Leases

9 Months Ended

Jun. 25, 2024

Leases [Abstract]

Leases

Note 11.     Leases

The Company determines if a contract contains a lease at inception. The Company’s material long-term operating lease agreements are for the land and buildings for our restaurants as well as our corporate office. The initial lease terms range from 10 to 20 years, most of which include renewal options of 10 to 15 years.

Components of operating lease costs are as follows for the fiscal quarters ended June 25, 2024 and June 27, 2023:

Lease cost	Classification	June 25, 2024			June 27, 2023
Operating lease cost	Occupancy, Other restaurant operating costs and General and administrative expenses, net	$	1,876		$	1,824
Variable lease cost	Occupancy		19			60
Sublease income	Occupancy		(132	)		(137	)
		$	1,763		$	1,747

Weighted average lease term and discount rate are as follows:

	June 25, 2024			June 27, 2023
Weighted average remaining lease term (in years)		7.52			8.16
Weighted average discount rate		5.2	%		5.0	%

Supplemental cash flow disclosures:

	June 25, 2024		June 27, 2023
Cash paid for operating lease liabilities	$	5,817	$	5,771
Non-cash operating lease assets obtained in exchange for operating lease liabilities	$	933	$	1,201

Future minimum rent payments for our operating leases as of June 25, 2024 are as follows:

	Total
One Year	$	8,402
Two Years		8,066
Three Years		7,754
Four Years		7,202
Five Years		5,867
Thereafter		17,952
Total minimum lease payments		55,243
Less: imputed interest		(9,760	)
Present value of lease liabilities	$	45,483

The above future minimum rental amounts exclude the amortization of deferred lease incentives, renewal options that are not reasonably assured of renewal, and contingent rent. The Company generally has escalating rents over the term of the leases and records rent expense on a straight-line basis.