilities2,909 3,091 
Long-term
Operating leasesOperating lease liabilities758,115 776,465 
Finance leasesLong-term debt and finance lease liabilities6,843 9,735 
Total lease liabilities$817,291 $836,699 
Weighted Average Remaining Lease Term
Operating leases12.3 years12.9 years
Finance leases3.2 years4.1 years
Weighted Average Discount Rate
Operating leases7.1 %7.0 %
Finance leases6.8 %6.7 %